India has solidified its position as a global hub for GCCs, attracting multinational corporations looking to streamline operations, drive innovation, and leverage a vast talent pool. The country’s cost advantages, strong digital infrastructure, and government incentives make it an ideal destination. However, setting up and operating a GCC in India involves key legal and strategic considerations
Legal Framework for GCCs in India
1. Business Structure & Registration
- Companies can set up GCCs as wholly owned subsidiaries, joint ventures, or liaison offices, each with distinct regulatory and operational requirements
- The Companies Act, 2013, governs business incorporation and compliance
2.Regulatory & Compliance Framework
- Foreign businesses must comply with the Foreign Exchange Management Act (FEMA), SEZ policies, and RBI guidelines for foreign investments
- Data protection and cybersecurity laws, including the Digital Personal Data Protection Act, 2023, play a critical role in ensuring compliance, particularly for data-sensitive industries like BFSI and healthcare
3.Taxation & Incentives
- GCCs in Special Economic Zones (SEZs) benefit from tax exemptions and reduced corporate tax rates
- India also offers export incentives and R&D tax credits to companies investing in innovation and technology development
Strategic Considerations for GCC Success
- Talent Acquisition – India’s strong IT and tech talent pool makes it ideal for scaling global operations
- Infrastructure & Location – Cities like Bengaluru, Hyderabad, and Pune offer excellent ecosystems for GCC growth
- Technology & Innovation – Companies must integrate AI, automation, and cloud solutions to enhance efficiency
With the right legal framework and strategic planning, India continues to be a global powerhouse for GCCs, helping businesses drive innovation and operational excellence
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