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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๐ Step 1: Business Planning & Model Selection
Before starting operations, determine how your trucking & delivery service will operate.
Choose Your Business Model:
- โ Local delivery services (within city)
- โ Intercity trucking
- โ B2B transport for manufacturers & wholesalers
- โ E-commerce delivery partner
- โ 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)
๐งพ Step 2: Register Your Company
Choose the right business structure:
| Structure | Suitable For | Key Benefits |
|---|---|---|
| Proprietorship | Small delivery setups | Easy to start, low compliance |
| Partnership / LLP | Family partners / small fleet | Low cost, safer than proprietorship |
| Private Limited Company | Long-term scalable logistics | Investor-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)
๐ 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)
๐ Step 4: Licenses & Compliance
โ GST Registration
Required if turnover exceeds โน20 lakh OR when supplying services to registered businesses.
โ Trade License from Municipal Authority
Mandatory for operating a logistics office or warehouse.
โ Professional Tax (State) โ if applicable
โ Driver Compliance
- Commercial driving license (DL โ Transport Category)
- Background verification
- Driving training certificate
๐ก 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.
๐ 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)
๐ฐ 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
๐ฃ 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
๐งฉ Step-by-Step Summary
- Choose business model
- Register entity (Proprietorship/LLP/Private Ltd)
- Get commercial vehicle permits
- Apply for GST, trade license, and driver compliance
- Purchase vehicles + insurance
- Set up delivery operations
- Create pricing & invoicing system
- Market and scale using tech
๐ Frequently Asked Questions (FAQ)
1. How much investment is required to start a trucking & delivery business?
Between โน5 lakh to โน25 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 โน20 lakh OR if providing services to GST-registered clients.
โ 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.