Transport · South Africa

How to start a courier or transport business in South Africa

By Uminathi Business Start-Up ServicesPublished Updated 5 min read

Quick answer

To start a courier or transport business in South Africa, choose what you will move (parcels, goods or passengers), register the business and tax, and get suitable vehicles, insurance and properly licensed drivers. Carrying passengers for reward, for example a shuttle, taxi or e-hailing service, needs an operating licence from the provincial regulatory entity. Drivers of goods vehicles over 3,500 kg and of passenger vehicles for reward need a professional driving permit (PrDP). Then build contracts with businesses that ship regularly.

Read the complete guide below.

At a glance

Business typeCourier and last-mile delivery, freight and logistics, or passenger transport
Common structurePrivate company (Pty) Ltd
Key requirementsLicensed vehicles, roadworthy certificates, driver licences and PrDPs, insurance; operating licence for passenger transport
Start-up costsModerate to high, mostly vehicles
Typical customersOnline stores, retailers, pharmacies, manufacturers, offices, government
Biggest riskVehicle costs: fuel, maintenance, insurance and downtime

What kind of transport business can I start?

  • Courier and last-mile delivery: parcels and documents for online stores, offices and pharmacies
  • Goods transport: moving loads for businesses, farms and building suppliers
  • Furniture removals: moving homes and offices
  • Passenger transport: shuttles, staff and scholar transport, tours, e-hailing
  • Subcontracting: delivering for a bigger courier company with your own vehicle

Starting with one vehicle and one reliable contract is common. Add vehicles when demand is steady.

How do I start a courier business in South Africa?

  1. Choose your service and the area you will cover
  2. Register a company with CIPC and register for tax with SARS
  3. Buy or lease suitable, roadworthy vehicles
  4. Make sure drivers hold the right licence and, where required, a PrDP
  5. Get vehicle, goods-in-transit and public liability insurance
  6. Apply for an operating licence if you will carry passengers for reward
  7. Set your rates, then approach businesses that ship regularly

How much does it cost to start a courier business?

Cost itemNotes
VehiclesBuy, finance or lease; a single bakkie or van is enough to start
Licensing and roadworthyVehicle licence discs and roadworthy certificates where required
InsuranceVehicle, goods-in-transit and public liability cover
Fuel and maintenanceYour biggest ongoing costs
Tracking and technologyVehicle tracking, route planning, proof-of-delivery app
Branding and marketingVehicle branding, website, business cards

What licences and permits do I need?

What you need depends on what you carry:

  • Driver's licence in the correct code for each vehicle
  • Professional driving permit (PrDP): needed for drivers of goods vehicles with a gross vehicle mass over 3,500 kg, and for drivers carrying passengers for reward
  • Operating licence: carrying passengers for reward (shuttles, staff and scholar transport, tours, e-hailing and metered taxis) requires an operating licence from the provincial regulatory entity, or the National Public Transport Regulator for some cross-province and tourism services, under the National Land Transport Act
  • Roadworthy and licensing: vehicles must be licensed and roadworthy; some vehicle types need regular roadworthy tests
  • Dangerous goods: transporting fuel, gas or chemicals has extra rules for vehicles, drivers and documents
  • Cross-border transport: needs separate permits

What tax and labour requirements apply?

Register for income tax, and for VAT once taxable turnover exceeds R2.3 million in 12 months (from 1 April 2026). As an employer, register for UIF, PAYE where it applies and COIDA. Drivers must be paid at least the national minimum wage (R30.23 per hour from 1 March 2026), or more where the road freight bargaining council's rates apply to your operation. Check which agreements cover your business.

How do I price courier services?

Work out your cost per kilometre (fuel, maintenance, tyres, insurance, licence and vehicle finance) and your driver cost per hour, then price per delivery, per kilometre, per zone or per route, with a profit margin. Add charges for waiting time, after-hours delivery, extra weight and failed deliveries. Review prices when fuel prices change. See how to price your services.

How do I find courier customers?

Customer typeHow to reach them
Online storesOffer same-day local delivery and integration with their order system
Pharmacies and medical practicesReliable, time-sensitive delivery routes
Retailers and wholesalersScheduled deliveries to customers or branches
Offices, law firms, accountantsDocument delivery on account
Bigger couriersSubcontract with your own vehicle
GovernmentCSD registration and quotations for transport services

What are the common mistakes?

  • Pricing without knowing your cost per kilometre
  • No goods-in-transit insurance, leaving you liable for lost or damaged parcels
  • Neglecting maintenance, so vehicles break down and contracts are lost
  • Operating passenger transport without an operating licence
  • Relying on one client for all your income

How can Uminathi help?

You can do these steps yourself. Uminathi can register your company, sort out tax, CSD and COIDA, prepare a company profile and business plan for vehicle finance, and build a website for booking deliveries.

Step by step

  1. Choose your service. Decide whether you will deliver parcels, move goods or carry passengers, and in which area.
  2. Register your business and tax. Register a company with CIPC and register with SARS.
  3. Get vehicles. Buy, finance or lease licensed, roadworthy vehicles suited to your service.
  4. License your drivers. Make sure every driver holds the correct licence code and a PrDP where required.
  5. Insure. Take out vehicle, goods-in-transit and public liability insurance.
  6. Apply for an operating licence if carrying passengers. Apply to the provincial regulatory entity before starting a passenger service.
  7. Set rates and find clients. Price from your cost per kilometre and approach businesses that ship regularly.

Frequently asked questions

Do I need a licence to start a courier business?

There is no single courier licence for parcels and goods, but vehicles must be licensed and roadworthy, drivers properly licensed, and drivers of heavier goods vehicles need a PrDP. Passenger transport needs an operating licence.

What is a PrDP?

A professional driving permit, issued by the licensing authority, required for drivers of goods vehicles over 3,500 kg, and of passenger vehicles for reward.

Can I start a courier business with one car?

Yes. Many courier businesses start with one vehicle, often subcontracting for larger couriers or serving local online stores.

Do I need an operating licence for e-hailing?

Yes. Carrying passengers for reward, including e-hailing, requires an operating licence under the National Land Transport Act.

Can a transport business get government work?

Yes. Register on CSD, keep your tax status compliant and respond to quotations and tenders for transport and logistics.

Official sources

Uminathi Business Start-Up Services is a private company. We are not part of, or acting for, CIPC, SARS, National Treasury (CSD), CIDB, the Department of Employment and Labour or any other government body. Requirements change, so always confirm with the official source.

Written by: Uminathi Business Start-Up Services
Reviewed by: Uminathi Business Start-Up Services
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