A Guide to Logistics Company Registration

India’s logistics sector grows fast with rising e-commerce, smart infrastructure, and the need for quick delivery. It stands at USD 228.4 billion in 2024 and may reach USD 357.3 billion in 2030. This growth opens many doors for new businesses in transport, warehousing, and freight. Proper registration gives a logistics company legal protection, customer trust, and access to government schemes. In this article we will learn in detail about logistics company registration, compliance and license requirement, and more.

What is a Logistics Company? 

A logistics company manages the movement and storage of goods from origin to destination. It handles transportation, warehousing, inventory control, and order fulfillment. They also guarantee client satisfaction and on-time delivery. In India, logistics firms support various industries as they facilitate domestic and international trade. Selecting the appropriate business structure—such as sole proprietorship, partnership, or private limited company—is crucial, as it influences legal obligations, tax liabilities, and operational flexibility. This choice impacts the company's ability to scale, attract investment, and comply with regulatory requirements.

Choosing the Right Business Structure

It is important to select the appropriate business structure for legal compliance and operational efficiency. Listed below are the business structures that a logistics company can choose:

1.    Sole Proprietorship

A logistics business with a single owner may start as a sole proprietorship. It requires fewer formalities and is easy to launch. This model suits small-scale delivery or local courier services. However, the owner takes full responsibility for all debts and puts personal assets at risk.

2.    Partnership Firm

When two or more people manage a logistics company together, they may choose a partnership firm. Each partner shares profits, responsibilities, and risks. This model works for mid-sized logistics services covering limited routes. But all partners face unlimited personal liability under the Indian Partnership Act, 1932.

3.    Limited Liability Partnership (LLP)

An LLP suits logistics companies that want to limit personal risk while sharing control. It protects partners' personal assets from business debts. It also allows easier compliance compared to a company. This structure is ideal for freight brokers, transport agents, or warehouse service providers.

4.    Private Limited Company

A private limited company is ideal for logistics businesses aiming for large-scale operations. It allows capital investment from private sources and separates personal assets from business risks. It also builds a professional image, which is crucial when dealing with corporate clients or government tenders.

5.    Public Limited Company

Large logistics enterprises that seek public funding or operate at a national level may choose a public limited company. This structure enables public shareholding and allows major expansion. It also comes with stricter compliance, which suits businesses with a high volume of operations and investors.

6.    One Person Company (OPC)

An OPC works well for individual entrepreneurs starting a logistics firm. It offers legal identity and limited liability without the need for a second shareholder. It suits small delivery businesses or transport coordination services. This model provides safety and flexibility for single owners.

Process to Logistics Company Registration

Listed below is the process for logistics business registration:

Step 1: Obtain Digital Signature Certificate (DSC)

To register your logistics company, you must obtain a Digital Signature Certificate (DSC). This certificate allows you to sign electronic documents securely. You can acquire a DSC from licensed Certifying Authorities approved by the Controller of Certifying Authorities (CCA) in India. Visit the official website of a Certifying Authority, complete the application form, and submit the required documents, such as proof of identity and address. After verification, the DSC is typically issued within a few days.

Step 2: Obtain Director Identification Number (DIN)

Next, you need to obtain a Director Identification Number (DIN) to become a director of your company. Visit the Ministry of Corporate Affairs (MCA) website and fill out the application form. Submit the necessary documents which include proof of identity and address. Upon successful verification, the DIN is issued electronically.

Step 3: Reserve your Company Name with the MCA portal

To reserve a company name, access the MCA portal and navigate to the 'Reserve Unique Name' (RUN) service. You need to enter your proposed company name, and ensure it complies with the naming guidelines provided. The system will check for name availability. If approved, the name will be reserved for a specific period. It's advisable to have alternative names ready in case your preferred choice is unavailable.

Step 4: Draft and File the MoA and AoA

The Memorandum of Association (MOA) outlines the company's objectives, scope of activities, and its relationship with the outside world. The Articles of Association (AOA) define the internal rules and regulations governing the company's operations. You need to ensure both documents are drafted carefully and adhere to the provisions of the Companies Act, 2013. Once prepared, they need to be filed with the Registrar of Companies (ROC) along with the incorporation application.

Step 5: Apply for Company Incorporation with ROC

To incorporate the company, submit the duly signed incorporation application along with the MOA, AOA, and other required documents to the ROC. You can file the application online through the MCA portal. Upon successful verification, the ROC will issue a Certificate of Incorporation, officially recognizing your company as a legal entity.

Step 6: Obtain Permanent Account Number (PAN)

To obtain your PAN, access the official PAN application portal and complete Form 49A. Provide accurate details such as your name, date of birth, and address. Ensure you have the necessary documents for identity and address proof.  You will receive an acknowledgment number to follow the progress of your application after submitting the form. Upon successful verification, your PAN will be issued and sent to your registered address.

Step 7: Obtain Tax Deduction and Collection Account Number (TAN)

To acquire your TAN, visit the official TAN application portal and fill out Form 49B. Enter the required information, which will include your company's name, address, and details of the assessing officer. After submitting the form, you will receive an acknowledgment number for tracking purposes. Once your application is verified, the TAN will be allotted and communicated to you.

Step 8: Register for GST

GST registration becomes required if the turnover of your business surpasses the specified threshold.  Complete the registration form by going to the official GST portal.  You must submit certain information, like your bank account details, business address, and PAN.  An Application Reference Number (ARN) will be created following submission.  The GST Identification Number (GSTIN) will be provided following a successful verification process.

