How to start a passenger transport business in India
E-rickshaw on your own vehicle. Passenger or last-mile goods runs on a fixed route, on a vehicle you own.
- Starting cost (our estimate)
- ₹1.5-2.5 lakh
- Where
- Needs a premises
- Time
- Workable part-time
- Risk
- Medium risk
The starting cost is a wide estimate from our own idea catalogue, not a figure from a survey. Local prices move it; a market analysis checks it for your city.
The first step
Ride the route you have in mind for a day and count passengers per trip.
Registrations to look at
- Udyam (MSME) registration. Not compulsory, but most scheme and bank loans (MUDRA, CGTMSE, PMEGP) ask for it.
- GST registration. Compulsory once turnover crosses ₹40 lakh a year for goods, or ₹20 lakh for services. Compulsory from the first sale for supplying goods to another state, whatever the turnover.
Which apply to you, what each costs, and the documents to keep ready →
Government loan schemes
For a new business borrowing ₹2.5 lakh (the top of the range), with nothing else known about the founder. Your category, location and education can change these, so check with your own details.
- PM MUDRA YojanaOpenYes: this is a Kishore loan.
- CGTMSE (loan without collateral)OpenYes: it is how a bank lends to you without collateral.
- PMEGP (subsidy on a new unit)DependsDepends on details this page does not know.
- Stand-Up IndiaNot openOnly for women, SC or ST founders.
From each scheme's rules, checked on 23 September 2026.
Is there demand for it where you are?
A market analysis checks this idea against your city: who buys, who you would compete with, what they charge, and whether the numbers hold. Or, if you are still choosing, describe what you can do and what you have, and get ideas fitted to you.