Learn how to start your transport business and secure funding with simple, step-by-step guidance.
Starting your own transport business can give you financial independence and long-term growth. But to succeed, you need the right plan, proper registration, and access to funding. Whether you're aiming to offer goods transport, taxi services, or delivery logistics, knowing how to start a transport business and how to fund it will help you avoid costly mistakes. This guide walks you through your options, steps to register, and the best ways to get a transport business loan. With careful planning and government support, you can build a transport service that runs smoothly and stays profitable.
Choosing the right transport business helps you start with confidence and grow faster based on your skills and budget. Here are some profitable transport business ideas to help you decide:
You can move goods locally or between cities using trucks, tempos, or vans. This business offers steady demand from shops, factories, and wholesalers.
Start a private taxi service or join a ride-hailing platform. It works well in cities and near airports or railway stations.
You help families or offices move their belongings safely. It includes transport plus packing and unloading support.
Deliver small parcels, groceries, or medicines using bikes or vans. This business suits urban areas with high online shopping demand.
Use vans or mini-buses to provide regular rides to students or employees. It offers daily earnings and steady demand during weekdays.
Run short trips in towns or cities where public transport is limited. It needs low investment and brings quick returns.
Manage a group of vehicles and work with companies to move goods regularly. This model suits experienced operators with more capital.
Offer services like cold-chain delivery, bulk material shifting, or vehicle towing. These services need specific tools or vehicle types but offer higher profit margins.
Starting a transport business may seem challenging, but following the right steps makes the process simple and manageable. Here are the key steps you need to follow to start your transport business in India:
Choose whether you want to transport goods, passengers, or offer delivery services based on your skills and local demand.
Include cost estimates, target customers, route planning, marketing ideas, and expected income to guide your decisions.
Choose a structure like sole proprietorship, partnership, or private limited company and register it with the Ministry of Corporate Affairs.
Apply for a commercial driving licence, vehicle permits, GST registration, and other documents required by local transport authorities.
Select vehicles based on your business type—trucks, vans, autos, or cars—and ensure they meet regulatory standards.
Choose experienced drivers with valid licences and hire helpers or office staff if needed.
Use tools like GPS, transport software, or mobile apps to manage bookings, payments, and deliveries efficiently.
Promote your business online through social media, local ads, and word of mouth to attract clients.
Getting the right registrations and licences helps you avoid penalties and run your transport business legally. Here are the key approvals and documents you must secure before starting operations:
You must register your business with the Ministry of Corporate Affairs (MCA) under the correct structure—sole proprietorship, partnership, LLP, or private limited. This makes your business official and helps in opening bank accounts or applying for loans.
A PAN card is needed for all financial transactions, and GST registration is required if your annual turnover exceeds ₹20 lakh. GST also helps you claim tax input on fuel, vehicle maintenance, and business expenses.
All vehicles used for transport must be registered as commercial vehicles. You'll receive a special registration number, and the vehicle must meet safety and emission norms set by the RTO.
This certificate proves your vehicle is roadworthy and safe for public use. It's issued by the RTO after inspection and is valid for a specific time, after which it must be renewed.
A goods carriage permit is needed for transporting goods, while a passenger carrier permit is required for taxis, buses, or vans. These are issued by the local or state transport authority depending on your business type.
For interstate transport, especially for trucks and goods carriers, a national permit is required. It allows you to legally carry goods between states without needing separate state permits.
You must pay road tax at the time of vehicle registration. Commercial vehicle insurance is also mandatory and protects you against damages, accidents, or third-party claims.
All commercial vehicles must pass an emission test and hold a valid PUC certificate. This ensures your vehicle meets pollution standards and avoids fines during road checks.
Planning your finances from the start helps you control costs, reduce risk, and avoid cash flow issues. Here are the key elements to include in your financial plan:
You must account for the upfront cost of buying or leasing vehicles, getting permits, and paying for mandatory commercial insurance.
Include monthly salaries for drivers, cleaners, and support staff, along with any bonuses or training costs.
Calculate daily running costs, including fuel prices, regular maintenance, and tolls for routes you’ll frequently use.
If you run operations from an office, factor in rent and expenses for tools like transport management software or GPS systems.
Set aside money for unexpected breakdowns, repairs, or spare parts to avoid delays and service disruption.
Transport businesses need steady cash and big upfront spending to grow or get started. Here are situations where a transport business loan can help:
Whether you're adding your first vehicle or replacing older ones, a loan helps you invest in better, more efficient transport without draining your savings.
Legal requirements like commercial registration, permits, and insurance often come with high upfront costs, which a loan can cover immediately.
You may need funds to rent or build a base for operations, repairs, or customer service—essential for running your business smoothly.
Loans help you pay staff salaries or invest in essential tech like GPS and transport software to improve safety and efficiency.
When your business grows, you may need money to enter new markets, add delivery routes, or launch new services without delay.
Here you get access to flexible, fast, and secure financing options designed to support your transport business at every stage:
You can access up to ₹50 lakh to grow your business, upgrade your fleet, or meet urgent financial needs.
