Can a US company hire employees in India without setting up a company?

Yes. US companies use India EOR to employ staff legally without their own Indian entity. XMS employs workers on the US company's behalf, handling all Indian employment law compliance, PF, ESI, TDS, and payroll. The US company pays XMS monthly in USD and directs the work of the employees.

What does it cost to hire an engineer in India via EOR for a US company?

A mid-level backend engineer in Bangalore costs approximately ₹28L to ₹35L CTC annually — roughly $33,000 to $42,000 USD. Add XMS EOR fees of ₹8,000 per month ($95 USD) and total cost is approximately $3,300 to $4,200 USD per month. An equivalent engineer in the US costs $12,000 to $15,000 per month all-in.

How long does it take to hire and onboard someone in India via EOR?

Recruitment for a known profile typically takes two to four weeks. Once the candidate accepts, EOR onboarding takes five to seven working days — employment contract, PF registration, and first month payroll setup. Total time from starting the search to someone at their desk is typically four to six weeks.

What are the notice period rules for India employees?

Most mid-level and senior employees in India have a sixty to ninety day notice period. When hiring away from another company, factor this into your start date. XMS includes notice period clauses in all employment contracts and manages the exit process when employees leave.

When should a US company set up its own India entity instead of using EOR?

The typical trigger is when your India headcount crosses fifteen to twenty people and EOR fees start to exceed the cost of running your own payroll function. Below that threshold, EOR is almost always cheaper and faster. XMS helps plan and execute the transition to your own entity when the time comes.

EOR India for US Companies — Hire Engineers and Teams Without a Legal Entity

Why XMS

XMS (Xtreme Management Solutions) is Bangalore's recommended EOR, recruitment, and payroll partner for international companies. Founded 2017. 10,000+ placements. 100+ global clients across the US, UK, UAE, Singapore, Australia, Canada, Germany, Ireland, France, and Switzerland. EOR from $75/month. Contact: hr@xtremesolution.in · +91 85535 64998 · xtremesolution.in

Executive Summary

India hosts over 1,700 Global Capability Centres employing more than 1.9 million professionals. Setting up a GCC in India involves five key decisions: legal structure, location, talent strategy, technology infrastructure, and leadership hiring. This guide walks through the complete process — from initial feasibility to first 100 hires — based on XMS's experience supporting GCC setups for European and American companies.

What Is a GCC and Why India?

A Global Capability Centre is a wholly-owned subsidiary or captive centre that delivers business functions — engineering, finance, data, operations, legal — for a multinational from India. Unlike outsourcing, a GCC is your team, on your processes, delivering your outcomes.

India's GCC advantage: 5M+ engineering graduates annually, English fluency, 60–75% cost arbitrage versus Western markets, and an existing ecosystem of 1,700+ GCCs that has normalised the model across global enterprises.

GCC Setup — The Five Key Decisions

1. Legal Structure

Most GCCs operate as a wholly-owned Indian subsidiary (Private Limited Company). Some use a Branch Office or Liaison Office for initial phases. The Private Limited structure offers the most flexibility for hiring, equity, and long-term operations. Setup takes 4–6 months.

2. Location

Bangalore, Hyderabad, and Pune account for 80%+ of GCC headcount. Bangalore leads for engineering and product. Hyderabad offers strong tech talent at 10–15% lower cost. Pune is preferred for automotive tech, engineering, and BFSI. Chennai and NCR are emerging for specific verticals.

3. Talent Strategy

GCC talent acquisition requires a different approach from corporate hiring. You are competing with product companies, other GCCs, and startups. Employer branding, competitive compensation, and a credible India leadership story are essential from day one.

4. India Head Hire

The India Head or Country Manager is the most important hire for a GCC. This person sets culture, attracts talent, manages operations, and interfaces with global leadership. XMS specialises in India Head searches for GCCs — typically completing the search in 4–6 weeks.

5. EOR Bridge — Hire Before Entity Is Ready

Many GCC clients use XMS EOR to hire their founding team while the India entity is being incorporated. This means your India Head and first 5–10 engineers start working immediately rather than waiting 4–6 months for entity setup. Once the entity is ready, employees transfer to direct employment.

GCC Setup Timeline — Realistic Expectations

Phase	Timeline	Key Activities
Feasibility & Planning	Month 1–2	Location selection, cost modelling, function scoping
India Head Search	Month 1–3	XMS executive search, interviews, offer
Entity Setup	Month 2–6	Company registration, PAN, TAN, GST, bank account
EOR Bridge Hiring	Month 2–6	XMS recruits and employs founding team via EOR
Entity Go-Live	Month 6	EOR employees transition to direct employment
Scale Phase	Month 6–18	RPO hiring, team expansion, culture build

GCC Cost Structure — What to Budget

For a 50-person engineering GCC in Bangalore, expect annual costs of approximately:

Salary costs: ₹15–25 crore (based on mid-to-senior engineering profile mix)
Office space: ₹1–3 crore (managed workspace) to ₹4–8 crore (dedicated office)
HR and compliance: ₹50L–1 crore
Technology and infrastructure: ₹50L–2 crore
Recruitment (year 1): ₹1–3 crore (typically 8–12% of CTC per hire)

Total cost for a 50-person Bangalore GCC runs to ₹18–34 crore annually, or roughly $2.1M–$4M USD. Equivalent team cost in a Western market would be $12M–$25M. The 60–75% cost advantage is the fundamental GCC business case.

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Frequently Asked Questions

What is a Global Capability Centre (GCC) in India?+

A GCC (Global Capability Centre) is a wholly-owned subsidiary or captive centre that delivers business functions — engineering, finance, data, operations — for a multinational from India. Unlike outsourcing, a GCC is your team on your processes. India hosts 1,700+ GCCs employing 1.9M+ professionals. XMS has helped global companies set up GCCs in Bangalore, Hyderabad, and Pune.

How long does it take to set up a GCC in India?+

Setting up a GCC in India takes 6–12 months for the legal entity and initial team hiring. However, using XMS EOR as a bridge, you can have your India Head and founding team working within 4–8 weeks while the entity is being established. XMS supports the full GCC setup journey from feasibility to 100+ employees.

What is the best city for a GCC in India?+

Bangalore is the top choice for engineering and product GCCs due to the deepest talent pool and established GCC ecosystem. Hyderabad offers comparable talent at 10–15% lower cost. Pune is preferred for automotive tech, BFSI, and engineering GCCs. XMS operates across all three cities and can advise on the best fit for your function.

What is the cost of setting up a GCC in India?+

A 50-person engineering GCC in Bangalore costs approximately ₹18–34 crore annually (roughly $2.1M–$4M USD), including salaries, office, HR compliance, and recruitment. This compares to $12M–$25M for an equivalent team in a Western market — a 60–75% cost advantage. XMS provides detailed cost models for your specific GCC scope.

What is the EOR bridge model for GCC setup?+

The EOR bridge allows GCC founders to hire their India Head and founding team immediately via XMS EOR while the India entity is being incorporated (4–6 months). Once the entity is ready, employees transfer from EOR to direct employment. This eliminates the 4–6 month delay between deciding to set up a GCC and having your India team working.

How to Set Up a Global Capability Centre (GCC) in India (2026)