How to start a café in Dadra & Nagar Haveli and Daman & Diu (2026): investment, profit and licences
A café in Dadra & Nagar Haveli and Daman & Diu needs about ₹4.9 lakh–₹17.7 lakh to set up, depending on the format. Run well in a city like Daman, it typically nets ₹81,000–₹1.6 lakh a month. The numbers below are India-wide research rescaled to Dadra & Nagar Haveli and Daman & Diu's own wages, shop rents, power tariffs and street prices.
How much investment do you need in Dadra & Nagar Haveli and Daman & Diu?
- Cheapest start
Coffee kiosk
60–150 sq ft counter in a mall, office park or station. 0–6 seats, mostly takeaway, small bills.
Setup cost₹4.9 lakhSuggested budget (with working capital): ₹5.7 lakh Small café
300–450 sq ft, 15–25 seats, chai, coffee and snacks, 3–4 staff.
Setup cost₹11.8 lakhSuggested budget (with working capital): ₹12.2 lakh
Chai café franchise
Brand fit-out and menu (Chaayos-type). Brand pulls more bills, but ~5% royalty plus a marketing levy.
Setup cost₹13.8 lakhSuggested budget (with working capital): ₹14.3 lakh
30-seat café
500–700 sq ft, 25–35 seats, espresso bar and full snack menu, 5–7 staff.
Setup cost₹17.7 lakhSuggested budget (with working capital): ₹18.4 lakh
How much profit can you make in Dadra & Nagar Haveli and Daman & Diu?
A well-run café in Dadra & Nagar Haveli and Daman & Diu typically nets ₹81,000–₹1.6 lakh a month in a mid-size city: about ₹1.6 lakh–₹3.5 lakh in the metro and ₹37,500–₹70,500 in a small town. A casually run one can make far less or lose money.
| City | Net profit per week | Net profit per month |
|---|---|---|
| Silvassa | ₹36,290–₹81,653 | ₹1.6 lakh–₹3.5 lakh |
| Daman | ₹18,650–₹37,300 | ₹81,000–₹1.6 lakh |
| Diu | ₹8,665–₹16,247 | ₹37,500–₹70,500 |
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 Dadra & Nagar Haveli and Daman & Diu
The researched local factors that move this business’s numbers.
| Here | India | vs India | |
|---|---|---|---|
| Minimum wage, monthly | ₹13,351 | ₹12,500 | +7% |
| Unskilled day wage | ₹514 | ₹500 | +3% |
| Shop rent, metro (per sq ft/month) | ₹60Estimate | ₹150 | −60% |
| Shop rent, mid-size city | ₹50Estimate | ₹60 | −17% |
| Shop rent, small town | ₹35Estimate | ₹25 | +40% |
| Commercial power, per kWh | ₹5.5Estimate | ₹9.5 | −42% |
| Commercial LPG cylinder | ₹2,810Estimate | ₹2,810 | ≈ |
| Petrol, per litre | ₹99.44 | ₹102 | −3% |
| Cup of tea / coffee | ₹12Estimate | ₹12 | ≈ |
| Simple meal | ₹90Estimate | ₹80 | +13% |
| Men's haircut | ₹100Estimate | ₹100 | ≈ |
| Milk, 1 litre | ₹58Estimate | ₹60 | −3% |
| Bread loaf | ₹45Estimate | ₹45 | ≈ |
| Factor | Typical value in India | Source |
|---|---|---|
| Minimum wage, unskilled (from 1 Apr 2026) | ₹501.50/day (₹441 basic + ₹60.50 VDA) = ₹13,039/month | wageindicator.org |
| Minimum wage after Oct 2026 VDA | about ₹513.50/day = ₹13,351/monthEstimate | ascent-hr.com |
| Semi-skilled / skilled basic | ₹452 / ₹462 basic + same VDA | wageindicator.org |
| Typical informal helper pay | ₹9–12k/month; factory jobs set the floorEstimate | Est.: competes with factory wages in S… |
| Shop rent T1 Silvassa | ₹60/sq ft/monthEstimate | Est.: industrial-town market rents, be… |
| Shop rent T2 Daman | ₹50/sq ft/month (beach-road premium higher)Estimate | Est. |
| Shop rent T3 Diu | ₹35/sq ft/monthEstimate | Est. |
| Commercial electricity all-in (DNH & DD Power Distribution Corp, JERC) | about ₹5.5/kWhEstimate | dded.gov.in |
| Commercial LPG 19 kg | about ₹2,810Estimate | goodreturns.in |
| S&E registration threshold | 10+ employees register; smaller shops file intimation | calcguru.in |
| S&E law | UT 2025 rules adopting Gujarat S&E Act 2019; replaces 1988 Act | calcguru.in |
| S&E validity | one-time registration, no renewal; apply within 15 days | calcguru.in |
| Professional tax | not levied | calcguru.in |
| Fuel/liquor VAT | low UT VAT keeps petrol ~₹2/L below Gujarat | businesstoday.in |
Festivals and demand
- Diwali + Gujarati New Year (8–10 Nov 2026) · sweets, clothes peak; Gujarati tourist inflow to Daman/Diu during holidays
- Christmas–New Year (24 Dec 2026–1 Jan 2027) · Daman/Diu beach and bar tourism peak (Portuguese-Catholic heritage)
- Daman & Diu Liberation Day (19 Dec 2026) · UT holiday
- Uttarayan (14 Jan 2027) · kite/food demand; Gujarat-style holiday
- DNH Liberation Day (2 Aug 2027) · UT holiday
Licences and rules
Rules vary by state and city: confirm with your municipal office.
- FSSAI basic registration (₹100/year up to ₹1.5 crore turnover)
- Shops & Establishments registration
- Municipal eating-house / health trade licence (fee by seats)
- Fire NOC or safety affidavit, and an IPRS/PPL music licence
- GST at 5% without input tax credit
- Shop & Establishment intimation/registration (UT rules 2025 adopting the Gujarat S&E Act 2019 framework; registration at 10+ employees) · computed on EODB portal (not published) · Labour dept, UT administration
- Excise licence for liquor shops/bars · UT excise schedule · Excise dept
- Municipal trade licence (Silvassa Municipal Council / Daman MC) · ₹500–₹5,000 (Est.) · Municipal council
Simulate a week before you invest
Run a café 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 café in Dadra & Nagar Haveli and Daman & Diu?
About ₹4.9 lakh–₹17.7 lakh, depending on the format. That is the India-wide setup cost rescaled to Dadra & Nagar Haveli and Daman & Diu's rents and prices.
How much profit does a café make in Dadra & Nagar Haveli and Daman & Diu?
A well-run one typically nets ₹81,000–₹1.6 lakh a month in a city like Daman. Casual owners earn far less.
What licences does a café need in Dadra & Nagar Haveli and Daman & Diu?
FSSAI basic registration (₹100/year up to ₹1.5 crore turnover), Shops & Establishments registration, Municipal eating-house / health trade licence (fee by seats), Fire NOC or safety affidavit, and an IPRS/PPL music licence, GST at 5% without input tax credit, Shop & Establishment intimation/registration (UT rules 2025 adopting the Gujarat S&E Act 2019 framework; registration at 10+ employees), Excise licence for liquor shops/bars, Municipal trade licence (Silvassa Municipal Council / Daman MC)
Which city in Dadra & Nagar Haveli and Daman & Diu is best for a café?
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.