Seven Rules and Regulations for Starting a Taxi Company

You cannot, however, simply start picking people up and charging them for the privilege. You need to adhere to all the rules and regulations of the UK and your local council. In most cases, this will mean you will need to:

1. Be Properly Insured

Before you can bring someone into your car to ferry them from one destination to another as a taxi service (and not for personal use), you must update or get new insurance. Depending on your needs, you will either need to expand your personal insurance or get special minibus insurance or taxi insurance. This is particularly important if you are operating as a sole trader or own your own business, or if your employer does not have a fleet insurance you can join.

2. Be Medically Fit to Drive

You need to be able to sit comfortably for long periods of time. If you have poor eyesight, a heart condition, or other health factors that could become exacerbated from this lifestyle and thus put your passengers in danger, you cannot gain the license.

3. Be Able to Communicate in English

You must be able to communicate in a minimum level of English, meaning you have passed NVQ/GCSE/O levels or have taken the IELTS if you are from outside the UK.

4. Take the Knowledge Test if Needed

The Knowledge Test is infamous in London, and only once you pass it can you apply to work as a Black Cab. Similar tests exist throughout the UK, and they are not always necessary so check beforehand.

5. Have a Background Check Done

Background checks or Disclosure and Barring Service (DBS) are used to check your background to determine whether or not you are fit to drive. You won't be able to transport children, for example, if you are on a sex offenders list. For most, this check won't be a problem, only another necessary step to gaining your license.

6. Apply and Obtain a Taxi License from Your Council

To operate as a taxi company, you will need a special license from your local council. All the previous steps will contribute to you obtaining your license. Do remember, however, that the specific requirements do differ depending on which council you are dealing with.

7. Be Zoned and Insured if Running Your Business from Home

If you are running your business from home (which can save on a lot of the costs of running a taxi company), then you will need to get planning permission and even new insurance to cover your operations. Check to see what needs to be done and have all the paperwork ready and filed before you start your new company.

As with most companies, there are many rules and regulations you must follow in order to comply with the law. Unlike most other business, however, there are the rules of the road to follow, insurance requirements, and licenses you must apply for before you can operate. Don't skip any of these steps so that you can instead focus on building a reputable, successfully company of your own.