• Self ride renting cars

I am going to start self ride renting service. I want to know the procedure of rent a cab scheme. Zoomcar uses licence of Ramesh tours and travels for a rent a cab. I want to know what is the procedure and how zoom car is using other's licence. If its possible then can I use some big vendor licence to operate mine? Please clarify me
Asked 8 years ago in Civil Law

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5 Answers

1)With the increase in no. of multinationals Companies & tourists requirements Rent-A-Cab scheme was launched in India in 1989. Under this scheme the passenger drives the vehicle himself & fare is charged on no. of days the cab is used. The applicant should have a 24 hrs. accessible telephone, adequate parking space, experience of passenger transport business. The applicant in addition should have a fleet of 50 cabs of whichever 50% should be air conditioned. The permit of these schemes are also valid throughout India provided the passenger taxes were paid to the corresponding states

2)an application should be made to licensing authority having jurisdiction in the area in which he resides or has his principal place of business (hereinafter referred to as main office) and shall be accompanied by a fee of rupees five thousand.

3) A licence granted or renewed shallbe valid for a period of five years from the date of grant or renewal:

Ajay Sethi
Advocate, Mumbai
94719 Answers
7532 Consultations

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zoom must have entered into collaboration with RTT

2) RTT has licence to offer self drive option under rent a car scheme

3) check the website of RTT for details

Ajay Sethi
Advocate, Mumbai
94719 Answers
7532 Consultations

5.0 on 5.0

1) you should take licence under rent a car scheme

2) you can enter Into collaboration with foreign companies if you do desire as per guidelines laid down under rent a car scheme of 1989

Ajay Sethi
Advocate, Mumbai
94719 Answers
7532 Consultations

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Self -drive car rental business has a very large potential in India and many start-ups all across India are entering and considering entering this space. However, one of the biggest challenges that the self-drive industry faces in India is because a self-drive renter has to stop at every inter-state tax terminal along with all the truck drivers and drivers of other commercial vehicles to pay Inter-state taxes. International tourists are also harassed in different state by local policemen about payment of taxes scrutiny of related documents.

The model has huge growth potential. However, some International companies and Indian companies supported by International investors are trying to bypass the regulations in terms of licensing, permits and RBI guidelines in terms of credit card payments to disturb the market and harm the operators and their drivers who have followed government policy over the years disturbing the earnings of these operators or drivers.

It was in the late 80s when the government of India passed the rent-a-car scheme, permitting car rental operators to offer self-drive cars, besides a chauffeur drive option.

Though it's been more than 15 years since, the branded car rental companies have not hit the accelerator when it comes to penetrating the Indian market.

The procedures for starting self ride renting service is

Firstly, —No person shall engage himself in the business of renting a motor cab under this scheme without licence.

Under Rent a car scheme 1989, as per the provisions of section 4, —(1) An application for the

grant or renewal of a licence under paragraph 6 shall be made in Form 1 to the

licensing authority having jurisdiction in the area in which he resides or has his

principal place of business (hereinafter referred to as main office) and shall be

accompanied by a fee of rupees five thousand.

(2) Where the applicant has, besides the main office, branch office within the

jurisdiction of the licensing authority referred to in clause (1), the application shall

indicate such place with the number of motor cabs proposed to be stationed at each

such place.

(3) Where the applicant has branch offices outside the jurisdiction of the

licensing authority, the application shall be made to the licensing authority in

whose jurisdiction the branch office is situated, in Form 2 accompanied by a fee of

rupees one thousand in respect of each such branch offices.

No application for a licence shall be refused by the licensing

authority unless the applicant is given an opportunity of being heard and reasons

for such refusal are given in writing by the licensing authority.

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

If there is an agreement between you and the vendor who possesses a valid license for renting the cab then you can operate the cab under his license. You do not require a separate license to operate the cab.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

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