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How to Open a Gym in India in 2024

How to Open a Gym in India in 2024

Posted by Tyler Spraul, Certified Strength and Conditioning Specialist® (CSCS®) on August 30, 2024 — Updated on August 30, 2024

Learning how to open a gym in India involves navigating the country’s specific regulations, financial planning, and making strategic decisions regarding location.

How to Open a Gym in India

India, with its rapidly growing fitness industry and increasing awareness of health and wellness, presents a significant opportunity for gym owners in India. However, success requires understanding India’s legal requirements, obtaining the necessary India gym licenses and permits, and ensuring compliance with health and safety standards.

Key InformationDetails
Estimated Cost to Open a Gym in India₹50 lakhs to ₹2 crores depending on size, location, and equipment
Indian Gym Licensing RequirementsBusiness License, GST Registration, Health and Safety Compliance
Government Licensing LinksStartup India Portal
Monthly Cost of Running a Gym in India₹2 lakhs to ₹10 lakhs depending on rent, utilities, staffing, and maintenance
Key Regulations to ConsiderIndian labor laws, local zoning laws, Health and Safety regulations

For a detailed guide on how to open a gym, refer to this resource. Additionally, understanding the cost to open a gym and choosing the best gym management software in India are essential steps in establishing a successful fitness business in India.

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Step #1 – Understand India’s Gym Regulations and Licensing

The first step in opening a gym in India is to familiarize yourself with the regulatory requirements specific to the state or city where you plan to operate. India requires gym owners to obtain several licenses and permits, depending on the services offered and the gym’s location.

  • Business License: Every business operating in India must obtain a business license. The requirements may vary depending on the local municipal corporation.
  • GST Registration: Necessary for businesses with a turnover exceeding ₹20 lakhs (₹10 lakhs for special category states).
  • Health and Safety Compliance: You must comply with local health regulations and ensure that your gym meets all safety standards, particularly if you offer services like swimming pools, saunas, or food and beverages.

Consult with local authorities to ensure your gym meets all necessary regulations. Start the process through the Startup India Portal or your local municipal corporation.

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Fitness Income Ideas

Step #2 – Estimate the Costs to Open a Gym in India

The cost of opening a gym in India can vary widely depending on factors such as location, gym size, and the type of facility you plan to establish. Typically, the startup costs range between ₹50 lakhs and ₹2 crores.

  • Initial Expenses: These include costs for leasing or purchasing property, gym equipment, and necessary renovations.
  • Licensing and Permit Fees: Expenses related to obtaining business licenses, GST registration, and health permits.
  • Operational Expenses: Monthly costs such as rent, utilities, payroll, and insurance need to be carefully budgeted.

Understanding the monthly cost of running a gym in India, which can range from ₹2 lakhs to ₹10 lakhs, is essential for financial planning and long-term success.

Estimated Costs for Opening and Operating a Gym in India

Opening a gym in India requires a significant investment, with Indian gym startup costs varying depending on the location, size, and type of facility you intend to establish. Below is a detailed breakdown of these costs, starting with the initial investments necessary to set up your gym.

Expense CategoryDescriptionEstimated Cost (₹)
Initial Expenses
Property Lease/PurchaseLeasing or purchasing a suitable location for the gym.₹10 lakhs – ₹50 lakhs (yearly)
RenovationsCosts for remodeling the space to fit gym requirements (flooring, mirrors, etc.)₹10 lakhs – ₹50 lakhs
Gym EquipmentPurchasing equipment such as treadmills, weights, machines, etc.₹15 lakhs – ₹60 lakhs
Interior Design and FurnishingsCosts for reception area, lockers, showers, etc.₹5 lakhs – ₹20 lakhs
Technology and SoftwareMembership management software, computers, security systems, etc.₹2 lakhs – ₹10 lakhs

Initial Expenses: Setting up a gym in India involves considerable initial expenses, including securing a property, renovating it to meet the specific needs of a gym, and investing in equipment. These Indian gym costs are crucial to creating a space that is both functional and attractive to potential members.

In addition to these initial investments, you’ll need to navigate the regulatory landscape in India, ensuring that you have all the necessary licenses and permits to operate your gym legally.

