Business registration conditions for individuals renting cars

Article overview

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.

Business registration conditions for individuals renting cars
Business registration conditions for individuals renting cars

Business registration form for individuals renting cars

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:

  • Business households;
  • Private enterprise;
  • One-member limited liability company;
  • LLC with two or more members;
  • Partnership company;
  • Joint stock company.

Whatever type of business an individual chooses, they must register their business in the form of that type of business in person or online.

What are the business registration conditions for individuals renting cars?

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):

  • Valid driver’s license: The vehicle rental person must ensure that the renter has a valid driver’s license, appropriate to the type of vehicle rented.
  • Not providing a driver: The lessor is not allowed to arrange a driver for the person renting the vehicle.
  • Rental contract: Must sign a vehicle rental contract for self-driving with the renter, accompanied by a copy of the renter’s driver’s license.

For vehicle rental services for transport business or internal transport:

  • The rental unit must be established according to the provisions of the law on enterprises or cooperatives.
  • For service providers from abroad, joint ventures must be established with Vietnamese partners according to the capital contribution ratio according to the provisions of international treaties to which Vietnam is a member.
What business registration requirements does a car rental individual need to meet?
What business registration requirements does a car rental individual need to meet?

Do individuals renting cars need to apply for a transport business license?

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.

Is a car rental individual required to apply for a transportation business license?
Is a car rental individual required to apply for a transportation business license?

Choose a car rental service business

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:

  • Road passenger transport within the city and suburbs (except bus transport) with industry code 4931;
  • Road passenger transport other than industry code 4932;
  • Transporting goods by road with industry code 4933;
  • Loading and unloading of goods with industry code 5224;
  • Other support service activities related to transportation such as agency services, freight forwarding or logistics all have industry code 5229;
  • Motor vehicle rental with industry code 7710.

Business registration consulting services for individuals renting cars in Long Phan

At Long Phan, we provide professional business registration consulting services for individuals renting cars as follows:

  • Support in determining the appropriate business type (individual business household or enterprise).
  • Consulting on procedures when registering a car rental business.
  • Prepare all necessary documents: business registration application, copies of personal documents, etc.
  • Instructions on how to accurately declare business information.
  • Submit documents at the local business registration office.
  • Monitor processing progress and receive a business registration certificate.
  • Consulting on tax obligations for individuals doing car rental business.
  • Instructions for registering a tax code and declaring taxes according to regulations.
  • Consulting on car rental contracts and risk management.
  • Instructions on procedures for expanding scale or changing business information.
  • Consulting on necessary licenses (if any) for car rental activities.
  • Support in resolving problems that arise during the business registration process.

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!