Transport business licences

Car Rental Business Registration Requirements — Number of Vehicles, Garage and Office

To rent out motor vehicles for pay, you must register a car rental business with the competent local government under the Passenger Transport Service Act. The core of registration is three physical requirements: the number of vehicles held, the garage and the office. You must first decide whether the business will operate nationwide or as a locally limited business within one city or county (si/gun), because this determines the required number of vehicles and the garage area.

Procedure

  1. 1. Decide the scope of operation and the number of vehicles

    Nationwide operation requires holding 50 or more vehicles. A locally limited business, whose office and business offices are in only one city or county (si/gun), needs the number of vehicles set by the ordinance of that local government within the range of fewer than 50. The vehicle types that can be rented are passenger cars of all classes and small and medium-sized passenger vans seating 15 or fewer. Trucks and large passenger vans or buses cannot be rented in principle.

  2. 2. Secure a garage

    Calculate the area for 1 vehicle as its length × width, or by the parking space unit standard. The garage must be within the administrative district where the principal office or a business office is located (or an adjacent area), and a lease of 2 years or more is usually required. Before the contract, check whether the land category (jimok, such as a parking lot or miscellaneous land) and the building use (such as motor vehicle-related facilities) allow use as a garage, and whether vehicles can enter and exit. The area of an office or a container is excluded from the garage area.

  3. 3. Prepare an office

    An office equipped with office and communication equipment is required. A business office equipped with an unmanned reservation, dispatch and settlement system may be recognized as an exception, so consult the competent department in advance according to your operating method.

  4. 4. Apply for registration

    Apply to the competent authority (the metropolitan city or province, or the city, county or district in areas where the authority is delegated by ordinance) with the registration application form, the business plan, documents showing that vehicles are secured, and right-of-use documents for the garage and the office. Prove that vehicles are secured with a statement of vehicles held or sales contracts, and after registration, register the vehicles with commercial license plates.

Required documents

  • Application for registration of car rental business
  • Business plan (scope of operation, number of vehicles, garage layout)
  • Identification documents of the representative (for a corporation, the corporate register certificate, certificate of seal impression and list of executive officers)
  • Documents showing that vehicles are secured (statement of vehicles held or sales contracts)
  • Garage lease contract, land register (toji daejang) and site plan
  • Office lease contract or right-of-use documents

Fees

Agency service for car rental business registration is generally priced in the industry from several hundred thousand won up to the 1,000,000 won range and varies with whether a corporation is being established and the scope of the garage review. We will advise after a consultation, based on your business plan.

Legal basis and review date

  • Passenger Transport Service Act, Article 28
  • Enforcement Rule of the Passenger Transport Service Act, Article 60
  • Enforcement Rule of the Passenger Transport Service Act, Article 62
  • Enforcement Rule of the Passenger Transport Service Act, Article 63
  • Enforcement Rule of the Passenger Transport Service Act, Article 67
  • Enforcement Rule of the Passenger Transport Service Act, attached Table 6
  • Act on the Establishment, Management, etc. of Spatial Data, Article 67

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • Check the land category and whether vehicles can enter and exit before signing the garage contract. If the site is judged unusable after the contract, you will have to find another one.

Frequently asked questions

How many cars are needed for a rental car business?
Nationwide operation requires 50 or more vehicles. A locally limited business, whose office and business offices are in only one city or county (si/gun), needs the number of vehicles set by local government ordinance within the range of fewer than 50.
Can I lease a garage for rental cars anywhere?
The garage must be in the administrative district where the principal office or a business office is located, or in an adjacent area, and a lease of 2 years or more is usually required. Before the contract, also check whether the land category allows use as a garage and whether vehicles can enter and exit.
Can trucks or large passenger vans also be rented out as rental cars?
The vehicle types that can be rented are passenger cars of all classes and small and medium-sized passenger vans seating 15 or fewer. Trucks and large passenger vans or buses cannot be rented in principle.
Does an unmanned rental car business office also need an office?
In principle, an office equipped with office and communication equipment is required. However, a business office equipped with an unmanned reservation, dispatch and settlement system may be recognized as an exception, so consult the competent department in advance.
I have not bought the vehicles yet. Can I apply for registration?
You can prove that vehicles are secured with sales contracts instead of a statement of vehicles held. After the registration is accepted, complete the vehicle registration with commercial license plates.

Contact us

Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com

This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.