Title
Rules on Transport Network Company Accreditation
Law
Ltfrb Memorandum Circular No. 2015-015
Decision Date
May 28, 2015
LTFRB Memorandum Circular No. 015-15 establishes the rules and regulations for the accreditation of Transportation Network Companies (TNCs) in the Philippines, ensuring their regulated and accountable operation to protect the interests and safety of passengers and drivers.

Questions (LTFRB Memorandum Circular No. 2015-015)

A TNC is an organization (corporation, partnership, or sole proprietor) that provides pre-arranged transportation services for compensation using an internet-based or digital platform technology to connect passengers with drivers using their personal vehicles.

The rules apply only to the accreditation of TNCs. The Certificate of TNC Accreditation is granted only to TNCs that use internet-based/digital platform technology to facilitate passenger transportation using personal vehicles of drivers.

Any applicant who is an individual, a domestic juridical entity, or a resident foreign juridical entity, as long as the application is signed and sworn by the applicant or authorized representative.

The application must be in writing on a form provided by the Board, and it must be signed and sworn to by the applicant; if the applicant is a juridical entity, it must be signed and sworn by its duly authorized representative.

Full name; residence address; business address; business email address; business telephone number; business name registration issued by the DTI; and proof that the applicant is at least eighteen (18) years of age.

Corporate/partnership name; business address; business email; business telephone number; SEC certification of registration; articles of incorporation/partnership and by-laws; secretary’s certificate/board resolution authorizing the representative to sign; and secretary’s certificate of incumbent officers and list of directors/partners.

Among others: authenticated articles with English translation if needed; SEC license to do business; authenticated board resolution to establish a branch/representative office; list of incumbent officers/directors; authenticated board resolutions authorizing the signatory and designating a resident agent; and a resolution stipulating that if the resident agent is absent or business ceases, summons may be served to SEC.

A complete description of the business model; local government business permit; BIR certificate of registration; sample electronic receipt; processes for accrediting/affiliating TNVS vehicles and drivers; terms of service for passengers and operators; the trade dress; proposed fare rates/service charges; a drivers’ training program proposal (only for TNCs using TNVS units); proof of financial capability; undertaking to comply with certificate terms; and a complaint mechanism.

It is Php 10,000.00, non-refundable, and must be paid before filing the application.

It is valid for two (2) years from issuance and may be renewed. It is non-transferable.

A TNC must exercise due diligence and reasonable care in accrediting drivers. The TNC is liable for failure to exercise such due diligence and reasonable care, except when non-compliance is due to acts or omissions outside the TNC’s control. The liability does not extend to actions of drivers who are independent contractors providing transportation directly to passengers.

It evaluates all applications filed and recommends approval or disapproval to the Board. It 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.

They may file the application only before the Committee, together with all required documents, through the Office of the Executive Director.

It shall be disapproved outright without any need for further evaluation.

All other issuances inconsistent with the circular are modified or superseded accordingly.

Immediately following its publication in at least one newspaper of general circulation.


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