How to Set Up an Office in India (2026 Guide)
A Complete, Decision-Ready Playbook for Global Companies Expanding into India
India is no longer just an outsourcing destination.
It is now the world’s most strategic location to build long-term technology, product, and operations offices.
Every month, hundreds of global companies search for:
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How to set up an office in India
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How to open a company in India
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How to build a GCC in India
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India office setup cost
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Best cities to set up an IT office in India
This article is written exactly for that search intent.
It is not generic advice.
It is a practical, decision-ready guide for founders, CXOs, and expansion leaders who want to set up an office in India correctly, legally, and profitably—without costly mistakes.
Why Companies Are Setting Up Offices in India (2026 Reality)
Global companies expand into India for three structural reasons:
1. Talent Scale That No Other Country Can Match
India produces:
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1.5M+ engineers every year
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Deep talent in AI, cloud, data, fintech, SaaS, and enterprise systems
No other geography offers this depth + continuity.
2. Cost Predictability Over 5–10 Years
India is no longer about “cheap labor”.
It’s about stable long-term unit economics.
Compared to the US/EU:
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40–70% lower fully loaded costs
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Lower replacement & rehiring costs
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Slower wage inflation (especially Tier-2 cities)
3. Mature Global Delivery Culture
Indian teams today:
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Own products, not tasks
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Run platforms, not tickets
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Lead architecture, security, and reliability
Step 1: Decide the Right Office Model in India (Critical)
Before registration, hiring, or leasing—choose the correct model.
Common Office Setup Models in India
| Model | Best For | Risk |
|---|---|---|
| Liaison Office | Market research only | ❌ No revenue |
| Branch Office | Sales / execution | ⚠️ Limited scope |
| Wholly Owned Subsidiary | Long-term GCC | ✅ Best |
| Employer of Record (EOR) | Quick pilots | ⚠️ Expensive |
| Partner-Led GCC | Fast & scalable | ✅ Low risk |
Most companies searching “set up office in India” actually need a:
👉 Wholly Owned Subsidiary or Partner-Led GCC
Step 2: Choose the Right City (This Decides Success or Failure)
Tier-1 vs Tier-2 Cities in India
| Factor | Tier-1 Cities | Tier-2 Cities |
|---|---|---|
| Cost | High & rising | 30–55% lower |
| Attrition | 18–25% | 7–11% |
| Hiring competition | Extreme | Moderate |
| Scalability | Slowing | Fast |
| 5-year ROI | Flattening | Compounding |
Most Searched Cities for Office Setup in India
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Bangalore
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Hyderabad
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Pune
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Chennai
But smart companies are now choosing:
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Indore
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Coimbatore
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Kochi
These cities offer enterprise-grade talent with far better retention and cost control.
Step 3: Legal & Company Registration in India
How to Register a Company in India (Foreign-Owned)
The standard structure is:
Private Limited Company (100% foreign owned)
Core Registration Steps
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Director Identification Number (DIN)
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Digital Signature Certificates (DSC)
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Company name approval
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Incorporation with MCA
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PAN, TAN, GST
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Bank account opening
Typical timeline: 2–4 weeks
Common mistake: Starting hiring before entity readiness
Step 4: Office Space & Infrastructure Setup
Office Options in India
| Option | Best For |
|---|---|
| Managed Office | Fast go-live |
| IT Park / SEZ | Large GCCs |
| Hybrid (WFH + Office) | Cost control |
| Build-to-Suit | 300+ employees |
Most companies today start with:
👉 Managed office → expand to dedicated space in 6–12 months
Step 5: Hiring the Right Team (Not Just Headcount)
What Global Companies Search For
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How to hire developers in India
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India hiring cost
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Best hiring model in India
Correct Hiring Mix (Proven)
| Phase | Senior | Mid | Junior |
|---|---|---|---|
| First 90 days | 65–70% | 30–35% | 0% |
| Month 4–6 | 55% | 35% | 10% |
| Year 1 | 45% | 40% | 15% |
Why this matters:
Senior-heavy teams reduce:
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Rework
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Attrition
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HQ dependency
Step 6: Cost of Setting Up an Office in India
Realistic Annual Cost (Per Engineer, USD)
| City Type | Fully Loaded Cost |
|---|---|
| US / UK | 120k–180k |
| Tier-1 India | 45k–60k |
| Tier-2 India | 28k–40k |
What “Fully Loaded” Includes
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Salary
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Office & infra
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HR, payroll, compliance
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IT & security
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Management overhead
Step 7: Compliance, Payroll & HR (Often Ignored)
Mandatory Compliance in India
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PF & ESI
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Professional tax
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Labor law compliance
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Data protection & security
Mistake to avoid:
Treating compliance as “backend admin”.
In India, compliance = business continuity.
Step 8: GCC vs Offshore Vendor (Decision Matrix)
| Factor | Vendor Model | GCC Model |
|---|---|---|
| IP ownership | ❌ Vendor | ✅ Company |
| Cost control | Medium | High |
| Retention | Low | High |
| Platform ownership | ❌ | ✅ |
| Long-term ROI | Limited | Compounding |
This is why searches for “set up GCC in India” are growing faster than outsourcing searches.
Common Mistakes Companies Make When Setting Up in India
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Choosing city based on brand, not ROI
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Hiring juniors too early
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No local leadership authority
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Weak compliance setup
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Treating India as a vendor location
These mistakes cost millions over 3–5 years.
How Supersourcing Helps Companies Set Up Offices in India
Supersourcing works with global companies to set up and scale offices in India the right way—especially GCCs and tech offices.
Why companies choose Supersourcing
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CMMI Level 5 organization
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Google AI Accelerator Batch participant
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LinkedIn Top 10 company recognition
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Deep expertise in India Tier-2 GCCs
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End-to-end ownership:
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Entity setup
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Hiring & leadership
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Office & infra
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Compliance & payroll
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Scale & optimization
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Supersourcing doesn’t just help you enter India.
It helps you win in India.
