Policy, purpose, and legal basis
- The Circular is promulgated pursuant to Department Order No. 2015-11 of the responsible department on the creation of a new type of public transport service known as “Transportation Network Vehicle Service.”
- The Circular establishes rules and regulations specifically for the accreditation of Transportation Network Companies.
- The accreditation framework is designed for TNCs that facilitate passenger transportation using internet-based or digital platform technology.
Key definitions and covered business
- A Transportation Network Company (TNC) is an organization (a corporation, partnership, or sole proprietor) that provides pre-arranged transportation services for compensation.
- A TNC must use an internet-based technology application or digital platform technology to connect passengers with drivers using the drivers’ personal vehicles.
- Accreditation under the Circular applies only to TNC accreditation.
- The Certificate of TNC Accreditation is granted to TNCs that provide internet-based digital technology application or digital platform technology to facilitate transportation of passengers by drivers using their personal vehicles.
Accreditation application requirements
An Application for the Issuance of a Certificate of Accreditation must be in writing on a form provided by the Board.
The application must be signed and sworn to by the applicant; if the applicant is a juridical entity, it must be signed and sworn to by its duly authorized representative.
The application must submit at a minimum the listed items depending on the applicant’s status.
For an individual applicant, the application must include:
- Full Name
- Residence Address
- Business Address
- Business E-mail Address
- Business Telephone Number
- Business Name Registration duly issued by the Department of Trade and Industry
- Proof the applicant is at least Eighteen (18) Years of Age
For a domestic juridical entity, the application must include:
- Corporate/Partnership Name
- Business Address
- Business E-mail Address
- Business Telephone Number
- Certification of Registration of Incorporation/Partnership issued by the Securities and Exchange Commission (SEC)
- Articles of Incorporation/Partnership and By-Laws
- Secretary’s Certificate of the Board/Partnership Resolution authorizing the representative to sign the accreditation application for and in behalf of the corporation/partnership
- Secretary’s Certificate of Incumbent Corporate/Partnership Officers and List of Directors/Partners
For a resident foreign juridical entity, the application must include:
- Corporate/Partnership Name
- Business Address
- Business E-mail Address
- Business Telephone Number
- Authenticated Copy of the Articles of Incorporation/Partnership with an English Translation if the language is other than English
- License To Do Business in the Philippines duly issued by the SEC
- Authenticated Copy of the Board Resolution authorizing the establishment of a Branch/Representative Office in the Philippines
- List of Incumbent Officers and Directors
- Authenticated Copy of the Board/Partnership Resolution authorizing the representative to sign the accreditation application
- Authenticated Copy of the Board/Partnership Resolution designating the Resident Agent to whom summonses and other legal processes may be served on behalf of the corporation/partnership
- Authenticated Copy of the Board/Partnership Resolution stipulating that in the absence of such Agent or upon cessation of its business in the Philippines, any summons or legal process may be served to the SEC as if made upon the corporation at its home office
Additional documents and business model
- The following must be attached upon filing of the application:
- Complete Description of Business Model
- Business Permit duly issued by the local government where the applicant’s principal place of business is located
- Certificate of Registration duly issued by the Bureau of Internal Revenue
- Sample Copy of the Electronic Receipt transmitted to the passenger at the completion of a ride
- Process of Accrediting/Affiliating Transportation Network Vehicle Service (TNVS) vehicles
- Process of Accrediting/Affiliating TNVS drivers
- Terms of Service for Passengers
- Terms of Service for TNVS Operators
- The Trade Dress
- The Proposed Fare Rates and/or Service Charges
- A proposal for the establishment of a Drivers’ Training Program only for TNCs utilizing TNVS units
- Proof of the applicant’s financial capability to pay all judgments and awards that may be rendered for any cause arising out of the operation of a TNC business
- An undertaking of compliance with the Terms and Conditions for a Certificate of TNC Accreditation (as attached)
- A Complaint Mechanism against vehicle owners or drivers
Accreditation fee, certificate terms, and non-transferability
- A non-refundable Accreditation Fee of PHP 10,000.00 is required.
- The accreditation fee must be paid before filing of the application for issuance of the Certificate of TNC Accreditation.
- The Certificate of TNC Accreditation is issued to any applicant who complies with all requirements prescribed above.
- The Certificate’s validity is two (2) years from issuance and the Certificate may be renewed.
- The Certificate is non-transferable.
Liability and due diligence standard
- The TNC must exercise due diligence and reasonable care in accrediting drivers.
- The TNC is liable for failure to exercise due diligence and reasonable care.
- Liability does not extend to failures caused by acts or omissions outside the TNC’s control.
- Liability does not extend to actions of drivers who are independent contractors providing transportation services directly to passengers.
Pre-accreditation committee and initial filing procedure
- A Pre-Accreditation Committee is created with the following members:
- Executive Director – Chairman
- Chief of Legal Division – Vice-Chairman
- NCR Regional Director – Member
- Chief of Information and Systems Management Division – Member
- Chief of Technical Division – Member
- The Committee evaluates all Applications and recommends to the Board for approval or disapproval.
- Upon effectivity of the Circular, interested applicants may file an Application only before the Committee.
- Applications filed upon effectivity must be submitted through the Office of the Executive Director.
- An applicant that fails to submit or comply with any required requirement without any justifiable reason is disapproved outright without need of further evaluation.
Repeal, inconsistency, and effectivity
- All other issuances inconsistent with the Circular are deemed modified or superseded accordingly (repealing clause).
- The Circular takes effect immediately following its publication in at least one newspaper of general circulation (effectivity).
- Three (3) copies must be filed with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 09 October 1992.