Steps To start a Logistics and Transportation business

Modern transportation businesses run the gamut from personal dispatch and moving and storage services, to large scale freight operations. Depending on your level of interest as a future new business owner, you have plenty of options on the table. In this guide, we’ll illustrate how to plan for and start a transporting company from the ground up.

The category of transportation businesses is broad, which means that you can specialize in one type of business or key area. If you have a specific interest in starting a trucking company, don’t miss our recent post on how to start a truck business.

Below are steps you can take to start your transportation business.

  1. Decide on a Specific Transport Niche

As you begin your transportation business, the first step involves who and what you will serve. You’ll need to answer the question, “What niche will I choose?” As mentioned above, there are different categories of transport companies, and you may need to select only one in order to be successful.

  1. Secure a Central GST Number

One of the first steps in your transportation service journey is setting up as an actual business. This means you need to secure a license from your local or state authorities. Because rules vary by location, you also need to consult your local government to find out how to apply for a business license.

The GST application process is fairly standard, and having this identification number:

  • Makes it easier to file quarterly and yearly taxes
  • Can protect you or your business from identity theft
  • Speeds up the business loan application process
  • Establishes business credit early on
  1. Apply for Licenses and Permits

When you begin your transportation service, you need to have the right licence. Why would transport businesses require more permits than other types of companies? The answer is that in many scenarios, you’ll be working with passengers, people and other types of precious cargo.

Within the transportation industry, other types of licenses and permits might include:

  • Generate E-way bill for goods transported
  • Commercial driver’s license (CDL)
  • Commercial vehicle registration for any fleet vehicle
  • Fuel carrier licenses
  • Heavy load or cargo permits
  • Insurance coverage for drivers, passengers or goods
  1. Set a Budget and Financial Expectations

Based on the type of transportation business you choose, costs could be minimal or extensive. Running a one-vehicle taxi service is bound to be much cheaper than a full-fledged logistics fleet, but any type of business owner can plan for these costs.

  • What revenue you need to maintain to clear operating expenses
  • How much to invest in supplies, equipment and manpower
  • The specific amount of debt your business has in loans or other expenses
  • What amount of money you’re willing to invest in marketing and advertising
  1. Make Purchases and Build Your Fleet

Choosing the right equipment can set you up for profitability by giving your new business a professional look from day one. Vehicle size and quality matters, especially when you’re transporting goods and materials on behalf of other people. Showing up to a job with a vehicle that’s too small or inadequate (lacking refrigeration, space, etc.) can reflect poorly on your company.


The steps mentioned above will help you get started with establishing a transport and logistics company. If you are looking for more information about how to apply for an e-way bill for your transport goods or common e-way bill errors to avoid, make sure to visit Finserv Markets.