When people ask how much it costs to start a sub broker franchise, most articles give one flat number — but the honest answer is that your city has a real, measurable impact on your total investment, mainly through the cost of office space.
The core registration and broker-related costs stay largely the same wherever you’re based, but rent in Mumbai’s business districts and rent in a Pune suburb are worlds apart.
This guide breaks down exactly where your money goes, and how that changes across India’s major metros.
What Actually Makes Up Your Total Sub Broker Franchise Cost?
Before comparing cities, it helps to understand that your total investment as an Authorised Person (as covered in our guide on Sub Broker vs Authorised Person vs Remisier) is made up of two very different kinds of costs:
- Fixed costs — these stay largely the same no matter which city you’re in, since they’re tied to your broker agreement, certification, and registration, not your local real estate market.
- Variable costs — primarily your office space, which can swing significantly based on your city and even your specific neighbourhood within that city.
Understanding this split is the key to making sense of why two people starting the exact same franchise with the exact same broker can end up with meaningfully different total investments.
Fixed Costs That Stay the Same Regardless of City
Regardless of where you’re located, most sub broker franchises involve broadly similar fixed costs:
- NISM certification fee: Approximately ₹1,500 plus applicable taxes, as covered in our NISM Series XV exam guide
- Security deposit and registration fee with your broker: This varies primarily by broker brand, not city — for example, brands like Sharekhan and Motilal Oswal have their own published investment ranges, generally falling between roughly ₹1 lakh and ₹2.5 lakh depending on the brand and business model
- Basic infrastructure (computer, internet, trading terminal access): Broadly similar nationwide, typically a modest one-time cost
These costs are essentially the “entry ticket” to becoming an Authorised Person, and they don’t meaningfully change whether you’re setting up in Mumbai or a smaller city.
The Real Variable: Office Space Cost by City
This is where city choice genuinely changes your numbers.
Commercial office rents across India’s major metros vary quite significantly, and since most full-service brokers expect a functional office space (commonly in the 150 to 500 sq. ft. range for a sub broker setup), this becomes the single biggest cost variable tied to location.
Based on 2026 commercial real estate data, here’s how average office rents compare across the four cities:
- Mumbai: Citywide average around ₹125 to ₹174 per sq. ft. per month, though this varies enormously by micro-market — premium business districts can command ₹300+ per sq. ft., while suburban areas like Navi Mumbai can start from roughly ₹73 per sq. ft.
- Delhi-NCR: Average around ₹105 to ₹110 per sq. ft. per month, with strong variation between prime central business districts and outer areas.
- Bengaluru: Average around ₹95 to ₹100 per sq. ft. per month.
- Pune: Average around ₹65 per sq. ft. per month, generally the most affordable of the four cities for commercial space.
Mumbai: Illustrative Cost Breakdown
Mumbai consistently has India’s highest commercial rents, which directly pushes up the variable portion of your franchise cost. For a modest 200 sq. ft. sub broker office:
- Estimated monthly rent: Roughly ₹15,000 to ₹35,000, depending heavily on whether you choose a suburban location or a more central business district
- Estimated annual rent: Roughly ₹1.8 lakh to ₹4.2 lakh
- Total first-year cost (fixed + rent): Broadly in the range of ₹2.8 lakh to ₹6.5 lakh, depending on your broker brand and chosen locality
Choosing a suburban Mumbai location over a premium business district can make a genuinely significant difference to your first-year numbers.
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Delhi-NCR: Illustrative Cost Breakdown
Delhi-NCR sits just below Mumbai in overall commercial rent levels, though it’s grown quickly in recent years:
- Estimated monthly rent (200 sq. ft.): Roughly ₹15,000 to ₹25,000
- Estimated annual rent: Roughly ₹1.8 lakh to ₹3 lakh
- Total first-year cost (fixed + rent): Broadly in the range of ₹2.8 lakh to ₹5.5 lakh
As with Mumbai, your exact costs will depend heavily on whether you’re in a central business hub or a more affordable outer locality.
Bangalore: Illustrative Cost Breakdown
Bengaluru’s commercial rents are moderately lower than Delhi-NCR, making it a slightly more cost-efficient metro option:
- Estimated monthly rent (200 sq. ft.): Roughly ₹15,000 to ₹22,000
- Estimated annual rent: Roughly ₹1.8 lakh to ₹2.6 lakh
- Total first-year cost (fixed + rent): Broadly in the range of ₹2.8 lakh to ₹5.1 lakh
Pune: Illustrative Cost Breakdown
Pune offers the most cost-efficient setup among the four cities, largely due to its comparatively lower average commercial rents:
- Estimated monthly rent (200 sq. ft.): Roughly ₹10,000 to ₹18,000
- Estimated annual rent: Roughly ₹1.2 lakh to ₹2.2 lakh
- Total first-year cost (fixed + rent): Broadly in the range of ₹2.2 lakh to ₹4.7 lakh
City-Wise Cost Comparison at a Glance
| City | Avg. Office Rent (per sq.ft./month) | Est. Monthly Rent (200 sq.ft.) | Est. Total First-Year Cost (Fixed + Rent) |
| Mumbai | Rs.125 – Rs.174 (citywide avg) | Rs.15,000 – Rs.35,000 | Rs.2.8 lakh – Rs.6.5 lakh |
| Delhi-NCR | Rs.105 – Rs.110 | Rs.15,000 – Rs.25,000 | Rs.2.8 lakh – Rs.5.5 lakh |
| Bangalore | Rs.95 – Rs.100 | Rs.15,000 – Rs.22,000 | Rs.2.8 lakh – Rs.5.1 lakh |
| Pune | ~Rs.65 | Rs.10,000 – Rs.18,000 | Rs.2.2 lakh – Rs.4.7 lakh |
Can You Reduce Costs With a Home-Based or Hybrid Setup?
Here’s a genuinely useful cost-saving angle worth considering: not every broker strictly mandates a dedicated commercial office, especially for franchisees starting with a smaller client base.
Some sub brokers begin with a home-based or hybrid setup, using a spare room as their initial workspace, and only move to dedicated commercial space once their client base and revenue justify the added cost.
If this route is available with your chosen broker, it can meaningfully reduce your first-year investment, essentially cutting out the office rent variable altogether until your business is generating steady income.
It’s worth discussing this option directly with your broker’s franchise team, since policies vary by brand.
Frequently Asked Questions
Which city offers the cheapest sub broker franchise setup?
Among the four cities compared here, Pune generally offers the most cost-efficient setup, mainly due to its lower average commercial office rents compared to Mumbai, Delhi-NCR, and Bengaluru.
Do NISM certification and broker registration fees vary by city?
No. These core costs are largely uniform nationwide, since they’re tied to your NISM certification and your specific broker’s investment requirements, not your local real estate market.
Is it possible to start a sub broker franchise without renting a separate office?
In some cases, yes — certain brokers allow a home-based or hybrid setup, especially for franchisees starting with a smaller client base, which can meaningfully reduce your first-year investment.
Why does Mumbai have such a wide cost range compared to other cities?
Mumbai’s commercial real estate market has an unusually wide spread between premium business districts (which can exceed ₹300 per sq. ft.) and more affordable suburban areas (which can start around ₹73 per sq. ft.), creating a much broader overall cost range than other cities.
Does a larger office space always mean better business performance?
Not necessarily. While a professional office can help build client trust, many successful sub-brokers operate effectively from a modest, well-located space rather than a large, expensive one—client relationships and service quality tend to matter more than office size.