Licensing and Permit FeesDescriptionEstimated Cost (₹)
Business LicenseRequired for legal operation of the gym.₹20,000 – ₹1 lakh (one-time)
GST RegistrationNecessary for taxation compliance.₹5,000 – ₹20,000 (one-time)
Health PermitsNecessary health and safety certifications.₹10,000 – ₹50,000 (one-time)

Licensing and Permit Fees: Complying with local regulations in India involves securing various licenses and permits. These costs, though typically lower than initial setup expenses, are essential to legally operate your gym and ensure it meets all required health and safety standards.

Once your gym is operational, you’ll need to manage ongoing expenses effectively to ensure financial sustainability. These operational costs include rent, utilities, payroll, and marketing, all of which must be carefully budgeted.

Operational Expenses (Monthly)DescriptionEstimated Cost (₹)
RentMonthly rent for the gym space.₹1 lakh – ₹5 lakhs
UtilitiesElectricity, water, heating, etc.₹20,000 – ₹1 lakh
PayrollSalaries for trainers, administrative staff, and cleaning personnel.₹2 lakhs – ₹10 lakhs
InsuranceLiability, property, and workers’ compensation insurance.₹50,000 – ₹2 lakhs
Marketing and AdvertisingOnline and offline marketing efforts to attract members.₹50,000 – ₹2 lakhs
Maintenance and RepairsRegular maintenance of equipment and facilities.₹30,000 – ₹1 lakh
Membership SoftwareSubscription to membership management platforms.₹10,000 – ₹50,000

Operational Expenses (Monthly): Running a gym in India comes with various ongoing costs that must be carefully managed to ensure profitability. Rent and payroll are typically the largest expenses, but utilities, insurance, and marketing also require close attention. By planning for these recurring costs, you can maintain a healthy cash flow and ensure the long-term success of your gym.

Understanding these costs and planning accordingly is essential for any prospective gym owner in India. With careful budgeting and strategic planning, you can establish a successful and sustainable gym business in India.

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Step #3 – Select the Best Gym Management Software

Choosing the right gym management software is crucial for efficiently running your fitness business in India. Exercise.com is an ideal choice for Indian gym owners, offering a comprehensive platform that streamlines operations and enhances member engagement.

  • All-In-One Management Tools: Handle memberships, class scheduling, billing, and marketing from a single platform.
  • Regulatory Compliance: Ensure your gym adheres to India’s health and safety standards with built-in compliance features.
  • Member Engagement: Utilize Exercise.com’s mobile app to keep members informed and engaged with your gym.

Selecting the best gym management software is a critical step in ensuring your gym operates smoothly and meets all regulatory requirements in India. The best gym management software, and the best personal training software means that you can manage your entire gym in one place.

Offer booking and scheduling for your gym’s packages, sessions, memberships, and more.

Booking

Create and sell fitness memberships, products, and digital offers.

Gym Payments

Manage, message, and market to your leads and members.

Gym Marketing Automations

All from your very own custom branded fitness apps.

Custom Branded Apps

And much more…

Kula Sports Performance
“The team at Exercise.com have been dedicated to our success from the beginning. Helping us manage rapid growth and providing solutions as we have scaled have been critical. The all-in-one platform combined with the business app, we have everything we need with Exercise.com.”
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Founder, Kula Sports Performance

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Step #4 – Secure Funding for Your Indian Gym

Securing adequate funding is a key step in opening a gym in India. Depending on your financial situation, you may need to explore various financing options, such as bank loans, private investors, or government grants.

  • Bank Loans: Indian banks may offer specific loan programs for small businesses in the fitness industry.
  • Private Investors: Consider partnering with investors who have experience in the fitness sector and understand the Indian market.
  • Government Grants and Incentives: Research Indian-specific grants and incentives available for small businesses in the fitness industry.

Proper funding ensures that you can cover all startup costs and maintain operations as your gym begins to grow.

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Step #5 – Find the Perfect Location

Choosing the right location for your gym in India is crucial to your business’s success. India offers diverse markets, from urban centers like Mumbai, Delhi, and Bangalore to suburban and rural areas.

  • High Traffic Areas: Locations near shopping centers, business districts, or residential neighborhoods can attract more clients.
  • Parking Availability: Ensure there is ample parking for your members, as convenience is a key factor.
  • Local Demographics: Analyze the demographics of the area to ensure they align with your target market.

