Setting up a GCC in India

Setting up a GCC in India

Law.asia has published an explainer on establishing a global capability centre (GCC) in India. The piece, dated 2 July 2026, examines the considerations that arise when a multinational sets up an offshore unit in the country to handle functions such as technology, analytics, finance and other shared services. The article is aimed at readers who need to understand the structural and regulatory dimensions of such an exercise, rather than at general readers.

Why This Matters

For Indian legal, tax and compliance professionals, GCCs are a significant and growing category of inbound work. A GCC is not a single transaction but a combination of decisions: choice of entity, ownership and control, transfer pricing, permanent establishment risk, employment and labour law, data protection, and sector-specific approvals. Each choice carries consequences that extend well beyond incorporation. The article's appearance on a legal publication's platform signals that the subject is being treated as a mainstream advisory issue rather than a niche one. It also reflects the reality that multinationals increasingly treat India as a base for higher-value functions, not merely back-office support. That shift raises the stakes for advisers, because the tax and regulatory treatment of a GCC can differ materially depending on how its activities are characterised and how intercompany arrangements are documented.

What to Watch Next

Readers should watch how guidance and practice develop around the characterisation of GCC activities, particularly in transfer pricing and permanent establishment analysis. Attention will also fall on employment structuring, data localisation expectations, and the interplay between central and state-level requirements. As more GCCs move into core and regulated functions, sectoral regulators may take a closer interest in how these entities are governed. The article itself does not set out specific thresholds, timelines or recommendations…