COMPANY SETUP

India Entry Cost Calculator: EUR, USD and INR

What setting up an Indian entity actually costs and how long each stage takes, broken down by the decisions that move the number the most.

Total India entry cost breaks into three distinct phases -- incorporation, initial registrations, and first-year compliance run-rate -- and the timeline for each is driven by different factors. This is a guide to what actually moves the number; for a figure specific to your structure, the variables below need to be run against your actual plan.

Phase 1: Incorporation

Setting up a wholly owned subsidiary (private limited company) typically takes several weeks from document collection to Certificate of Incorporation, assuming director DINs, digital signatures, and name approval proceed without delay. The main cost drivers are professional fees for incorporation and the paid-up capital you choose to commit, not government fees, which are comparatively small.

Phase 2: Post-incorporation registrations

RegistrationTypical timelineTrigger
PAN & TANDays to ~2 weeksMandatory for every entity
GST registration~1-3 weeksMandatory once taxable supplies begin
PF & ESI registration~1-2 weeksTriggered by employee headcount thresholds
Professional tax~1-2 weeksState-specific, triggered by having employees/office in that state
Import Export Code~1 weekOnly if importing or exporting goods

Phase 3: First-year compliance run-rate

This is the phase most first-time entrants underbudget. Ongoing costs include monthly/quarterly GST filings, payroll compliance (PF, ESI, TDS), statutory audit, annual ROC filings, and income tax return filing -- a recurring cost that scales with transaction volume and headcount, not a one-time setup fee.

What actually drives the total number up or down

  • Entity type: a wholly owned subsidiary carries more setup and ongoing compliance than a liaison or branch office, but offers full operational and commercial flexibility that the lighter structures do not.
  • Paid-up capital: higher committed capital increases certain government fees tied to authorised capital, though this is a smaller line item than professional fees and ongoing compliance.
  • Headcount ramp speed: PF/ESI and payroll compliance complexity scale with how fast you hire, not just final headcount.
  • Sector-specific licensing: regulated sectors (financial services, pharma, food, etc.) add licensing costs and timeline on top of the standard company-law process.

The practical next step

Because the real total depends on entity type, paid-up capital, headcount ramp, and sector, a generic figure is only a starting reference point. Run your specific plan against these variables, or have it modelled directly, before treating any single number as your actual budget.

Written for general information, not as legal or tax advice, and it does not create an advisor–client relationship. Indian tax and regulatory positions change at least annually — check the date above, then talk to someone before acting on it.
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