How to Set Up a Global Capability Center (GCC) in India: A Step-by-Step Guide

How to Set Up a Global Capability Center (GCC) in India: A Step-by-Step Guide

India has emerged as a premier destination for Global Capability Centers (GCCs) due to its rich talent pool, cost advantages, and expanding infrastructure. Setting up a GCC in India can unlock tremendous operational efficiencies, innovation, and talent scalability for multinational companies. However, the journey from scratch to a fully functional GCC requires strategic planning, compliance adherence, and robust execution.

This comprehensive guide walks you through the critical steps to successfully set up a GCC in India.

Step 1: Define the Purpose and Strategic Vision

Before initiating any setup activities, clearly define the GCC’s strategic intent aligned with your parent company’s objectives. Whether the focus is cost optimization, digital transformation, innovation, analytics, R&D, or multi-functional operations, this clarity drives the right operating model and talent strategy.

• Align GCC objectives with global business goals.

• Define expected outcomes, KPIs, and growth roadmap.

• Plan for GCC evolution to support long-term strategies.

Step 2: Conduct Feasibility and Location Analysis

Selecting the right location is crucial to access the talent, infrastructure, and ecosystem that matches your GCC’s function and scale.

• Evaluate major GCC hubs: Bengaluru and Hyderabad (technology, R&D), Pune and Chennai (manufacturing, finance), and emerging Tier II cities for cost efficiency.

• Consider talent availability, real estate costs, connectivity, and quality of life.

• Factor in government incentives, state policies, and ecosystem maturity.

Step 3: Legal Entity Setup and Regulatory Compliance

Setting up a legal entity in India is mandatory and involves navigating the regulatory framework under the Companies Act, 2013.

• Choose entity type: Wholly Owned Subsidiary (WOS) is most common for full control; other options include joint ventures or LLPs.

• Complete company incorporation via the Ministry of Corporate Affairs (MCA) portal including name reservation, filing the SPICe+ form (incorporation, MOA, AOA).

• Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC) for directors.

• Register for tax IDs: Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and GST registration where applicable.

• Ensure compliance with Indian labor laws, transfer pricing regulations, and data protection laws.

• Engage local legal and tax advisors to streamline compliance and leverage tax incentives such as SEZ benefits.

Step 4: Build Governance and Leadership Structure

Strong governance and leadership on-ground ensure operational alignment with global headquarters.

• Appoint senior leadership capable of managing GCC functions and interfacing with parent company.

• Establish governance frameworks including reporting channels, performance reviews, and risk management processes.

• Create transparent communication protocols and alignment mechanisms between GCC and global teams.

Step 5: Talent Acquisition and Development

The true asset of a GCC is its talent. Invest heavily in sourcing, training, and retaining skilled professionals.

• Define roles, capability requirements, and career development paths.

• Leverage local recruitment agencies and platforms to tap into the diverse talent pool.

• Implement robust onboarding, upskilling, and retention programs aligned with global standards.

• Promote a strong corporate culture that integrates GCC employees into the parent organization’s mission.

Step 6: Infrastructure and Technology Setup

Create a cutting-edge workplace environment equipped with the latest technology tools to drive innovation and efficiency.

• Lease or build office space with scalability.

• Deploy secure and resilient IT infrastructure—networking, cloud platforms, cybersecurity.

• Align with global IT standards to enable seamless collaboration and data security.

• Invest in digital tools for process automation and analytics.

Step 7: Integrate Operations and Continuous Improvement

Ensure seamless integration of GCC processes with the parent company and establish a continuous improvement mindset.

• Align operational workflows, metrics, and reporting with global business units.

• Implement performance management systems to track KPIs and service levels.

• Foster innovation through Centers of Excellence or incubator models within the GCC.

• Periodically review costs, efficiency, and value delivery to evolve the GCC continually.

Setting up a GCC in India is a strategic journey that, when executed with rigor and expertise, can transform your global operations. Partnering with experienced advisors, embracing local nuances, and maintaining strong governance are key to unlocking the full potential of your GCC.

This practical roadmap equips leaders to confidently navigate each stage—from vision to value creation—building a world-class Global Capability Center right in the heart of one of the most dynamic talent markets globally.

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