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India has officially become the GCC Capital of the World — and for good reason. If you are a foreign company thinking about expanding your operations, setting up a Global Capability Center (GCC) in India is one of the smartest moves you can make right now. This guide will walk you through everything you need to know — in plain, simple language.
Table of Contents
- What Is a GCC (Global Capability Center)?
- Why Set Up a GCC (Global Capability Center) in India? (Top Reasons Backed by Data)
- Steps to Set Up a GCC in India
- Examples of GCCs in India
- Government Incentives for GCCs (Global Capability Centers) in India
- How Mercurius can help you set Up your GCC in India?
- Frequently Asked Questions (FAQs)
What Is a GCC (Global Capability Center)?
A Global Capability Center (GCC) — also called a Global In-house Center (GIC) or Captive Center — is a fully owned offshore office set up by a foreign company in another country to handle important business functions.
Think of it this way: your company is headquartered in the US, UK, or Germany. Instead of outsourcing your IT, finance, analytics, or R&D work to a third party, you set up your own office in India with your own employees, working directly for your company. That is a GCC.
Unlike outsourcing, a GCC gives you:
- Full ownership and control
- Direct management of your team
- Better data security and IP protection
- Long-term cost savings
GCCs today handle much more than back-office support. Modern GCCs in India are running artificial intelligence research, product development, cloud engineering, cybersecurity, financial analytics, and global decision-making.
Why Set Up a GCC (Global Capability Center) in India? (Top Reasons Backed by Data)
India is not just popular — it is dominant. Here is why thousands of global companies choose India:
1. India Is the World’s #1 GCC Destination
India hosts over 1,760 GCCs as of 2025 — that is more than 53% of all GCCs worldwide. No other country comes close. Between early 2024 and late 2025 alone, approximately 110 new GCCs were established in India.
2. Massive, Skilled Talent Pool
India’s GCC sector employs nearly 2 million professionals — engineers, data scientists, financial analysts, software developers, AI specialists, and more. India produces over 1.5 million engineering graduates every year, giving you access to a deep and growing talent base.
3. Significant Cost Savings
Operating costs in India are typically 60–70% lower than in the US, UK, or Western Europe. You get highly qualified professionals at a fraction of the salary you would pay at home, without compromising on quality.
4. English Is the Language of Business
All corporate, legal, and technical work in India is conducted in English. This makes communication seamless for foreign companies from day one.
5. Strong Revenue Growth
Indian GCCs generated USD 64.6 billion in revenue in FY2024, up from just USD 19.6 billion a decade ago — an annual growth rate of over 11%. By 2030, this is expected to cross USD 100 billion.
6. Time Zone Advantage
India’s time zone (IST, GMT+5:30) provides excellent overlap with both European and US business hours, making real-time collaboration easy.
7. Mature Ecosystem
India has a thriving network of GCC enablers, legal advisors, HR firms, real estate specialists, and compliance experts who understand exactly what foreign companies need.
Steps to Set Up a GCC in India
Setting up a GCC in India involves a structured process. Here is a step-by-step breakdown in simple terms:
Step 1: Define Your Strategy and Objectives
Before anything else, decide what your GCC will do. Will it handle IT and software development? Financial analysis? HR shared services? Research and development? AI and data analytics?
Also decide:
- How many employees you plan to hire (start with 50 or 500?)
- Which city makes the most sense for your needs
- What your budget is for the first 3–5 years
- Which operating model suits you (see Step 2)
Step 2: Choose Your Operating Model
There are three main models for setting up a GCC in India:
DIY (Do-It-Yourself) Model: You set up and run everything yourself. Best for large companies with experience in India and sufficient internal resources.
BOT (Build-Operate-Transfer) Model: A specialized GCC enabler company sets up and runs the center for you for 1–3 years, then transfers full ownership and control to you. This is ideal for companies entering India for the first time — it dramatically reduces risk and speeds up the process.
COPO (Company-Owned, Partner-Operated) Model: You own the legal entity but a partner manages day-to-day operations. Gives you ownership with operational support.
Step 3: Choose the Right Location
Your choice of city will affect talent availability, costs, and ease of operations. Here are India’s top GCC cities:
- Bengaluru — India’s Silicon Valley. 880+ GCCs. Best for deep tech, AI, product development.
