What Does It Actually Cost to Build an India Team?

Beyond the Salary Line Item

Companies evaluating India expansion often focus on the salary differential. But the total cost of building and operating your own India team includes substantial overhead that is easy to underestimate.

Entity Setup

Establishing a legal entity in India involves:

• Company registration: $2,000–$5,000 in legal and filing fees
• Registered office: Required physical address
• Legal counsel: $5,000–$15,000 for initial setup and compliance review
• Banking setup: Corporate bank accounts, often requiring in-person processes
• Tax registrations: GST, PAN, TAN, and other registrations

Timeline: 2–4 months from initiation to operational readiness

Ongoing Compliance

• Annual filings: ROC filings, tax returns, audit requirements
• Statutory compliance: Provident Fund, ESI, Professional Tax, Labour Welfare Fund
• Accounting: Monthly and annual financial reporting
• Legal: Contract management, employment law compliance

Estimated annual cost: $15,000–$40,000 depending on team size

Talent Acquisition

Building an in-house recruiting capability or using local recruitment agencies:

• Agency fees: 8–15% of annual salary per hire
• Internal recruiter: $15,000–$25,000 annual cost for a dedicated recruiter
• Job postings and tools: $3,000–$8,000 annually

Infrastructure

• Office space: $200–$500 per seat per month in major tech cities
• Equipment: $1,500–$3,000 per employee
• IT infrastructure: $200–$400 per employee per month

Management Overhead

• India-based manager: $40,000–$70,000 annually
• HR support: $15,000–$25,000 annually
• Time spent by US/UK leadership: Difficult to quantify but significant

Total First-Year Cost Example

For a 10-person India team:

Category	Estimated Cost
Entity setup	$15,000–$25,000
Salaries (10 mid-level engineers)	$200,000–$350,000
Benefits and statutory	$40,000–$70,000
Compliance and legal	$20,000–$40,000
Recruiting	$25,000–$50,000
Office and infrastructure	$60,000–$120,000
Management	$55,000–$95,000
Total	$415,000–$750,000

The Partner Alternative

Working through a workforce partner like Vortex consolidates most of these costs into a single engagement fee. The partner handles entity, compliance, recruiting, payroll, and infrastructure, allowing the client to focus on team management and deliverables.

This doesn't mean a partner is always the right choice. Companies planning long-term India presence with 50+ employees may eventually benefit from their own entity. But for teams of 5–30, the partner model often provides better economics and dramatically lower operational complexity.