If you’re searching “GCC legal compliance in India”, “India company compliance checklist”, or “legal requirements to set up a GCC in India”, you’re already at the execution stage. This guide is built for founders, CFOs, General Counsels, and Expansion Heads who want a clean, audit-ready, low-risk setup—without learning the hard way.
This is not theory. It’s a field-tested checklist you can hand to legal, finance, and HR teams and start executing today.
Why Compliance Is the #1 GCC Risk in India (Not Talent)
India is GCC-friendly, but compliance mistakes compound fast:
-
Delayed filings can block bank operations
-
Payroll non-compliance triggers penalties and audits
-
Weak labor-law adherence increases attrition and litigation risk
-
Data lapses create customer and regulatory exposure
Key insight:
Most GCCs don’t fail due to engineering.
They fail due to compliance debt.
Compliance Starts with the Right Entity Structure
Approved Structures for Foreign-Owned GCCs
| Structure | Allowed | Notes |
|---|---|---|
| Private Limited Company | ✅ Yes | Recommended (100% FDI allowed) |
| Branch Office | ⚠️ Limited | Restricted activities |
| Liaison Office | ❌ No revenue | Research only |
| LLP | ⚠️ Limited | Not ideal for GCC scale |
Best practice:
👉 Wholly Owned Subsidiary (Private Limited Company)
Phase 1: Company Incorporation & Statutory Setup
Mandatory Registrations (Day 0–30)
| Requirement | Authority |
|---|---|
| Certificate of Incorporation | MCA |
| Director Identification Number (DIN) | MCA |
| Digital Signature (DSC) | MCA |
| PAN & TAN | Income Tax Dept |
| Bank Account | Indian Bank |
| GST Registration | GST Council (if applicable) |
⏱️ Typical timeline: 2–4 weeks
Common mistake:
Starting hiring before PAN, bank, and payroll readiness.
Phase 2: Employment & Labor Law Compliance (Critical)
India is employee-protective by design. Compliance here is non-negotiable.
Mandatory Employment Compliance
| Area | Requirement |
|---|---|
| Offer letters | India-specific clauses |
| Employment contracts | Role, notice, IP, non-compete |
| Shops & Establishment Act | State-wise |
| POSH Act | Mandatory policy & committee |
| Gratuity Act | 5+ years service |
| Leave policy | State-aligned |
Non-compliance risk:
Employee disputes + fines + brand damage.
Phase 3: Payroll, Tax & Social Security
Statutory Payroll Components
| Component | Mandatory |
|---|---|
| Provident Fund (PF) | ✅ |
| Employee State Insurance (ESI) | Based on salary |
| Professional Tax | State-wise |
| TDS (Income Tax) | ✅ |
| Payslips & filings | Monthly |
Payroll Compliance Cadence
| Frequency | Filing |
|---|---|
| Monthly | PF, ESI, TDS |
| Quarterly | TDS returns |
| Annual | Income tax, audits |
Best practice:
Use India-specialist payroll vendors—never generic global tools alone.
Phase 4: IP Protection & Confidentiality (Often Missed)
Mandatory IP Safeguards
-
IP assignment clauses in contracts
-
Invention disclosure policies
-
NDA for employees & vendors
-
Clear ownership language (India jurisdiction)
Why this matters:
Without proper IP assignment, your GCC may not legally own what it builds.
Phase 5: Data Protection & Security Compliance
India is moving rapidly toward stricter data governance.
Required Actions
| Area | Action |
|---|---|
| Data access | Role-based controls |
| Cloud security | ISO-aligned practices |
| Customer data | Consent & protection |
| Logs & audits | Retention policies |
If serving EU/US customers:
GDPR + SOC2 alignment is strongly recommended.
Phase 6: Ongoing Corporate Compliance
Annual & Recurring Obligations
| Compliance | Frequency |
|---|---|
| Board meetings | Quarterly |
| ROC filings | Annual |
| Statutory audit | Annual |
| Tax audit | Annual |
| Director disclosures | Annual |
Missed filings = penalties + director liability.
Compliance Cost (Realistic)
| Area | Annual Cost (USD) |
|---|---|
| Company secretarial | $3k–6k |
| Payroll & HR compliance | $5k–10k |
| Statutory audit | $2k–5k |
| Legal advisory | $5k–15k |
Insight:
Compliance is cheap. Non-compliance is not.
GCC vs Vendor Model: Compliance Risk Comparison
| Factor | Vendor | GCC |
|---|---|---|
| IP ownership | ❌ Risky | ✅ Clear |
| Payroll liability | Vendor | Company-controlled |
| Audit readiness | Low | High |
| Regulatory exposure | Indirect | Direct but manageable |
Well-run GCCs are safer long-term.
Common Compliance Mistakes (Avoid These)
-
Using foreign offer-letter templates
-
Ignoring POSH requirements
-
Weak IP assignment language
-
Late statutory filings
-
Over-reliance on generic global vendors
These create silent, compounding risk.
30-60-90 Day Compliance Checklist (Execution-Ready)
Day 0–30
-
Incorporation complete
-
Bank, PAN, payroll ready
-
Employment contracts finalized
Day 31–60
-
PF, ESI live
-
POSH committee formed
-
IP & data policies enforced
Day 61–90
-
First audits reviewed
-
Compliance calendar locked
-
Board & governance cadence live
How Supersourcing De-Risks GCC Compliance in India
Supersourcing helps global companies set up and operate GCCs in India with zero compliance surprises.
Why enterprises trust Supersourcing
-
CMMI Level 5 organization
-
Google AI Accelerator Batch participant
-
LinkedIn Top 10 company recognition
-
Deep India GCC compliance expertise
-
End-to-end ownership:
-
Entity setup
-
Payroll & HR compliance
-
IP & data governance
-
Ongoing audits & filings
-
You focus on building products.
Supersourcing keeps your GCC clean, compliant, and future-proof.
Final Takeaway (For Searchers)
If you’re setting up a GCC in India, compliance is not a checkbox—it’s an operating system.
Do it right and India becomes:
-
Low-risk
-
High-ROI
-
Highly scalable
Cut corners and the cost shows up later—with interest.
