Global capability centres and India entry
A global capability centre (GCC) is a company's own team in India doing engineering, finance, analytics or support work for the parent. Most of the effort in the first year is not hiring. It is choosing the entity, setting the transfer pricing, registering for payroll and labour compliance, and getting the first audit through cleanly. That is the part we do.
When you need this
- A foreign group plans its first team in India, or its first Indian entity.
- You already have a captive team on an employer-of-record arrangement and want to move it into a subsidiary.
- You run a GCC and your transfer pricing, GST on intercompany billing or payroll compliance is unsettled.
- An Indian company is setting up a subsidiary abroad and wants the reporting done correctly.
What we do
Entity choice
Private limited subsidiary, LLP, branch or liaison office, and the employer-of-record bridge, with the tax, FEMA and sector-cap consequences of each.
Incorporation and FDI
Company formation, resident director, registered office, bank account, and FC-GPR reporting of the parent's investment.
Transfer pricing
The intercompany agreement, a cost-plus markup that can be supported with a benchmarking study, and Form 3CEB each year.
GST
Treatment of services provided to the parent, the conditions for export of services, and letter-of-undertaking and refund processes.
STPI and SEZ options
Eligibility, approvals and ongoing filings where a unit qualifies.
People
Payroll, Labour Codes, statutory registrations, and secondees from the parent.
Permanent establishment risk
Review of how the parent directs the Indian team.
Year-one finance
Accounting set-up, monthly close, statutory audit, and annual filings.
How an engagement runs
- A structure note, covering entity, tax, FEMA, GST, payroll and the timetable, before anything is filed.
- Incorporation, bank account, registrations and the intercompany agreement.
- First hires through payroll, or transfer from the employer-of-record arrangement.
- A steady-state calendar: monthly GST and payroll, quarterly TDS, annual transfer pricing, audit and FEMA returns.
What we need from you
- The parent's structure chart, the intended scope of work and headcount plan, and the draft services agreement, if one exists.
Questions people ask
- What is a GCC?
- A global capability centre is a captive unit of a multinational that does work for the group from India, such as software engineering, finance operations, analytics or research. It is usually housed in an Indian subsidiary.
- Can a foreign company own 100% of an Indian subsidiary?
- In IT and most business-services activity, yes, under the automatic route. Other sectors have caps or need approval.
- How is a GCC taxed?
- It is usually paid by the parent for its services on a cost-plus basis. The markup must be supportable under transfer pricing rules, and the Indian tax authorities can test it.
- Is a resident director required?
- Yes. A company must have at least one director who has stayed in India for 182 days or more in the year.
Related practices
Engagement terms and fees are agreed after the first conversation, based on scope and complexity.
Contact the Office