- Hyderabad — 355+ GCCs. Strong in life sciences, analytics, and government-backed innovation.
- Mumbai/Pune — Best for BFSI (banking, financial services, insurance) and automotive tech.
- Chennai — Strong in manufacturing, healthcare, and STEM talent.
- Delhi NCR — Good for diverse industries, consulting, and engineering.
- Tier-2 Cities — Jaipur, Coimbatore, Indore, Kochi are emerging fast with lower costs.
Step 4: Set Up Your Legal Entity
This is a critical step. To legally operate in India and hire employees, you must register a business entity. The most popular choice for GCCs is a Private Limited Company (Pvt. Ltd.), which offers:
- Full ownership by the foreign parent company
- Limited liability protection
- Ability to hire employees directly
- Easier compliance and banking
The registration process involves:
- Reserving a company name with India’s Ministry of Corporate Affairs (MCA)
- Filing the SPICe+ form with your Memorandum of Association (MOA) and Articles of Association (AOA)
- Getting a PAN (Permanent Account Number) for taxes
- Registering for GST (Goods and Services Tax)
- Opening a corporate bank account in India
Other entity options include a Branch Office, Limited Liability Partnership (LLP), or Joint Venture — each with different tax and compliance implications.
Important: At least one director must be a resident of India. Companies from countries sharing a land border with India (China, Pakistan, etc.) need prior government approval under FEMA.
This entire process typically takes 30–90 days.
Step 5: Register Under SEZ or STPI (for Tax Benefits)
If your GCC will primarily serve your overseas parent company, consider registering under:
- Special Economic Zones (SEZs): Offer major tax exemptions (see Government Incentives section below).
- Software Technology Parks of India (STPI): Great for IT/software-focused GCCs with single-window clearances and import duty exemptions.
- GIFT City (Gujarat): A special International Financial Services Centre (IFSC) ideal for financial services GCCs, with its own streamlined regulations.
Step 6: Set Up Office Infrastructure
Decide between leased Grade-A office space, co-working setups, or SEZ/IT park premises. GCCs leased an impressive 29.2 million sq. ft. of office space in India in 2024 — a 29% year-on-year jump — showing the scale of activity.
Many GCC enablers can help you find and set up the right workspace quickly.
Step 7: Build Your Team
Talent is the heart of your GCC. Key actions include:
- Partnering with universities and engineering colleges for campus hiring
- Building your employer brand in India before you open doors
- Creating career growth paths that attract the best talent
- Hiring an HR leader with India-specific experience early
Step 8: Go Live and Optimize
Once your team is in place, establish your governance framework — KPIs, reporting structures, performance reviews, and cultural integration programs. India’s work culture is collaborative and English-fluent, but investing in cross-cultural training helps build a truly unified global team.
The full process — from decision to operations — typically takes 3 to 6 months. For more details regarding this, you can simply contact us!
Examples of GCCs in India
Some of the world’s most respected companies have built thriving GCCs in India. Here are a few well-known examples:
- Goldman Sachs — One of its largest global technology centers is in Bengaluru, with plans to expand to 2,500+ employees. Focuses on software engineering, data analytics, and risk management.
- Walmart — Operates multiple India GCCs, including a second center in Chennai dedicated to retail innovation and technology.
- Microsoft — Has a major GCC in Hyderabad involved in cloud computing, AI, and product development.
- JPMorgan Chase — Runs a large GCC in Mumbai and Bengaluru covering fintech, data science, and operations.
- Rolls-Royce — Has a GCC in Bengaluru focused on aerospace engineering and R&D.
- Novo Nordisk (MedTech) — Set up a dedicated diabetes innovation center in Pune with a USD 50 million investment over five years.
- Vanguard — Chose Hyderabad for its India GCC focused on financial operations and analytics.
These are not just back offices. They are genuine innovation engines contributing to their companies’ global strategies.
