Question & AnswerQ&A (LTFRB Memorandum Circular No. 2015-015)
A Transportation Network Company (TNC) is an organization, whether a corporation, partnership, or sole proprietor, that provides pre-arranged transportation services for compensation using an internet-based technology application or digital platform to connect passengers with drivers using their personal vehicles.
These rules and regulations apply only to the accreditation of Transportation Network Companies (TNCs) that use internet-based digital technology applications or digital platforms to facilitate the transportation of passengers by drivers using their personal vehicles.
An individual applicant must submit: Full Name; Residence Address; Business Address; Business E-mail Address; Business Telephone Number; Business Name Registration issued by the Department of Trade and Industry; and Proof of being at least 18 years old.
Required documents include Corporate/Partnership Name, Business Address, Business E-mail Address, Business Telephone Number, SEC Certificate of Registration, Articles of Incorporation/Partnership and By-Laws, Secretary's Certificate of Board/Partnership Resolution authorizing application signing, and Secretary's Certificate of Incumbent Corporate/Partnership Officers and List of Directors/Partners.
Required documents include Corporate/Partnership Name, Business Address, Business E-mail Address, Business Telephone Number; authenticated Articles of Incorporation/Partnership with English translation if necessary; License to Do Business in the Philippines from the SEC; Board Resolutions authorizing branch establishment, representative signing authority, resident agent designation, and legal service acceptance by the SEC; and a list of officers and directors.
Applicants must also provide a complete business model description, local business permit, BIR registration certificate, sample electronic receipt given to passengers, accreditation processes for vehicles and drivers, terms of service for passengers and operators, trade dress, proposed fare rates, driver training program proposal, proof of financial capability for judgments, undertaking to comply with terms and conditions, and a complaint mechanism against vehicle owners or drivers.
The accreditation fee is Ten Thousand Pesos (Php 10,000.00) and it is non-refundable.
The Certificate of TNC Accreditation is valid for two (2) years from the date of issuance and may be renewed. The certificate is non-transferable.
A TNC must exercise due diligence and reasonable care in accrediting drivers. They are liable for failure to exercise such diligence unless the non-compliance is due to causes outside their control. However, this liability does not extend to the actions of drivers, who are considered independent contractors providing transport services directly to passengers.
The Pre-Accreditation Committee is composed of the Executive Director (Chairman), Chief of Legal Division (Vice-Chairman), NCR Regional Director, Chief of Information and Systems Management Division, and Chief of Technical Division. The Committee evaluates all applications and recommends approval or disapproval to the Board. Applications must be filed with the Committee through the Office of the Executive Director.