Your loan application can be approved instantly online, saving you time and helping you get started faster.
You don’t need to pledge any assets, so you can borrow confidently without risking personal or business property.
Enjoy affordable repayment options with interest rates starting at 14% p.a. and flexible tenures of up to 96 months.
Choose between a term loan for fixed needs or a flexi business loan for ongoing cash flow support as your business grows.
Here you can compare loan offers and rates from top lenders on Bajaj Markets for your transport business:
Partners |
Minimum Interest Rate |
Maximum Tenure |
Aditya Birla Finance Limited |
22% p.a. |
36 months |
Ambit Finvest |
20% p.a. |
36 months |
AYE Finance |
29.50% p.a. |
30 months |
Bajaj Finance Limited |
14% p.a. |
96 months |
FlexiLoans |
18% p.a. |
42 months |
IIFL Finance |
16.50% p.a. |
48 months |
InCred |
24% p.a. |
60 months |
Indifi |
22% p.a. |
36 months |
KreditBee |
18% p.a. |
36 months |
Lendingkart |
19.20% p.a. |
36 months |
Protium |
20.5% p.a. |
36 months |
Credit Saison |
22% p.a. |
36 months |
UGRO Capital |
24% p.a. |
72 months |
Disclaimer: The interest rates, loan tenures, and offers listed are indicative and may vary based on lender discretion and applicant eligibility.
Meeting the right eligibility criteria and keeping your documents ready can improve your chances of quick approval. Here’s what you need to qualify for a transport business loan on Bajaj Markets:
Lenders look for stability, creditworthiness, and legal proof of business to approve your loan application. Here are the basic requirements:
You must be an Indian citizen aged between 21 and 60 years
Your business should be legally registered as a sole proprietorship, partnership, LLP, or private limited company
It should be running for at least one year to prove operational stability
You should have a minimum annual turnover of ₹1.5 lakh as shown in your income tax returns
A healthy CIBIL score is required to reflect good credit and repayment history
You must be self-employed—either as a professional (e.g. doctor, CA) or a non-professional (e.g. trader, retailer, or service provider)
Submitting the correct documents helps speed up loan approval and ensures smooth processing. Keep the following documents ready:
Identity Proof: PAN card, Aadhaar card, voter ID, passport, or driving licence
Address Proof: Aadhaar card, passport, utility bill, or rental agreement
Income Proof: Last 6 months’ bank statements, latest ITR, profit and loss statement, balance sheet, and income report (for the past 2 years)
Here you can apply for a business loan quickly and securely through a 100% online process:
The Indian government offers several schemes to support small and medium businesses, making it easier for you to get funding without heavy paperwork or high risk. Here are key schemes that can ease your financial burden and help grow your transport business:
The PMEGP scheme helps first-time entrepreneurs start new businesses with subsidies of up to 35% for eligible urban and rural applicants.
You can get collateral-free loans up to ₹10 lakh through Shishu, Kishor, and Tarun categories, based on your business stage and funding needs.
This scheme offers loan guarantees to banks and NBFCs so you can get funding without offering any security or collateral.
The Stand-up India Scheme supports women and SC/ST entrepreneurs with loans from ₹10 lakh to ₹1 crore to start new businesses in manufacturing, trading, or service sectors.
If your transport business qualifies as a startup, you can benefit from tax exemptions, access to government funding, and relaxed compliance requirements through official startup registration.
Starting a transport business requires careful planning, legal compliance, and access to reliable funding. Learning how to start a transport business in India helps you make informed decisions from day one. By choosing the right service, managing costs, and exploring loan options or government schemes, you can set up a strong foundation. With the right approach, you can launch, run, and grow a successful transport business that meets demand and delivers long-term returns.
The most common transport services include goods delivery, passenger transport, courier and logistics, and specialised transport like refrigerated or bulk cargo.
Yes, it can be profitable if you manage costs well, maintain your vehicles, and offer reliable service in high-demand areas.
You need a registered business, valid permits and licences, commercial vehicles, and a clear transport business plan to begin.
Profit margins usually range from 10% to 25%, depending on your costs, pricing, and the type of service you offer.
You need licensed drivers, a supervisor or manager, support staff for operations, and someone to handle customer service or accounts.
No, transport businesses can also include passenger services, courier delivery, and specialised logistics depending on your business model.
Yes, with proper planning, efficient operations, and steady demand, transport businesses can generate stable and growing profits.
Start with what fits your budget and experience—many begin with goods transport or cab services before expanding into other areas.
Yes, if you have proper systems, staff, and funding, you can run multiple services like goods and passenger transport together.
Yes, it offers good returns if you control expenses, keep vehicles well-maintained, and build strong customer relationships.
The four main types are road, rail, air, and water transport—each serving different needs based on speed and volume.
Choose your service type, register your business, get the necessary licences, secure funding, and start with one or more vehicles.
You may need ₹5–10 lakh to start, depending on vehicle costs, licences, and whether you're operating in a city or smaller town.