How to start a chai business in Assam (2026): investment, profit and licences
A chai business in Assam needs about ₹25,500–₹2.5 lakh to set up, depending on the format. Run well in a city like Dibrugarh, it typically nets ₹55,000–₹1.1 lakh a month. The numbers below are India-wide research rescaled to Assam's own wages, shop rents, power tariffs and street prices.
How much investment do you need in Assam?
- Cheapest start
Chai cart (thela)
Cart, burner and vessels. Cheapest start, one pair of hands.
Setup cost₹25,500Suggested budget (with working capital): ₹35,500 Roadside tapri
Small fixed stall with a bench and a helper or two.
Setup cost₹61,000Suggested budget (with working capital): ₹76,000
Chai kiosk
Branded kiosk with seating and a bigger counter.
Setup cost₹2.5 lakhSuggested budget (with working capital): ₹2.8 lakh
How much profit can you make in Assam?
A well-run chai business in Assam typically nets ₹55,000–₹1.1 lakh a month in a mid-size city: about ₹1.1 lakh–₹2.1 lakh in the metro and ₹22,000–₹41,500 in a small town. A casually run one can make far less or lose money.
| City | Net profit per week | Net profit per month |
|---|---|---|
| Guwahati | ₹24,290–₹48,579 | ₹1.1 lakh–₹2.1 lakh |
| Dibrugarh | ₹12,713–₹25,426 | ₹55,000–₹1.1 lakh |
| Barpeta | ₹5,050–₹9,606 | ₹22,000–₹41,500 |
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.
What changes in Assam
The researched local factors that move this business’s numbers.
| Here | India | vs India | |
|---|---|---|---|
| Minimum wage, monthly | ₹10,543 | ₹12,500 | −16% |
| Unskilled day wage | ₹500Estimate | ₹500 | ≈ |
| Shop rent, metro (per sq ft/month) | ₹110Estimate | ₹150 | −27% |
| Shop rent, mid-size city | ₹55Estimate | ₹60 | −8% |
| Shop rent, small town | ₹22Estimate | ₹25 | −12% |
| Commercial power, per kWh | ₹8.9 | ₹9.5 | −6% |
| Commercial LPG cylinder | ₹3,047 | ₹2,810 | +8% |
| Petrol, per litre | ₹106 | ₹102 | +4% |
| Cup of tea / coffee | ₹10Estimate | ₹12 | −17% |
| Simple meal | ₹100Estimate | ₹80 | +25% |
| Men's haircut | ₹80Estimate | ₹100 | −20% |
| Milk, 1 litre | ₹62Estimate | ₹60 | +3% |
| Bread loaf | ₹45Estimate | ₹45 | ≈ |
| Factor | Typical value in India | Source |
|---|---|---|
| Minimum wage, unskilled, shops & commercial establishments | ₹405.52/day, ₹10,543/month (VDA notified 17 Jun 2026, effective 1 Jan 2026; statewide, no zones) | hrengage.ai |
| Minimum wage, semi-skilled / skilled | ₹471.44/day (₹12,257) semi-skilled; ₹589.34/day (₹15,323) skilled | hrengage.ai |
| Minimum wage, highly skilled | ₹758.08/day (₹19,710/month) | hrengage.ai |
| Typical informal shop helper pay (T2) | ₹8,000–10,000/month (Dibrugarh); ₹9,000–12,000 (Guwahati)Estimate | Est.: informal helpers commonly paid a… |
| Small shop rent, T1 (Guwahati) | ₹110/sq ft/monthEstimate | Est.: no 2026 high-street rent survey … |
| Small shop rent, T2 (Dibrugarh) | ₹55/sq ft/monthEstimate | Est.: no 2026 high-street rent survey … |
| Small shop rent, T3 (Barpeta) | ₹22/sq ft/monthEstimate | Est.: no 2026 high-street rent survey … |
| Commercial electricity, small shop (~200 units/month) | LT Commercial (0.5–30 kW) ₹8.94/unit flat; fixed ₹150/kW/month (AERC order 25 Mar 2025; APDCL sought same rates for FY 2026-27) | thediscombill.com |
| Commercial LPG 19 kg cylinder | ₹3,046.5 (25 Oct 2026; national Delhi reference ₹2,810) | goodreturns.in |
| Domestic LPG 14.2 kg (illegal for commercial use) | ₹991 | goodreturns.in |
| Professional tax | Monthly: nil ≤₹10,000; up to ₹208/month (≈₹2,500/yr) | calcguru.in |
| GST registration threshold / composition | ₹40 lakh goods / ₹20 lakh services (Assam opted for the higher goods limit); composition ₹1.5 crore | cleartax.in |
| Casual unskilled day wage, open market (T2) | ₹500/dayEstimate | Est.: Dibrugarh casual labour ₹500/day… |
| Per-capita income (GSDP per capita, current prices) | ₹2,03,760 (2025–26); about 81% of national | en.wikipedia.org |
Festivals and demand
- Rongali (Bohag) Bihu (14–20 Apr 2027 (holidays 14–16 Apr)) · Biggest festival: gamosa, mekhela, pitha, fish/meat; shops shut 2–3 days then boom
- Bhogali (Magh) Bihu (14–15 Jan 2027) · Feast festival: fish, meat, rice cakes, curd; Uruka night
- Durga Puja (15–21 Oct 2026) · Large in Guwahati and Barak Valley; food and clothing peak
- Ambubachi Mela, Kamakhya (22–26 Jun 2027) · Lakhs of pilgrims in Guwahati; food/water vending boom near Nilachal hill
- Kati Bihu (18 Oct 2026) · Quiet lamp-lighting festival; little trade effect
Licences and rules
Rules vary by state and city: confirm with your municipal office.
- FSSAI basic registration (₹100/year)
- Street vending certificate or municipal permission
- Commercial LPG connection
- Trade licence, Guwahati Municipal Corporation (GMC Act 1971) · ₹100 application + trade fee about ₹1,750–20,000/yr by business type; valid 1 Apr–31 Mar · Guwahati Municipal Corporation
- Assam Shops and Establishments Act 1971 registration · Fee not found for 2026 · Labour Welfare Department
Simulate a week before you invest
Run a chai business 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. The free simulator currently runs on India-wide numbers; a state preset is coming.
Play the simulator freeFrequently asked questions
How much does it cost to start a chai business in Assam?
About ₹25,500–₹2.5 lakh, depending on the format. That is the India-wide setup cost rescaled to Assam's rents and prices.
How much profit does a chai business make in Assam?
A well-run one typically nets ₹55,000–₹1.1 lakh a month in a city like Dibrugarh. Casual owners earn far less.
What licences does a chai business need in Assam?
FSSAI basic registration (₹100/year), Street vending certificate or municipal permission, Commercial LPG connection, Trade licence, Guwahati Municipal Corporation (GMC Act 1971), Assam Shops and Establishments Act 1971 registration
Which city in Assam is best for a chai business?
Bigger cities bring more customers and higher bills but also higher rent and wages. The chart above compares metro, mid-size city and small town.