Selecting the right location will significantly influence your gym’s success in India.

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Step #6 – Design Your Gym Layout and Purchase Equipment

A well-thought-out gym layout is essential for creating a functional and appealing environment for your members. Your gym should offer a variety of workout spaces that cater to different fitness needs.

  • Equipment Placement: Organize equipment by type (e.g., cardio, strength training) to optimize space and ensure efficient use.
  • Aesthetic Appeal: Choose a design that reflects your brand and resonates with your target market.
  • Compliance: Ensure your layout meets India’s health and safety regulations, including accessibility requirements.

Investing in quality equipment and thoughtful design will help attract and retain members in your Indian gym.

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Step #7 – Develop a Marketing Strategy

Marketing is vital to the success of your gym in India. A comprehensive marketing strategy should include both digital and traditional approaches to maximize reach and visibility.

  • Digital Marketing: Use social media, email marketing, and local SEO to connect with your target audience.
  • Local Advertising: Consider print ads, flyers, and partnerships with local businesses to increase brand awareness.
  • Referral Programs: Encourage current members to refer friends and family by offering incentives.

A strong marketing strategy will help you build a loyal customer base and establish your gym as a leading fitness destination in India.

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The Best Choice for Gym Owners in India

Opening a gym in India requires a solid understanding of local and national regulations, careful financial planning, and a strategic marketing approach. Exercise.com is the best choice for managing and growing your gym business in India, offering an all-in-one platform that enhances operations and boosts member satisfaction. For more information and to discover how Exercise.com can support your gym’s success, schedule a demo today.

Tony Gentilcore
Exercise.com makes my life easier by providing an all-in-one solution and the opportunity to help those who otherwise would never have access to my programming!
Tony Gentilcore
Founder, Core Online

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India Gym Business Location Report Card

Grade: B+

India presents a rapidly growing and dynamic environment for opening a gym, particularly in urban centers like Mumbai, Delhi, Bangalore, and Hyderabad. The country’s young and increasingly health-conscious population, coupled with rising disposable incomes, is driving demand for fitness services. However, the market is highly competitive, especially in metro areas, and the cost of doing business, including real estate and compliance with local regulations, can be challenging. Despite these obstacles, India’s expanding middle class, increasing awareness of health and wellness, and the growth of modern fitness trends make it an attractive market for gym owners who can cater to diverse needs.

FactorGradeComments
Population Size and GrowthARapid population growth, particularly in urban centers, driven by economic development and urbanization; a large, young population supports a strong demand for fitness services.
Age DistributionAA young demographic with a strong concentration of working-age individuals, providing a broad market base for fitness services.
Income LevelsBIncome levels are rising, especially in urban areas, supporting demand for diverse fitness offerings; however, income disparities can affect market potential in different regions.
Market Demand and CompetitionA-High demand for fitness services in urban areas, with increasing competition from both local and international gym chains; opportunities exist in niche markets and smaller cities.
Cost of Doing BusinessB-Moderate to high costs, particularly in metro cities, including real estate and compliance; more affordable in Tier 2 and Tier 3 cities, though with a smaller market size.
Economic StabilityB+Growing and diverse economy, with key sectors like IT, manufacturing, and services providing consistent employment and consumer spending; economic disparities exist across regions.
Supportive Business EnvironmentBIndia offers a generally supportive environment for businesses, but navigating regulations, taxation, and bureaucratic processes can be complex and time-consuming.
Physical Activity LevelsBIncreasing awareness of fitness and wellness, particularly among the younger population in urban areas, though overall physical activity levels are still developing.
Community Support for FitnessB+Growing community engagement with fitness events, wellness programs, and health initiatives, particularly in metro areas and among the youth.
State and Local RegulationsB-Regulatory environment varies by state, with compliance requirements that can be complex and burdensome, particularly around health and safety standards.
Real Estate ConsiderationsB-High real estate costs in metro cities, with more affordable options in smaller cities; securing large commercial spaces can be challenging in prime locations.
Labor MarketBGood availability of fitness professionals, though wages are competitive, particularly in major cities; staffing can be more affordable in smaller towns.
Consumer Behavior and PreferencesA-Growing demand for diverse fitness options, including traditional gyms, boutique fitness centers, and wellness services, driven by a young and health-conscious population.
Weather and ClimateBVaried climate across the country, with hot summers and monsoon seasons driving demand for indoor gym facilities; outdoor activities are popular in milder regions.
Safety and Crime RatesBSafety and crime rates vary significantly between urban, suburban, and rural areas; major cities have higher crime rates but also have strong security measures in place.
Cost of LivingBThe cost of living varies greatly across regions, with higher costs in metro cities; this is balanced by rising income levels and growing consumer spending in urban areas.
Economic DevelopmentA-Rapid economic development, particularly in urban areas and emerging sectors like technology and services, providing significant opportunities for growth in the fitness industry.

