Setting up a GCC requires consideration of various factors – such as the type of legal entity, corporate structure, optimum financing structure of the GCC, control and ownership of the entity, the place of establishment etc. Each factor should be carefully analyzed giving due consideration to the specifics of the case – such as the services being offered by the GCC, relationship with the parent, purposes of establishing the GCC and the state with lucrative incentives.

We shall assist you in planning an optimum GCC structure considering the specifics of the case and various laws applicable to the GCC – including taxation law, corporate law, transfer pricing law, foreign exchange law, and labor law.

Typically, some states in India offer incentives for establishment and operations to businesses engaged in identified sectors. The sectoral incentives are aligned with the state’s visions and priorities.

Some states in India offer incentives for establishment of GCCs. Incentives include fiscal (capital linked incentives, expenditure linked incentives, sales linked incentives) as well as non-fiscal incentives (technical support incentives, linkage support, regulatory support, infrastructure support). As a GCC, one should aim to leverage the maximum incentives to further add-on to the cost-efficiency aspects of the GCC. This shall require a careful analysis of the entity, as per its dynamics – including, incentives offered, capping on the incentives and conditionalities attached to the incentives.

There is a two-step approach to our offerings. Firstly, identifying the state offering maximum incentives as per the state incentive policies put in place by the state governments (explained hereinabove). Thereafter, assistance in filing for approval and disbursements of state incentives. The second part is discussed in the ensuing paras.

There are some conditionalities attached to state incentives. Conditionalities include satisfaction of criteria like minimum investment, minimum employment generation, qualitative parameters etc.

Submitting an application for approval under the incentive schemes would require navigating through the conditionalities and presenting the case at hand in an amicable manner. The approval process also entails prompt submission of response to queries of the State Governments.

Once approved for incentives, there are subsequent filing of applications for disbursal of funds. The fund disbursal process from the state authorities requires exhibiting compliance with conditionalities put forward in the approval stages.

Once established as a GCC, an entity is required to adhere to various taxation and regulatory laws - including taxation (direct and indirect) law, corporate law, labor law.

We shall help you in transaction advisory on various aspects of the functioning of the GCC as well as on-going compliance requirements, in line with the structure of the GCC. Our services also include reviewing agreements in line with the regulatory requirements.

GCC, being an extended arm of the parent, is required to adhere to the established transfer pricing norms for the services exchanged between the entities.

Our services include setting up mechanisms for adequate pricing, advising on various aspects of the transfer pricing law such as arrangements and pricing agreements, ensuring adequate documentation etc.

During its course of functioning, GCC has various interactions with its offshore parent. Such interactions include infusion of capital in the GCC, rendering of various services to the parent in return of fees, repatriation of profits to the parent, repatriation of funds on sale of securities and repatriation of sale proceeds on winding up/ liquidation.

Such transactions should be analyzed from the foreign exchange laws perspective. We shall help you in analysing the transaction at hand as well as ongoing compliance requirements.

At times, GCC may deal with digital personal data during provision of its services. In this case, it is required to comply with Indian Data Protection Laws.

We shall assist you in establishing process in adherence to the data protection regime in India, as well as advisory pertaining to various aspects for their regular functioning.