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Global capability centres
Setting up and running a captive centre in India: operating models, locations, tax and transfer pricing, people and timelines.
In this guide
In this guide
7 pages.
Global capability centres in India: overview
India hosts more than 2,100 global capability centres. Foreign groups can own them outright without prior approval, central and state policy now supports them explicitly, and the work has moved well beyond back-office support.
ReadGCC operating models compared
There are three common ways to build a capability centre in India: own the entity from day one with a provider handling set-up, have a provider build and run it before transferring ownership, or use a provider-employed managed team. Each trades control against speed.
ReadGCC set-up roadmap: location choice to go-live
A captive centre moves from feasibility to go-live in ten broad steps. Only a few have deadlines fixed by rule, chiefly share allotment, FC-GPR reporting and commencement of business. The order matters most around the lease, incentive registration and transfer pricing.
ReadGCC locations: cities and state policies
Bengaluru holds over 30% of India's GCCs, but tier-2 and tier-3 cities are drawing new centres, and six states now run GCC-specific policies. Incentives often pay more outside the main metros, subject to eligibility, domicile and lock-in conditions.
ReadGCC tax and transfer pricing
A captive's tax cost is set by three things: the margin it earns on cost, whether the parent is exposed to a permanent establishment, and whether its services qualify as exports for GST. Budget 2026-27 made the first easier with a single 15.5% safe harbour and faster APAs.
ReadGCC people and hiring: talent, labour law, payroll
A GCC hires under the four Labour Codes, in force since 21 November 2025, which require written appointment letters and give fixed-term staff equal benefits and gratuity after one year. Central and state schemes pay part of the cost of new jobs, often with conditions.
ReadGCC in India: frequently asked questions
Short answers to the questions foreign groups most often ask when planning a global capability centre in India, with links to the detailed pages. All positions are as of 1 October 2026.
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