A Global Capability Centre (GCC) is a hub that a multinational company sets up to handle high value work such as engineering, data, finance, HR, cybersecurity, and research. Instead of outsourcing, the company owns and manages the centre to stay closely aligned with its global goals. India has become the GCC destination in 2026 because companies can hire skilled talent quickly, build strong long-term teams, and benefit from an ecosystem experienced in running global operations. Industry estimates show there are around 1,700 GCCs in India employing about 1.66 million professionals, which reflects real progression and capability. Companies choose India because the talent, support systems, and leadership pipeline are well-defined.
I. India – GCC Capital of the World
Why teams across the world choose India?
India is the go-to- hub for global teams because it helps you scale without compromising the quality. Further, it works for teams who intend to grow along with the projects and not just deliver them. Since, India already accommodates about 1700 GCCs and is referred to as the domicile for about 17% of technology GCCs in the world. India houses an environment where leaders, investors, vendors, and operating manuals are promptly available. Further, several global organizations choose India due to the depth of the talent channel, with about 1.5 million STEM graduates annually, facilitating team building across engineering, data, finance, risks, and customer operations. The STEM force in India is at the frontier of the GCC revolution positioning India as the usual choice for global firms. The strategic time zone of the Indian sub-continent allows round-the-clock delivery models, granting organizations the benefit of consistent development, operations, and support systems. Most importantly, cost effectiveness is important, with sources mentioning 30-60% operational cost enhancement while upholding global standards.
Why is 2026 different?
The objective of 2026 is not just “cost and delivery” but proficiency conception. Most GCCs are responsible for product strategy, security after-effects, and measurable business impact. This move raises bar on corporate governance, board level reflectivity, and well-defined accountability. Intercorporate service provisions require stronger documentation to sustain operational precision and compliance, which connects directly to the GCC compliance and regulatory framework in India, which teams must plan for from the beginning.
Who can use this guide?
This comprehensive guide is explicitly designed for CFOs, general counsel, active leaders, and collective service heads who intend to set-up a Global Capability Centre (GCC) in India. The primary objective of the guide is to equip readers with the distinct Global Capability Centre setup process in India, in consonance with the Tax structure for GCC in India.
II. What do you need to check before setting up a GCC in India?
Before you set up a Global Capability Centre in India, it helps to pause and align everyone on a few core decisions. When leadership teams across India and overseas are clear on the direction, the journey becomes smoother and far more predictable. A successful Global Capability Centre setup in India is built around outcomes and clarity, not assumptions.
- Purpose of the GCC
Begin with defining the objective of the GCC. Be clear about which functions will move first, what work the centre will own from start to finish, and what success should look like at six months, twelve months, and twenty-four months. When the mandate is defined in practical terms, decisions around hiring, technology, budgets, and governance become easier to coordinate across stakeholders. - GCC or GIC
Before finalizing the operating model of GCC, it is important to understand whether the proposed GCC will be structured as a standard GCC or will fall within the Global In-house Centres (GIC) framework in an IFSC (International Financial Services Centre). GIC Unit as per the International Financial Services Centre Authority (IFSCA) (GIC) Regulations, 2025 is defined as an entity providing support services i.e. I.T., Compliance, Analytics, etc. to entities within the IFSC. As on today, GIFT (Gujarat Finance Tec-City) IFSC is the first and the only international services centre in India. This categorization at the onset helps warrant the setup strategy, approvals, compliances are allied from day one, and mitigates governance, contractual and reporting risks. - Operating Model
Further, decide on the operating model. A confined GCC gives you greater control over intellectual property, quality standards, and organizational culture. A managed or hybrid model can help you move faster in the early stages, especially if speed to launch is critical. However, it requires clear agreements on roles, service levels, performance metrics, and change management so accountability remains transparent and balanced. - Location strategy
Location strategy is another important choice. Some organizations prefer a single city to keep communication simple and build a strong unified culture. Others choose a multi city presence to access broader talent pools and improve business continuity. The right decision should be guided by practical factors such as leadership availability, depth of skills, attrition patterns, infrastructure, and how closely teams need to collaborate across time zones. - Compliance and Commercial Transparency
Finally, lay a strong foundation for compliance and commercial clarity. Define board oversight, signing authority, internal controls, and a compliance calendar from the beginning so GCC compliance and regulatory framework in India are clearly owned. At the same time, align on how the parent company and the GCC will define services, measure performance, and value intercorporate arrangements.
