Step-by-Step Process for Starting a Trucking & Delivery Business in India

The logistics and delivery sector in India is growing rapidly due to e-commerce expansion, inter-city movement, and demand for same-day deliveries. Starting a Trucking & Delivery business requires proper planning, licensing, documentation, and a scalable operational model.
This guide covers the complete step-by-step process to help entrepreneurs launch a compliant and profitable transport service.


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๐Ÿ“ Step 1: Business Planning & Model Selection

Before starting operations, determine how your trucking & delivery service will operate.

Choose Your Business Model:

  • โœ” Local delivery services (within city)
  • โœ” Intercity trucking
  • โœ” B2B transport for manufacturers & wholesalers
  • โœ” E-commerce delivery partner
  • โœ” Specialized logistics (cold chain, fragile goods, bulk cargo)

Prepare a Business Plan:

  • Fleet size & type of vehicles
  • Expected order volume
  • Operational territories
  • Driver hiring model (contract/freelance/full-time)
  • Pricing and per-km rate
  • Technology requirements (GPS, CRM, apps, billing system)

๐Ÿงพ Step 2: Register Your Company

Choose the right business structure:

StructureSuitable ForKey Benefits
ProprietorshipSmall delivery setupsEasy to start, low compliance
Partnership / LLPFamily partners / small fleetLow cost, safer than proprietorship
Private Limited CompanyLong-term scalable logisticsInvestor-friendly, limited liability

Basic Registration Requirements:

  • PAN + Aadhaar
  • Address proof
  • Business name approval
  • Digital Signature Certificate (for LLP/PLC)
  • Partnership deed / MoA / AoA (as applicable)

๐Ÿš› Step 3: Vehicle Purchase & Registration (RTO)

For commercial trucks/vans, you must complete:

Mandatory RTO Requirements:

  • Commercial vehicle registration
  • Goods Carriage Permit
  • National Permit (if operating across states)
  • Fitness Certificate
  • Passenger/driver insurance
  • Pollution certificate (PUC)

๐Ÿ“œ Step 4: Licenses & Compliance

โœ” GST Registration

Required if turnover exceeds โ‚น20 lakh OR when supplying services to registered businesses.

โœ” Trade License from Municipal Authority

Mandatory for operating a logistics office or warehouse.

โœ” Professional Tax (State) โ€“ if applicable

โœ” Driver Compliance

  • Commercial driving license (DL โ€“ Transport Category)
  • Background verification
  • Driving training certificate

๐Ÿ›ก Step 5: Insurance Requirements

To reduce operational risk, take:

  • Commercial Vehicle Insurance (mandatory)
  • Goods-in-Transit Insurance
  • Third-party liability insurance
  • Driver accidental coverage

Insurance protects your business from loss, theft, and damage during delivery operations.


๐Ÿ— Step 6: Set Up the Operations Workflow

Operational Setup Includes:

  • Dispatch center or office
  • Warehouse/storage (if required)
  • GPS-enabled vehicles
  • Route planning tools
  • Mobile app/CRM for order management
  • Tracking portal for clients
  • Delivery proof system (OTP/POD)

Staffing Needs:

  • Drivers
  • Delivery executives
  • Dispatch coordinators
  • Customer support
  • Mechanics (optional)

๐Ÿ’ฐ Step 7: Pricing, Billing & Accounting Setup

Typical pricing models:

  • Per km charge
  • Per kg/ton rate
  • Fixed monthly logistics contracts
  • On-demand express delivery rate

Set Up Billing Systems:

  • GST invoicing
  • Recurring billing
  • Credit limit for corporate clients
  • Expense tracker for fuel, maintenance, tolls

๐Ÿ“ฃ Step 8: Marketing & Scaling Your Delivery Business

Acquire Clients Through:

  • Google Maps listing
  • Collaborations with restaurants, wholesalers & e-commerce sellers
  • Website & webstore (Saving Mantra Integration)
  • Social media promotions
  • Corporate tie-ups for logistics outsourcing

Scale With Technology:

  • Fleet management system
  • AI-based route optimization
  • Predictive maintenance
  • Automated booking system


๐Ÿงฉ Step-by-Step Summary

  1. Choose business model
  2. Register entity (Proprietorship/LLP/Private Ltd)
  3. Get commercial vehicle permits
  4. Apply for GST, trade license, and driver compliance
  5. Purchase vehicles + insurance
  6. Set up delivery operations
  7. Create pricing & invoicing system
  8. Market and scale using tech

๐Ÿ” Frequently Asked Questions (FAQ)

1. How much investment is required to start a trucking & delivery business?

Between โ‚น5 lakh to โ‚น25 lakh depending on vehicle size, permits, and technology setup.

2. What is the minimum requirement for drivers?

A valid commercial driving license (DL), background verification, and transport training.

3. Can a startup operate without owning trucks?

Yes. You can run an asset-light model by onboarding partner drivers/vehicles.

4. Is GST mandatory for a trucking business?

GST is required once turnover exceeds โ‚น20 lakh OR if providing services to GST-registered clients.


โš  Disclaimer

This blog provides general guidance for starting a Trucking & Delivery business in India. Compliance requirements may vary based on state laws, business structure, and operational model. It is advised to consult a professional or Saving Mantra expert before making any financial, compliance, or licensing decisions.