The opportunity to launch a global in-house center in India is a thrilling endeavor, providing tremendous access to talent and dramatic cost savings; however, accessing the right people or the right office is only a small part of a successful outcome. To be successful, you must have a complete understanding of, and navigate the complex legal setup in India. A compliance-first approach is not just a box to check; it is the foundation upon which your GIC will build its stability, credibility, and success in the long term.

If you’re still trying to figure out what the GIC means, we have a great guide to assist you. What is Global In House Centers (GIC)?

To ignore or underestimate the complexities of GIC compliance in India will expose your company to significant penalties and ability to operate, as well as potentially irreversible harm to your brand. So, how do you manage to operate your GIC, not only successfully but also in compliance with India’s ever-changing regulatory environment? Let’s delve in to explore.

Indian Business Laws GIC Will Have to Comply with: Compliance Areas

Predictably, India’s regulatory regime is complicated. Businesses are regulated when they commence operations and continue to be regulated through their entire operational lifecycle, which in practical terms includes these and many more. Indian business law GIC will be regulated for compliance with it from day one. What follows are key compliance areas of legal compliance in India that will constitute key aspects of ongoing operational compliance from business formation to ongoing compliance.

• Corporate & Company Laws: This covers compliance relating to the registration of your legal setup in India (i.e., Private Limited Company, Liaison Office, etc.), and statutory compliance with the Company Act 2013 as amended from time to time. The scope of compliance covers all from board meetings (and minutes) to statutory filings and statutory compliance for shareholders.
• Labor and Employment Laws: India has an intricate web of labor laws that govern everything from minimum wages, working hours, employee benefits (Provident Fund, ESIC), gratuity, industrial disputes, and regulation of contract labor. In a labor-intensive economy like Indian, mistakes in this area could lead to significant employee grievances and legal disputes.
• Taxation Laws: Dealing with Goods and Services Tax (GST), Income Tax (corporate tax, TDS), and other indirect taxes is an ongoing part of compliance. Also, understanding transfer pricing rules, especially with respect to intercompany transactions, is critical to avoid scrutiny from tax authorities.
• Foreign Exchange Management Act (FEMA): As a foreign entity, your GIC will be subject to FEMA, which governs foreign investment into India and repatriation of profits. It shall require compliance with the guidelines of the Reserve Bank of India (RBI) with respect to all cross-border financial transactions.
• Data protection and privacy laws: In the changing data protection landscape (e.g., Digital Personal Data Protection Act), ensuring your GIC handles personal data in compliance with Indian laws and regulations is paramount. Your centre is dealing with sensitive client or employee information, especially.
• Industry Regulations: There may also be specific regulations or licensing requirements depending on the type of services your GIC offers (e.g., IT/ITES, BPO, finance) that may additionally apply.

How You Set Up Your Legals in India: A Basis for Compliance

The basis of GIC compliance in India starts with the right legal setup in India. This is your first point of contact to make decisions about your legal entity structure (and the legal controls over thought structure) based on the activity of your GIC, its long-term plans, and desire to exercise control over its operations.

For example, you might engage a Turnkey GIC Setup in India service, which helps ensure that everything to do with entity registration, obtaining initial statutory approvals, and commencing your legal entity’s foundation and initial compliance is left to someone with some degree of expertise in the area of compliance. This reduces the first risks your GIC faces, and helps develop and establish a high watermark of compliance with the Indian business laws GIC will be prospectively encountering.

Ongoing GIC Compliance in India After Establishment

Compliance does not just happen once, at the establishment in India. It occurs as an ongoing commitment that constantly needs to be monitored, updated and managed proactively. The legal framework in India is continually evolving, laws and regulations are considerably updated on a regular basis.

Fortunately for GICs, continuous vigilance and expert support are valuable. Services such as Management Services for GIC become beneficial for:

• Recurring Statutory Filings: Timely submissions of all required corporate, tax, and labor-related filings.
• Expected Policy Updates: Regularly update internal policies and procedures in response to the changes to business areas of Indian business laws that a GIC must adhere to.
• Audit Support: Prepare for and navigate statutory and regulatory audits and be assured in your compliance.
• Risk Mitigation: Identify in advance any potential compliance gaps and address prior to escalating into issues.
• Seamless Handover: Our GIC Handover Process from our GIC Assurance ensures that you have all of the compliance knowledge and processes transferred to your team for continuity.

Reasons to Choose GIC IN INDIA for Your GIC Compliance Needs

Finding your way through all of the legal guidelines and jurisdictions required to establish your global in-house center takes more than just legal advice. It requires consolidated expertise, local representation, and pro-active engagement.

At GIC IN INDIA, powered by KHP REMOTE FTE, we have a “compliance-first” philosophy integrated into our service offerings. GIC IN INDIA is a single-stop solution for guidance, implementation, and support for your GIC. We’re a partner to ensure that the organization is established correctly and remains compliant over the lifecycle of the operation. Our depth of knowledge of GIC compliance in India and the commitment to being open and transparent means you can engage with the day-to-day operation of your GIC confident that the proper legal considerations have been satisfied.

Don’t let regulatory uncertainties diminish your GIC’s promise. Team up with professionals who understand the value of compliance as much as you do.

Are you ready to build a GIC with compliance that will stand the test of time?

Contact us today to talk about your legal set-up in India and your ongoing GIC compliance needs!

If you’re interested in learning more about our full-service offering and our global approach, visit KHP Remote FTE.