Sector brief 08 of 08
Professional Services & GCCs
IT, business, engineering, R&D and consulting services take 100% FDI without prior approval; foreign law firms are limited to non-litigious work. Six states offer GCC-specific support, and Budget 2026-27 set a single 15.5% safe harbour for IT services.
In this brief
Everything in this sector brief
11 pages, from the market case to the set-up roadmap and every incentive with its status.
Professional services and GCCs
IT, business, engineering, R&D and consulting services take 100% FDI without prior approval; foreign law firms are limited to non-litigious work. Six states offer GCC-specific support, and Budget 2026-27 set a single 15.5% safe harbour for IT services.
ReadRecent GCC investments
Selected GCC announcements from 2024 to 2026, as reported by the companies, state governments or the press. All five recent examples are in Chennai or Hyderabad; headcounts are company plans, not commitments.
ReadFDI rules for services and GCCs
GCCs and most professional services take 100% FDI without prior approval, usually via a wholly owned company. Foreign lawyers need Bar Council registration, GIFT IFSC in-house centres register with IFSCA, and land-border owners above 10% need approval.
ReadRegulators and registrations
A captive needs company, labour, data and FEMA filings before go-live. Incorporation through SPICe+ brings GST, EPFO and ESIC with it; FC-GPR is due within 30 days of issuing shares; DPDP duties phase in to 13 May 2027; and state GCC registration must precede incentive claims.
ReadCentral incentives for GCCs
Budget 2026-27 cut transfer-pricing friction for IT and captive services with a single 15.5% safe harbour and an APA fast-track. Alongside sit the ELI jobs incentive to July 2027, the ₹1 lakh crore RDI Scheme, IFSC tax relief and a national GCC framework still at draft stage.
ReadState GCC policies
Six states offer GCC-specific packages: Karnataka, Maharashtra and Tamil Nadu support capex, rent and payroll; Uttar Pradesh, Gujarat and Odisha add opex, payroll and EPF support. Amounts are ceilings, and some policies require registration first.
ReadTax and zones for captives and services firms
Transfer pricing, permanent-establishment exposure and GST on exports set a captive's tax cost. Budget 2026-27 brought a single 15.5% safe harbour for IT services and an APA fast-track; the Hyatt ruling raised PE risk; and intermediary services can now qualify as exports.
ReadSet-up roadmap for a captive centre
From location choice to go-live for a 100–500 seat captive centre: feasibility, vehicle, incorporation, capital and FC-GPR, office, state registration, hiring, the inter-company agreement, data protection and the first incentive claims.
ReadWhat to watch: GCC and services risks
Control of the captive, pricing and new labour and data rules drive risk. Six watch-outs from the sources: PE exposure, the safe-harbour margin, Labour Codes, personal data, state incentive lock-ins and expatriate staffing, plus three set-up points that often catch new entrants.
ReadRecent changes for GCCs and services
What changed since 2025, by date: foreign lawyers admitted for non-litigious work, the Hyatt PE ruling, the DPDP Rules, new IFSCA GIC Regulations, a single 15.5% IT safe harbour and Maharashtra's GCC guidelines, plus related changes stated elsewhere in the sources.
ReadSources: professional services and GCCs
The full reference list behind the professional services and GCC hub, in the order the source brochure gives it. Secondary sources are marked; statuses are as of 1 October 2026.
ReadUpdates
Recent changes
- high impact
- medium impact
Planning a capability centre in India?
IMC sets up and runs GCCs under all three models, typically operational in 90 to 120 days, subject to approvals.