These decisions shape the tax and transfer pricing structure as the centre grows and scales. Taking the time to make these decisions thoughtfully will not slow you down. It will give your GCC in India a clear identity, stronger governance, and a more confident path to long term success.
III. How to set up a GCC in India?
The fastest manner to Set Up a Global Capability Centre (GCC) in India is to treat organization as a unified task performance system, rather than an arrangement of synchronized tasks across finance, IT, legal, business development and other departments. Further, accurate classification of the centre is important because the terminology can redefine the compliances. As aforesaid, GCC is synonymously used as an extensive term for an in-house capability hub. However, the terminology changes to GIC if the unit is being set up in an IFSC to provide respective services to entities within a financial services group. This categorization is not merely aesthetic; it guides whether you are developing around the IFSC regulatory structure or a traditional regulatory structure.
On finalization of the classification, the organization shall fix the legal identity and governance framework of the India existence. For instance, if you intend to incorporate a company, the baseline framework and compliances shall be as per the Companies Act, 2013, while in case of LLP it shall be linked to the Limited Liability Partnership Act, 2008. Simultaneously, the incorporate route should be designed, along with registrations that run through MCA-linked systems, to avoid compliance and registration delays. For instance, AGILE-PRO-S (INC-35) as maybe relevant to the organization.
Further, early execution of good compliance practices is important before piling up of late compliances. Establish the statutory workplace framework as under Prevention of Sexual Harassment at Workplace (POSH) Act, 2013, especially the employer duties as referenced under Section 19. Additionally, ensure the Internal Committee framework is in practice and not merely on “paper.”
Furthermore, consider intercorporate and vendor contracting as a part of the compliance infrastructure. Draft the documentation in a manner that can be secured under India’s transfer pricing regulatory framework. The significant framework is subordinate to the Income Tax Act, 1961 (Section 92-92F), documentation regulation is linked to Section 92 D of the Income Tax Act, 1961 along with Rule 10D of the Income Tax Rules, 1962. Additionally reporting compliances are as associated with Section 92E and Form 3CEB, as applicable. Scope, Definitions, deliverables, pricing strategy, auditability, and evidence routes should be made coherent from the beginning.
If the centre handles your personal data or establishes products, then data governance and hardwire privacy will come into the setting. Special attention must be given to security safeguards, breach reply preparedness and processor-style controls in vendor terms where third parties manage personal data for the entity in cases where your baseline must go hand in hand with the Digital Personal Data Protection (DPDP) Act, 2023 and the notified DPDP Rules, 2025.
In the end, transform all of the above in ready to audit operating system: a compliance chart for owners, a retention document and evidence backed protocol (contracts, approvals by management, HR records, privacy control, TP support files) and regular checks internally so that the GCC compliance and regulatory framework India posture can be demonstrated as per need and not reformed after the incident.
IV. Checklist: GCC compliance and regulatory framework and Tax structure for GCC in India
Please note that the checklist is suggestive and exclusive in nature.
- Legal Entity and Governance: Authorized Signatories, Delegated Authority, and Reporting Mechanism.
- Workplace Preparedness: POSH related compliances, HR policies, and Consistent onboarding.
- DPDP Rules and Regulation: Data Access controls, Vendor terms and conditions, and Incident Response mechanism.
- Intercorporate Transparency: Service directory, KPIs, change of power, and evidence trajectory.
- Tax Structure for GCC in India: Pricing structure, Cost allocation, and Transfer pricing documentation.
V. What to be careful about while setting up a GCC in India and associated risks?
- Finalize the operating model before incorporation
Be careful about deciding the operation model first, followed by incorporation and reporting channels later.
