India Post office franchise scheme

Now you can start an India Post office franchise for as low as 5000 INR

Namaskar to all. Are you looking for a Government of India Franchise that is easy to start and profitable? A Govt franchise that you can start with 5000 INR all over India, mostly in rural and small towns of India. If you are interested to learn more about India Post office franchise scheme, then this post is for you.

In order to give you the most appropriate and important information, we have checked the India post official site, understood, and finally published this post.

Let us understand the India Post office franchise scheme

Recently India post has started offering franchise to PAN India to increase the basic postal facilities. Even though India has over 1.55 lakhs post offices, still there is a demand. Still many parts of India are deprived of postal service. To bridge the gap India post has started this service. India Post wants to extend its services and products so that every part of India can take the advantage of its services.

Now understand what services an India Post franchise can offer

There was a time when India Post had very few services such as postal, money order, and telegram (retired now), but looking at the present scenario, many things have changed. Secondly, online shopping has changed the shopping style and many more. So looking at the demand, the India post franchise scheme has many services to offer. If you take this franchise, you can offer below services:

  • Booking registered articles
  • Speed post articles and money orders.
  • Functioning as an agent for Postal Life Insurance (PLI)
  • Retail services like bill/tax/fine collection/payment services of the Department.
  • Facilitating the provision of e-governance and citizen-centric services.
  • Any other service introduced by the Department in the future through its outlets.
  • Sale of stamps and stationery

How to get India post franchise

To become a franchisee, you need to submit an application provided by the India Post, we have shared a link at the end of this paragraph. However, before you visit the web page, let us share some useful information. This will include types of franchises, eligibility, qualification and franchise fees, etc.

Franchise types

The franchise program offers two types of franchises:

  1. Franchise Outlets: In locations where there is a need for postal services, but no post office can be established, counter services can be provided through Franchise Outlets.
  1. Postal Agents: In urban and rural regions, mail agents sell stationery and stamps for the postal service.

Guidelines for choosing franchise outlets

An application form is available on the official website; click that link to access it if you want to apply for a Franchise Outlet.

  • Education: Successful completion of the eighth grade (8th pass) at an accredited institution.
  • Over the age of 18 without a maximum age.
  • Preference: (a) Postal pensioners (b) People who can offer computing resources.
  • The application process for this program is open to individuals, institutions, organizations, and other entities in both urban and rural locations.
  • Applications for franchises in the same Division where postal employees work are not permitted from candidates whose family members are employed by the postal service.
  • Deposit of Security: A security deposit of at least Rs. 5,000 is required. Additionally, it would be raised based on the daily income average.
  • Within 14 days of the application’s submission, the relevant Divisional Head will decide who will be chosen based on a report from the ASP/SDl.

We read the eligibility criteria and learned that many Individuals and other entities like organizations/institutions can avail this opportunity. Here is the list:

  • Corner shops, paan walas, kirana wala, stationery shops, small shopkeepers, etc. in urban and rural areas
  • Upcoming urban townships, special economic zones, major highway projects, upcoming industrial centres, colleges, polytechnics, universities, professional colleges etc. 

This is applicable to both rural and Urban. We suggest if you belong to rural and small town you can go ahead with this.

Choosing a post office franchise for a postal agent

Application materials for the Postal Agent Franchise are available on the official website.

  • No specific educational requirements are required.
  • Over the age of 18 without a maximum age.
  • The application process for this program is open to individuals, institutions, organizations, and other entities in both urban and rural locations.
  • Applications for franchises in the same Division where postal employees work are not permitted from candidates whose family members are employed by the postal service.
  • No agreement with the department must be signed with this postal agency, and no security deposit is needed to take an agency.
  • The license may be terminated or revoked by DOP for a good cause.

