India Startup Costs: What You Need to Budget for Your New Business
Thinking about launching a startup in India? You probably have a great idea, but the big question is – how much cash do you actually need? The answer isn’t a one‑size‑fits‑all number, but a clear breakdown of the main expense buckets can save you from nasty surprises later.
Key Expenses to Expect
Company registration and compliance. Registering a private limited company costs between ₹7,000 and ₹15,000 for the basic filing, plus a digital signature certificate (DSC) and director identification number (DIN) at around ₹1,300 each. If you need a GST registration, it’s free, but you’ll spend a few thousand on professional help.
Office space. In Tier‑1 cities like Mumbai or Delhi, a modest co‑working desk runs ₹5,000‑₹12,000 per month. In Tier‑2 cities, you can find a private office for ₹2,000‑₹6,000. Remember to budget for electricity, internet, and basic maintenance.
Hiring and salaries. A junior developer in Bangalore commands roughly ₹30,000‑₹45,000 per month, while a sales associate in Hyderabad might be around ₹20,000. Factor in statutory contributions like EPF (12% of basic) and gratuity.
Technology and tools. Cloud hosting (AWS, Azure) starts at ₹2,000 per month for small workloads. Software licenses – think Adobe, Microsoft 365, or niche SaaS – can add another ₹5,000‑₹10,000.
Marketing and customer acquisition. Early‑stage campaigns on Google or Facebook often need a minimum of ₹10,000‑₹20,000 a month to gather meaningful data. Don’t forget content creation, branding, and occasional event fees.
Legal and accounting. A good chartered accountant will charge around ₹8,000‑₹15,000 monthly for bookkeeping, tax filing, and GST returns. Legal advice for contracts or IP protection can run ₹5,000‑₹20,000 per hour.
Tips to Keep Costs Low
Start with a lean structure. Register as a One Person Company (OPC) if you’re solo – it cuts down on compliance paperwork and fees.
Use co‑working spaces or virtual offices instead of a full‑fledged lease. Many providers include meeting rooms and internet in one package.
Leverage free or open‑source tools. Instead of paying for pricey CRM software, try HubSpot’s free tier or Zoho CRM.
Outsource non‑core tasks. Platforms like Upwork let you hire developers or designers on a project basis, often for a fraction of a full‑time salary.
Pick a Tier‑2 city for the first year. Cities like Pune, Jaipur, or Kochi offer lower rent and talent costs while still providing good connectivity.
Finally, build a realistic cash‑flow forecast. List every expense, assign a timeline, and add a buffer of at least 20% for unexpected costs. Running this spreadsheet weekly helps you spot overspending early.
Starting a business in India can be affordable if you know where money goes and where you can shave off excess. Use this guide as a checklist, adjust the numbers to your specific industry, and you’ll have a solid financial foundation before you even launch your product.
