As the world gets smaller and opportunities for everyone get bigger, traveling out of the city is not a novel concept. Whether you wish to enjoy the picturesque sights of the outskirts of the city or pay a professional visit, an outstation taxi is your lifeline. The market for this business has bloomed over the last few years and you don’t have to wait for an overcrowded bus to arrive and take you to your destination. The undying demand for this service is what makes this business a great idea!
Starting an outstation taxi business may seem daunting but here are a few ways to make the task seem simpler and manageable. The key aspects of this business are mentioned below.
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Steps and Requirements for a Taxi Business
1. Managing finances – This is of course the most important part of establishing your business. Once you have an idea about the initial capital requirements, you can explore avenues that can fund your business. If you plan to get a loan from the bank, then getting all the papers of your business in order will help expedite your process. If you wish to start this business along with a partner for financial ease, then legalizing the terms of your partnership is a good start.
2. Insurance – Every motor vehicle that is being driven on Indian roads needs to have third party insurance by law. However, the taxis and the drivers are your biggest assets of the business. To ensure no harm comes to either, it is essential to get a taxi insurance from the first day itself. Taxi Insurance will include coverage for accidents, theft, fire, natural disasters, third party losses, personal accidents, and towing damages. To provide a thicker cushion for your assets, you can choose to buy the available add-ons should you feel the need.
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3. Vehicle registration – Vehicle registration refers to registering your vehicle with the RTO and getting a registration certificate for the car. It is the most important document to prove that you are in possession of the car legally. The best and fastest way to get this done is through your Motors Dealer. If you are getting a commercial vehicle registered, you are supposed to fix a yellow-coloured plate with black characters on your car.
4. Commercial driving license – Having a valid driving licence is mandatory by law according to the Motor Vehicle Act, 1988, you can be good at the skill of driving various kinds of vehicle but legally you should have a valid license to drive a vehicle. There are different types of driving license in India, based on the vehicle the person will be driving. For driving a taxi, getting a license for a Light Motor Vehicle (includes cars, jeeps, vans) would be appropriate.
Thanks to the age of digitalization, you can apply for a commercial driving license online. You need to download the relevant forms and upload them on the site post filling along with passport size photos. For a commercial driving license, it is mandatory to have attended a government-affiliated driving school. Once this is submitted, you will receive the date on which you must go and give the test.
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5. Registration & Obtaining Permits – If you are starting a business, it needs to be registered with the government. This allows transparency for important factors like taxes, procuring bank credits, attracting investors, and allowing room for growth. The registration of your business can be done online by uploading the documents required. A permit is required to carry passengers within or outside the city from the government and this should be obtained before kick-starting the business. Apart from this, you should be aware of the permits required in states your commercial vehicles might travel to.
6. Fitness Certificate – To drive a commercial vehicle, it is mandatory to have a fitness certificate. This fitness certificate of the vehicle is issued by RTO. You can apply for this online and submit all the necessary details. You will then be given a date when you can take your vehicle to the RTO for inspection. Once the authorities are satisfied, you will be given a fitness certificate.
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7. All India Tourist Permit – All India Tourism Permit is given to commercial vehicles to facilitate smooth travel for passengers all over the country. This permit is compulsory for all commercial vehicles to have. When the vehicle is crossing city or state limits, this is checked by the authorities before they allow you to pass.
Starting and running a taxi business can be an exciting experience. Your business is sure to take off if you take care of your assets and stay on the right side of the law.
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