Starting a business from scratch in India is an exhilarating prospect, but if you’re like most new entrepreneurs, your brain is probably stuck on one word: money. You’re likely wondering if you can actually afford this dream, if the business will pay your bills, and exactly how much does it cost to start a business in India to get off the side-lines.
In 2026, the Indian economy is more welcoming than ever for small businesses. While the “perfect” number depends on what you’re building, the average small start-up in India can get off the ground with anywhere from ₹50,000 to ₹2 lakh. This guide is here to stop the overthinking on starting a business with no money and break down how much does it cost to start a business in India?
What are the Fixed Costs to Start a Business in India in 2026?
Fixed costs are your “foundation” expenses. These are the things you pay for once (or once a year) to prove to the world that you are a real, professional business.
Domain, Website, or Online Store
In today’s world, if you aren’t online, you almost don’t exist. Your website is your 24/7 salesperson.
- Domain Costs: Buying your “address” (like .in or .com) usually costs between ₹169 and ₹2,000.
- Hosting: This is the “rent” you pay to keep your site live on the internet.
- Tips for Saving: You can often find great deals on suffixes like .site or .online. Also, if you know you’re in this for the long haul, paying for three years upfront can help to save you a small fortune compared to monthly billing.
Website Design and Development
You don’t need to be a coding genius to have a beautiful site anymore.
- DIY Builders: Use drag-and-drop tools to build a site yourself for the price of a few cups of coffee a month.
- Hiring Help: If you’d rather have a pro handle it, basic web design services in India start around ₹5,000.
- The Logo: Don’t pay for an expensive designer on day one. Free logo makers are incredibly good now and will get your branding started for ₹0.
Legal Costs to Register a Business
Legally, “becoming a company” involves some paperwork and fees, which comes under the price of business.
- Pvt. Ltd. Company: This is the most popular choice for serious startups, and it usually costs between ₹8,000 and ₹10,000 in total fees.
- Budget Tip: Be honest about what you need right now. It’s tempting to get every license under the sun, but many can wait until your revenue starts growing. Stick to the essentials first.
Also read – Tips for Building a Business from Scratch
Marketing
Marketing is the most “elastic” part of your budget. You can grow with time (social media) or with money (ads).
- The Ad Trap: Don’t throw ₹500 at Facebook ads just to see what happens. It’s better to wait until you can commit at least ₹7,000 a month to a specific channel.
- The Strategy: Focus on one platform and do it well. It is much better to have an amazing LinkedIn presence than five mediocre profiles on platforms your customers don’t even use.
Variable Costs to consider while starting a business in India in 2026
These business costs are the “fluid” ones, and they change based on where you live and how fast you want to run.
Physical Location
The beauty of 2026 is that many businesses start in a bedroom. But if you need a “real” door, location is everything.
- Prime Spots: Renting a space in a high-traffic area in Mumbai or Delhi can easily run between ₹1,00,000 and ₹1,80,000 a month.
- The Middle Ground: Co-working spaces are the “goldilocks” solution for many. In tech hubs such as Bengaluru, one can grab a professional desk for ₹7,000 to ₹15,000 a month without actually worrying about electricity or Wi-Fi bills.
Staff
When you have a fantastic business ideas in India, and you’re ready to grow, remember that a salary isn’t the only cost. You have to think about training, equipment, and benefits. Many smart founders start with freelancers to keep things flexible before making their first full-time hire
Taxes
You’ll need to navigate the GST landscape once your turnover hits the threshold. It’s also wise to set aside a portion of every payment for income tax and professional tax so you aren’t hit with a massive bill at the end of the year.
On-going Expenses
These are certain small, but really important expenditures that keep adding up: like your high-speed internet, your CRM software, your Canva subscription, and your morning coffee.\
Unexpected Costs
In business, something or the other will go wrong. Your laptop might crash, or a legal rule might change. Always keep a “rainy day” fund of 10-15% of your total budget tucked away. It’s the key difference between a minor hiccup and a total shutdown.
How to Fund Your Startup or Small Business?
Now, you must be wondering where the money came from? Let us understand the three main paths here:
Personal Investment
Most Indian entrepreneurs rely on their own savings. It’s slower, but you own 100% of the business and don’t answer to anyone.
Borrowing Through Contacts
The “Friends and Family” round is very common. Just a word of advice: treat it like a bank loan. Put it in writing so that a business disagreement doesn’t ruin a Sunday dinner.
Loans
The Indian government has made it much easier for small businesses to get credit. Look into the MUDRA scheme or MSME loans from local banks. They often have lower interest rates and are specifically built for people exactly in your shoes.
Final Verdict!
Starting a business is a lot like jumping into a pool; the water feels cold at first, but once you start moving, it’s great. Don’t let the fear of “startup costs” stop you. In the business roadmap, always focus on the fixed essentials, keep your variable costs lean, and spend your money where it actually touches the customer. Having a solid plan in hand and a bit of grit, 2026 can be the year you finally call yourself a Founder.
Are you ready to take the leap from “Founder” to “CEO”?
Building a business is one thing, but scaling it into a high-performance machine is another. If you want to move past the struggle of the first year, wish to understand how to open a small online business or aim to build a world-class organization, you need the right guidance. Dr. Ameet Parekh has helped thousands of entrepreneurs master the skills needed to grow sustainable, profitable companies. Connect with Dr. Ameet Parekh today and start building a business you can be proud of.
