diff --git a/corporate/lib/stripe.py b/corporate/lib/stripe.py
index 0a18bad162..e9dd00bfaf 100644
--- a/corporate/lib/stripe.py
+++ b/corporate/lib/stripe.py
@@ -2069,6 +2069,23 @@ class BillingSession(ABC):
 
         return None, context
 
+    def min_licenses_for_flat_discount_to_self_hosted_basic_plan(
+        self, customer: Optional[Customer]
+    ) -> int:
+        # Since monthly and annual TIER_SELF_HOSTED_BASIC plans have same per user price we only need to do this calculation once.
+        # If we decided to apply this for other tiers, then we will have to do this calculation based on billing schedule selected by the user.
+        price_per_license = get_price_per_license(
+            CustomerPlan.TIER_SELF_HOSTED_BASIC, CustomerPlan.BILLING_SCHEDULE_MONTHLY
+        )
+        if customer is None:
+            return (
+                Customer._meta.get_field("flat_discount").get_default() // price_per_license
+            ) + 1
+        elif customer.flat_discounted_months > 0:
+            return (customer.flat_discount // price_per_license) + 1
+        # If flat discount is not applied.
+        return 1
+
     def min_licenses_for_plan(self, tier: int) -> int:
         customer = self.get_customer()
         if customer is not None and customer.minimum_licenses:
@@ -2076,7 +2093,7 @@ class BillingSession(ABC):
             return customer.minimum_licenses
 
         if tier == CustomerPlan.TIER_SELF_HOSTED_BASIC:
-            return 10
+            return min(self.min_licenses_for_flat_discount_to_self_hosted_basic_plan(customer), 10)
         if tier == CustomerPlan.TIER_SELF_HOSTED_BUSINESS:
             return 25
         return 1
diff --git a/corporate/tests/test_stripe.py b/corporate/tests/test_stripe.py
index 7ad184d7de..bb4faab0a3 100644
--- a/corporate/tests/test_stripe.py
+++ b/corporate/tests/test_stripe.py
@@ -5851,7 +5851,7 @@ class TestRemoteRealmBillingFlow(StripeTestCase, RemoteRealmBillingTestCase):
         min_licenses = self.billing_session.min_licenses_for_plan(
             CustomerPlan.TIER_SELF_HOSTED_BASIC
         )
-        self.assertEqual(min_licenses, 10)
+        self.assertEqual(min_licenses, 6)
         flat_discount, flat_discounted_months = self.billing_session.get_flat_discount_info()
         self.assertEqual(flat_discounted_months, 12)
 
@@ -5919,7 +5919,7 @@ class TestRemoteRealmBillingFlow(StripeTestCase, RemoteRealmBillingTestCase):
                 f"{self.billing_session.billing_base_url}/billing/", subdomain="selfhosting"
             )
 
-        self.assertEqual(latest_ledger.licenses, 20)
+        self.assertEqual(latest_ledger.licenses, min_licenses + 10)
         for substring in [
             "Zulip Basic",
             "Number of licenses",
@@ -5932,6 +5932,13 @@ class TestRemoteRealmBillingFlow(StripeTestCase, RemoteRealmBillingTestCase):
         ]:
             self.assert_in_response(substring, response)
 
+        # Check minimum licenses is 0 after flat discounted months is over.
+        customer.flat_discounted_months = 0
+        customer.save(update_fields=["flat_discounted_months"])
+        self.assertEqual(
+            self.billing_session.min_licenses_for_plan(CustomerPlan.TIER_SELF_HOSTED_BASIC), 1
+        )
+
     @responses.activate
     def test_request_sponsorship(self) -> None:
         self.login("hamlet")
@@ -6529,7 +6536,7 @@ class TestRemoteServerBillingFlow(StripeTestCase, RemoteServerTestCase):
         min_licenses = self.billing_session.min_licenses_for_plan(
             CustomerPlan.TIER_SELF_HOSTED_BASIC
         )
-        self.assertEqual(min_licenses, 10)
+        self.assertEqual(min_licenses, 6)
         flat_discount, flat_discounted_months = self.billing_session.get_flat_discount_info()
         self.assertEqual(flat_discounted_months, 12)
 
@@ -6571,7 +6578,7 @@ class TestRemoteServerBillingFlow(StripeTestCase, RemoteServerTestCase):
         self.assertEqual(LicenseLedger.objects.count(), 1)
 
         with time_machine.travel(self.now + timedelta(days=2), tick=False):
-            for count in range(realm_user_count, min_licenses + 10):
+            for count in range(realm_user_count, realm_user_count + 10):
                 do_create_user(
                     f"email {count}",
                     f"password {count}",
@@ -6586,18 +6593,18 @@ class TestRemoteServerBillingFlow(StripeTestCase, RemoteServerTestCase):
 
         self.assertEqual(
             RemoteRealmAuditLog.objects.count(),
-            min_licenses + 10 - realm_user_count + audit_log_count,
+            audit_log_count + 10,
         )
         latest_ledger = LicenseLedger.objects.last()
         assert latest_ledger is not None
-        self.assertEqual(latest_ledger.licenses, min_licenses + 10)
+        self.assertEqual(latest_ledger.licenses, 28)
 
         with time_machine.travel(self.now + timedelta(days=1), tick=False):
             response = self.client_get(
                 f"{self.billing_session.billing_base_url}/billing/", subdomain="selfhosting"
             )
 
-        self.assertEqual(latest_ledger.licenses, 20)
+        self.assertEqual(latest_ledger.licenses, 28)
         for substring in [
             "Zulip Basic",
             "Number of licenses",
@@ -6610,6 +6617,13 @@ class TestRemoteServerBillingFlow(StripeTestCase, RemoteServerTestCase):
         ]:
             self.assert_in_response(substring, response)
 
+        # Check minimum licenses is 0 after flat discounted months is over.
+        customer.flat_discounted_months = 0
+        customer.save(update_fields=["flat_discounted_months"])
+        self.assertEqual(
+            self.billing_session.min_licenses_for_plan(CustomerPlan.TIER_SELF_HOSTED_BASIC), 1
+        )
+
     def test_deactivate_registration_with_push_notification_service(self) -> None:
         self.login("hamlet")
         hamlet = self.example_user("hamlet")