Chartered Accountants◆Practising since 2016

SU & CompanyChartered Accountants

Germany to India · Capability centres

Global capability centres in India for German groups

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

A German group's captive centre in India is usually a wholly owned subsidiary paid on a cost-plus basis. The design points are the transfer pricing model, assignment of IP to the parent, GST treatment of exports, data transfers, and keeping parent staff from creating a permanent establishment.

What is specific to German companies

German capability centres often handle engineering and SAP work; function transfer documentation in Germany should match the Indian transfer pricing file.

Our services

How SU and Company helps

We set up and run capability centres and sector-specific entities.

  • Sector FDI conditions and approvals
  • Capability centre structuring and cost-plus model
  • GST export set-up and refunds
  • Payroll for fast-growing teams
Send a queryGlobal Capability Centre

Questions

Can a capability centre start under an employer of record?

Yes, for a short period, but a subsidiary is needed for scale, IP and transfer pricing clarity.

General information as at 5 November 2026, not advice for a particular case. Indian and German rules change often; confirm the current position before acting. German law points should be confirmed with a German adviser.

Queries

Send the firm a query

Tell us briefly what you need. A member of the team will get back to you.

We use your details only to respond to your query. See our privacy policy.

Call