Hot Wheels – Set Up a Private Transportation Services Business in India
Make a tidy profit from driving. 3E Accounting shows you how to set up a private transportation services business in India.
Transportation is an essential means of getting around in our busy lives. In India, approximately thirty kilometres of road is constructed daily to meet the exponential demand for efficient road transport. As the second-most populous country in the world, there is a great demand for transportation. Catering to public demand, you can make good profits when you set up a private transportation services business in India.
A Drive to Succeed
Traffic congestion is a way of life in India. Road traffic infrastructure is under-developed, especially in rural areas where most of the population resides. However, the government is taking the initiative to improve on roadworks. Along with a growing nouveau riche middle class, this has led to a surge in the demand for private transportation.
Before venturing to set up a private transportation services business in India, it is advisable to do some research. Write-up a business plan, check out the competition and outline the finances. You will also need to decide what type of transport service you wish to provide.
Some services will require a more traditional approach of company incorporation, tax registration, office space rental; website design, etc. you will also need to consider vehicle purchasing, licensing and registration. Examples of these type of services include:
- Shuttle service via car, van or bus: a point-to-point, pick-up and drop-off service. Can include school transport, airport transfers as well as monthly corporate rentals.
- Logistics service: this can include courier services, truck transportation and relocation. Investment may be high.
- Outstation rentals: increasingly popular as people live in the suburbs and prefer to be driven into the city for work. Also popular with those that need to travel to other states.
- Speciality transport services: delivery of livestock or items such as groceries or fresh milk. Others include the ever-popular ‘Dabba’ or cooked food private delivery service.
Your company can be incorporated at the Ministry of Corporate Affairs (MCA). The type of company can be:
- Private or Public Limited Company (PLC or PC)
- Limited Liability Partnership (LLP)
- Partnership Firm or One Person Company (OPC)
Upon receiving your Certificate of Incorporation, you will need to apply for tax registrations such as VAT, GST and service tax. If you require an importer-exporter Code (IEC), you will need to apply to the Directorate General of Foreign Trade (DGFT). For services that cover livestock or food, you will need approvals and permits from the Food Safety and Standards Authority of India (FSSAI).
A more modern concept that is becoming hugely popular is one that capitalises on e-commerce and online service. Here, you need only register your vehicle and submit basic documents at the nearest regional office. It’s fast, simple and easy to start. An example of this would be:
- App-based service: partnered with companies such as Ola or Uber and service is booked via mobile apps.
- E-rickshaw service: rickshaws or ‘autos’ are a common sight in India and a cheap means of transportation. A mobile app is all you need to get started.
- Small boat services: much in demand, especially in areas where flooding is frequent.
- Bicycle rentals: low investment and maintenance. It is a popular trend amongst an increasingly health-conscious population.
Pooling Your Resources
To set up a private transportation services business in India successfully, it’s advisable to engage consultants such as 3E Accounting. All your business needs can be customised to suit your preferences. Whether you’re looking for incorporation services or website design and development, you can rely on 3E Accounting to get it done.
Contact 3E Accounting today to experience business professionalism at its best.