Step 9: Open a Current Bank Account in the Company's Name

After obtaining the Certificate of Incorporation, PAN, and other necessary documents, approach a bank to open a current account in your company's name. Most banks offer online account opening facilities, which require submission of Know Your Customer (KYC) documents and other relevant information. Having a current account is essential for conducting business transactions and maintaining financial records.

Mandatory License and Registration:

Listed below are the mandatory licenses and registration that a logistics business needs to obtain:

1.    Import and Export Code(IEC)

To engage in import or export activities, you must obtain an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). This unique 10-digit code is essential for customs clearance and international transactions. Without it, you cannot legally import or export goods. Apply online through the DGFT portal, and provide necessary documents like PAN, bank details, and address proof.

2.    IATA and ACAAI Registration

If you plan to operate as a freight forwarder, consider registering with the International Air Transport Association (IATA) and the Air Cargo Agent Association of India (ACAAI). IATA accreditation enhances your credibility in the global air cargo industry, while ACAAI membership connects you with a network of Indian air cargo agents. To qualify, you typically need at least one year of IATA registration before applying for ACAAI membership.

3.    Goods Carrier Permit

To operate commercial vehicles for transporting goods, you need a Goods Carrier Permit issued under Section 79 of the Motor Vehicles Act, 1988. This permit allows your vehicles to legally carry goods within or across state boundaries. Apply through the respective State Transport Authority, and submit vehicle documents, insurance, and fitness certificates.

4.    Professional Tax Registration

If you employ staff, you must register for Professional Tax with the State Government. This tax applies to salaries and wages paid to employees. Registration ensures compliance with state laws and enables you to deduct and remit the tax appropriately. The applicability and rates vary by state, so check with your local authorities for specific requirements.

5.    EPFO and ESIC Registrations

When your company employs 20 or more individuals, you must register with the Employees' Provident Fund Organization (EPFO). For establishments with 10 or more employees, registration with the Employees' State Insurance Corporation (ESIC) is mandatory. These registrations provide social security benefits like provident fund and health insurance to your employees. Apply online through the respective portals that require you to submit the employee and company details.

6.    Trademark Registration

To protect your brand identity, register your company's name, logo, or tagline as a trademark class 39, which covers transport and logistics services. This registration grants you exclusive rights and prevents others from using similar marks. Conduct a trademark search to ensure uniqueness, then file an application with the Indian Trademark Registry. You also need to provide the necessary details and documents along with your application.

7.    FSSAI License

If your logistics operations involve transporting or storing food items, you must obtain an FSSAI license from the Food Safety and Standards Authority of India. The type of license depends on your business size: Basic Registration for turnover up to Rs 12 lakhs, State License for turnover up to Rs 30 crores, and Central License for turnover above Rs 30 crores or operating more than 100 vehicles. Apply online through the FoSCoS portal, and submit the required documents like identity proof, business registration, and vehicle details.

Compliance Requirement for Logistics Business

Listed below are the compliance requirements for a logistics business:

1.    Compliance with the Companies Act, 2013

You must maintain statutory records, hold regular board meetings, and ensure timely disclosures as mandated by the Companies Act, 2013. Failing to comply can lead to penalties and damage your company's credibility.

2.    Regular Filing of Annual Returns and Financial Statements

You are required to file annual returns and financial statements with the Registrar of Companies. Timely submission ensures legal compliance and maintains your company's good standing.

3.    Adherence to Labor Laws and Environmental Regulations

You must comply with labour laws that ensure fair wages and safe working conditions for your employees. Additionally, you need to adhere to environmental regulations by obtaining necessary clearances and implementing measures to minimize environmental impact.

4.    Carriage by Road Act, 2007

You must comply with the Carriage by Road Act, 2007, which regulates the transportation of goods by road. This includes obtaining necessary permits, ensuring vehicle fitness, and adhering to safety standards.

5.    Warehousing (Development and Regulation) Act, 2007

If you operate warehouses, you need to register them under the Warehousing (Development and Regulation) Act, 2007. This ensures that your warehousing operations meet the prescribed standards and are subject to regular inspections.

6.    Legal Metrology Act, 2009

You must adhere to the Legal Metrology Act, 2009, which governs the standards of weights and measures. This is crucial if your business involves packaging, selling, or distributing goods. It helps to ensure accuracy and consumer protection.

7.    Dangerous Goods Regulations

If you transport hazardous materials, you need to follow the Dangerous Goods Regulations. This includes proper labelling, packaging, and documentation to ensure safety during transportation.

8.    Insurance Requirements

You should obtain appropriate insurance coverage for your logistics operations. This includes transit insurance for goods, liability insurance, and vehicle insurance to mitigate risks associated with transportation and storage.

9.    Data Protection and Cybersecurity

With increasing digitalization, you must ensure compliance with data protection laws. This involves securing customer and business data, implementing cybersecurity measures, and adhering to relevant regulations.

10.     Anti-Corruption and Ethical Practices

You are expected to maintain ethical practices in your operations. To uphold your company’s integrity, you need to avoid bribery, ensure transparency in dealing and adhere to anti-corruption laws.

11.    Environmental Compliance

You need to comply with environmental regulations, especially if your operations impact the environment. This includes managing emissions, waste disposal, and adhering to sustainability practices.

Conclusion

To sum up, logistics business registration lays the groundwork for a strong and scalable venture. It gives your company legal power, builds customer trust, and opens doors to bigger contracts and government support. With the right setup and licenses, you run your business without roadblocks.
Online Legal India makes this journey simple. From paperwork to approvals, they handle it all—so you stay focused on moving goods, not chasing documents. Let your logistics dream take off with expert support at every turn.