How to establish a logistics business in India?

How to establish a logistics business in India?

With the tremendous growth in e-commerce sector and the economy overall in past few years, the logistics services has emerged as a huge industry in India. 


The different types of logistics business that you can start with are:

  • Courier and freight cargo services

  • Air cargo services

  • Warehousing services

  • Third-party logistics (3PL)

The following aspects must be considered for a logistics company to be successful.

Compliance and Registration- As with any business, logistics services require registrations to be obtained and also government compliance. In India, the following registrations and certifications are mandatory.

  • Freight forwarders must register with International Air Transport Association (IATA) and Air Cargo Agent Association of India (ACCAI).

  • Private limited company registration

  • Import-export code

  • VAT Registration

  • ESI or PF Registration

  • Trademark registration, in case of unique brand name.

Clientèle- Engaging clients well is the key to a successful business. A thorough study of various industries/products and understanding logistic needs in such studies is essential if you wish to start a third party logistics company. Many sectors are booming currently such as infrastructure, auto, services and manufacturing as India is primarily an export economy. All of these sectors would need logistics services. Providing operationally efficient solutions to the potential leads and turning them into loyal customers will help you to grow and establish a positive reputation in the industry. Once a regular clientele is established, infrastructure investment can be focused upon as well as the creation of solutions to cater to the outside market.

Competition-  As liberalisation of FDI (Foreign Direct Investment) norms have made it easier for multinational companies to enter the India logistics sector. It’s imperative to understand the competition that the business faces in order to invest heavily in marketing and infrastructure. Hence it is important to do complete research on the competition and to focus on the company’s positioning in the market.

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