Risk: Revision of governance and contracts after operationalisation, slower implementation, and ambiguous accountability. - Document the intercorporate engagement before delivery execution begins
Be vigilant about commencing work without a clear service directory, Service Level Agreements (SLAs) and Key Performance Indicators (KPIs), change of power, and accountability.
Risk: Revision in scope, delivery disagreements, and limited support for transfer pricing and internal control systems. - Limited headcount before consistent workplace compliances
Be vigilant about swift hiring before POSH preparedness and fundamental HR processes feel uniform across teams.
Risk: Irregular employee experience, higher disintegration, employee relations, and leadership diversion. - Integrate privacy and security measures during set-up and not after incorporation
Avoid treating data governance as an IT oriented task and delaying DPDP aligned control mechanism.
Risk: Higher exposure to breaches, expensive redressal mechanism, vendor inequalities, and impact on goodwill on data outreach. - Integrate compliance as an operating system and not as a one-time checklist
Be vigilant about overlooking evidence regulation, designated owners, and a compliance calendar with review inflection.
Risk: Usually routine audits get disrupted, filings are missed, and small disparities lead to major risks.
VI. FREQUENTLY ASKED QUESTIONS (FAQs)
What are the most common mistakes when setting up a GCC in India?
Many teams consider locking an operating model and intercompany scope, scale hiring before workplace requirements are stable, and leave security for later. Vendor joining process without audit rights and security terms increases risk. Weak evidence discipline, like approvals, training, diligence, and transfer pricing files, makes audits stressful.
What does IFSCA mean, and when is it relevant for GCC planning?
IFSCA is the International Financial Services Centres Authority, the regulator for India’s IFSCs. It matters if you plan to work from an IFSC such as GIFT City or if your setup could qualify as a regulated GIC under the IFSCA framework.
Why are GCCs considered a powerhouse driver for India?
GCCs increasingly own great value work eg- product engineering, analytics, cybersecurity, and transformation. This creates skilled jobs, leadership pipelines, and innovation capacity, strengthening India’s role as a global capability.
What does “strategic modelling” of a GCC mean, and how do DIY, BOT, and Hybrid BOT differ?
Strategic modelling is the early decision on how the GCC will be built and governed, not just where it will sit. It begins with clarifying which services move to India and defining reporting lines, ownership, and control so accountability is clear across teams. In a DIY model, the foreign entity sets up and runs the GCC itself, keeping full ownership and outsourcing only specialist local support tasks. In a BOT model, build-operate-transfer, a third-party service provider sets up and operates the GCC initially, then transfers ownership and control to the foreign entity once the unit is stable. Hybrid BOT variants combine elements of both, including a joint venture approach where the provider retains a minority equity stake after transfer, or a virtual captive model where the centre has a limited presence and is third-party managed until transfer, after which the scope typically expands.
What is the relevance of transfer pricing to setting up a GCC in India?
Transfer pricing and related compliance become relevant because a GCC usually provides services to overseas entities, classified as a related-party arrangement. Indian regulatory framework prices these transactions at arm’s length, backed by documentation.
VII. Conclusion
In 2026, setting up a GCC in India is no longer just a location decision driven by cost or talent availability. It is a long-term operating model decision that shapes how the organisation will build capability, manage risk, and deliver value globally. The organisations that truly succeed are those that treat the GCC as a capability engine with clear ownership, measurable outcomes, and governance that balances speed with accountability. Approvals are clear, responsibilities are not blurred, audits feel routine instead of stressful, and scaling happens with intention rather than urgency. Over time, this foundation allows the GCC to move beyond support functions and evolve into a trusted global hub that drives innovation and decision-making.
Corrida Legal works alongside organisations from day one to align structure, compliance, and operating workflows in a way that is both practical and future-ready. This includes advising on entity and governance choices, supporting incorporation, building readiness under the Digital Personal Data Protection framework and POSH requirements, and designing intercompany contracting that stands up to transfer pricing scrutiny. The focus is not just on setup, but on creating a structure that remains strong as the GCC grows in scale and responsibility.
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