How to Establish a Shared Services Center Setup in India from the USA

India has become a top choice for USA-based companies looking to establish a Shared Services Center setup, offering cost savings of up to 70% and access to a highly skilled workforce. Over 1,600 Global Capability Centers (GCCs) already operate in the country, employing more than 1.5 million professionals across finance, HR, IT, and customer support functions.

Setting up an SSC in India from the USA requires careful planning: selecting the right business structure, choosing a strategic location, ensuring regulatory compliance, and building an operational framework capable of supporting global business goals.

Major firms like Accenture, IBM, and Capgemini have successfully built SSCs in India, demonstrating their capacity to deliver high-quality, cost-efficient services. This guide outlines the key steps for establishing a Shared Services Center setup in India from the USA, helping your company create a scalable and efficient offshore operation.

Key Takeaways:

• Centralizing finance, HR, IT, and supply chain through a Shared Services Center setup in India from the USA improves efficiency, reduces costs, and ensures compliance.
• Finance functions such as bookkeeping, accounts receivable and payable, and audit support are commonly centralized in an SSC in India.
• Tier-1 cities like Delhi NCR, Bengaluru, and Pune offer large talent pools and strong infrastructure, while emerging cities like Jaipur, Chandigarh, and Nagpur provide lower operational costs for SSCs.
• A structured Shared Services Center setup in India from the USA, covering planning, service selection, infrastructure, staffing, and compliance, is essential for scalability.
• Legal compliance, including company registration, PAN, TAN, GST, and labor law adherence, is critical for operating a Shared Services Center setup in India from the USA.

Before starting the setup process, it’s important to understand the role and benefits of a Shared Services Center.

What is a Shared Services Center?

A Shared Services Center (SSC) is a centralized unit that manages back-office functions like accounting, payroll, tax preparation, and financial reporting for multiple departments or business units. Instead of each team running its own finance operations, these services are consolidated into one center for greater efficiency.

Below are five key reasons why USA companies opt for shared services:

• Cutting Operational Costs: An SSC reduces the need for large in-house teams, saving on salaries, infrastructure, and training expenses.
• Ongoing Financial Management: Companies can outsource functions like bookkeeping, reconciliations, AP/AR, payroll, and tax preparation to ensure timely, accurate, and compliant financial operations.
• Standardized Processes: Shared services enforce consistent processes across business units, improving accuracy, compliance, and audit readiness.
• Better Resource Allocation: With non-core accounting tasks handled by an SSC, internal staff can focus on core business activities and growth.
• Scalability and Flexibility: An SSC can quickly adapt as the business grows, supporting new markets or product lines without requiring new hires.

Also Read: Register a Software Company in India: Step-by-Step Guide

Once you understand the SSC concept, the next step is deciding which functions to centralize.

Key Services Offered by SSCs in India from USA

Before your USA-based company launches a Shared Services Center (SSC) in India, it’s essential to define the core services the center will deliver. These service lines will form the foundation of your SSC operations, helping you cut costs, improve efficiency, and maintain compliance while supporting global business goals.

Finance Services

Finance is one of the most common functions centralized in Indian SSCs, enabling accuracy and cost efficiency:

• Bookkeeping and General Ledger: Managing daily accounting entries and consolidating financial data across entities.
• Accounts Receivable and Payable (AR/AP): Handling invoices, vendor payments, and customer collections from a centralized hub.
• Forex and Treasury Management: Managing foreign currency transactions and cash flow planning for cross-border operations.
• Audit Preparation and Support: Coordinating documentation, reconciliations, and reporting to support USA GAAP-compliant audits.

IT Services

Indian SSCs provide scalable IT support to keep global systems running smoothly without expanding in-house teams:

• Remote Infrastructure Management: 24/7 monitoring of cloud servers, networks, and security systems.
• Helpdesk and Technical Support: Addressing user tickets, troubleshooting, and ensuring system uptime.
• System Maintenance and Upgrades: Applying patches, updates, and security protocols to maintain compliance and cybersecurity standards.

HR Services

Centralizing HR operations in India helps standardize processes across global teams while reducing overhead:

• Payroll Processing: Managing payroll for local employees in compliance with Indian tax laws and labor regulations.
• Employee Benefits Administration: Handling medical insurance, retirement plans, and leave policies.
• Recruitment and Onboarding: Sourcing talent, conducting interviews, and managing onboarding paperwork.

Also read: Benefits of Outsourcing Accounts Receivable for Businesses

Supply Chain Services

Supply chain support from India helps streamline global operations and improve cost control:

• Inventory Tracking and Control: Monitoring stock levels, movements, and replenishment.
• Procurement and Vendor Management: Managing supplier contracts, purchase orders, and vendor payments.
• Channel and Distribution Coordination: Coordinating logistics, distribution schedules, and freight documentation.

