How to Start a Driving School Business in India - A Stepwise Guide

How to Start a Driving School Business in India - A Stepwise Guide
Driving School Business

In today's time, people love to go on road trips to relax and spend time with friends and family. Some time ago, people didn't need to have driving skills, but at present time the automobile industry has grown a lot, and it has become necessary to have a vehicle in every house and to have driving skills to get their work done quickly to go anywhere. One can learn driving skills through any friend or relative. But most people prefer to learn driving skills from professionals.

So, if you are having good driving skills and are good to make other people understand how to drive, you can think of considering this business to generate revenue. Operating a driving school can be profitable as there is an 'n' number of people who are willing to spend money to learn to drive. But just having a thought is not enough, it requires depth knowledge of strict state laws and regulations. Not only that, a good amount of time is required in researching but you need not worry. However, if you look at this article, you can get a legit idea about what it takes to start a driving school business in India.

Step 1: Select Type Of Business
Step 2: Competition Research
Step 3: School Name Selection
Step 4: Location Selection
Step 5: Plannig The Curriculum And Pricing
Step 6: Allocate the Budget
Step 7: Driving Instructor License And Legal Works
Step 8: Purchase Vehicles And Get a Registration From RTO
Step 9: Apply and Get an Insurance for Your Driving School Business
Step 10: Advertise Your Business

Guidelines for Starting a Driving School Business in India

You need to follow a set of guidelines before starting a driving school business in India.

  • Learners must be 18 years old or above. If they're below 18 years, they shall not be permitted to learn to drive.
  • Learners must have completed a high school education.
  • The learner must qualify for a vehicle examination to receive a driving certificate.
  • The trainer/Learner must not have any criminal records in the past. For the presence of such records, they will be inspected by a state inspector before you obtain a driving license.
  • The school trainer must be a trained person. They should not have offensive driving history.

Step 1: Choose Between Franchise V/S Own Driving School

Before starting a driving school business, it is important to decide, that whether you want to open your driving school in which all the investment and risk will be yours or want to take a franchise of an already established driving school. Franchise is a bit costly as a fixed amount you need to pay to the franchiser, but after that most of the responsibility of opening a driving school has to be taken care of by the franchiser.

Step 2: Competition Research

Without paying attention to the activities of your competition and making a good plan of action from them, no product or service can survive in the market for a long time. That is why competition research is important to start your driving school. It is necessary to research which companies are already providing this service, what is their fee model, what kind of offers they are giving to their clients, and how to make your school different from theirs.

You can include different classes in your school such as :-

Commercial Driving Classes

This type of driving class trains candidates who can drive heavy trucks, cranes, buses, heavy vehicles, etc.

Test Preparation Classes

This type of driving class can be incorporated for individuals potentially getting ready for the driving tests. You will train them to pass the driving test to obtain a driving license.

Private Driving Classes

You can incorporate a private driving class option for customers who need to get provided with customized training services. These customers are ready to pay more to take personal classes if this idea is agreeable to them.

Grown-up Classes

Working Professionals who have tight schedules are willing to take up these exclusive classes.

Classes for Disabled People

Since your business is open to everyone, you can warmly welcome people with disabilities as well. Therefore, this kind of business focuses on individuals living with physical inabilities.

Step 3: School Name Selection

Keeping a memorable and easy-to-catch name for your driving school is a much-needed task. The company name plays a vital role in the digitalization era, as the domain name and URL name must be the same as the company name to take your company to the digital platform. So that the customer can easily find your website.

Step 4: Location Selection

After finalizing the name, the next important task is to finalize the perfect location for your school, as location plays a vital role in any business success. Generally, renting an area is suitable, so there are some important things to keep in mind while finalizing the location so that customers can be attracted.

Here are some common points to keep in mind:

  • One classroom, one office.
  • Parking space must be available for vehicles.
  • It will be advantageous if the plot is located near the market.

