One-Time Entity Setup Costs
Government fees for incorporating a Pvt Ltd company under MCA21 are modest - ROC filing fees on SPICe+ scale with authorized share capital but typically run INR 2,000-10,000. Name reservation (RUN) costs INR 1,000. PAN and TAN are included in SPICe+. The real cost is professional services: a company secretary (CS) to file SPICe+ costs INR 25,000-60,000; a qualified CA for initial tax registration and structure advice costs INR 30,000-80,000.
For foreign parent entities, apostille or notarization of board resolutions, director identity documents, and shareholder documents adds INR 30,000-80,000 depending on the country. If documents are in a language other than English, certified translation is required.
Virtual office for registered address: INR 8,000-25,000 per year. Bank account opening at a reputable private sector bank with international operations capability: typically 3-4 weeks and no fee, but requires a physical branch visit for KYC. FEMA consultant for FC-GPR and ongoing RBI compliance: INR 40,000-80,000 annually.
One-time setup cost breakdown
| Cost Item | Low (INR) | High (INR) | Notes |
|---|---|---|---|
| MCA21 / ROC fees | 5,000 | 15,000 | Scales with authorized capital |
| CS professional fee | 25,000 | 60,000 | SPICe+ preparation and filing |
| CA advisory fee | 30,000 | 80,000 | Structure + tax registration |
| Document apostille / notary | 30,000 | 80,000 | Varies by country |
| Virtual office (year 1) | 8,000 | 25,000 | Per year |
| Bank account setup | 0 | 5,000 | No fee; document courier cost |
| FEMA / RBI consultant | 40,000 | 80,000 | FC-GPR + first-year filings |
| TOTAL | 1,38,000 | 3,45,000 | Excludes initial share capital |
Annual Compliance Running Costs
Statutory audit is mandatory for every Indian company regardless of size - the Comptroller & Auditor General exemption applies only to government companies. Audit fees for a GCC with INR 5-50 crore turnover: INR 3-12 lakh per year from a Big 4 firm or reputable mid-tier CA firm. A small GCC (under INR 2 crore turnover) can audit with a local CA for INR 60,000-1.5 lakh.
Annual ROC filings: AOC-4 (financial statements) within 60 days of AGM, MGT-7 (annual return) within 60 days of AGM, ADT-1 (auditor appointment) within 15 days of AGM. CS fees for these three filings: INR 25,000-60,000. Late filing penalties: INR 100 per day per form with no cap under the new MCA21 scheme.
RBI annual compliance: FLA return by 15 July (INR 15,000-30,000 for CA/FEMA specialist). Transfer pricing Form 3CEB: INR 50,000-2 lakh depending on complexity. GST monthly GSTR-3B filing: INR 3,000-8,000 per month if outsourced to a GST practitioner. Income tax return: INR 40,000-1.5 lakh.
Real Estate and Infrastructure Costs
Bengaluru (Whitefield, Outer Ring Road, Electronic City) Grade-A IT park: INR 75-100 per sq ft per month in 2026. Hyderabad (HITEC City, Gachibowli): INR 60-80 per sq ft per month. Pune (Hinjewadi, Magarpatta): INR 65-85 per sq ft per month. Chennai (OMR, Perungudi): INR 55-75 per sq ft per month. Industry standard seat density is 60-80 sq ft per person for open-plan offices.
Common area maintenance (CAM) charges add 20-30% to base rent. Security deposit is typically 9-12 months of rent. Fit-out costs for a shell-and-core space: INR 1,200-1,800 per sq ft one-time. Managed office spaces (co-working IT park operators like WeWork, Awfis, 91springboard) offer fully serviced seats at INR 12,000-22,000 per seat per month all-in, which is often cheaper than leasing a bare shell below 50 seats.
Technology infrastructure: internet leased line (1 Gbps symmetric) INR 30,000-60,000 per month. Cloud connectivity and SD-WAN: INR 15,000-40,000 per month. Hardware procurement for 100 workstations: INR 60-90 lakh one-time (Dell/HP business laptops at INR 60,000-90,000 each).
Talent Costs by Role Band
Indian IT salaries have stabilized after the 2021-22 spike. As of 2026, senior software engineers (5-8 years, Bengaluru) earn INR 18-30 lakh per annum (LPA) CTC. Principal engineers and architects: INR 35-60 LPA. Data engineers and ML engineers: INR 22-40 LPA. GCC leads and program managers (10-15 years): INR 40-80 LPA. Finance and accounting leads (qualified CA): INR 18-35 LPA.
Total employment cost is CTC x 1.35-1.40 when you include employer PF (12% of basic, capped at INR 1,800/month per employee for the statutory portion), employer ESIC (3.25% of gross if applicable), gratuity provision (15 days salary per year per year of service from year one), and laptop/infrastructure per seat.
Recruitment costs: executive search for senior roles runs 12-15% of annual CTC. Mid-level hiring through portals (LinkedIn, Naukri) costs INR 20,000-60,000 per hire in portal fees plus 2-4 weeks of HR time. Annual attrition for IT in Bengaluru and Hyderabad: 14-18% historically; budget replacement at 0.5-1 months CTC per exit.
Glossary terms referenced in this guide