Guide to Owning and Operating a Taxi Franchise


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With the continually rising cost of gasoline, as well as the expense involved in maintenance and ownership of an automobile, more and more people are turning to public transportation. In busy areas of the Philippines, such as the Metro Manila area, it is becoming more practical and affordable to spend their money on public transport fares rather than owning and driving a personal vehicle. As development and expansion of communities and infrastructure continue, more vehicles will be needed to serve the public. If you have the capital, you may want to consider investing in a taxi franchise.

Requirements for operating a taxi franchise

You will need at least one car and a professionally licensed driver. You also need a garage to serve as a base of operations for your business.

When starting any business, including a taxi franchise, you will need to register your business with the Department of Trade and Industry (DTI). You may do so online at Requirements for this are:

1. Accomplished Business Name registration form
2. Tax Identification Number
3. List of five business names ranked according to preference
4. PhP 300.00 registration fee

You will also need to apply to the Land Transportation Franchising and Regulatory Board (LTFRB) to operate your franchise. Requirements vary, depending on whether you are applying as an individual operator, individual cooperative, or as a corporation. For individual operators, the requirements for a new application are:

1. Verified petition
2. Tax Identification Number (TIN)
3. Official receipt and car registration of vehicle(s) with year and model
4. Proof of Filipino citizenship (birth certificate, voter’s affidavit)
5. Community Tax Certificate
6. Information Data Sheet
7. Valid certificate of business name issued by DTI
8. Certificate of bank deposit and passbook
9. Location map and picture of garage with dimensions, TCT/ tax declaration or contract of lease with specific garage area
10. Two copies of passport size (2×2) picture of the applicant with specimen signature at the back
11. Zoning clearance for operators with at least 3 vehicles and overnight parking permit for operators with less than 3 units
12. Personal appearance of the applicant or Special Power of Attorney in favor of parent, spouse, son, daughter, or legal counsel

Other considerations in owning a taxi franchise are:

1. Insurance for your vehicle(s) and driver(s)
2. Maintenance and repair of your vehicle(s)
3. Taxi meter(s) that has/have been properly inspected

Tips for success

One of the most important factors is having trustworthy drivers. You should hire honest, efficient drivers who will take good care of your vehicle(s).

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Most of your overhead cost will go into buying and maintaining your taxi(s), as well as gasoline. Before purchasing your taxi(s), weigh the pros and cons. Buying second-hand vehicles will be cheaper at the outset, but these cars have already undergone a lot of wear and tear. If you decide to purchase secondhand cars, examine the vehicles well to see if they are still in good condition and if they will last for many more miles. Also consider the make and model of the vehicle. Some cars are easier and less expensive to maintain than others.

Where to get more information

For concerns with regard to business registration, visit the DTI website at

For information about the process, fees, and other requirements of operating a taxi franchise, visit the LTFRB website at Also listed there are the routes available.

Photo Credits: Ben Fredrickson


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About Prospero

Prospero's personal mission is to help Pinoys earn from home by listing work from home contractor projects and other homebased money making opportunities. Prospero also writes lots of financial motivation and self-help articles. Contact him through the contact page link at the upper right side of this blog.


  1. well, if im going to buy a taxi car, of course, ill buy a brand new car….although, we know for a fact that the franchise for taxi is too expensive, together with some other requirements needed to get the franchise. YOu dont need to worry about it. You can recover from all those expenses once the taxi is operating already. Taxi now has a plugdown rate of P40,not bad on the part of the operator and driver….and P3.50 per kilometer…This is due to increase of gasoline in the international market. Well, even if taxis has this high rate, many people needs them, especially those people who doesnt have cars. There are lot of prospects commuters the driver can get especially on malls and hospitals areas…and besides, lots of commuters tend to give some sort of tip to driver….Well, since this is a vehicle business, the only secret in this kind of business is getting the right person to drive the car to avoid high maintenance expenses of the car.

  2. Edison P Pagal says:

    I want to start taxi business but i dont know how to start how much capital would be needed and what vehicles i could buy, could somebody help me pls?

  3. grace luna says:

    How much is the franchise fee, for example… 2 car units.?

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