Are you considering starting your own transport network company (TNC) and wondering how to get your business on the road legally?
Well, you’re in the right place! Obtaining a Transport Network Company License is a crucial step in launching your TNC, and the National Transport and Safety Authority (NTSA) has made the application process easier than ever by allowing you to apply online through their portal.
In this guide, we’ll walk you through the process, requirements, charges, and provide some useful tips to make your application seamless.
Getting Started with Your TNC License Application
Why You Need a Transport Network Company License
Before we dive into the nitty-gritty of the application process, let’s talk about why this license is essential. Imagine you’ve invested your time and money into creating a fantastic TNC business.
Your app is up and running, and you’ve got eager drivers ready to hit the road. But, hold on! Without the proper license, your business is operating illegally, and you risk hefty fines, penalties, or even being shut down. Trust me, you don’t want that headache.
Now, let’s break down the application process step by step.
Application Requirements: What You’ll Need
Certificate of Incorporation
The first item on your checklist is your Certificate of Incorporation. This document officially registers your company, and it’s a fundamental requirement for obtaining your TNC license.
It proves that your business is a legal entity. If you haven’t incorporated your business yet, this is the perfect time to get that done.
Data Protection Commissioner’s Certificate
In our increasingly digital world, data protection is crucial. The certificate of registration by the Data Protection Commissioner demonstrates that you are committed to safeguarding your customers’ data. It’s a way of assuring your passengers that their information is safe with your TNC.
Valid Business Permit or Trade License
Next up, you’ll need a valid business permit or trade license. This local government authorization allows you to operate your business legally within a specific jurisdiction. Make sure you have this squared away before moving forward.
KRA Pin Registration Certificate
The Kenya Revenue Authority (KRA) Pin registration certificate is essential for tax purposes. It’s your company’s unique identifier for tax-related matters. If you haven’t already registered your business with KRA, now is the time to do so.
| Tip: | You can apply for your KRA Pin online through the iTax portal, and it usually takes a few days to process. |
|---|
Valid KRA Tax Compliance Certificate
Alongside your KRA Pin, you’ll also need a valid KRA Tax Compliance Certificate. This certificate proves that your business is in good standing with the tax authorities. It’s essential to ensure that your business is meeting its tax obligations.
List of Directors (CR12)
The List of Directors, also known as a CR12, is a document from the Registrar of Companies that lists the current directors of your company. This is a crucial piece of information that NTSA requires to ensure transparency in your TNC’s ownership structure.
Copies of ID Cards or Alien Certificates (for foreigners)
If you or any of your directors are foreign nationals, you’ll need to provide copies of their ID cards or Alien certificates. This helps NTSA verify the identity and eligibility of your leadership team.
Contract Agreement with Vehicle Owners and Drivers
Your TNC likely involves partnering with vehicle owners and drivers. To prove these partnerships are legitimate, you must provide contract agreements. These agreements outline the terms and conditions between your TNC and the individuals who provide the vehicles and drive for your platform.
| Fact: | Did you know that major TNCs like Uber and Lyft also require their drivers to meet certain vehicle and background check standards? It’s all about ensuring safety and quality service. |
|---|
Code of Conduct for Employees, Drivers, and Owners
Maintaining a high standard of service and safety is crucial in the transportation industry. Your Code of Conduct outlines the expectations and behavior standards for everyone involved in your TNC, from employees to drivers and vehicle owners.
Lease Agreement
If you’re leasing vehicles for your TNC, you’ll need to provide lease agreements as part of your application. These agreements verify your access to the vehicles you’ll use in your business operations.
Understanding the Charges
Now that you have all your documents in order, let’s talk about the financial aspect of obtaining your TNC license.
License Fee: Kshs. 100,000
The initial license fee for a Transport Network Company License is Kshs. 100,000. This fee is a one-time payment when you first obtain your license. Think of it as your ticket to legally operate your TNC in Kenya.
| Tip: | Make sure to keep a record of your payment, as you’ll need to provide proof of payment during the application process. |
|---|
Renewal Fee: Ksh. 100,000
Your responsibilities don’t end with obtaining your license. You’ll also need to pay a renewal fee of Ksh. 100,000. This fee is due periodically to keep your TNC license valid.
