Tree Planting Service Business in India

Narendra Kumar

21 Oct, 2019

Tree Planting Service – Business Idea with a Positive Vision

Comparatively new as a business, tree planting service in India is still in its nascent stage right now. As we all know that trees are the source of purified air and help preserve soil and conserve water, they are perhaps the most important aspect for continuing life on this planet. They provide oxygen, absorb the toxic carbon dioxide^[1] and help maintain the climatic balance of a region.

However, with the rising industrial movement and growing real estate needs, more and more trees have been cut down in the last few decades. As a result, the climate has undergone a tremendous change in recent years and the present generation is experiencing the ill-effects of the same. Air pollution is at its peak at this point in time in the major part of India because trees are such an effective medium of trapping dust, pollen, smoke, harmful gases like sulfur dioxide, carbon monoxide and more.

Hence, planting trees is the best way to save the environment from further degradation as well as protect the flora and fauna of a place.

How is the Tree Plantation Industry Behaving at the Moment in India?

As per records, India is the third-largest generator of carbon emissions in the world. Hence aggressive methods are being adopted by the Government too to ensure the protection of the environment and the planet.

India has committed herself under the Paris Agreement to cover 5 million hectares of its land with forests before 2030. This is mainly to fight global warming and climatic change. In 2017, about 66 million trees were planted by volunteers along the Narmada River in Madhya Pradesh in just 12 hours creating a world record.

Till date, most of the tree plantation service in India is on a voluntary basis with very few players with a proper setup have entered this industry. Low participation has made the tree planting service an unorganized sector in India.

Considering the above factors, tree planting service looks to be a lucrative business opportunity in India at present.

What are the key Licenses and Registrations Required to Start a tree Planting Service in India?

Starting a tree planting does not require high investments or even a degree in horticulture. One just needs to love trees and have the basic knowledge of what to grow that suits the soil and climatic conditions of the region and how to look after them. In fact, if one has a large backyard space at home, the business can be started from there initially and move to leased space later when the business grows.

Some perquisites when wanting to open a profession tree planting service that would generate full-time profits are:-

1. Registering the business name and logo through Trademark Registration.
2. One can also do business registration in a form most suited to the requirements. If you are operating on a small scale you can register as a One Person Company.
3. Trade license from the local civic bodies. The license is issued under the Municipal Corporation Acts that is supervised by the State Government. The license basically ensures that the business entity does not indulge in activities that could harm the environment of the locality or affect the residential areas around.
4. Register with the Ministry of Micro, Small and Medium Enterprise with the MSME Udyog Aadhaar. The application for this license can be done online by the business owner. On successful registration, the business is issued a 12 digit Udyog Aadhaar number. However, this registration is not a mandatory requirement having the Udyog Aadhaar means that the business is eligible for government scheme benefits like easy loan repayment policies with a lower rate of interest, getting loans without collaterals or getting subsidies and financial support, etc.
5. Goods and Services Tax registration be applied online too. It ensures that the business is legalized to sell the trees and that there is a proper accounting of taxes paid on goods and services.