HR software for startups in India
Know what HR costs, and what you owe, from 5 to 50.
HR software for startups should answer two questions honestly: when do we actually need it, and which statutory obligations switch on as we hire. LekhaHR brings employee records, attendance and leave into one traceable place, priced per active employee with no base fee.
The short answer
What the best HRMS software does for a startup, and when.
HR software for a startup, sometimes searched as the best HRMS software for startups, keeps one authoritative employee record and runs attendance, leave and self-service against it. The value at startup stage is timing and proof: a single source for those facts, so a leave balance or a day's attendance can be explained rather than reconstructed, and so the record is ready when ESI, gratuity or EPF becomes applicable.
When does a startup need HR software? When the sheet can no longer show who changed what, or when. LekhaHR ships that core today, which is employee records, attendance and leave. It does not yet run payroll, hiring or performance as public modules, and it says so plainly rather than implying a full suite.
Cost and compliance, by headcount
Watch cost and statutory duties switch on as you hire.
Pick a headcount. The monthly cost is the exact figure from the pricing calculator, and the obligations are the Indian statutory thresholds that become applicable at that size, each dated and sourced. LekhaHR keeps the record these filings draw on; it does not file them and does not run payroll.
Costs are annual monthly-equivalents from the pricing calculator, GST extra, and scale only with active employees — there is no base fee or minimum. Thresholds are displayed, not computed: the curve shows when an obligation becomes applicable, it does not calculate any PF, ESI or gratuity figure.
The stages, honestly
Three stages, and what a startup needs at each.
The best HR software for startups is the one that fits your stage, which is why this page tells you when not to buy. Here is the operational reality from one to fifty people, what LekhaHR does at each stage, and where it is not the right pick yet.
The founder or ops lead runs HR
Attendance is a group chat and a shared sheet. Everyone knows each other's leave without looking it up. Approvals happen by tapping someone on the shoulder. At this size that is genuinely fine, and paying for software to formalise it can be premature.
What LekhaHR does hereOften nothing yet, and we will say so. If you already want one clean employee record and a leave balance nobody argues about, LekhaHR holds records, attendance and leave from person one. But a five-person team with a working sheet does not need us.
Not yet a fit if you are three or four people at one location, approvals are informal, and no one has ever had to reconstruct how a balance was reached.
The spreadsheet starts to lie
This is where attendance and leave get painful. A correction overwrites the original value and its approval. Two people read the same leave balance differently. ESI and gratuity have just become applicable, so the record now feeds a filing rather than only a payslip. The sheet cannot show who changed what, or when.
What LekhaHR does hereThis is the stage LekhaHR is built for. Every punch is explicit and every leave balance folds from a versioned ledger, so a day's status or a balance can be explained rather than reconstructed. Corrections keep the original and its approval. That is the record ESI and gratuity draw on.
Not yet a fit if you need released payroll, hiring or performance as working modules today, or you depend on biometric or kiosk hardware for attendance.
Policy and audit become the job
Different teams have different leave rules, EPF is now applicable, and a labour or PF inspection is a realistic prospect. The question shifts from tracking attendance to proving it: which policy applied on which date, who approved an exception, and whether last year's numbers still stand up.
What LekhaHR does hereAttendance and leave policies are effective-dated, so a change applies from a chosen date without rewriting history. The audit trail behind a correction or an approval stays intact. Clean attendance and leave can be exported for whoever runs your payroll, until LekhaHR payroll ships.
Not yet a fit if you need onboarding, exits, expenses or performance as live modules now, or a single suite that also files your statutory returns for you.
India statutory reality
The best HR software for startups in India cites its thresholds.
A startup does not face every statutory duty on day one. They arrive as headcount and wages cross the thresholds set in law. The three headline thresholds below are dated and sourced from the registry; the exact contribution rates stay with your payroll consultant, because this page displays applicability and does not compute what you owe.
ESI at 10+ employees
Employee-insurance coverage typically starts at 10 employees, though a few states still apply a higher threshold, so confirm your state. Who is covered turns on the ₹21,000 monthly wage ceiling.
Effective , reviewed 12 Jul 2026.Employees' State Insurance Act, 1948 (Act 34 of 1948), s.2(12); ESIC coverage — https://www.esic.in/web/esic/coverage
Gratuity at 10+ employees
The Payment of Gratuity Act applies once an establishment has 10 or more employees, and it continues to apply even if the headcount later falls below that.
Effective , reviewed 12 Jul 2026.Payment of Gratuity Act, 1972 (Act 39 of 1972), s.1(3) — https://labour.gov.in/
EPF at 20+ employees
Provident-fund coverage becomes mandatory at 20 or more persons, carried forward unchanged under the Code on Social Security, 2020. The ₹15,000 monthly wage ceiling sets who must be covered.
Effective , reviewed 12 Jul 2026.Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (Act 19 of 1952), s.1(3) — https://www.epfindia.gov.in/
Professional Tax sits alongside these: it is levied by states, not the Union, capped at ₹2,500 per person a year, and several states levy none. What LekhaHR does at this layer is narrow and honest. It keeps the clean employee, attendance and leave record those filings draw on, with corrections and approvals preserved, and until LekhaHR payroll ships you can export clean attendance and leave for your CA or payroll consultant. It does not compute or file your returns, and it does not replace your CA.
First HR policies
A founder's first HR checklist, in rough order.
Before headcount forces it, a startup needs a small set of written policies. This is the practical order most Indian startups follow, with what LekhaHR holds today against each and what stays your own document.
Practical guidance for setting up, not legal advice. Thresholds and statutory wording change, so confirm the current position with your CA or counsel before you rely on it.
