How to Start Courier Business in India?
The world is becoming smaller. With the advent of technology it is not a difficult task to connect with anyone around the world with the click of a button. And when it comes to delivering letters and parcels people today want no exception. The courier businesses in India provide the solution for it and ease the task of delivering not only within the country but also across borders.
However, this is an uphill task and if you are planning to start your own courier business you need proper business plan, necessary funding and the scope of your business i.e. whether you plan on delivering within the country itself or even abroad. Further the variety and kind of goods you are willing to deliver. Also you need to ensure that you have a proper set up like proper vehicles, GPS facilities, human resource etc. by which you can easily carry on your business. However, some key requirements need to be taken care of to start the courier business and they go as follows:
Necessary Registrations
It is necessary to obtain certain registrations for starting a courier business, as is the case with any other business in India. The required registrations are as follows:
- Like any other business, a certificate of incorporation of courier business with company name etc needs to be acquired from Ministry of Corporate Affairs (MCA). You need to apply for a DIN number, acquire a digital signature certificate, receive approval of company name from registrar of companies and apply for Permanent Account number & GST Registration. To register your company click here
- A registration with International Air Transport Association and Air Cargo Association of India is required in case of Freight forwarders.
- It is essential to be a part of Institute of logistics as issues related to the logistics industry may be raised.
- Certain other registrations such as Income Tax Department registration, DGFT registration, Registrar of Companies and other departments are also required.
Apart from these a Private Limited Company registration, Import export code, VAT Registration should be done. To get Import Export Code Registration click here - Courier Imports and Exports (Clearance) Regulations, 1998 shall apply for assessment and clearance of goods carried by the Authorized Couriers on incoming or outgoing flights or by any other mode of transport on behalf of a consignee or consignor for a commercial consideration.
- Further if you are planning to create a unique brand name you may opt for a Trademark registration to protect your goodwill. To get Trademark Registration click here
Investment
Investment is essential for any business to start including courier business. Depending on services that you are going to provide, i.e. whether you are planning to deliver courier domestically or internationally, just light goods or freight management etc. would determine the investment required.The liberal FDI norms make it simpler to find investment. Further, Angel funding or large private equity players are also helpful in getting funds.
Insuranceand Risk Management
Risk management is something that cannot be overlooked in case of a courier business. The risk in this case is quite high thus it is best to have proper insurance. Various insurance companies in India provide suitable insurance. Various damages such as cargo damage, theft, environment damage, injury etc. can cause serious liability issues and thus, proper business insurance is required for the same.
Client Base
Having a good client base and engaging regular clients is very important for a courier business to flourish. Once a strong client base is created you can further expand your business and make more profits.
Research
It is important to do complete research and enter the market as many big companies are already dominating this field.
If you feel it might be difficult to start from scratch and establish yourself, you may also opt for purchasing a franchise of any of the established courier companies gain experience and then plan to start your very own business. Indian Postal Service, DHL Express India Private Limited, Blue Dart Express Limited, First Flight Courier Limited etc. are some of the options to opt for a franchise.
Thus, with proper research, business planning and necessary registrations, you can start your very own courier business without any hassle and make a good name in this field.
Author: This blog is written by Ms. Eishani Behl, a passionate blogger & intern at Aapka Consultant.
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