This case study is anonymised at the client’s request. Details that would identify the client are omitted or marked for confirmation.
What was the situation?
A large luxury brand retailer with operations across the APAC region wanted to set up a global capability centre (GCC) in India for IT infrastructure and application support. The plan was to start with ten immediate hires and scale the centre to around 100 people over time.
Speed was the deciding factor. The client had already identified a couple of prospective hires for the centre and risked losing them if it could not get offer letters out quickly, so the priority was to onboard people fast rather than wait for a new entity to be fully operational.
What did we do?
ProLead proposed two phased routes to stand up the centre, both designed so the client did not have to choose between speed and eventually owning a proper Indian entity.
Model 1, EOR first and entity later: the initially identified hires would be onboarded immediately under an Employer of Record (EOR) arrangement, with offer letters issued and onboarding completed within two days. In parallel, ProLead would build out a GCC entity in India, and the EOR-hired employees would be transferred into that entity once it was operational.
Model 2, entity first with ProLead as local operator: the GCC entity would be incorporated immediately, with ProLead acting as local operator, and employees would be onboarded directly into the new entity from the start. Ownership and operations of the entity would transfer to the parent over time. This route took around three weeks to onboard employees, since onboarding waited on incorporation.
The client chose Model 1. It wanted to onboard as fast as possible, and it had no requirement for the new hires to work from a physical office belonging to the client, so a fully remote working model was acceptable. Model 2 suits clients who want their GCC employees working from a dedicated office in India from the outset, since in that model the newly incorporated entity moves straight into decisions like a lease as soon as it is incorporated.
The GCC entity ProLead built for this client, once operational, was a wholly owned Indian subsidiary, registered for GST and Professional Tax (PT) alongside incorporation. Its registered office started as a virtual office on incorporation, moving into a leased office within 30 days.
What was the result?
Within a week of signing the contract, ProLead onboarded ten employees under the EOR arrangement. By the time the GCC entity was ready to take them on, headcount had grown to around twenty employees, who were then moved into the entity the parent now owns and operates.
What were the lessons?
Which model fits depends on how the client wants its India team to work, not just on speed. Model 1 suited this client because remote work was acceptable and hiring speed mattered more than an immediate physical office. A client that needs staff working from a dedicated office in India from day one is usually better served by Model 2, since incorporating the entity first lets it move straight into a lease and other office decisions.
Every GCC differs by parent country, sector and how the client wants its India team to work. To discuss yours, read about setting up a GCC in India or book a free consultation.
General information only, not legal or tax advice. Rules and forms change, so confirm the current position with a practising Chartered Accountant or Company Secretary before you act. See our disclaimer.