Written offer and appointment terms
A signed offer or appointment letter that states role, salary structure, notice period and probation. It is the document every later dispute refers back to.
In LekhaHR: LekhaHR holds the employee record and start date; the letter itself is your document.Attendance and working-hours policy
Define working hours, week-offs, what counts as present, grace for a late mark, and how a missed punch is regularised. Write it down before you have ten people arguing about it.
In LekhaHR: LekhaHR runs this as configured policy with an explainable day status.Leave policy
The leave types you offer, how they accrue, what carries forward, and who approves. Keep it inside the ranges your state's Shops and Establishments Act sets rather than inventing numbers.
In LekhaHR: LekhaHR runs effective-dated leave plans with the balance math shown before every request.Employee records and consent
One place for identity, PAN, bank and emergency-contact details, with the employee's consent to hold them. Scattered copies across drives and chats are the first thing that goes wrong.
In LekhaHR: LekhaHR keeps the single employee record; location is captured only at a punch.Prevention of sexual harassment (PoSH)
A written PoSH policy and an Internal Committee. Under the Sexual Harassment of Women at Workplace Act, 2013, the Internal Committee is mandatory once you have 10 or more employees, and any-gender headcount counts toward that 10. Put the policy in place early: failing to constitute the committee carries a fine up to ₹50,000, and many states require an annual IC report.
Effective , reviewed 12 Jul 2026.Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Act 14 of 2013), s.4 — https://www.indiacode.nic.in/
In LekhaHR: This is a policy and committee you set up; LekhaHR does not administer it.Statutory registrations as thresholds approach
Shops and Establishments registration from setup, then PF and ESI registration as those thresholds become applicable. Track headcount so a registration is not missed the month you cross a threshold.
In LekhaHR: The growth curve above shows when each threshold becomes applicable; registration is yours or your CA's to file.
Privacy boundary
Location only at a punch, never in the background.
LekhaHR can capture location when an employee checks in or out and validate the configured office geofence. It does not track movement in the background, build travel routes or monitor employees between punches.
For a small team this is often the deciding factor. Staff will accept a check-in that records where they punched, but not a product that follows them between punches. The startup roundups this page competes with do not draw that line explicitly.
Transparent pricing
See what HR software for a startup costs without a platform minimum.
Operations starts at ₹79 per active employee/month billed annually. Business starts at ₹119. GST extra.
Startup FAQ
Decide with the timing, the cost and the thresholds visible.
The cost answers use the same published rates as the pricing calculator. The statutory answers use dated fixtures, not a range or a "contact sales".
When does a startup actually need HR software?
Not on day one. A spreadsheet is fine while a handful of people work one location, approvals are informal, and nobody needs an audit trail. You have outgrown it when no one can explain how a leave balance was reached, a correction overwrites the original value and its approval, or requests and decisions live in chat instead of on the record. For most Indian startups that point arrives somewhere between ten and twenty-five people, which is also where ESI and gratuity become applicable.
How much does HR software cost for a startup?
LekhaHR publishes an exact per-active-employee rate, so cost scales with headcount and nothing else. On the Operations plan at annual rates, 10 employees works out to ₹790 per month equivalent, 25 employees to ₹1,975, and 50 employees to ₹3,950. Business runs ₹1,190, ₹2,975 and ₹5,950 for the same sizes. There is no base platform fee and no minimum headcount, and every figure excludes GST.
Is there free HR software for startups?
LekhaHR does not offer a free-forever plan. It publishes a low per-active-employee rate you can check yourself, plus a 14-day Business trial so you can evaluate the product before committing. A free tool usually recovers the cost elsewhere; a published rate is the honest version of "cheapest".
What statutory obligations kick in as a startup hires?
They arrive as headcount crosses the thresholds set in law. Shops and Establishments registration applies from setup. ESI and gratuity become applicable at ten employees in most states, EPF at twenty, and Professional Tax is levied by some states from the first salaried employee. The dated thresholds are shown on the growth curve above. LekhaHR keeps the record those filings draw on; it does not file them for you and does not replace your CA or payroll consultant.
Do I need an HR person, or can a founder run this?
At an early stage a founder or ops lead can run employee records, attendance and leave in LekhaHR without a dedicated HR hire. That stops being true as the team and the policy load grow, when someone needs to own leave rules, exceptions and the statutory calendar. LekhaHR does not claim to replace that hire; it makes the record they inherit a clean one.
What is the best HR software for a startup in India?
That depends on which problem is actually urgent, so this page will not self-rank or show customer logos it does not have. LekhaHR fits an Indian startup formalising employee records, attendance and leave at the ten-to-fifty stage, with transparent pricing and cited statutory thresholds. It is the wrong pick if you need released payroll, hiring or performance today, or field hardware. The stage guidance above answers this in both directions.
What should be on a startup's first HR checklist?
In rough order: a written offer and appointment terms, an attendance and working-hours policy, a leave policy inside your state's ranges, one place for employee records with consent, a prevention-of-sexual-harassment policy and committee, and statutory registrations as their thresholds approach. The section above lists each with what LekhaHR holds today and what stays your own document. Treat it as practical guidance, not legal advice, and confirm current thresholds with counsel.
When should we not choose LekhaHR yet?
When you need released payroll, hiring, HR helpdesk or performance review as a working module today; when you depend on kiosk or biometric-verification hardware, offline-first field punching, or continuous field GPS; or when you are still three or four people where a spreadsheet genuinely suffices. Those are honest gaps in the current scope, and a device-led or full-suite product will serve you better for now.
Does LekhaHR track employees continuously?
LekhaHR can capture location when an employee checks in or out and validate the configured office geofence. It does not track movement in the background, build travel routes or monitor employees between punches.