Because of the high petrol and diesel prices people in our country use a taxi service for long and short runs. This makes the taxi business so popular and profitable in India. In this article, we will tell you how you can start a taxi business in India with low-cost investment.

There are several laws and permissions that you need to take before starting the taxi business. Taxi service in Amritsar will explain everything

taxi in amritsar


First of all, you need to decide the structure of your business. The taxi business has 4 options.

1.    Sole Proprietorship

2.    Partnership with others

3.    Limited liability

4.    Private limited company

Most of the taxi owners have private limited taxi company. This way they need to do less paperwork and have full control over the business.


As per the motor vehicle act of India, driving license is mandatory for driving a motor-operated vehicle. In simple words, if you want to drive a cab or want to hire a driver for your cabs. The driver of the cab should have to carry a valid driving license issued form the District Transport Authority.

Commercial driving license is required for taxi drivers because they drive a taxi is a commercial vehicle.

Requirements for the taxi driving license

The minimum age for obtaining a driving license is 18 years.

The driver must be educated minimum to 8th class so that he /she can read road signs easily and understand the road map.

Nowadays having a learner license before the driving test is mandatory. You have to give a written test of choice questions for learner license.

Get training from a government or private driving school

A medical fitness certificate is required at the time of filling the application form.

Document requirement

ID proof (passport, Aadhar card, PAN card, Voter Card)

One address proof

2 passport size photos with white background

Application fee


It is best for taxi owners to choose all India permit like Amritsar taxi service. This permit will allow them to drive any part of the country. Whereas other state permit does not allow them to cross the state border with their taxi.

To get the AITP permit you have to make a request to the Transport Authority in written form. Fill the application submit to the authority with the fee. Once they accept your request and grant the AITP to you.

Then the vehicle which is granted the permit must have the “Tourist vehicle” written on both sides of it. Also, it should have a boar hung above the number plate saying All India Permit.

Submit the following documents along with your application

RC of your vehicle

Vehicle fitness certificate

Proper insurance certificate

Tax payment proof

Every permit is valid for 5 years after that you need to re-apply for it with the same process.


You should be aware of the environmental norms of your route. Like in the State of Punjab petrol and diesel driven taxies are allowed. Whereas in Delhi taxi must be CNG operated or electric.

We hope you find this article helpful but if you have more questions feel free to ask us.