In this article · 7 sections
Starting a cab service is more than buying a car and printing visiting cards. Taxi business registration in India involves the vehicle, the driver, the permit and the business itself. Getting it right avoids challans, seized vehicles and rejected insurance claims.
1. The business
- Business structure: sole proprietorship is common for 1–5 cars; partnership/LLP or private limited when you grow or take investors
- Udyam registration (MSME): free, useful for bank loans and some tenders
- Current bank account in the business name
- GST registration: required above the turnover threshold, and often needed for corporate clients. See GST for taxi business
2. The vehicle
- Commercial registration (transport category) at your RTO, with a yellow number plate; private (white plate) cars can't legally be used for hire
- Fitness certificate for transport vehicles, renewed as required
- Commercial vehicle insurance covering passengers. See taxi insurance
- PUC certificate
- Speed governor / VLTD (tracking device) where your state requires it
3. The permit
Permits decide where you can operate:
- Contract carriage permit for your state
- All India Tourist Permit (AITP) for interstate outstation trips. See All India Tourist Permit explained
Without the correct permit, interstate trips can attract heavy penalties and entry tax disputes at borders.
4. The driver
- Driving licence valid for transport vehicles (and a badge/PSV authorisation where your state requires it)
- Police verification
- Training on safety and customer behaviour. See driver hiring checklist
5. Online presence (also "registration" for customers)
- A verified Google Business Profile. See Google Business Profile for taxi services
- A booking website with clear contact details. See taxi booking website features
- Trademark your brand name once you grow. See trademark registration
Document checklist
| Item | Where |
|---|---|
| RC (transport) + fitness | RTO / Parivahan |
| Permit (state / AITP) | RTO / Parivahan portal |
| Commercial insurance | Insurer |
| PUC | Authorised centre |
| Driver licence + verification | RTO / Police |
| GST, Udyam, bank account | Online portals / bank |
Rules and fees differ by state and change over time, so confirm current requirements on the Parivahan portal or with your RTO before buying vehicles.
FAQs
Can I attach my private car to Ola/Uber or a travel agency?
Platforms and agencies require commercial registration and permits. Private cars used for hire risk penalties and insurance problems.
How long does commercial registration take?
Often a few days to a few weeks depending on the RTO and documents.
This article is general information. Check current RTO and GST rules for your state.
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