Other Corporate Services

Many USA companies also use their Indian SSCs for centralized corporate support functions:

• Travel Desk Management: Managing bookings, expense reimbursements, and travel policies.
• Legal Drafting and Contract Administration: Preparing contracts, NDAs, and maintaining centralized legal documentation.

Note: Clearly defining these service areas during the setup phase will help align staffing, technology, and compliance processes. It also ensures your Indian SSC can deliver consistent, measurable results across all operational functions.

Also Read: How to Set Up a Joint Venture in India

After defining services, the next step is to select the most suitable city for your SSC operations.

Choosing the Right Location for Your SSC in India from the USA

‍Setting up a Shared Services Center (SSC) in India from the USA begins with selecting the right city. The location you choose impacts costs, talent availability, infrastructure, and compliance with local regulations. Choosing strategically ensures your SSC operates efficiently while keeping expenses under control.

Also, India offers several advantages for USA-based companies looking to centralize services:

• Cost Efficiency: Labor and operational costs in India can be 50–70% lower than in the USA
• Skilled Workforce: Over 1.5 million graduates annually in finance, IT, accounting, and analytics.
• Business-Friendly Environment: Supportive government policies and incentives encourage foreign investment.
• Reliable Infrastructure: Major cities provide stable power, internet connectivity, and office facilities to support day-to-day operations.

With these benefits, companies can efficiently consolidate finance, HR, IT, and supply chain functions in a single location. The next step is identifying the best city for your SSC.

Here’s a clear comparison of tier-1 and emerging cities in India suitable for Shared Services Centers:

When evaluating locations, consider these key factors:

• Talent Availability: Ensure access to professionals experienced in finance, HR, IT, and supply chain operations.
• Operational Costs: Compare salaries, office space, utilities, and overheads to optimize expenses.
• Infrastructure: Look for stable internet, power supply, and office facilities.
• Compliance Requirements: Familiarize yourself with state-specific labor laws, corporate registration, and tax regulations.
• Employee Retention: Cities with better housing, healthcare, and amenities help attract and retain skilled staff.

Also Read: From Idea to Incorporation: A Deep Dive into Company Setup in India and Different Business Types

Once the city is chosen, the next step is to set up infrastructure, implement technology, and build your SSC team while ensuring compliance with Indian laws.

How to Set Up a Shared Services Center in India from the USA?

Setting up an SSC in India allows USA-based businesses to centralize finance, HR, IT, and other back-office operations while significantly reducing costs.

Whether you are a small-to-mid-sized company using cloud software like QuickBooks or Xero, a CPA firm seeking audit support, or an SME expanding into India, following a structured approach ensures your SSC is legally compliant, scalable, and efficient.

1. Initial Planning and Strategy Development

The first step is defining your SSC’s objectives, scope, and expected outcomes:

• Assess Business Needs: Identify which functions (finance, HR, IT, supply chain) can be centralized to reduce costs and improve process efficiency.
• Set Clear Goals: For cost-focused SMBs, aim to reduce overhead for accounting and payroll. For CPA firms, focus on audit preparation and compliance. For USA SMEs entering India, plan to manage local operations and test market viability.
• Develop Operational KPIs: Define measurable metrics for cost savings, turnaround times, accuracy, and compliance.
• Budget Planning: Account for setup costs, salaries, infrastructure, and technology investments.

Also, decide on the type of company that fits your goals:

• Private Limited Company: Offers limited liability and easier access to funding, ideal for SMEs.
• Branch Office or Liaison Office: Good for testing the market or providing services without a full subsidiary.
• Limited Liability Partnership (LLP): Offers flexibility and shared responsibilities while protecting personal assets.

Each option comes with specific registration steps under the Ministry of Corporate Affairs (MCA) and compliance requirements with Indian laws and RBI regulations.

A perfect planning stage for business setup in India ensures alignment between the USA management and the Indian SSC team.

2. Identifying and Selecting Services to Consolidate

Determine which business processes to centralize based on volume, complexity, and regulatory impact:

• Finance & Accounting: Bookkeeping, accounts receivable/payable, monthly closings, tax compliance, and audit support.
• HR & Payroll: Payroll processing, benefits administration, recruitment, and onboarding.
• IT & Infrastructure: Remote infrastructure monitoring, helpdesk support, system maintenance, and security.
• Supply Chain & Operations: Inventory management, procurement, vendor coordination, and logistics support.
• Additional Services: Travel management, legal drafting, and internal reporting.

Focus initially on standardized, high-volume tasks before scaling to more complex processes.

3. Setting Up Infrastructure and Technology

A reliable technology and office setup is critical for smooth SSC operations:

• Cloud & Accounting Systems: Integrate QuickBooks, Xero, or ERP systems to centralize operations.
• Data Security & Compliance: Implement VPNs, multi-factor authentication, role-based access, and secure file-sharing to meet USA and Indian regulations (SOC 2, HIPAA, GDPR).
• Collaboration Tools: Use Slack, Teams, or Asana for real-time communication and project management.
• Physical Location: Choose tier-1 or emerging cities like Delhi NCR, Bengaluru, Pune, Jaipur, based on talent, cost, and connectivity.

