A Complete Summary of the Costs of Establishing a Local Company in India

The Full Picture of India Local Company Setup Costs [Updated 2026]

インドでの現地法人（Private Limited Company）設立は、日系企業のインド進出における最も一般的な法人形態です。外務省の海外進出日系企業拠点数調査によるとインド進出日系企業は1,434 companies, and most of them are set up as Private Limited Companies.

As of 2026, the cost of setting up a company is登記手続きのみで約5万〜10万ルピー（約8.5万〜17万円）, but additional costs arise before a business is actually up and running. This article comprehensively explains the costs Japanese companies should prepare for, from company registration through the start of operations.

Reference:

• RegisterKaro – Company Registration Fees & Costs in India 2026
• IncorpX – Company Registration Cost in India 2026

A breakdown of company registration costs

1. Name reservation

The fee for a RUN (Reserve Unique Name) application on the MCA (Ministry of Corporate Affairs) portal is 1,000 rupees (about 1,800 yen). You can submit up to two preferred names, and approval usually takes 2 to 3 business days.

2. Cost of obtaining a DSC and DIN

• DSC (Digital Signature Certificate): 1,500 to 3,000 rupees (about 2,600 to 5,200 yen) per director. Foreign directors can apply using a passport
• DIN (Director Identification Number): Applied for at the same time within the SPICe+ form, at no additional cost

3. SPICe+ application fee

The filing fee for SPICe+, the integrated company incorporation form, is itself zero if authorized capital is 1.5 million rupees (15 lakh; 1 lakh = 100,000 rupees) or less. The initial incorporation of Japanese companies often falls within this range, so the costs actually incurred are the items below.

• SPICe+ application fee: for authorized capital of 1.5 million rupees or less, it is zero, free, and above that threshold, charges are added according to the capital amount
• MoA (Memorandum of Association) and AoA (Articles of Association) registration fees: several hundred to several thousand rupees depending on the amount of authorized capital
• Stamp duty: varies significantly by state (see below)

4. Stamp duty

Stamp duty varies significantly by state. Delhi has a rate of 0.15% of authorized capital, while in Maharashtra (Mumbai Mumbai) it is 0.15% to 0.3%; and in Karnataka (Bengaluru Bengaluru) it is about 0.3%, as a rough guide.

5. Professional fees

As fees for engaging a CA (Chartered Accountant) or CS (Company Secretary), 5,000 to 15,000 rupees (about 8,700 to 26,000 yen) is typical. For firms that can support Japanese-speaking clients, the fee can run to about 20,000 to 50,000 rupees.

Additional costs required after incorporation

Obtaining a PAN and TAN

A company's PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) can be obtained at the same time as the SPICe+ application. No additional cost is generally required.

GST registration

Registering for Goods and Services Tax (GST) is free, but if you hire someone to handle the application on your behalf, it costs about 2,000 to 5,000 rupees.

Opening a bank account

Opening a corporate bank account is free, but receiving remittances from abroad requires reporting to the RBI (Reserve Bank of India). A minimum initial deposit of about 10,000 to 25,000 rupees is typically required.

FSSAI certification (for food businesses)

For companies operating a food-related business, FSSAI certification is mandatory. For a Central License, the government fee is 7,500 rupees per year (37,500 rupees if paid up front for five years). Including agency fees, the total comes to about 30,000 to 50,000 rupees.

First-year operating costs, including office and personnel expenses

Office rent (monthly benchmark)

• Gurugram: 40 to 80 rupees per square foot
• Bengaluru: 50 to 90 rupees per square foot
• Mumbai: 80 to 200 rupees per square foot
• Coworking space: 15,000 to 30,000 rupees per seat per month

Personnel costs (monthly benchmark)

• Accounting/admin staff: 25,000 to 50,000 rupees
• Sales manager: 60,000 to 120,000 rupees
• Senior manager: 150,000 to 300,000 rupees

Accounting and compliance costs (annual)

For ongoing compliance costs such as monthly bookkeeping, GST filings, income tax filings, and annual filings (ROC filing), 100,000 to 250,000 rupees per year (about 180,000 to 450,000 yen) is a rough benchmark.

A first-year cost simulation for a Japanese company

For a small food import and sales business established in Gurugram, a rough estimate of first-year costs is as follows:

• Company registration: about 50,000 to 100,000 rupees
• FSSAI certification: about 30,000 to 50,000 rupees
• Office (coworking, 12 months): about 180,000 to 360,000 rupees
• Personnel (3 people x 12 months): about 900,000 to 2,000,000 rupees
• Accounting, legal, and compliance: about 100,000 to 250,000 rupees
• First-year total: about 1.26 million to 2.76 million rupees (about 2.27 million to 4.97 million yen)

Reference:

• LegalWiz – Subsidiary Registration India: Guide, Docs, Fees
• Agile Regulatory – Private Limited Company Registration Fees 2026

Frequently asked questions

How much does it cost to register a local company in India?

For the registration process alone, tens of thousands of rupees is a rough benchmark. This includes name reservation, obtaining a digital signature certificate for each director, the SPICe+ government fee based on authorized capital, stamp duty that varies by state, and professional fees for accountants and company secretaries.

What determines the cost of a SPICe+ application?

The SPICe+ government fee is based on the amount of authorized capital. The larger the authorized capital, the higher the fee. The Director Identification Number can be applied for at the same time within the form, at no additional cost.

Is stamp duty the same nationwide?

No, stamp duty varies significantly by state. Because costs change depending on the state where you incorporate, it's worth checking this at the same time you're selecting a location. Rates differ across states such as Delhi, Maharashtra, and Karnataka.

What additional costs arise after incorporation?

A company's PAN and TAN can be obtained at the same time as the SPICe+ application, generally at no additional cost. GST registration itself is free, but hiring someone to handle it costs money. Opening a bank account requires an initial deposit, and food businesses also incur FSSAI certification costs.

How much should companies budget for operating costs after incorporation?

Office rent varies greatly by city and area, and using coworking space is one option for keeping initial costs down. Personnel costs vary by position, and accounting and compliance costs also need to be budgeted for annually. Choosing where to base the company has a major effect on operating costs.

If starting a small food import and sales business, how much should be budgeted for the first-year total?

Adding up company registration, FSSAI certification, office costs such as coworking space, personnel costs, and accounting, legal, and compliance costs, the first year requires a substantial amount of capital. Securing sufficient initial funding before entering the market is the shortcut to success.

Summary: Optimizing the cost of setting up a local company in India

The cost of setting up a local subsidiary in India is relatively low for the company registration itself (50,000-100,000 rupees, or roughly 90,000-180,000 yen), but the total cost through the start of operations should be budgeted at roughly 2-5 million yen per year. Key points for cost optimization include using coworking spaces, Local partners, and expanding staff in stages.

India Market When considering entry into India, Past failures learning from the experience of companies that have gone before, and securing sufficient initial funding before entering the market, is the shortcut to success.