Reference situation:

A company intends to provide passenger transport service in the internal-provincial route from Hanoi to Nghe An with a distance of 350 kilometer. The company will purchase 15 buses on which there are 49 seats. The company would like to consult lawyers about the necessary legal procedures to conduct this business.

Legal grounds:

1. Decree No. 86/2014/NĐ-CP on legal conditions for car transport business

2. Circular No. 63/2014/TT-BGTVT on organization and management of passenger and freight transport

Our legal advice:

Before the company provides this service, the company must register the business line of transport in its Enterprise Registration Certificate.

Under clause 1 article 3 of Decree No. 86/2014/ND-CP, the service of the company is a type of car transport. This is a conditional business line. Therefore, the company must satisfy the following legal conditions to obtain a License for car transport business:

• The technical safety and environment protection must be ensured in a car
• A car must be fitted with a camera to monitor its travel
• A driver must not be prohibited in driving
• A transport operator must have an immediate degree or higher of transport major, or have a college degree or higher of other economical or technical major and have the consecutive 3-year period working in a transport establishment
• The car must have seats taken as a priority to the disabled people, the elderly and pregnant women,
• The age of a car must not exceed 15 years; the company must not use a car of which function is changed
• The minimum number of cars:

– In case the company is located in central cities (Hanoi, Ho Chi Minh city, Can Tho, Hai Phong, Da Nang): 20 cars

– In case the company is located in other provinces: 10 cars (with the exception of 5 cars if the company is located in a poor district)

• Other legal conditions set out in article 15 of Decree No. 86/2014/ND-CP and Section 1 and Section 2 of Chapter II of Circular No. 63/2014/TT-BGTVT

Please click here to explore the detailed procedures for the issuance of a certificate of car transport business.