How to Start a Beauty Parlour or Salon in India: Costs, Licences, GST, Pricing and Growth

Beauty parlours and salons are among the most common small businesses in India, and among the most popular with women entrepreneurs. They can start small, from a room at home, and grow into a busy salon with several staff. Demand is steady all year and rises sharply in the wedding season and around festivals.

This guide covers how to start, what it takes legally, how to price your services and how to grow, with real figures from MoSPI’s surveys of small businesses.

Key points

• You can start home-based with basic equipment and a few services, then move to a shop as your client base grows.
• Training and certification help with quality and trust. Government-recognised courses are available through Skill India.
• You’ll typically need shops and establishments registration and a municipal trade licence for a shop. Home-based parlours have fewer requirements, depending on your city.
• GST on beauty and wellness services such as salons and barbers was cut from 18% to 5%, without input tax credit, from 22 September 2025. You only need to register once turnover crosses ₹20 lakh in most states.
• Bridal and party packages bring in a large share of income in many parlours. Build a portfolio early.

The market in numbers

Beauty parlours and salons are part of what MoSPI’s surveys call personal and community services, along with repair shops, laundries and similar businesses. In 2023-24 there were about 80 lakh such small establishments, employing 1.08 crore people. The MoSPI press note on the 2025 detailed report confirms this is one of the three largest activity groups in India’s unincorporated sector.

Most are very small: 87.8% run without hired workers. Average value added per business (what a business produces minus what it spends on products and other inputs) was ₹1,90,118 a year in urban areas and ₹1,18,169 in rural areas in 2023-24. The gap between solo businesses and those with staff is wide: ₹1,16,951 a year for one-person businesses against ₹5,02,402 for those with hired workers. A well-run salon with a small team can earn several times what a solo parlour does.

Step 1: Decide your model

• Home-based parlour: low cost, flexible hours, suits women starting out. Limited by space and by how many clients you can serve at once.
• Home visits: go to clients for bridal makeup, mehendi, waxing and facials. Many beauticians combine this with a home studio. Booking platforms can bring clients, though they take a commission.
• Neighbourhood parlour or unisex salon: a shop with two to four chairs, open daily, serving walk-ins and regulars.
• Specialist studio: bridal makeup, nail art, lashes and brows, or skin treatments. Higher prices, more training, and a need to build a reputation.

Our India-only guide to home-based beauty parlours covers the home model in more detail, and the guide to mehendi artists covers one of the most popular add-on services.

Step 2: Get trained and certified

Clients trust beauticians who can show training and good work. Options include:

• Skill India courses in beauty and wellness, run through the Beauty and Wellness Sector Skill Council with government-recognised certificates. Find centres on Skill India Digital.
• Private academies for advanced makeup, hair and nail courses.
• Product company training on specific products and techniques.

Keep learning. Bridal looks, hair treatments and skin services change quickly, and clients notice.

Step 3: Plan your setup and costs

Costs vary hugely by city and model, so build your own budget. A typical list:

• Premises: rent and deposit for a shop, or a dedicated, clean space at home
• Fit-out: mirrors, chairs, lighting, washbasin, storage, and a waiting area for a shop
• Equipment: facial bed or chair, steamer, hair dryer and straightener, waxing heater, trolley, and sterilisation equipment
• Products: an opening stock of professional products from reliable suppliers
• Registrations and licences (see below)
• Marketing: signboard, cards and online listings

Advanton’s business idea reality check lets you choose "salons and beauty parlours", enter your own rent, staff and startup costs in rupees, and see a 36-month projection with your payback month, compared with ASUSE figures for your area.

Funding: many parlours start with savings or a Mudra Shishu or Kishore loan (up to ₹50,000 or ₹5 lakh, collateral-free). Women entrepreneurs may get better terms under some schemes. See business loans and government schemes.

Step 4: Licences and registrations

Requirements depend on your state and city, but usually include:

• Shops and establishments registration for a shop, from your state labour department. See shop and establishment registration and trade licences.
• Trade licence from your municipal corporation or council. Many cities list salons and beauty parlours as licensed trades.
• Udyam registration: free and useful for loans. See our Udyam guide.
• GST registration once your turnover crosses ₹20 lakh in most states (₹10 lakh in some), or earlier if you choose.
• Fire safety if your premises or building requires it.

For a home-based parlour, check whether your city requires a trade licence for home businesses, and whether your housing society has rules about commercial activity.

