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

Baishali Das Adhikari Baishali Das Adhikari
Mar 5, 2022 6 min read
How to Start a Driving School Business in India - A Stepwise Guide

Though Covid-19 impacted the automobile sector too, the return of daily life and manufacturing activity to normalcy may give hope for a U-shaped economic recovery. This sector is a very important economic sector from the perspective of revenue. One can think of considering this business to generate revenue. Operating a driving school can be profitable as there is 'n' number of people who are willing to spend money to learn driving.

But just having a thought is not enough, it requires an in-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 take a look at this article, you can get a legit idea about what it takes to start a driving school business in India.

Step 1: Choose a Niche Market
Step 2: Create a Driving School Business Plan
Step 3: Initiate the Plan
Step 4: Allocate the Budget
Step 5: The Legal Works
Step 6: Get a Registration From RTO
Step 7: Apply and Get an Insurance for Your Driving School Business
Step 8: Advertise Your Business

Guidelines for Starting a Driving School Business in India

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

  • An individual must be 18 years old or above. If they're below 18 years, they shall not be permitted to learn to drive.
  • An individual must have completed a high school education.
  • An individual must qualify for a vehicle examination in order to receive a driving certificate.
  • You 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 and its trainer must be trained. In the case of defensive driving, driving education and any other third-party driving tests, the Driver Services Department is accountable for verifying the same.

Step 1: Choose a Niche Market

The first thing that you need to begin with is to choose the niche market. You need to decide whether you want to start your own driving school business or invest in a franchise of a reputed driving school. But if you are ready to start your own driving school, you must decide on the type of driving school you want to start. Below find some of the niche driving school course specializations you can cater to:

Commercial Driving School

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

Test Preparation

This type of driving school can be incorporated for individuals who are 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 for 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 for everyone, you can warmly welcome people with disabilities as well. Therefore, this kind of business focuses on individuals living with physical inabilities.

Step 2: Create a Driving School Business Plan

You should go for surveying and statistical overviews and make an attempt to accumulate as much data conceivable to know your competitors, their qualities and shortcomings, the value of their services, and other things that they are giving to candidates to become exclusive. This will give you a thought regarding how to approach beginning your driving school business.

Step 3: Initiate the Plan

After getting all your data gathered, you should compose a comprehensive marketable strategy for your driving school business. Record your main goal, destinations, working arrangement, financials, promoting techniques, labour prerequisites, and so on in an organized way. You can take assistance from experienced strategy generators recorded as a hard copy of your driving school business planning.

Getting a Perfect Location

Attempt to discover a perfect place for your driving school business which is situated somewhere on the roadside. It permits an individual to find your driving school without much mess. Additionally, have adequate space for parking your service vehicles.

Planning The Curriculum

Create lesson plans both on theoretical and practical fronts. You can procure pre-packaged lesson materials from your DMV’s approved list of providers.

Fix Pricing

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

Step 4: Allocate the Budget

There is an amount you might need to secure in the first place in order to initiate 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 attached CV. 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 6: Get a Registration From RTO

The RTO is an Indian government office liable for furnishing vehicle enrollment 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.

Step 7: 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 unpracticed drivers to drive a vehicle may bring about misfortune and harm.

Having the insurance covers can help you to ensure not only your customer but also your business from any huge liability that may affect the plane 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 8: 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 the 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.

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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 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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