India is home to over 1,600 Global Capability Centres (GCCs) employing 1.7M+ professionals and growing 10-12% per year. For foreign companies expanding to India, setting up a GCC is the highest-leverage way to access India tech talent at scale. This guide walks through the complete GCC setup playbook for 2026 – location selection, legal entity, hiring, payroll, compliance and ongoing operations.
What is a GCC?
A Global Capability Centre is a captive subsidiary of a foreign parent that delivers core business functions – technology, R&D, finance, analytics, customer support, design – from India for the parent group globally. Unlike traditional outsourcing, the GCC employs talent directly and operates as an extension of the parent.
Why India for GCC?
- 1.5M+ engineering graduates annually
- 30-60% cost savings vs developed markets
- English-speaking workforce
- Mature legal and regulatory framework
- Established GCC ecosystem (Bangalore, Hyderabad, Pune, Chennai, Delhi NCR, Mumbai)
- Government incentives in tier-2/3 cities
GCC Setup Steps – Complete Playbook
Step 1: Location Selection (Week 1-2)
Choose based on talent pool, cost, infrastructure and incentives:
- Bengaluru – largest tech talent pool
- Hyderabad – BFSI, IT, pharma
- Pune – engineering, R&D
- Chennai – automotive, manufacturing tech
- Delhi NCR – government tech, consulting
- Mumbai – BFSI, fintech
Step 2: Entity Structure (Week 3-6)
Most common structure for GCCs: Wholly-Owned Subsidiary (Pvt Ltd) under FEMA Automatic Route. Alternatives: LLP, Branch Office, Liaison Office.
Step 3: Statutory Registrations (Week 6-10)
- Certificate of Incorporation (MCA)
- PAN, TAN
- GST registration
- Shops and Establishments Act registration
- PF, ESIC registration (when first employee joins)
- Professional Tax registration (state-wise)
- Import Export Code (if needed)
Step 4: Office Lease and Infrastructure (Week 8-16)
Grade A office space, fit-out, IT infrastructure, security, cafeteria, transport. Many companies start in serviced offices and scale to dedicated premises.
Step 5: Hiring and Onboarding (Week 12 onwards)
Build out the team: leadership first, then mid-management, then individual contributors. Average time-to-hire: 4-8 weeks per role. TMS supports both Employer of Record (no entity needed) and direct hire models.
Step 6: Payroll and Compliance Setup (Week 14 onwards)
- Payroll processing and salary disbursement
- PF, ESIC, PT deductions and deposits
- TDS calculation and Form 16
- Annual statutory returns
- Compliance under all 4 new Labour Codes
Typical GCC Setup Timeline
| Phase | Duration |
|---|---|
| Planning and location selection | 2-4 weeks |
| Entity setup and statutory registrations | 6-10 weeks |
| Office lease and fit-out | 8-16 weeks |
| First wave of hiring | 4-8 weeks |
| Go-live with first team | 4-6 months |
See our detailed GCC Setup Cost & Timeline guide.
GCC Setup – EOR vs Direct Entity
| Aspect | EOR Model | Direct Entity |
|---|---|---|
| Time to first hire | 2-4 weeks | 4-6 months |
| Setup cost | Low (per-employee fee) | High (entity + office + admin) |
| Compliance | EOR provider handles | You handle (or outsource) |
| Long-term cost | Higher per employee | Lower at scale |
| Best for | 0-50 employees, pilot phase | 50+ employees, long-term |
Many companies start with TMS Employer of Record and migrate to direct entity once scale justifies it.
Labour Code Considerations for GCCs
India’s four new Labour Codes affect GCC operations:
- Code on Wages: Basic pay must be 50% of CTC – affects salary structuring
- Industrial Relations Code: Fixed-term employment formalised with same benefits as permanent
- Code on Social Security: Unified EPF/ESIC/Gratuity portal
- OSH Code: Single registration for establishments with 10+ workers
- State-wise implementation timing varies – operating in multiple cities multiplies complexity
See our complete Labour Codes guide.
How TMS Supports GCC Setup End-to-End
TMS provides full-stack GCC enablement services for 100+ foreign companies entering India:
- EOR for fast first hires while entity is being set up
- Entity setup advisory and statutory registrations
- Office space sourcing and lease negotiation
- Contract staffing for flex workforce
- Payroll outsourcing from day 1
- Statutory compliance under all 4 Labour Codes
- Multi-city support across all 10 GCC destinations
Speak to a TMS GCC setup expert
FAQs – GCC Setup India 2026
How long does it take to set up a GCC in India?
4-6 months for entity-based setup; 2-4 weeks via EOR for initial hires.
What is the minimum team size?
No legal minimum. Many GCCs start with 5-10 people and scale.
Can foreign nationals work in the India GCC?
Yes, with employment visa. Up to 1% of workforce can be expat without specific approvals.
Best city for first-time GCCs?
Bangalore for tech-heavy GCCs; Hyderabad for BFSI/pharma; Pune for engineering/R&D.
See also: Main GCC services page | India Business Expansion
