How to start a salon or beauty parlour in India (2026): investment, profit and licences
A salon or beauty parlour in India needs about ₹1.8 lakh–₹55 lakh to set up, depending on the format. A well-run one typically makes ₹21,500–₹1.6 lakh a month in profit. You usually need: Shop & Establishment registration, trade licence, GST (5% on salon services) above ₹20 lakh.
How much investment do you need?
- Cheapest start
Men's barber shop
2 chairs, fast turns, ₹100–200 bills. Weekly off on Tuesday is the custom.
Setup cost₹1.8 lakhSuggested budget (with working capital): ₹2 lakh Ladies beauty parlour
Threading, waxing, facials and bridal. Small shop, women-run, festival spikes.
Setup cost₹2.5 lakhSuggested budget (with working capital): ₹2.6 lakhNeighbourhood unisex salon
350–500 sq ft, 4–6 stations, colour, keratin and retail. More rent, more staff.
Setup cost₹12 lakhSuggested budget (with working capital): ₹12.4 lakhBranded franchise salon
1,000–1,500 sq ft chain outlet. Big footfall, 8–15% royalty, 30–36 month payback.
Setup cost₹55 lakhSuggested budget (with working capital): ₹55.7 lakh
How much profit can you make?
A well-run salon or beauty parlour typically nets ₹21,500–₹1.6 lakh a month: about ₹99,500–₹1.6 lakh in a metro and ₹21,500–₹47,500 in a small town. A casually run one can make far less or lose money.
| City | Net profit per week | Net profit per month |
|---|---|---|
| Metro city | ₹23,000–₹37,000 | ₹99,500–₹1.6 lakh |
| Tier 2 city | ₹9,200–₹18,000 | ₹40,000–₹78,000 |
| Small town | ₹5,000–₹11,000 | ₹21,500–₹47,500 |
Ranges are for a well-run business of the typical format in each city size, from public sources and estimates. Your results depend on location and how you run it.
Profit calculator
Put in your own numbers for a quick monthly estimate. For a realistic week with festivals, rain, staff and stock, use the simulator.
Simulate a week before you invest
Run a salon or beauty parlour for a week in about 5 minutes. Choose your city, budget and location, set prices, order stock and handle real events. Then see how you compare with a skilled owner.
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Key numbers (192 researched factors)
JSON · Source · Estimate
| Factor | Typical value in India | Source |
|---|---|---|
| Format choice | MB / LP / UX (varies: Fixed at game start) | design |
| Capex total | MB 2-chair ₹0.8–3 L; LP home ₹0.5–2 L; UX 400 sq ft ₹8–18 L; franchise ₹50–60 L (varies: Tier-1 +40–80% vs Tier-2; Tier-3 −30%) | Codingclave; Whautomate; 7knetwork |
| Location type | Residential colony / main market / mall / near college-office / highway-village | design |
| Catchment income | Low / mid / high (varies: Tier, colony type) | design |
| Price shave | ₹40–120 (MH card ₹120) (varies: Eid/wedding peak) | Business Today 2026 |
| Price beard trim | ₹50–150 (varies: Youth demand rising) | Business Today 2026 |
| Backbar pct target | 8–12% of service revenue; 15–22% if unmanaged (varies: Owner discipline) | Rework |
| Shrinkage waste pct | 3–5% of revenue without tracking (varies: Staff theft, over-dispensing, expiry) | Rework |
| Weekly off day | MB: Tuesday (North/South Hindu-majority areas); LP/UX: Tuesday or Monday, or open 7 days (varies: Region, religion of catchment) | Deccan Herald; CJP 2015 |
| Chair utilisation | 50–60% planning; 80–100% on peak days (Sunday, festival eves); 25–40% on slow weekdays/monsoon (varies: Day/season) | Whautomate |
| Num staff | MB 1–4 barbers (often the owner plus 1–3); LP owner plus 1–3 beauticians/helpers; UX 4–10 | design |
| Wage senior stylist | ₹35–60k+ (varies: Metro/chain) | Codingclave |
| Day of week multiplier | Sun 1.6–2.0; Sat 1.3–1.5; Mon 0.8; Tue 0.2–0.5 (MB, Hindu areas); Wed–Fri 0.8–1.0 (varies: Office areas: weekday-evening peak; Muslim-majority areas: Friday pre-prayer peak, Tuesday normal)Estimate | Tuesday: Deccan Herald; multipliers = … |
| Time of day curve | Morning 8–11 am (office-goers, MB); 11–4 pm (homemakers, LP); 5–9 pm (peak, all) (varies: Summer: midday dip)Estimate | estimate |
| Avg ticket MB | ₹120–250 (haircut ± shave/beard/massage) (varies: Tier ×0.5–1.5) | derived from Business Today 2026 rates |
| Avg ticket LP | ₹200–600 routine; ₹1,500–5,000 festival; ₹8k–25k bridal | derived (C-section) |
| Uc partner option | Stylist/beautician can work on UC; app commission ~20–28% (varies: Tier-1/2 cities) | Inc42; Storyboard18 |
| Freelance bridal artists | Instagram/WedMeGood artists compete on bridal (varies: Urban) | WedMeGood |
| Gst service rate | 5% (no ITC) since 22 Sep 2025; 18% before (varies: National) | Business Today; A2Z |
| Gst registration threshold | ₹20 L turnover (₹10 L special-category states) (varies: State) | ClearTax |
| Paid ads cpa | ₹400–900/booking metros; lower Tier-2 | Codingclave |
| Input price shock | 1 in 2–3 yrs, +15–25% consumable cost (varies: Global) | Business Today 2026 |
| Loan type | Self/family; Mudra; PMEGP; NBFC business loan; gold loan | IIFL |
| Monthly revenue UX | ₹2.5–6 L neighbourhood; ₹6–14 L chain (varies: Tier/location) | Codingclave; Outlook Business |
Licences and rules
Rules vary by state and city: confirm with your municipal office.