4. Staffing and Skill Development

Recruiting and training the right talent is key to maintaining quality and compliance:

• Hiring Strategy: Use recruitment agencies, staffing partners, or PEOs to onboard accountants, auditors, IT professionals, and HR specialists.
• Skill Alignment: Ensure staff are trained in USA accounting standards (GAAP), audit procedures, and payroll systems.
• Training & SOPs: Provide standard operating procedures, process manuals, and confidentiality guidelines.
• Retention: Offer competitive compensation, career growth opportunities, and professional development (CPA, ACCA, CMA).

India produces over 150,000 commerce graduates annually, offering a large, cost-effective talent pool for your SSC.

5. Regulatory Compliance, Legal Documentation, and Approvals

Operating legally in India requires understanding corporate, tax, labor, and data regulations:

Legal Entity Registration:

• Options include Private Limited Company, Branch Office, or Liaison Office via the Ministry of Corporate Affairs (MCA).

Mandatory Registrations:

• PAN & TAN: For tax compliance.
• GST registration: Required if turnover exceeds ₹40 lakh (services).
• Professional Tax & Shops & Establishments Registration: As applicable by state.
• Import Export Code (IEC): For cross-border service transactions.

Labor & Employment Compliance:

• EPFO (Provident Fund) & ESIC (Employee State Insurance): Required for employees in India.
• Labor Law Adherence: Shops & Establishments Act, Factories Act, and other state-specific regulations.
• Employee Contracts & Policies: Draft compliant HR policies and employment agreements.

Data Privacy & Security:

• Implement internal data protection policies aligned with India’s Digital Personal Data Protection Act (DPDPA).
• Maintain confidentiality agreements for staff handling sensitive financial or client data.

Core Documents:

• Memorandum of Association (MoA) and Articles of Association (AoA)
• Director Identification Numbers (DINs)
• Board resolutions for SSC formation and approvals
• Lease agreements or office registration documents

Following these compliance steps ensures your SSC operates smoothly without legal risks, maintains USA compliance standards, and supports business growth.

Why Choose VJM Global for Your Shared Services Center in India

Establishing a Shared Services Center (SSC) in India is not just about opening an office;  it involves structuring operations in a way that balances compliance, efficiency, and cost savings. With a strong base in India and years of experience working with multinational clients, VJM Global helps companies set up and manage SSCs with confidence.

Here’s how we support you:

• Business Setup in India – Assistance with entity registration, approvals from RBI/FEMA, and all legal formalities to get your SSC operational.
• Accounting and Finance Outsourcing – End-to-end bookkeeping, reporting, and transaction management so your SSC runs smoothly from day one.
• International Tax and Transfer Pricing – Practical solutions for cross-border taxation, profit allocation, and compliance with India–U.S. tax rules.
• Audit and Compliance – Statutory audits, GST, and internal reviews to keep your SSC transparent and compliant.

At VJM Global, we combine technical expertise with practical insight so that your Shared Services Center doesn’t just meet compliance standards, but also contributes to your global growth strategy.

Conclusion

Establishing a Shared Services Center setup in India is a strategic move for USA-based companies seeking cost efficiency, access to skilled talent, and operational scalability. From choosing the right location to building infrastructure, hiring staff, and maintaining compliance, every step is critical to creating a successful offshore operation.

With expert guidance and thorough planning, you can set up a Shared Services Center that delivers long-term value and operational excellence. 

At VJM Global, we support you through every stage of the setup process, ensuring smooth operations and regulatory compliance in India.

Ready to get started? Schedule a demo with us today and take the first step toward launching your Shared Services Center in India from the USA efficiently and confidently.

FAQs

‍

1. What is the best business structure for a Shared Services Center in India from USA?

The choice depends on your company’s size, investment plans, and liability considerations. A Private Limited Company is ideal for larger operations seeking growth and investment, while a branch or liaison office can work for testing the market or smaller-scale operations.

2. How long does it take to set up a Shared Services Center in India from USA?

The process usually takes 4 to 8 weeks, depending on company registration, licensing, office setup, and hiring timelines. Proper planning and complete documentation can help speed up the process.

3. Do I need any specific licenses to operate a Shared Services Center in India from USA?

Yes, depending on your services, you may need registrations such as a Private Limited Company incorporation, GST, PAN/TAN, and labor law compliance for employees. No separate contractor or construction licenses are needed.

4. What are the ongoing compliance requirements for an SSC in India from USA?

Your Shared Services Center must comply with company laws, labor regulations, tax filings (GST, income tax), and local labor welfare rules. Maintaining proper documentation and timely filings is essential to avoid penalties.

5. Can I hire remote or offshore staff for my SSC in India from USA?

Yes, hiring local professionals is recommended for efficiency and regulatory compliance. You can also use hybrid models with some remote or offshore support, but labor and tax rules must be followed.

‍