India Gym Statistics

India has over 3,500 gyms, with approximately 5 million residents holding gym memberships, representing 0.4% of the population. The average gym size in India ranges from 5,000 to 15,000 square feet. Popular gym chains such as Gold’s Gym, Cult.fit, and Talwalkars are widespread across the country. Monthly membership costs typically range between ₹1,500 and ₹3,000, while personal training sessions cost between ₹1,000 and ₹2,500 per hour. The gym industry in India is growing at a rapid rate of 6.5% annually.

StatisticValue
Total Number of Gyms3,500+
Average Monthly Membership Cost₹1,500 – ₹3,000
Number of Gym Members (Approx.)5 million
Percentage of Population with Membership0.4%
Average Gym Size (Square Feet)5,000 – 15,000
Most Popular Gym ChainsGold’s Gym, Cult.fit, Talwalkars
Average Personal Training Cost (Per Hour)₹1,000 – ₹2,500
Growth Rate of Gym Industry (2023-2024)6.5%
Top Cities for GymsMumbai, Delhi, Bangalore
Percentage of Gyms Offering Group Classes80%
Percentage of Gyms with 24/7 Access50%
Average Annual Revenue per Gym₹4 million – ₹10 million

India Gyms per Capita by City

CityPopulationGymsGyms per CapitaIncomeFitness Rank
Mumbai20,667,6563,0006,889₹6,25,000High
Delhi31,181,3764,5006,929₹6,50,000High
Bangalore12,764,9352,0006,382₹6,00,000High
Hyderabad10,534,4181,5007,023₹5,80,000Medium
Chennai11,235,0181,8006,242₹5,90,000Medium
Pune7,496,7491,2006,247₹5,50,000Medium
Kolkata14,850,0662,5005,940₹4,80,000Medium
Ahmedabad8,253,2261,4005,895₹6,20,000Medium
Surat7,185,0001,1006,532₹5,40,000Medium
Jaipur4,930,0008006,162₹4,50,000Medium
Lucknow4,591,0007006,559₹4,20,000Medium
Kanpur3,120,0005006,240₹4,00,000Medium
Nagpur2,990,0004506,644₹4,10,000Medium
Indore3,210,0005006,420₹4,30,000Medium
Thane1,890,0003006,300₹5,20,000Medium
Bhopal2,589,0004006,473₹4,40,000Medium
Pimpri-Chinchwad2,029,0003006,763₹4,50,000Medium
Patna2,350,0003506,714₹3,80,000Low
Vadodara2,065,7713505,902₹5,00,000Medium
Ludhiana1,618,8792506,476₹4,30,000Medium
Coimbatore2,151,4663007,171₹4,80,000Medium
Visakhapatnam2,035,9222807,271₹4,50,000Medium
Agra1,760,2852407,334₹3,90,000Low
Madurai1,561,1292207,096₹4,20,000Medium
Guwahati957,3521506,382₹4,00,000Medium
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How much does it cost to open a gym in India?

The cost to open a gym in India typically ranges from ₹15 lakhs to ₹1 crore, depending on factors such as the size of the facility, location, and the type of equipment and services offered. Costs can be higher in major cities like Mumbai, Delhi, and Bangalore due to real estate prices and local demand for fitness services.

Read More: Cost to Open a Gym

Who regulates gyms in India?

Gyms in India are primarily regulated by local municipal corporations and the respective state governments. Additionally, there are voluntary associations like the Indian Bodybuilding Federation and the All India Council of Physical Fitness that set industry standards for health and safety, trainer qualifications, and business practices.

What licenses do you need to open a gym in India?

