White Plate vs Yellow Plate: Can a Private Car Be Attached With a Company?

Short answer

When you give a car to a company, MNC transport vendor or government office for money, it is being used for hire or reward. Under the Motor Vehicles Act, 1988, that makes it a transport vehicle. It needs a commercial registration (yellow plate) and a permit. A private white plate car cannot legally be attached. That is why genuine clients, from GeM buyers to MNC transport vendors and most companies, ask for a commercial RC.

What the law says

• Section 2(35) of the Motor Vehicles Act defines a public service vehicle as any motor vehicle used or adapted to carry passengers for hire or reward. That includes a motor cab and a contract carriage.
• Section 2(7) defines a contract carriage as a vehicle hired as a whole under a contract, for a fixed or agreed rate, on a time or distance basis. A monthly office car fits this exactly.
• Section 66: no owner may use a transport vehicle in a public place, or let anyone else use it, without a permit.
• Section 192A sets the punishment for using a vehicle without a permit. A first offence can bring up to six months' imprisonment and a fine, and repeat offences more.

The vehicle can also be detained. Transport departments in states like Karnataka and Kerala have run drives against private cars used for hire and for car sharing.

How to convert a private car to commercial (yellow plate)

Your state transport department handles conversion through VAHAN. Fees and taxes differ from state to state. The usual steps are:

1. Apply for "Conversion of Vehicle" on VAHAN (vahan.parivahan.gov.in) or at your RTO.
2. Pay the difference in motor vehicle tax plus the conversion fees. Taxi tax rules are different in each state. Some charge lifetime tax, others quarterly or yearly.
3. Inspection and fitness test at the RTO or an automated testing station.
4. RC endorsement as a transport vehicle, and new yellow high-security registration plates.
5. Switch insurance to a commercial vehicle policy.
6. Get a permit: a state taxi/contract carriage permit or an All India Tourist Permit.
7. Fit an AIS-140 GPS device with an emergency button, registered on VAHAN, where required.

Documents usually needed for conversion

• Original RC in the owner's name
• Valid insurance and PUC
• Owner's ID and address proof
• Application form and photographs
• NOC from the financier if the car is on loan

Before you convert, ask the client or vendor which model years they accept. Many government and MNC contracts take only cars a few years old. If your car is too old for the work you want, converting it may not pay off.

What changes after conversion

• Fitness certificate every 2 years while the car is up to 8 years old, then every year. A private car needs one only after 15 years.
• Commercial insurance with passenger liability cover. The premium is usually higher than for private insurance.
• Permit renewals and state taxi tax, as per your state.
• GPS (AIS-140) device with an emergency button for public service vehicles. In May 2026 the Supreme Court reportedly told states to enforce this strictly before issuing fitness or permits.
• Resale happens as a commercial vehicle, usually to taxi operators.

All this costs money, and it only makes sense if you have steady work lined up. Talk to us before converting. We can tell you what is asked for your car model and year. Also see our full documents checklist.