Step 5: Planning The Curriculum And Pricing

Create lesson plans both on theoretical and practical fronts. You can procure pre-packaged lesson materials from your DMV’s (Department of Motor Vehicles) approved list of providers. Your behind-the-wheel lesson plan should include routes that are safe for the student and over time allow them to experience different road and traffic conditions.

Fix Pricing

The pricing of training course modules should be competitive and should be affordable for people. You can charge more for personalized classes conducted for individual learners who are busy professionals or looking for special attention.

Step 6: Allocate the Budget

There is an amount you might need to secure in the first place to initiate a driving school business. The amount you need to set up an office, keep trainers, documentation, types of equipment, cars, rental, bills, marketing, fuel costs, and the list goes on.

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Starting up a business always needs proper documentation and a license that you need to opt for. You might need a license for your trainers, photo ID, national identification, medical certifications, and an attached CV.

Points to consider for applying for a driving instructor license.

  • Must have at least 21 years of age.
  • Only after passing the vision test can the applicant apply for a license.
  • Must have a high school diploma or an equivalent.
  • The applicant must pass a criminal history check.
  • Before obtaining a license, the applicant must pass a physical and mental screening.
  • Your driving record must be presented when you apply. Excessive traffic offenses may disqualify.

Other documents that you might need for your driving school business are as follows:

  • Certificate of Incorporation of Business Plan
  • Insurance Policy
  • PAN
  • License Sales Tax Registration Certification
  • Employer Identification Number
  • Sales Tax License

Step 8: Purchase Vehicles And Get a Registration From RTO

If you have a small capital investment, it is advisable to purchase second-hand vehicles. For safety reasons, install additional brakes, accelerator, instructor mirrors, and other features. The RTO is an Indian government office liable for furnishing vehicle enrolment and driving permits in India. It is an Indian Government association responsible for maintaining a database of drivers and vehicles for various states of India.

RTO Activities:

  • Motor vehicle taxes
  • Vehicle registration
  • Vehicle inspection after an accident
  • You should always check the validity of your motor vehicle insurance.
  • Issues transport permit (license for motor vehicles).

Step 9: Apply and Get an Insurance for Your Driving School Business

Protection is fundamental for beginning any business because that helps you to cope with loss. Especially for your driving schools business, getting the proper insurance is important since preparing unpractised drivers to drive a vehicle may bring about misfortune and harm.

Having insurance covers can help you to ensure not only your customer but also your business from any huge liability that may affect the smooth functioning of your business or even become a reason for business insolvency. Some insurances inclusions that are widely used and suggested are:

  • Public Liability Insurance
  • ADI (Approved Driving Instructor Insurance), Motor Insurance
  • Liability Insurance of Employers
  • GAP Insurance
  • Breakdown Cover

Step 10: Advertise Your Business

Advertising is one of the crucial parts of the entire driving school business because it will help people get attracted to your business. You need to understand your target audience and make sure that your advertisement has a unique element that might help you to draw yourself away from your rivals. Try new methods, discounts, and other elements that are available around. You can also opt for social media marketing as most people are highly into social media platforms these days. If someone attempts to find you using your name, driving school, and location, they should be able to locate you quickly. It helps to ensure that the business opportunity is secured.

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So you might be feeling there are a lot to start your own driving school business in India, but trust me, once you start, things might not seem easy, but will eventually fall into the right place. It is time to trust your instinct and get ready to take your business off.


How much do driving school cost in India?

A car driving learning lesson costs around Rs 3000 to 5000 per month depending on the school you are choosing. The costs may differ depending on whether you choose to learn on a sedan or a hatchback and the duration of the lesson.

How to start a driving school in Kerala?

You require 3 acres of land, 2 classrooms, and a driving track to start a driving school business in Kerala.

How to start a driving school in India?

  • Choose a niche market.
  • Create a business plan.
  • Obtain licenses.
  • Purchase commercial insurance.
  • Choose a business location.
  • Purchase equipment.
  • Hire drivers.

Are driving instructors self-employed?

Most driving instructors are self-employed, although some are employed on a franchise basis by driving schools. Consequently, many are responsible for marketing their business, maintaining financial accounts and vehicle upkeep.

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