To open a gym in India, you will need to obtain several licenses and registrations, including a Shops and Establishment License from your local municipal corporation, a trade license, and a GST registration if your turnover exceeds ₹20 lakhs. If you plan to offer spa services, you may also need additional health permits. It is advisable to consult with a local legal advisor to ensure full compliance with local regulations.

What are the gym license requirements for ongoing licensing in India?

For ongoing licensing in India, gym owners must renew their business licenses annually, such as the Shops and Establishment License, and ensure compliance with all health and safety regulations. Regular inspections by local health authorities might be required to ensure that the facility adheres to industry standards.

How do I get what I need to open a gym in India online?

You can begin the process of opening a gym in India by registering your business through the Ministry of Corporate Affairs (MCA) portal and applying for necessary licenses via your local municipal corporation’s website. Additionally, you will need to apply for GST registration through the GST portal if applicable.

How to start a fitness business in India?

Starting a fitness business in India involves several key steps: conducting thorough market research, developing a comprehensive business plan, securing a prime location, and obtaining the necessary licenses and permits. Compliance with India’s specific health and safety regulations is crucial, as is crafting a strong marketing strategy to attract clients.

Read More: How to Start a Fitness Business

What are the legal requirements to open a gym in India?

To legally open a gym in India, you need to acquire a Shops and Establishment License from your local municipal corporation, register your business with the Ministry of Corporate Affairs, and comply with health and safety regulations as prescribed by local authorities. Additionally, securing liability insurance is recommended to protect your business from potential legal issues.

What are the most important Indian gym laws?

The most important gym laws in India include compliance with the Shops and Establishment Act, local health and safety regulations, and consumer protection laws. Gyms must also ensure that all trainers have the appropriate qualifications and certifications.

How do I start a small gym business?

Starting a small gym business in India requires careful planning and preparation. Begin by developing a comprehensive business plan, securing a strategic location, purchasing essential equipment, and ensuring compliance with all relevant Indian licensing and regulatory requirements. Effective marketing and customer service are crucial to building and retaining a loyal client base.

Read More: How to Start a Small Gym

How profitable is owning a gym in India?

Owning a gym in India can be profitable, with typical profit margins ranging from 15% to 30%. Profitability depends on factors like location, the variety of services offered, and how well the gym is managed. Additional revenue from services such as personal training, nutrition counseling, and group fitness classes can further enhance profitability.

Is it worth it to open a gym in India?

Opening a gym in India can be a worthwhile investment if you have a solid business plan and a passion for fitness. While the initial investment is substantial, a well-managed gym in a prime location can provide steady income and opportunities for growth.

Should a gym be a sole proprietorship or a private limited company in India?

In India, many gym owners choose to operate as a private limited company rather than a sole proprietorship. Incorporating as a private limited company provides limited liability protection, potential tax advantages, and can enhance your business’s credibility. Consulting with an accountant or financial advisor is recommended to determine the best structure for your business.

Read More: Best Business Structure for Gyms

What permits are needed to open a gym in India?

To open a gym in India, you will need a Shops and Establishment License, a trade license, and possibly a fire safety certificate if your gym space exceeds a certain size. If you offer food or spa services, additional permits will be required. It’s also advisable to ensure that your trainers are certified by recognized fitness organizations.

Does OSHA apply to gyms in India?

OSHA is a U.S. agency and does not apply to India, but similar regulations are enforced under the Factories Act, 1948, and local health and safety laws to ensure a safe working environment for employees. Compliance with these regulations is mandatory to avoid penalties and ensure the safety of both employees and gym members.

How to open a gym with no money in India?

Opening a gym with limited funds in India is challenging but possible by securing investors, applying for small business loans, or forming partnerships. You might also consider starting with a smaller facility or sharing space to minimize initial costs while building your client base.

Read More: How to Start a Gym With No Money

How hard is it to start a fitness business in India?

Starting a fitness business in India requires significant effort, from initial planning and securing financing to navigating Indian regulations and developing an effective marketing strategy. However, with dedication and a clear plan, you can establish a successful fitness business.

How do I start a fitness business from scratch in India?

To start a fitness business from scratch in India, begin with comprehensive market research to understand your target audience. Develop a detailed business plan, secure funding, choose a strategic location, and ensure compliance with Indian health and safety regulations. Effective marketing will be crucial to attract and retain clients.

