How to Change Private Car to Taxi: If you have a private car and it remains parked outside the house or in the garage most of the time, then you can make a good and fixed source of income from it every month. Nowadays, the demand for commercial vehicles is continuously increasing in cab aggregator companies like Ola, Uber, corporate lease, local taxi service and tour-travels business. But the most important thing is to understand that using your private car directly for commercial use is illegal under the Motor Vehicle Act.
If you do this, there is a risk of heavy fine and even confiscation of the vehicle. If you want to launch your car in business, it is mandatory to change its registration status from ‘Private’ to ‘Commercial’ (yellow number plate). This process is a bit formal, but with the right information it becomes very easy. Let us know how you can convert your private car into a commercial one.
Why is it necessary to change from private to commercial?
According to the rules of the Motor Vehicles Act, a vehicle with a white number plate can be used only for personal and family use. As soon as you accommodate a passenger for money or use the vehicle to carry goods, it comes under the category of commercial activity.
As soon as a commercial vehicle is manufactured, a yellow number plate is installed on your car. Apart from this, the tax slab, fitness test, permits and insurance rules are completely different for commercial vehicles. After changing the status legally, you can run your vehicle as a taxi or by connecting with any travel agency without any fear of police or RTO.
Which documents are required?
Before applying, keep the originals and self-attested photocopies of these documents ready-
- RC (Registration Certificate): Original registration book or card of the vehicle.
- Form 22 and Form 29/30 (if applicable): RTO forms related to vehicle conversion and ownership.
- Commercial Insurance Policy: Private third-party or comprehensive insurance is not valid for commercial use. For this, new ‘Commercial Vehicle Insurance’ will have to be taken.
- Valid PUC Certificate: Pollution Under Control Certificate.
- NOC from the financier: If there is a loan on the vehicle, then a no objection certificate from the bank or finance company is required.
- Identity and address proof of the owner: Aadhar Card, PAN Card, Voter ID or Passport.
- Driving License: Commercial badge or valid license to drive a commercial vehicle.
Step-by-Step Process
Get NOC from Bank: If there is an outstanding loan on your car, then first go to your bank. Tell them that you want to convert the vehicle into a commercial one. After completing the formalities, the bank will issue NOC in the name of RTO. If there is no loan on the vehicle, then skip this step.
Take out commercial insurance: Contact your existing insurance company or any other authorized insurance company. Get your private policy endorsed in a commercial policy or take a new commercial policy.
Application and Road Tax Adjustment in RTO: Visit the official website of the Transport Department (Parivahan Sewa) and fill the required form ‘Alteration of Vehicle’ or go to the RTO counter. Lifetime road tax (15 years) is levied on private vehicles, while road tax is levied quarterly or annually on commercial vehicles. RTO will adjust your remaining lifetime tax as per the process or refund rules.
Physical inspection of the car: Take the vehicle to the nearest RTO. Motor Vehicle Inspector (MVI) will check the vehicle. Under commercial rules, it is mandatory to install speed governor (speed limiter), rear parking sensor, high-security number plate (HSRP) and vehicle location tracking device (VLTD/GPS) and panic button in many states.
Fitness Certificate and Permit: After passing the test, a ‘fitness certificate’ of the vehicle is prepared. After this, you have to apply for Local, State or All India Tourist Permit (AITP) according to the area in which you have to drive.
New RC and yellow number plate: After getting all the approvals, a new RC is issued from the RTO, in which the category of the vehicle is recorded as ‘Commercial/Taxi’. After this, get HSRP with yellow background installed from the authorized dealer.
