Legal & Compliance Checklist for GCC Setup

Creating a Global Capability Centre (GCC) right away in an ecosystem that can expand faster than most teams. India has over 1,900 GCCs with approximately 1.9 million professionals, producing over USD 64 billion of direct output as GCCs become centres of capability rather than cost. These data do not just indicate scale but also a trend & projections that India will have significantly increased GCC revenue and number of heads by the year 2030.

The establishment of a GCC is a strategic move. It is on the business formation but needs a legal and compliance base which transforms regulatory complexities into competitive benefits. The following checklist is both future-focused and practical, as well as in order, allowing business value to be created faster rather than slower as a result of the legal choices made.

Introduction

GCCs will move more up the value chain in the next decade in product engineering, AI R&D, regulated financial services and domain IP. This makes data protection, workforce laws, tax regulations in the GCC, and contractual transparency vital. Compliant GCC mitigates risk, makes cash flows predictable and unlocks government incentives to enhance profit margins and speed to market. The economic benefits of location planning and incentive capture are reflected by recent state and central policies which have attempted to increase GCC penetration into Tier-2 and Tier-3 cities.

Core Legal & Compliance Checklist

1) Entity/Corporate Set-Up.

Choose entity type: Private subsidiary, LLP or branch; each is a tax and governance trade-off.
Register at ROC/MCA; Appoint directors and establish shareholder agreements.
Get PAN, TAN and GST registration so that it is possible to contract initially and onboard vendors.
Why first? Transfer pricing is influenced by entity choice, which means the absence of obligations and the right to receive incentives.

2) Employment, Labour and Mobility

Prepare employment contracts based on local labour laws, benefits and terminations (PF, ESI, gratuity) statutes.
Establish payroll regulation, statutory registers and onboarding KYC.
Design mobility and cross-border employee secondment policies to prevent social security and tax shocks.

3) Financial and Tax Compliance

Register GST, establish withholding mechanics and prepare initial transfer pricing documentation of intercompany services
Identify tax liabilities on suppliers and confirm qualification for any state incentive programmes.
Establish a routine provision of tax and a programme of statutory audit.

4) Data Protection, Security and IP

Establish a data governance policy that complies with international transfers and the DPDP framework.
Ensure that vendor deliverables and employee work contain IP assignment clauses; where necessary, register trademarks.
Adopt a standard cybersecurity programme and incident response playbook.

5) Commercial and Real Estate Contracts

Accept office lease terms that include the right to ongoing maintenance and the ability to grow.
Standardise vendor contracts, including SLAs, liability limits and compliance guarantees.
Develop contract templates in the front office as it relates to data residency and export controls.

6) Industry-Related Rules and Certifications.

BFSI GCCs: Adherence to the RBI and SEBI requirements, KYC/AML policies, and data localisation policies.
Healthcare GCCs: Adherence to laws and standards on clinical data protection as well as cross-border data protection.
Tech GCCs: Export control check-ups and software licensing surveys.

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Legal & Compliance

Area	Key Actions	Target timeline
Entity & Registration	ROC, PAN, GST — choose structure	0–30 days
Employment & Payroll	Contracts, PF/ESI, payroll set-up	15–60 days
Tax & Transfer Pricing	GST, TDS, TP policy	30–90 days
Data & Security	DPDP alignment, incident plan	30–120 days
Commercial Contracts	Lease, vendor & customer templates	15–90 days
Industry Certs	RBI/SEBI, healthcare, export controls	Ongoing

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Risk Management and Pitfalls

Risk Management for GCC businesses is an ongoing process, like introducing quarterly compliance reviews and ensuring that legal reviews are included in the hiring, procurement and product release processes.

Errors such as expecting home country policy to work, procrastinating transfer pricing documentation, or poor IP assignment language may all result in fines, litigation or loss of strategic assets.

Conclusion

The process of starting a business in GCC form must have its legal accuracy and a compliance rhythm that will increase with ambition. The checklist mentioned above translates regulatory requirements into a predictable launch schedule: select the appropriate entity, operationalise compliance with employment and taxation, fortify data and IP controls, and maintain a watch on industry-specific regulations.

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When compliance is strategic, GCCs shift more quickly into higher-value work, making the centre more of an engine of innovation and development rather than a transaction hub.

frequently asked questions (FAQs)

What is a Global Capability Centre (GCC)?

A GCC is an offshore facility of a multinational company that undertakes niche roles such as research and development, information technology service and strategic management.

What is the Stand-Up India scheme?

It is a government program that gives the women entrepreneurs up to 1 crore in bank loans to fund greenfield projects.

What are the challenges associated with women in tech?

Personal responsibilities and unconscious bias are the factors that lead to their mid-career attrition and slow them down in their careers.

What is the effect of women leaders in the innovation process?

They introduce new ideas, understanding, and team-oriented leadership that speeds up the advancement of such areas as AI and cybersecurity.

What does the future of women in the leadership of the GCC hold?

By 2030, women are expected to take up 25-30 per cent of GCC leadership positions, which will be paramount to the growth of the Indian market.

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Aditi

Aditi, with a strong background in forensic science and biotechnology, brings an innovative scientific perspective to her work. Her expertise spans research, analytics, and strategic advisory in consulting and GCC environments. She has published numerous research papers and articles. A versatile writer in both technical and creative domains, Aditi excels at translating complex subjects into compelling insights. Which she aligns seamlessly with consulting, advisory domain, and GCC operations. Her ability to bridge science, business, and storytelling positions her as a strategic thinker who can drive data-informed decision-making.