Step 5: Understand GST on your services

Under GST 2.0, from 22 September 2025, services of beauty parlours, salons, barbers and similar beauty and wellness services are taxed at 5% without input tax credit, down from 18%. That makes registered salons more price-competitive, though you can’t claim credit for GST paid on products and equipment.

If you sell retail products such as shampoos, creams and cosmetics, those are taxed at the rate for those goods. Make clear GST invoices with Advanton’s free invoice generator. If you’re not registered, don’t charge GST.

Step 6: Price your services

Set prices from three things: what nearby parlours charge, your costs per service, and the experience you offer.

1. Check competitors: visit or call three to five nearby parlours and note prices for your main services.
2. Work out your cost per service: products used, plus a share of rent, electricity and wages for the time it takes.
3. Price for value, not just to be cheapest: clean premises, punctuality, hygiene and good results justify higher prices.
4. Create packages: bridal packages (trial, wedding day, family members), pre-bridal packages over several weeks, monthly memberships and festival offers.

Take advance payments for bridal bookings, by UPI, and confirm details in writing.

Step 7: Hygiene and safety

Hygiene is what clients notice first, and what keeps them coming back:

• disposable or sterilised tools for every client
• fresh towels and sheets for each client
• patch tests before hair colour, chemical treatments and some skin products
• products from reliable suppliers, within their dates
• a written record of any allergies or reactions for regular clients

Step 8: Hire and train staff

Hiring is the main way parlours grow, as the ASUSE figures show. Start with a trained assistant for your busiest days, then add specialists such as a hair stylist or nail technician. Watch costs carefully: ASUSE 2023-24 put average annual pay per hired worker in urban personal services businesses at ₹1,23,337, including employer contributions.

Use Advanton’s hiring cost calculator to see the full cost, including PF and ESI where they apply, and read running solo or hiring staff for a simple test of whether a hire will pay.

Step 9: Get clients and keep them

• Google Business Profile: set it up with photos of your work and premises, your services and prices, and hours. Ask happy clients for reviews.
• Instagram and WhatsApp: before-and-after photos (with permission), bridal looks, offers and a WhatsApp booking link.
• The India Business Directory: list your parlour free so local customers searching for beauty services in your city can find you. Your listing appears on city and category pages such as beauty and personal care in your city.
• Loyalty: a simple loyalty card or points for regulars, reminders for monthly services, and birthday offers.
• Partnerships: wedding planners, photographers, boutiques and event decorators can refer bridal clients.

Common mistakes

• Competing only on price. You’ll attract price-sensitive clients who leave for the next offer.
• Under-investing in hygiene and products. One bad reaction can cost many clients.
• No booking system. Double bookings and long waits lose clients. Use WhatsApp, a simple calendar or a booking app.
• Ignoring weekday gaps. Fill quiet days with packages, offers for working women and home visits.
• Not recording income. Use UPI and keep records; they help with loans and GST later.

Frequently asked questions about starting a beauty parlour or salon in India

Can I offer home visits as well?
Yes. Many parlours earn well from bridal and party home visits. Carry sterilised kits, confirm bookings in writing with an advance, and include travel time in your prices.

Can I start a beauty parlour from home?
Yes. Many successful parlours start at home. Check your city’s trade licence rules and your housing society’s rules, and keep the space clean and separate.

Do I need a licence to run a salon in India?
Usually shops and establishments registration and a municipal trade licence for a shop. Requirements vary by state and city.

What GST rate applies to salon services?
5% without input tax credit, from 22 September 2025, for beauty and wellness services such as salons and barbers. Register once your turnover crosses the threshold.

How much can a beauty parlour earn?
ASUSE 2023-24 found average value added of ₹1,90,118 a year for small urban personal services businesses, but ₹5,02,402 for those with hired workers. Location, skills, bridal work and staff make a big difference.

Where can customers find my parlour?
On Google, social media and the free India Business Directory.

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Sources

1. MoSPI, Annual Survey of Unincorporated Sector Enterprises 2023-24, full report
2. MoSPI, Press note on the ASUSE 2025 detailed report (6 May 2026)
3. Central Board of Indirect Taxes and Customs, GST
4. GST portal (Goods and Services Tax Network)
5. Skill India Digital
6. Pradhan Mantri MUDRA Yojana

Last reviewed November 7, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.