Operators Licence

Anyone who wants to accept private hire bookings must be licensed as a private hire operator. By using a licensed operator, passengers can have confidence that the driver and the vehicle are both licensed by TfL.

When you think of private hire operators you usually think of minicab offices on the high street.  However, there are many different kinds of operator including:

  • Those who only cater for social events such as prom, hen and stag nights and corporate events
  • One person operations offering a chauffeur service
  • Individuals whose principle work is as a tour guide
  • Operators who only do contract work, for example school runs for a local council

What Are the Different Types Of Operators Licences Available?

Whatever type of private hire service you intend to provide you will need to be licensed before you start operating. Anyone who receives payment for taking bookings or supplying drivers for hire without an operator’s licence is breaking the law and may be prosecuted.

There are two types of operator licence that can be applied for:

Small
You can use a maximum of two licensed private hire vehicles to undertake bookings.

Standard
There is no restriction on the number of licensed private hire vehicles you can use to undertake bookings.

It is important to note that once you decide which option is best for you; this cannot be easily reversed if you change your mind.  You will need to re-apply and go through the whole application process from the start. It is advisable to think about your plans carefully and any intention to expand your business in the future.  There is no difference in the application process apart from the cost, with the standard operator licence costing nearly twice as much as the cost of a small licence.

What Are the Requirements for Successfully Applying for an Operator’s Licence?

PCO Operators must comply with the fit and proper person criteria.  There is a specific form pertaining to this criteria in the application pack – the PHV/103 also known as a Personal Declaration Form.  In this form you show that you have complied with all the legal requirements connected to running a business.  This form covers areas such as bankruptcy, convictions etc., but you should remember to fill out the form truthfully as falsifying information could not only mean that you lose your licence, but are faced with a serious legal battle.

What are the Premises criteria?

  1. At least one ‘operating centre’ in London. This is the premises where you will take bookings. Your operating centre could be an office, a unit in the high street or your home address. For addresses outside Greater London, you must obtain a licence from the local council.
  2. Proof of planning permission or a certificate of lawful use for your proposed premises from your local authority. Where planning permission isn’t required, you must provide written confirmation (email or letter) from the local authority. The document must be clearly linked to the address of the proposed premises. Any breach of planning legislation could result in your local council taking enforcement action against you.
  3. If the operating centre’s primary use is for another business, you’ll need to provide further information about the operating centre. Please see our guidance notes for further information on this.
  4. A fixed landline telephone number for bookings. A licence cannot be issued without this.

What is the cost of a PCO Operators Licence?

Small Operators Licence for 5 Years

  • Grant Of Licence Fee – £650
  • Licence Application Fee – £838
  • Total Cost – £1,488

Standard Operators Licence For 5 years

  • Grant Of Licence – £1,988
  • Licence Application Fee – £838
  • Total Cost – £2,826

These payments must be sent along with the application form.  It is also important to note that as the application fee is non-refundable, in the event of your licence application being rejected you will only get your grant of licence fee refunded.

How do I apply for Licence variations?

You may only accept private hire bookings at the operating centres specified on your licence. You must submit a licence variation application if you wish to:

  • Move your business to a new operating centre
  • Trade from an additional operating centre
  • Stop trading from one, but not all, of the operating centres on your licence

All new centres have to be checked out and approved by TfL before they can be added as recognized operating centres on your PCO licence.

If you decide that you would like to try and apply to enable you to vary your operators licence you will need to send them:

  • The Variation Application form PHV/106 fully completed
  • The correct variation fee buy either debit or credit card, building society cheque or bankers draft
  • The cost of a Variation Application is:
    • To add/move operating centre: £300
    • To remove operating centre: £50

You must provide the following information:

  • A certificate that proves you have legal right to use your future premises for your business from the council or proof of planning permission.
    If the operating centre’s primary use is for another business, you’ll need to provide further information about the operating centre.
  • A fixed landline telephone number for bookings. A licence cannot be issued without this.

For further information regarding making the application please call TfL directly on 0845 602 7000.