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how to start a transport business in India

How To Start A Transport Business In India?

To begin and maintain a Transportation Business in India, you must first choose the form of transportation, such as personal transport, ambulance service, goods transportation, delivery service, public transportation, and others.

Engaging in transportation is simple, but applying for a licence and other documentation to establish a Transportation Business becomes complicated. This article will explain in full “How to Start a Transportation Business in India.” 


Transportation businesses are those that transport products or persons from one location to another. Individuals, corporations, and international trade partners can all profit from their services.

Individual ridesharing services, consumer goods transport, and global supply and product shipment are all options for a transportation firm. A Transportation Company is usually classed based on the sort of customer base it services or the kind of routine service it offers.

Various Business Structures for Starting a Business in India

  • One Person Corporation 
  • Public Limited Company
  • Limited Liability Partnership.

If a foreign firm wishes to start a transportation business in India, the company might do so by incorporating it as an Indian subsidiary. The answer to the question “How to Start a Business in India?” will stay the same.


Anyone who wants to start a transportation business in India should complete the following steps:

1) Conduct research and get a thorough understanding of the transportation company and sector:

A person who intends to create a Transport Firm in India must be fully aware of how the transport sector operates, as well as the operational and managerial needs, as well as the legal norms and regulations that a transport business must adhere to. Before entering the transportation sector, it is recommended that a person complete extensive research on the subject.

2) Create a business plan, register your company, and apply for financing:

A clear and well-written business plan is required before establishing any business wherever in the globe. Every attempt should be taken to create a business strategy since it will be useful in acquiring money for your transportation company.

You should also think of a distinctive name for your firm and get a trademark for it to protect your business concept from being copied by others.

After you have created a business plan, you must register your company. You can register your firm as a private limited company, partnership, OPC, SSI, MSME, or a limited liability partnership, among other options. To register your firm, simply go to the Mca website or seek assistance from a professional.

You must also contact the RTO to obtain permission and a licence, as well as to register with the municipal, state, or national transportation departments.

3) Establish an office, hire employees, and acquire trucks and vehicles for the transportation business:

After you have established your firm, you must now hire the right individuals for company operations and obtain a truck or any other vehicle needed for your transportation business by obtaining vehicle loans. And obtain a new GST registration in order to generate an E-Way Bill, which is required when operating a transportation business in the country.

4) Start a transportation business in India:

Now that you’ve established your firm, it’s time to get down to business. All you need to do is promote and advertise your company on a regular basis. Create a website for your company and keep a business account updated on a regular basis.


A permit is necessary to establish a transportation business:

Transport business owners must get a permit from a local or national transportation authority, according to the various state government transportation authorities.

A permit is a document issued by the State or Regional Transport Authority that allows a motor vehicle to be used as a transport vehicle in a certain manner in accordance with the applicable requirements of the Motor Vehicle Rules and Act.

Vehicles delivering products weighing less than 3,000 kilogrammes, as well as government-owned transport vehicles, are exempt from the government authority’s authorization required requirements. If a Transportation Company is involved in any food moving operation, an FSSAI licence is required.

Fundamental Requirements for a Transportation Company:

To start and run a transport business in India, one must first decide on the type of transportation, such as public transportation, private transportation, commodities transport, courier service, emergency service, and so on.

As a result, licencing and registration are necessary, which are discussed further below. A transportation firm requires more than a typical business because it entails hazards to human life and products, as well as crossing borders often.

This article will provide you with an overview of the permissions you’ll need to establish a transportation company.

Transportation Business: Types

The following types of transportation businesses are permitted in India:

Taxi Service:

This is a popular transport company in India, and you may start your business in two ways: either by establishing your own taxi service with a company name and registration, or by joining existing taxi services such as Ola, Uber, Meru, and others.

In both circumstances, you must get various permits such as a driver’s licence, pollution control paperwork, cross-border permits, and so on. Furthermore, if you are starting your own firm, you will need to complete additional procedures including company registration, trade licence, GSTIN registration, and so on.

Bicycle Rental:

Renting a bicycle is a thriving company since clients nowadays choose the bicycle as a form of transportation that also provides exercise and is environmentally beneficial. Startups that rent bicycles on an hourly or daily basis are quickly gaining traction in a number of major cities. This company has the extra benefit of not requiring a driver’s licence or pollution control permits.

Products Carriage:

This is a very popular transportation company in India because most other enterprises, aside from people requiring household or office relocation, need goods to be transported on a regular basis.

The goods carriage business is divided into two categories:

The moving van business: Also known as packers and movers, and another type of goods transportation. It contains goods transportation for business purposes on a regular basis, as well as livestock transportation, dairy transportation, and so on.

Medical transportation: includes ambulance services, medical commodities transportation, health staff transportation, and worker transportation. A driver’s licence plus a business registration are insufficient for this type of business. It requires permissions in order to regulate the temperatures of the vehicle when transporting medical products and life-support apparatus, as well as other relevant licences.

Licenses and Registration Required to Start a Transportation Business

The followings are the licences or licences that a transportation company must obtain:

Business Registration:

The first step in starting a business is to establish it as a partnership firm, private limited company, limited liability company, or sole proprietorship.

You can register your company based on the business model and objectives you have in mind. Acquire the registration from the registrar whether it is a business or LLP. The registration of a partnership firm is handled by the sub-registrar’s office. If it is a sole proprietorship, however, it is exempt from many of the procedures.

Obtaining a Shops and Establishments Act Registration:

It is vital to have a garage space in a transportation firm. Furthermore, there needs to be an actual office for the registration to be valid. You will also need space to store the cars you will use for your transportation service, as well as a maintenance facility for repairs and upkeep.

Depending on your plans and budget, you may either buy or rent a space. In this section, we will go over the method for both:

  • Buying a Space: If you choose to buy a place for your workplace and garage based on your budget and preferences, you have completed a sale deed.
  • A sale deed is written on stamp paper with a value determined by the overall worth of the property. The registrar’s office is where the sale deed is registered. Both the buyer and seller, as well as two witnesses, must sign.
  • Renting a Property: If you are renting a property, make sure to record the lease agreement for future reference. Stamp paper is used to print the rental agreement.
  • Using Residential Property for Commercial Purposes: Even if you already own enough property to start your business, you must obtain approval from the local municipality/town planning authority/corporation. However, not all residential neighbourhoods can be utilised for commercial purposes; this is determined by the local government’s policy.
  • The Income Tax Department issues both: two ten-digit alphanumeric unique numbers. A PAN is required for payments of Rs. 50,000 or more, and a TAN is required to deduct TDS.

Pollution Control Board approval:

It is important to get a permit and submit a plan to the Pollution Control Board outlining how you intend to treat the waste items in the garage. Furthermore, according to the Motor Vehicles Act, each vehicle used in this operation must have its own pollution paperwork.



    Comments (166)

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      January 28, 2024

      This article provides a comprehensive guide on initiating a transportation business in India. The step-by-step breakdown, from understanding the industry to obtaining licenses, makes it a valuable resource for aspiring entrepreneurs. The inclusion of various business structures and types of transportation services adds depth to the information. Overall, a well-detailed roadmap for anyone venturing into the dynamic field of transportation in India.

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