India has rapidly emerged as a global hub for Global Capability Centres (GCCs), attracting multinational corporations aiming to leverage its talent pool, cost efficiency, and strategic location. As organizations begin planning their global operations for the upcoming fiscal year, July has become a pivotal month for initiating business setup in India. July offers a strategic window to align legal, financial, and operational frameworks ahead of GCC establishment. At KNM India, we’ve observed a trend among international clients—particularly from Japan and the United States—who view July as the start of their structured India market entry journey.
Why Are GCCs Expanding in India?
The GCC model in India is thriving due to a combination of favorable policies, skilled workforce availability, and a supportive tech ecosystem. Cities like Bengaluru, Hyderabad, Pune, and Gurugram are home to numerous operational hubs serving finance, IT, engineering, and R&D functions. India’s commitment to initiatives such as ‘Startup India’ and the Production-Linked Incentive (PLI) scheme has further boosted investor confidence. These centres not only offer backend support but are transforming into innovation engines that help global businesses build resilience and scale.
July: Strategic Timing for GCC Setup
Why is July considered the ideal month to begin planning for GCC operations? One of the most practical reasons is the alignment with India’s financial year, which runs from April to March. Starting in July gives organizations a solid 8–9 months to structure, register, and prepare for a robust operational rollout in the following financial year. Since corporate HQs in the U.S. and Japan often initiate mid-year planning cycles, July offers a natural alignment point. It also coincides with fresh talent availability post-graduation and placement season in Indian institutions, an essential consideration when building local teams.
Legal and Financial Preparations Required
For foreign companies starting a business in India, navigating the legal and compliance landscape is crucial. The process begins with securing a company name and registration through the Ministry of Corporate Affairs (MCA), often using the SPICe+ portal. Next comes obtaining a PAN, TAN, and GST registration, along with EPFO and professional tax registration if you’re planning to onboard employees. FEMA compliance, foreign investment disclosures, and documentation of initial capital are essential to avoid regulatory bottlenecks. At KNM, we help clients interpret and adhere to these obligations seamlessly, ensuring that setup timelines are not derailed.
How KNM India Supports GCC Planning?
Our role at KNM India is to act as a trusted partner throughout your GCC setup journey. From advising on the ideal business structure and equity model to filing required regulatory forms, we offer end-to-end services tailored for foreign-owned companies. Our team handles everything from incorporation and payroll to regulatory filings and back-office support—offering a single-window solution for GCCs. With deep experience supporting Japanese and U.S. multinationals, we bridge the cultural and operational gaps to deliver strategic clarity and execution efficiency.
Conclusion
In conclusion, starting a business in India, especially a GCC, is most effective when approached with foresight and expert support. July serves as a strategic launchpad, allowing time for thoughtful planning, legal compliance, and workforce readiness. With KNM India’s comprehensive entry strategy, tax, and compliance advisory, global businesses can build their India operations on a strong and compliant foundation. If you’re a Japanese or U.S. enterprise planning to expand into India, now is the time to start.
