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Individuals renting cars is necessary to register a business? This is an important question that many individuals need to clarify when intending to participate in car rental activities. Answering this question not only makes your operations legal, but also creates an opportunity to protect your rights, avoid tax and liability issues, and build a foundation for long-term development for your business. your car rental service.
According to the provisions of the Law on Enterprise 2020, when individuals rent a car, they can freely choose to register their business as a household business or other types of businesses. Accordingly, individuals doing car rental business can choose the following registration forms:
Whatever type of business an individual chooses, they must register their business in the form of that type of business in person or online.
According to the provisions of Article 78 of the Law on Road 2024, effective from January 1, 2025, for individuals providing road motor vehicle rental services, the following business registration conditions are required:
For self-driving vehicle rental services (cars with less than 08 seats, motorbikes, two-wheeled motorbikes, three-wheeled motorbikes):
For vehicle rental services for transport business or internal transport:
Based on the provisions in Clause 2, Article 3 of Decree 10/2020/ND-CP, transport business by car is defined as follows: “Automobile transportation business is the activity of performing at least one of the main stages of transportation, including: operating vehicles, driving or deciding on transportation fares to transport passengers or goods by road for profit purposes.”
In addition, in Clause 1, Article 17 of Decree 10/2020/ND-CP, it is stipulated that passenger and freight transport business units must have a car transport business license. Therefore, business establishments with registered professions such as road passenger transport (4931), or passenger road transport (4932) will have to apply for a transport business license.
However, for the motor vehicle rental industry (Industry Code 7710), this is not considered a motor vehicle transportation business because it does not perform the main stages of transportation activities, such as operating vehicles, driving, or deciding on transportation fares.
According to the regulations in the List of conditional business lines in the Law on Investment 2020, the self-drive car rental industry is not a conditional business, and therefore, does not require a transportation business license.
In short, individuals who only do car rental services (Industry code 7710) do not need to apply for a transport business license because this is not a transport activity, but just vehicle rental.
Car rental service business is a general term for a group of industries, therefore when doing business in this group of industries, business owners need to choose and carry out registration procedures for specific and detailed industries. Pursuant to Decision 27/2018/QD-TTg on Vietnam’s economic industry system, car rental industries will include:
At Long Phan, we provide professional business registration consulting services for individuals renting cars as follows:
Registering a car rental business is an important first step for an individual or business to legalize business activities and ensure compliance with regulations. At Long Phan, we provide professional business registration consulting services, helping customers understand the processes, procedures and necessary requirements to properly implement car rental. Contact the hotline now: 0906735386 for quick advice and support!
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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