Introduction
Setting up a Global Capability Center (GCC) in India? You’re not alone—India is a global hotspot for GCCs. But while the talent pool is huge, so are the legal rules.
This guide breaks down the must-know legal compliances for GCCs in India, so you can stay focused on scaling—without legal hiccups.
Table of Contents
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What is a GCC?
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Key Legal Compliances for GCCs in India
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Labor Law Compliance
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Tax and Financial Compliance
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Tech and Data Laws
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Common Mistakes to Avoid
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How We Can Help
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FAQs
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Conclusion
What is a GCC?
A Global Capability Center (GCC) is a centralized unit that delivers IT, finance, HR, or R&D services to a company’s global branches.
India is home to over 1,600 GCCs, thanks to its skilled workforce and cost efficiency.
Why Legal Compliance Matters
Non-compliance can lead to:
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Heavy fines
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Operational delays
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Reputation damage
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Even shutdowns
That’s why knowing the laws upfront is crucial.
Key Legal Compliances for GCCs in India
1. Company Registration
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Register as a Private Limited Company or LLP with the Ministry of Corporate Affairs (MCA)
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Get a Director Identification Number (DIN) and Digital Signature Certificate (DSC)
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PAN, TAN, and GST registration
2. Labor Law Compliance
India has strict employment laws. GCCs must follow:
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Shops and Establishment Act (varies by state)
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Payment of Gratuity Act, 1972
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EPF (Employees’ Provident Fund) Act
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ESI (Employee State Insurance)
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Sexual Harassment of Women at Workplace (POSH) Act, 2013
Make sure to:
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Maintain payroll records
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File monthly returns
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Set up an Internal Complaints Committee (ICC)
3. Tax and Financial Compliance
Key points include:
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Corporate Tax (India follows a 22% rate for domestic companies opting out of exemptions)
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Transfer Pricing documentation for cross-border transactions
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TDS (Tax Deducted at Source) compliance
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GST (if applicable)
Annual filings:
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Income tax returns
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Audit reports under the Companies Act
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Filing with the Registrar of Companies (ROC)
4. Data Protection and Tech Laws
Follow India’s Digital Personal Data Protection (DPDP) Act, 2023
Comply with IT Act, 2000
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Implement cybersecurity policies
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Ensure cross-border data transfer rules are met
Common Mistakes to Avoid
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Ignoring local state laws (compliance varies across states)
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Missing ROC filings
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Delays in tax payments
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Not forming a POSH committee
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Inadequate data protection policies
How We Can Help
We specialize in helping GCCs in India stay compliant. From company setup to ongoing audits, we’ve got your back.
👉 Check out our GCC setup services
👉 Explore our Payroll and HR compliance solutions