Due to rapid growth in India economy in the past few years, as a result, it increases the market for logistics services. There are huge over 50 million people employed in India. The expert in Logistics partners can help to improve the operation efficiencies in any business by cutting delivery time and cost-cutting. The final object is translated to profit and market share for the business.

Logistics business is highly specialized in operational logistics that require persistence, more patience, and planning than any other business. As a logistics provider, you have a task. To do that you need proper coordination of the inventory, shipping, warehouse and security requirement of your client.

There are different types of logistics business that you can start. This includes couriers and freight cargo service, air cargo service, third-party logistics (3PL) and warehousing services.  All different types of Logistics Company have a different need let’s see what the aspects to be successful are-

  1. Investment and fund:

The first step in any logistics company will find out the Investment. The amount of investment depends upon the services that you want to give to customers. A freight management services and brokering services is require less capital n comparison to 3 PL services. Let’s us understand with the example in India to start a pure start-up 3 PL service you need to invest at least $10-$18 million USD, For freight forwarding start-up services you require about $1-$2 million USD. To start Container Freight Station and Inland Container depot need to Investment running serval hundred million dollars.

It is important to find out in which types of logistics services you want to go and then do planning for the Investment. In India, it is easy to find the Investment in logistics because of active interest shown and liberal FDI norms by large private equity players.

  1. Find out what kind of permits and licenses you require:

Before starting the business, you have to find out the verities of permits and licenses which is accepted by the state government. Most state governments need a license and certain tax to operate the legal service. It involves the process of obtaining licenses by the state as well as you should get some advice from a lawyer throughout the process to make sure whatever you are doing is correct.

  1. Select the physical office for your company:

Get a physical office which provides confidence in the client for your company. If you are getting a warehouse, you need to get a space which is secure and hygienic for your warehouse. The ware house should be located near the transportation terminal. The reason being the goods can be readied for transportation in short period of time. Before starting your logistics’ business, you have to register your company such as Public limited company, LLP, Pvt Ltd company registration in India and one Person Company.

  1. The risk in Business:

This aspect you  must consider looking at the business risk. In a developing country like India, risk management plays a very important role, more than the business. Since the logistics are dynamic with multiple vendors/partners, include in the entire operation. So, business risk is very high It is important to take business insurance. In India, the much large company provide insurance plan. Covering the liabilities is important. The liabilities issues start from theft, cargo damage, environmental damage, and injury, etc. While business insurance provides some liability concern.

Let us understand with the example-proper insurance and most cargo in India will not cover the stock shortage it is considered as a normal risk while running the 3PL. It is very important to consider and understand the risk before starting the business.


I hope this Article is valuable for you. By this Article, You can understand how you can start logistic company and types of company. Afleo provides service to start up to start, run and grow their business by legal services such as GST registration, one Person Company, and PVT LTD registration or for more information. You can visit your site or contact us.