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. 


References:

  • 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