How to obtain a Passenger Transport Authorization: Professional Guide

Passengertransport authorization is an essential legal prerequisite for operating a public passenger transport business in France. This administrative authorization strictly regulates access to the profession, and imposes specific regulatory, tax and accounting obligations on companies in the transport and logistics sector.

What is a passenger transport authorization?

The authorization to transport passengers is an administrative document issued by the Direction régionale de l’environnement, de l’aménagement et du logement (DREAL). It entitles the holder to legally operate a public passenger transport service by road, using vehicles with more than 9 seats, including the driver.

This authorization differs from a simple entry in the transport register. It constitutes an operating license, attesting to the professional and financial capacity and good repute of the applicant company.

The regulatory framework is based on the French Transport Code and European regulations, in particular EC regulation no. 1071/2009 establishing common rules concerning the conditions to be complied with to exercise the profession of transport operator.

The different types of transport permits

The French system distinguishes several categories of authorization, depending on the type of activity and the capacity of the vehicles used:

• Authorization for public road passenger transport: for regular, occasional or on-demand services using vehicles with more than 9 seats, including the driver. This category is subdivided into regular transport (fixed routes with defined timetables), occasional transport (one-off trips) and school transport, each meeting specific regulatory requirements.
• Authorization for transport with chauffeur-driven vehicles (VTC): for vehicles with 1 to 9 seats, subject to different operating conditions, in particular with regard to prior reservation and pricing.
• Cab authorization: issued by local authorities for the traditional cab business, enabling customers to be picked up immediately on the public highway.

There are currently some 15,000 public transport permits issued in France, divided mainly between occasional transport (60%), regular transport (25%) and school transport (15%). Temporary or seasonal permits may also be granted to meet specific needs, particularly during tourist periods.

Each type of authorization imposes specific conditions for obtaining and operating it, which vary according to financial capacity requirements (from 1,500 euros for a VTC to 9,000 euros for public transport), professional qualifications and public service obligations. Companies may hold several authorizations, depending on the diversity of their activities, with the possibility of moving from one category to another under certain regulatory conditions.

Requirements and administrative procedures

To obtain a passenger transport authorization, four cumulative conditions must be met. This complex administrative procedure requires an average processing time of 3 to 6 months, depending on the DREAL, and calls for meticulous preparation of application files.

Professional competence is acquired by obtaining a recognized diploma (BTS Transport, DUT Gestion logistique et transport), 10 years’ professional experience in the sector, or passing an examination organized by the DREAL (cost around 200 euros). Transport managers must provide proof of this qualification in the form of original diplomas, experience certificates or certificates of successful completion of the examination.

Financial standing requires capital and reserves of at least 9,000 euros for the first vehicle, and 5,000 euros for each additional vehicle. This requirement guarantees the economic soundness of the company, and must be demonstrated by the production of annual accounts, bank statements and certified accounting declarations.

Professional good repute verifies the absence of any criminal convictions incompatible with the exercise of the profession. An extract from the criminal record of the director and transport manager is required, together with a sworn statement.

Effective and stable establishment in the Member State of establishment ensures a real and continuous link with the country’s economic activity. This condition requires the provision of a commercial lease, domiciliation contract or title to the business premises.

Once issued, the authorization to transport passengers is valid for a renewable period of 10 years. The application file must be submitted to the DREAL responsible for the area, together with all the required supporting documents and the regulatory application fee.

Tax and accounting obligations

Companies licensed to transport passengers are subject to specific tax obligations. VAT applies according to the VAT territoriality rules specific to the transport sector.

Domestic passenger transport is subject to the standard VAT rate of 20%. International services are exempt under certain conditions. Specialized transport accounting must reflect these tax specificities.

Companies are required to keep accounting records that comply with current standards and can be audited using computerized accounting systems. The traceability of transactions and the retention of supporting documents are permanent obligations.

Administrative supervision and penalties

Holders of transport permits are subject to continuous monitoring by government departments. Checks are carried out to ensure compliance with the initial allocation conditions and operating obligations.

Failure to comply with these obligations can result in graduated sanctions: formal notice, temporary suspension, permanent withdrawal of authorization. Serious offences, such as operating without authorization, are punishable by criminal penalties.

Loss of good repute, insufficient financial standing or lack of professional competence are grounds for withdrawal of authorization. The adversarial procedure guarantees the rights of defense before any decision to impose a sanction is taken.

The support of a specialized consultant is invaluable in navigating this complex regulatory framework and optimizing the tax management of your passenger transport business.

Application procedure and required documents

Preparing the application for authorization is a crucial step, and one that requires meticulous preparation. It must be submitted to the local DREAL (Direction Régionale de l’Environnement, de l’Aménagement et du Logement), together with the appropriate Cerfa forms.

Supporting documents to be provided include:

• Company bylaws (Kbis extract less than three months old)
• A bank certificate proving financial capacity
• Diplomas or examination certificates attesting to professional competence
• Proof of stable and effective establishment

Processing times vary considerably from region to region, generally ranging from 3 to 6 months for a complete appraisal. This can be problematic for companies with immediate business opportunities.

In situations of justified urgency, regulations allow for the possibility of applying for a provisional authorization to start operations while awaiting final authorization. This temporary solution is subject to administrative discretion.

It is strongly recommended to anticipate the ten-year renewal of the authorization by initiating the process at least six months before the expiry date, to avoid any interruption of activity.