As per your query, assuming you will set up a private limited company which will run the bike rental business. There are quite a few formalities that need to be taken care – under the Companies Act, Service Tax registration and other tax related registrations etc. For the bike rental business application with need to be made to the Regional Transport Authority. Section 75 of the Motor Vehicles Act, 1988 provides for Scheme for Renting Motor cabs (which includes motor cycles). Renting bikes in India is regulated by Bike Renting Scheme 1997 and State Government Laws. If your State has not formulated specific laws, approach your RTO with the application as prescribed in Bike Renting Scheme 1997. … For Metro commute, Activa or lower CC bikes should work well. However, there is no thumb rule. Apply for a License under Bike Renting Scheme 1997. Normally the RTO should approve your application within 15 days, which is the maximum time limit for granting the license for bike rentals. Once you get the license, it’s time to buy bikes. You shall need to buy 5 bikes in minimum, which is a statutory requirement. So legally you can start your own bike rental business.
Reference: Motor Vehicle Act, 1988