The basic difference between a TAXI and Rent A Car business is the regulations. TAXI IS A REGULATED BUSINESS, Heavily Regulated by Govt, on the other hand RENT A CAR or A LIMOUSINE Business is De-Regulated by the Govt.
1- Taxi Fare is governed by the Law and you can not setup your own fare, Rent a Car or Limousines Business is allowed to set their own fare.
2- Taxi Registration Permit also regulates the decals or signage on the Taxi to look like a Taxi, that means your car will need to be painted yellow and must look like a Taxi
According to the law and Provincial Transport Authority, to operate a Taxi/Cab or a Rent a Car business in Pakistan you need following licenses and permits.
Under THE PROVINCIAL MOTOR VEHICLES ORDINANCE, 1965 and The Motor Vehicles Act, 1939 Section 94, You Must have the following 4 documents to operate as a Taxi or a Rent a Car Business.
1- Car must be registered as a Commercial Car / Business Registration. You will not get the route permit for Taxi or Rent a Car unless your car is commercially registered in Excise Office.
2- Vehicle Fitness Certificate
(In Lahore you can go to the following http://punjab.vics.pk/stations/)
3- Route Permit issued to your car for either being a Taxi Cab Service or Rent a Car Service.
(We suggest to get the Rent A Car Service Permit)
4- Compulsory Third Party Public Liability Insurance
Please contact your Provincial Transport Authority and apply for the Permit as a “Public Service Vehicle” for the region to operate as “Taxi” or Rent a Car Operator from your PTA. You can get the Rent A Car Permit to run a Limousine Service and that way your car wouldn’t need a Taxi Signage but you will still have car book showing the car registered as a Rent A Car, which is still better than a Taxi Cab.
- THE PROVINCIAL MOTOR VEHICLES ORDINANCE, 1965
- The Motor Vehicles Act, 1939 Section 94
- Detailed Conversation with Superintendent RTA Lahore
- Detailed Conversation PA to Additional Secretory Transport