What licences does a PCO car rental business need?
A private hire vehicle licence for every car, from the authority that licensed the drivers who will rent it: TfL in London, the council elsewhere. Driving a vehicle as a private hire vehicle without a vehicle licence can be prosecuted. Renting cars is not taking bookings, so it needs no operator licence unless you also dispatch work.[1][2]
"PCO" is the old name for TfL's private hire licensing office; see PCO licence.
What goes in a PCO car rental agreement?
Who rents the car and for how long, the weekly rent and deposit, what is included (insurance, servicing, licensing), mileage, what happens after damage or a claim, who pays fines and charges, and how the car is returned.
Start from our taxi rental agreement template.
How do you keep rental cars earning?
Keep every car licensed, insured and roadworthy, and know when each document expires. A lapsed licence or a missed inspection takes a car off the road and stops the rent.
TaxiDex records permits with a reference and expiry date, counts what has expired and what is about to, and keeps each vehicle's maintenance due and done.
Does this work outside London?
Yes, with the local authority's vehicle licence. In New York City the Taxi and Limousine Commission licenses for-hire vehicles as well as drivers and bases, so a rental car for for-hire work needs TLC licensing.[3]
Frequently asked questions
Do I need to be a licensed driver to run a PCO rental business?
No licence is needed to own the cars, but each car must hold a private hire vehicle licence before it is used for hire, and only licensed drivers may drive it for hire.
Can I rent a car to a driver licensed by another council?
Only if the car is licensed by that driver's authority: the vehicle must be licensed by the same authority that issued the driver licence.
Sources
Fees and rules change. Each source is the official page we read, with the date we read it; check it before you apply or pay.
- [1] GOV.UK: Vehicle licences for taxis or private hire vehicles (read 2 Nov 2026)
- [2] GOV.UK: Operator licences for private hire vehicles (read 2 Nov 2026)
- [3] NYC TLC: Get a TLC driver's license (read 2 Nov 2026)