Payment Options and Methods
Paying the license and renewal fees is a crucial part of the process. The NTSA portal offers various payment options, including bank transfers, mobile money, and credit/debit card payments.
Choose the method that works best for you.
| Fact: | Did you know that some TNCs have faced legal challenges related to their fees and pricing structures? It’s essential to be transparent with your drivers and passengers about how your pricing works. |
|---|
Step-by-Step Application Process
With all your documents ready and an understanding of the fees involved, let’s dive into the step-by-step application process.
1. Creating an NTSA Portal Account
To start your application, you’ll need to create an account on the NTSA portal if you don’t already have one. This account will serve as your gateway to the entire application process.
2. Logging In and Accessing the Transport Network Company License Application Section
Once you’ve created your account and logged in, you can access the Transport Network Company License Application section. This is where the magic happens.
3. Uploading the Required Documents
One by one, upload all the required documents listed earlier. Make sure they are clear and legible. Double-check everything to avoid any delays in processing your application.
4. Filling Out the Application Form
The NTSA portal will guide you through filling out the necessary forms. This typically involves providing basic information about your TNC and its leadership team.
5. Paying the License Fee
Remember that Kshs. 100,000 license fee we discussed earlier? Now is the time to pay it. The NTSA portal will provide you with payment options, and once your payment is confirmed, you’re one step closer to your TNC license.
6. Submission of the Application
After you’ve uploaded all your documents, filled out the forms, and paid the license fee, it’s time to submit your application. The NTSA will review your submission, and if everything checks out, you’ll receive your Transport Network Company License.
Tips for a Successful Application
Getting your Transport Network Company License is a significant milestone, and you want to ensure everything goes smoothly. Here are some tips to help you navigate the application process effectively.
Double-Check Required Documents
Before hitting that submit button, take a moment to double-check all your documents. Missing or incorrect information can lead to delays or even rejection of your application.
Ensure Compliance with Code of Conduct
Your Code of Conduct is not just a formality; it’s a commitment to providing safe and reliable transportation services. Make sure all your team members understand and adhere to it.
Timely Renewal of License
Don’t forget about the renewal fee! Keep track of when your license needs to be renewed and make the payment on time to avoid disruptions to your TNC operations.
Addressing Common Pitfalls
It’s not uncommon to encounter challenges during the application process. If you run into issues or have questions, don’t hesitate to reach out to the NTSA for assistance. They’re there to help you succeed.
Frequently Asked Questions (FAQs)
Q: What is the processing time for a Transport Network Company License?
A: The processing time can vary, but typically, you can expect to receive your license within a few weeks if all your documents are in order.
Q: Can foreign nationals apply for this license?
A: Yes, foreign nationals can apply for a Transport Network Company License. Just make sure to provide the necessary documentation, including copies of ID cards or Alien certificates.
Q: What happens if I don’t renew my license on time?
A: If you fail to renew your license on time, your TNC may not be able to operate legally, and you could face penalties. It’s crucial to stay on top of your renewal dates.
Q: How do I update my information with NTSA?
A: If there are any changes to your TNC’s information, such as a change in ownership or contact details, you should notify the NTSA promptly. They will guide you through the update process.
Conclusion: Hitting the Road Legally
Congratulations! You’ve successfully navigated the process of applying for a Transport Network Company License on the NTSA portal. By obtaining this license, you’ve not only ensured the legality of your TNC but also taken a significant step toward providing safe and reliable transportation services to your community.
Remember, operating a TNC comes with responsibilities, from maintaining a high standard of service to complying with local regulations. But with the right mindset and commitment to excellence, your TNC can thrive, serving passengers and drivers alike while contributing to a safer and more efficient transportation landscape in Kenya.
So, go ahead and embark on your journey as a licensed Transport Network Company. Your passengers are waiting, and now you’re ready to hit the road, legally and confidently.
