Major cost-heads while setting up a sourcing office in India

1. Recruitments of right individuals
2. Office space & setup
3. Salaries & incentives
4. Audits

Further classified as below:

FIXED:

1. Office setup (furniture, lighting, decoration, computers, laptops etc)
2. Legal formalities (company registrations)
3. Taxes
4. Misc
5. Insurances – (premises, vehicles)
6. Office Vehicles
7. Generators for alternative power (optional)
8. Advertisements – to here professionals

FLOATING

9. Property Rental – 30%
10. Travel Expenses – 10% (also includes office vehicle petrol & other travel expenses)
11. Skilled Professionals – 40%
12. Utilities – 15%
1. Electricity
2. Water
3. Telecom
13. Misc – 2%

1. Company accounting & charted accountants – 3%

The above cost is excluding any payments to NGO’S, 3rd party inspection agencies, surveys etc.