|As many Indian students faced racist attitudes when seeking accommodations, he founded India House as a hostel for Indian students, based at 65, Cromwell Avenue, Highgate. This living accommodation for 25 students was formally inaugurated on 1st July by Henry Hyndman, of the Social Democratic Federation, in the presence of Dadabhai Naoroji, Lala Lajpat Rai, Madam Cama, Mr. Swinney (of the London Positivist Society), Mr. Harry Quelch (the editor of the Social Democratic Federation's Justice) and Charlotte Despard, the Irish Republican and suffragette.
Declaring India House open, Hyndman remarked, As things stand, loyalty to Great Britain means treachery to India. The institution of this India House means a great step in that direction of Indian growth and Indian emancipation, and some of those who are here this afternoon may live to witness the fruits of its triumphant success. Shyamji hoped India House would incubate Indian revolutionaries and create great patriotic revolutionaries by implementing his ideology for the freedom of India. He succeeded in his vision and he produced the greatest revolutionaries such as Krantivir Vinayak Savarkar, Hardayalji, etc. Gandhiji stayed at India House on his visit to England in 1906. Despite differing views on how to free India, Shyamji and Gandhiji's relationship was friendly until 1909 when the justified assassination of William Curzon-Wyllie at the hands of the great martyr Madanlal Dhingra occurred.
Shyamji's activities in England remained highly volcanic and inflammatory to British Government. The power of his pen shook the whole British Empire and they became highly suspicious of him. Shyamji realised that British Secret Services closely watched his movements and so he decided to move his headquarters to Paris leaving India House in the hands of his disciple Vir Savarkar. Shyamji left Britain secretly before the British Government tried to arrest him.