- Shop & Establishment registration
- Trade licence
- GST (5% on salon services) above ₹20 lakh
| Factor | Typical value in India | Source |
|---|---|---|
| Gst service rate | 5% (no ITC) since 22 Sep 2025; 18% before (varies: National) | Business Today; A2Z |
| Gst registration threshold | ₹20 L turnover (₹10 L special-category states) (varies: State) | ClearTax |
| Gst on retail products | Cosmetics/makeup 18%; many toiletries (shampoo, hair oil, soap) moved to 5% under GST 2.0. Verify per HSN (varies: Product)Estimate | estimate based on GST 2.0 reform cover… |
| Shops establishment reg | ₹500–6,000; renewal 1–5 yr (state) (varies: State) | Codingclave |
| Trade health licence | ₹500 (small town) to ₹15–25k (metro); annual (varies: Municipal body) | Codingclave; Corpseed/Calcguru (Delhi) |
| Fire noc | ₹2–10k (UX/larger premises) (varies: Size/floor) | Codingclave |
| Professional tax | Up to ₹2,500/employee/year (state-specific, e.g. MH, KA, WB, TN) (varies: State) | Razorpay (requirement); amount = statu… |
| Esi pf applicability | ESI at 10+ employees (employer 3.25%); PF at 20+ (12%) (varies: Size) | statutory (ESI/EPF Acts); ESI wage not… |
Risks to plan for
- Stylists leaving with clients
- Slow monsoon months
- Home-service apps
- Skin reactions to products
| Factor | Typical value in India | Source |
|---|---|---|
| Key staff quits | ~3–5% chance per week per stylist (≈40–60%/yr); higher post-Diwali (varies: Wage gap)Estimate | SalaryBox (rate); split = estimate |
| Input price shock | 1 in 2–3 yrs, +15–25% consumable cost (varies: Global) | Business Today 2026 |
| Customer injury allergy | Cut, razor nick infection, chemical burn, colour allergy: ~1 in 500–2,000 services (varies: Skill, hygiene)Estimate | estimate |
| Pandemic lockdown | Low probability; closure 4–10 weeks; post-reopen rush ×1.5–2 | DT Next 2020 |
| Local bandh curfew | 0–3 days/yr (varies: Region (WB, Kerala, J&K, NE higher))Estimate | estimate |
| Theft cash product | Staff pilferage of product/cash; 1–3% of revenue if unmonitored | Rework (shrinkage 3–5%) |
| Landlord eviction rent hike | On renewal, +10–30% or non-renewal (varies: Hot markets)Estimate | estimate |
| Heat wave | 5–20 days/yr above 42°C in North/Central (varies: May–June)Estimate | estimate |
Frequently asked questions
How much investment is needed to start a salon or beauty parlour?
It depends on the format: Men's barber shop ₹1.8 lakh; Ladies beauty parlour ₹2.5 lakh; Neighbourhood unisex salon ₹12 lakh; Branded franchise salon ₹55 lakh. Keep extra working capital for stock, wages and rent for the first months.
How much profit does a salon or beauty parlour make per month?
A well-run salon or beauty parlour typically nets ₹21,500–₹1.6 lakh a month: about ₹99,500–₹1.6 lakh in a metro and ₹21,500–₹47,500 in a small town. A casually run one can make far less or lose money.
Which licences do I need for a salon or beauty parlour?
Commonly: Shop & Establishment registration, trade licence, GST (5% on salon services) above ₹20 lakh. Rules vary by state and city, so check with your municipal office.
Is a salon or beauty parlour profitable in a small town?
Yes, at a smaller scale. A well-run salon or beauty parlour in a small town nets about ₹21,500–₹47,500 a month, with lower rent and wages but fewer customers.
What are the biggest risks of a salon or beauty parlour?
The main ones are: stylists leaving with clients, slow monsoon months, home-service apps, skin reactions to products.
How can I practise running a salon or beauty parlour before investing?
Play the free BizGame salon or beauty parlour simulator. It runs a realistic week with Indian prices, festivals, weather and inspections, and shows why you made or lost money.
salon business · beauty parlour business investment · salon profit margin · barber shop business plan