Let’s see the commission part (schedule commission)

Sl noServicesCommission Per transaction
1Booking of Registered Articles 
2Booking of Speed Post Articles 
3Booking of Money Orders: (i) with the value of Rs.100/- to Rs 200 (ii) with a value above Rs 200   Provided Franchise Agents will not book any money order for a value less than Rs 100  Rs.3.50 Rs.5.00
4Booking of registered articles and  speed post articles beyond 1000 articles (total of all two categories) per month20% additional commission  for respective articles i.e. Registered or Speed post
5Sale of Postage stamps and postal stationery (including philatelic items)  5% sales amount
6Retail services including sales of revenues stamp and central recruitment fee stamps40% of commission earned by DoP (rounded off in rupees to be 40% or less)
7Monthly Business (from Registered Parcel and Speed Post Parcel, separately) Monthly commision in percentage
8Up to Rs 5,00,000/Speed post parcel: 10
Regd post parcel: 7
 Rs 5, 00,001 /- to 25,00,000/-Speed post parcel:15
Regd post parcel:10
  25,00,001/- to 1,00,00,000/-Speed post parcel:20
Regd post parcel:13
  Rs 1,00,00, OO’1 /- to 5,00,00,000/Speed post parcel:25
Regd post parcel:16
Above 5,00,00,000/Speed post parcel:30
Regd post parcel:20

Training, Support, and award

The object of this business is to help India Post to promote its services. As a franchisee, your responsibility is to show dedication, dedication and make the business profitable. To make this happen India Post different types of training. In addition, you will get full support in all aspects. Upon showing performance, the concerned Circle Head will make provisions for ‘annual awards’ to Franchise Outlets doing good work.

Branding, advertisement, and publicity

To make your business more legitimate and official, India Post will provide you signage (signboard). You can collect it from the head post office or sub-head post office. For advertisement and publicity, the concerned post office will make arrangements. Added to this you can also do some promotions so that people can learn about your business.


Compared to other small enterprises, a post office franchise requires a relatively low initial commitment to launch. Because savings are intended to be used for short-term cash needs, financial emergencies, and occasionally debt consolidation, it is always advised against investing all of them in a startup firm. If necessary, a part of the savings can be used during the firm, but not at the startup phase. The following papers must be submitted to get an India Post franchise.

  • ID documentation: PAN and Aadhaar cards
  • Electric bill or ration card as address verification
  • Certified Qualifications
  • Images, email addresses, and mobile numbers
  • Sales contract or a shop agreement
  • Rent arrangement
  • NOC

Application of the Scheme

To become a franchisee, candidates must follow the steps below:

Step 1: Franchise candidates must submit an application in a certain format as the first step.

Step 2: The applicant must obtain a copy of the scheme form from the office and complete it according to the instructions, attaching a copy of the full plan that includes information on the operations of the franchise outlet.

Step 3: The third step is the chosen franchisee signing a Memorandum of Agreement with the Department.

Step 4: The applicant must provide a thorough report or records of the actions conducted at the franchise outlet and a progress report or statement to the department.

Step 5: Within 14 days of the day the application was received, the Divisional Head in question would choose a franchisee for this program based on a report or statement from the ASP or SDL.

Step 6: Lastly, it will ensure that Gram Panchayats where Panchayat Sanchar Sewa Kendras (PSSKs) are operating following the Panchayat Sanchar Sewa Yojana Scheme will not be permitted to open Franchise Outlets.

Note: The India Post Franchise Scheme Form is also available for download from the Department of Posts, Government of India, and has been reprinted here in PDF format for quick reference.

Indian post office franchise online apply

We checked the website and did not find any option for an online application, however, we found a PDF that has all information. If you want to know how to apply for a post office franchise, here is the step:

Here is the screenshot:

Final thoughts

This is a wonderful business for rural areas and small towns. If you are looking for a govt franchise business that can be done on a low budget India Post is the best. The Indian Post Office has the largest post office network and has amenities that are widely accessible everywhere. Make a proper plan, understand the business objective and then take the right steps. Certainly, you will be successful in this business.

Leave a Reply

Your email address will not be published. Required fields are marked *