Government Incentives for GCCs (Global Capability Centers) in India
The Indian government — both central and state — actively supports GCC growth with attractive incentives. Here is what is available:
1. Special Economic Zone (SEZ) Benefits
Operating in an SEZ gives your GCC:
- 100% income tax exemption on export profits for the first 5 years
- 50% tax exemption for the next 5 years
- Duty-free imports of capital goods and equipment
- GST zero-rating on supplies within SEZs
- Single-window clearance for all central and state approvals
- External commercial borrowing up to USD 500 million per year
2. Software Technology Parks of India (STPI)
For IT-focused GCCs, STPI registration offers:
- Exemptions on import duties for IT infrastructure
- Single-window clearance to simplify setup
- High-speed data connectivity support
3. 100% FDI Under the Automatic Route
India allows 100% Foreign Direct Investment (FDI) in GCC-related sectors (IT, BFSI, healthcare, etc.) without requiring prior government approval. This means you can fully own your India GCC with minimal bureaucracy.
4. State-Level Policies
Several Indian states have launched dedicated GCC policies with additional benefits:
- Karnataka GCC Policy 2024–2029: Targets 500 new GCCs by 2029, with incentives for going beyond Bengaluru. Aims to create 350,000 new jobs and USD 50 billion in economic output.
- Maharashtra GCC Policy 2025: Offers payroll subsidies, power tariff subsidies of ₹1–2/unit for 5 years, 100% electricity duty exemption for 10 years, priority land allotment, and 24/7 operational permissions.
- Madhya Pradesh GCC Policy 2025: Targets 250 new GCCs with CAPEX subsidies up to ₹30 crore, patent assistance up to ₹30 lakh per international patent, and OPEX support in early years.
5. National Framework for GCCs (2025)
India’s Ministry of Electronics and IT (MeitY) has formed a dedicated industry panel — including NASSCOM, Zinnov, KPMG, and Invest India — to create a national GCC framework. This was announced in the Union Budget 2025 and aims to reduce taxation ambiguity, create uniform incentives, and expand GCC growth to Tier-2 cities.
6. Skill India and Digital India
The Skill India initiative ensures a growing pipeline of trained professionals for GCC needs. The Digital India program continues to improve broadband infrastructure, data centers, and digital services — all essential for modern GCC operations.
If you want to know more about how these policies can help you enter the Indian market and how you can avail their benefits, you can contact us.
How Mercurius can help you set Up your GCC in India?
Navigating India’s legal, tax, and compliance landscape can be complex for foreign companies. At Mercurius, we provide end-to-end advisory and legal support for foreign companies looking to set up a GCC in India. Our services include:
- Entity structuring and registration — choosing the right legal form for your GCC
- FEMA and FDI compliance — ensuring your foreign investment is fully compliant
- Tax advisory — optimizing your structure for SEZ, STPI, or standard entity benefits
- Transfer pricing support — managing intercompany transactions correctly
- Ongoing compliance — company law, GST, payroll, labor laws, and more
We help you move fast, stay compliant, and avoid costly mistakes from day one.
Mercurius at glance:
With more than 17 years of experience and a presence across over 60 countries, Mercurius supports individuals, NRIs, foreign nationals, startups, SMEs, and multinational businesses at every stage of their business journey in the India.
From company formation in India to accounting, tax, compliance, audit coordination, regulatory advisory, and company closure services, Mercurius provides end-to-end support tailored to the specific needs of each client.
Contact Mercurius today to begin your GCC journey in India.
Client / Business Enquiries
Frequently Asked Questions (FAQs)
1. How long does it take to set up a GCC in India?
Typically 3 to 6 months from the decision stage to becoming operational, depending on entity type, city, and the complexity of your setup.
2. What is the minimum investment required to set up a GCC in India?
There is no fixed minimum, but most GCCs start with a team of 30–100 people. Costs depend on city, office space, and headcount.
3. Which city is best for a GCC in India?
It depends on your industry. Bengaluru for deep tech and AI; Hyderabad for life sciences and analytics; Mumbai/Pune for BFSI; Chennai for manufacturing and healthcare.
4. Can a foreign company own 100% of a GCC in India?
Yes. India allows 100% FDI in most sectors under the automatic route, meaning full foreign ownership with no prior approval needed.
5. Do GCCs in India get tax benefits?
Yes. Significant tax exemptions are available through SEZs, STPI registration, and state-level GCC policies.
