You can form a company for carrying on car rental services . It should be Registered under provisions of companies act 2013

2) you would need service tax registration

3) you have to apply for licence with regional transport office of your state

4) Rent-A-Cab scheme was launched in India in 1989. Under this scheme the passenger drives the vehicle himself & fare is charged on no. of days the cab is used. The applicant should have a 24 hrs. accessible telephone, adequate parking space, experience of passenger transport business. The applicant in addition should have a fleet of 50 cabs of whichever 50% should be air conditioned. The permit of these schemes are also valid throughout India provided the passenger taxes were paid to the corresponding states

5) an application should be made to licensing authority having jurisdiction in the area in which he resides or has his principal place of business (hereinafter referred to as main office) and shall be accompanied by a fee of rupees five thousand.

6) A licence granted or renewed shallbe valid for a period of five years from the date of grant or renewal:

After the preparing your business model and plan you have to register a car rental company in India. There are lot of option for the registration a cab company in India like from register a private limited company to solo firm.

Apart from the legal entity you have to apply for the service tax registration as cab service provider and recover the service tax from the customer & pay to the government. You need some license also for the running a Car Rental Company in India.

Vehicle rental is a competitive industry, but if you learn what to do to maximize your odds of success before entering the business, it can also be quite lucrative. To start a vehicle rental business, decide if you want to run a contract or daily hire operation, build up your vehicle options, set up at an ideal location, and follow all insurance and regulatory requirements for running this type of business.

1. car should be registered under commercial vehicle.

2. driver must possess commercial licence when driving.

3. all other formality regarding formation of a company shall be followed separately.