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The Legal and Compliance Checklist for a New GCC Setup

Inductus stands as a premier GCC Enabler, empowering enterprises to establish and scale their global capability centers with strategic precision. Our comprehensive approach to setup global capability center operations encompasses site selection, talent acquisition, infrastructure development, and regulatory compliance. As experienced partners in building global in-house centres, we understand the complexities of establishing offshore operations that deliver sustainable value. Our enablement framework addresses every critical aspectu2014from initial feasibility studies and location analytics to ope

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The Legal and Compliance Checklist for a New GCC Setup

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  1. The Legal and Compliance Checklist for a New GCC Setup Creating a Global Capability Centre 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 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. Employment, Labour and Mobility Prepare employment contracts based on local labour laws, benefits and terminations (PF, ESI, gratuity) statutes.

  2. Establish payroll regulation, statutory registers and onboarding KYC. Design mobility and cross-border employee secondment policies to prevent social security and tax shocks. 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. 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. 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. 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.

  3. Legal & Compliance Area Key Actions Entity & Registration ROC, PAN, GST — choose structure Employment & Payroll Contracts, PF/ESI, payroll set-up Tax & Transfer Pricing GST, TDS, TP policy Data & Security DPDP alignment, incident plan Commercial Contracts Lease, vendor & customer templates Industry Certs RBI/SEBI, healthcare, export controls 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.

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