How do i obtain a license for car rental and motorcycle rental business and how do i register it ?


After 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. Section 75 of Motor Vehicle Act 1988 for scheme for renting motor cabs- The Central Government may, by notification in the Official Gazette, make a scheme for the purpose of regulating the business of renting of [motor cabs or motor cycles to persons desiring to drive either by themselves or through drivers, motor cabs or motor cycles] for their own use and for matters connected therewith.

For bike rental buisness, you can make an application at the Regional Transport Authority. Section 40 of the act mentions Registration, where to be made.—Subject to the provisions of section 42, section 43 and section 60, every owner of a motor vehicle shall cause the vehicle to be registered by [any registering authority in the State] in whose jurisdiction he has the residence or place of business where the vehicle is normally kept. Section 51 of the act mentions Special provisions regarding motor vehicle subject to hire-purchase agreement, etc.- Where an application for registration of a motor vehicle which is held under a hire-purchase, lease or hypothecation agreement (hereafter in this section referred to as the said agreement) is made, the registering authority shall make an entry in the certificate of registration regarding the existence of the said agreement.Vehicle rental or leasing company, you’ll need to start by filing certain business licenses, permits & tax forms. Start with your vehicle rental/leasing license.

When submitting your car rental license application, you’ll need certain documents, Start by filling out your vehicle rental license application and getting it notarized. You may also need a vehicle leasing/renting license compliance certification, as well as a business license listing all owners, managers, and employees. You will also need a sales tax registration number from your state’s Department of Revenue Services. Your state’s business license board will want to see proof of financial responsibility, such as an insurance certificate showing that you have specific or blanket coverage for your company and vehicles that you will rent. See if your state requires you to be incorporated or an LLC. If so, you will need to also provide your business structure documentation. Once you submit all the required information and pay the car rental license application fee, the business license board will review your paperwork. It may take several weeks to get approved, so wait until you get your vehicle rental/leasing license to start operating.

Reference: Section 75, Section 51,Section 40 of Motor Vehicle Act 1988



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