Is it difficult to start a gym in India?

Starting a gym in India can be challenging due to the significant initial investment, regulatory requirements, and competition. However, with a well-crafted business plan, strong marketing, and a commitment to quality service, it’s possible to successfully launch and manage a gym.

How many members does a gym need to be profitable in India?

The number of members required for a gym to be profitable in India depends on factors such as overhead costs, membership fees, and additional revenue streams. Typically, a gym may need between 150 to 300 active members to cover expenses and begin generating a profit.

Read More: How many members does a gym need to be profitable?

What is the initial investment for a gym in India?

The initial investment for opening a gym in India includes costs related to leasing or purchasing a facility, equipment, renovations, staffing, and marketing. This can range from ₹15 lakhs to ₹1 crore depending on the scale and location of your gym.

Is it hard to start a gym business in India?

Starting a gym business in India is challenging due to high startup costs, regulatory compliance, and the need to differentiate yourself in a competitive market. However, with a well-thought-out business plan, understanding of local market dynamics, and effective marketing strategies, success is attainable.

How to open a cheap gym in India?

To open a cost-effective gym in India, consider leasing equipment, choosing a smaller or more affordable location, and focusing initially on essential services. As your membership base grows, you can expand your offerings and services.

Is it worth it to franchise a gym in India?

Franchising a gym in India can be a valuable option if you want to leverage an established brand and business model. However, it’s important to weigh the franchise fees and operational guidelines associated with this choice.

Read More: How to Buy a Gym Franchise

How much money can you make owning a gym franchise in India?

The income from owning a gym franchise in India can vary based on factors like location, brand reputation, and management efficiency. A well-managed franchise in a desirable location can be highly profitable.

Read More: How much money can you make owning a gym franchise?

What are the pros and cons of owning a gym in India?

Owning a gym in India offers several benefits, including the potential for steady income and the chance to promote health and wellness in your community. However, challenges include high startup costs, the need for consistent marketing, and maintaining member retention.

Read More: Pros and Cons of Owning a Gym

What are the common reasons gyms fail in India?

Common reasons gyms fail in India include poor location choice, insufficient capital, ineffective marketing, and failure to retain members. Success in the gym industry requires careful planning, understanding market needs, and delivering exceptional customer service.

Read More: Reasons Gyms Fail

Should I open a gym in Mumbai?

Mumbai, as the financial capital and one of the most populous cities in India, offers a diverse and growing population, making it a promising location for a gym. However, competition is intense, so having a unique value proposition and a robust marketing strategy will be essential for success.

Should I open a gym in Delhi?

Delhi’s vibrant community and focus on wellness present a solid opportunity for opening a gym. Understanding the local market and offering specialized services can help your gym thrive in this area.

Should I open a gym in Bangalore?

Bangalore’s suburban environment and active lifestyle culture provide a favorable market for gyms. A well-targeted business plan and community engagement can help your gym stand out in this competitive area.

Should I open a gym in Hyderabad?

Hyderabad’s growing population and interest in fitness make it an attractive location for a gym. However, competition is increasing, so a differentiated business model and effective marketing are crucial.

Should I open a gym in Chennai?

Chennai’s expanding population and its strategic location offer a viable opportunity for opening a gym. Offering unique fitness services or targeting specific demographics can help your gym succeed in this market.

What is the best gym management software for Indian gyms?

The best gym management software for Indian gyms should provide comprehensive tools for managing memberships, scheduling, billing, and marketing. Exercise.com is an excellent choice, offering features tailored to meet the needs of gyms across India, ensuring smooth operations and compliance with local regulations.

Jimmy Myers Relentless Sports Performance
If you want to offer an elite service for the end user you need to get with the times and use elite level software that is intuitive, visually appealing, and effective. That is exactly what Exercise.com delivers to its clients.
Jimmy Myers
Owner/Trainer, Relentless Sports Performance

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Tyler Spraul is the director of UX and the head trainer for Exercise.com. He has his Bachelor of Science degree in pre-medicine and is an NSCA-Certified Strength and Conditioning Specialist® (CSCS®). He is a former All-American soccer player and still coaches soccer today. In his free time, he enjoys reading, learning, and living the dad life.
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