Turning your private to commercial vehicle registration isn’t as simple as just deciding to use it for business. In the eyes of the law, a private vehicle and a commercial one serve very different purposes — and until that change is officially registered, you’re not legally allowed to use it for anything beyond personal travel.

Whether you’re starting a logistics business, making deliveries, or planning to drive for hire, the vehicle itself needs to be formally converted. That means new paperwork, updated insurance, fresh permits, and a visit — sometimes online, sometimes in person — to your local RTO.

The rules aren’t always clear, and the steps can feel scattered if you’re doing this for the first time. That’s where this guide helps. It walks you through the entire process of converting a private vehicle to a commercial one — what to submit, how to apply, and what to expect at each stage — without getting lost in legalese. Just plain advice to help you get it done right.

Private vs Commercial Vehicle – What Sets Them Apart?

At a glance, a car is a car. But under Indian motor vehicle law, how it’s used — and how it’s registered — makes all the difference. A private vehicle is meant for personal use. Once you start using it to transport goods, carry passengers for a fee, or run a business, it becomes a commercial vehicle in the eyes of the RTO.

This isn’t just a technicality. Everything from your insurance to your tax rate to your license plate changes once that shift happens. Here’s a quick breakdown of how the two categories differ:

Comparison Table: Private vs Commercial Vehicle

Using a private vehicle for commercial purposes without converting it officially can result in fines, vehicle seizure, and invalidated insurance claims in case of an accident.

How to Convert a Private Vehicle to Commercial

If you’ve got a car you were using for personal stuff and now you want to put it to work — let’s say for deliveries, transport, or even ride-hailing — there’s a process to follow. You can’t just start using it and hope for the best. If the cops stop you or there’s an accident, you’re going to wish you’d sorted this out.

Here’s how people are doing it now.

First, head to the Vahan website.

This is where you kick things off. Look up “Vahan Citizen Services,” open the site, and pick your state and the RTO your vehicle belongs to. You’ll have to accept some terms and stuff — nothing major. Just click through it.

You’ll be asked for your vehicle number — the one on the plate. Enter it and move on.

Now, pick the service.

From the menu, there’s a bunch of options. One of them says “Conversion of Vehicle.” That’s your pick.

As soon as you click that, the site throws up a message asking if you have some documents ready. Insurance papers, pollution certificate, RC, and a letter stating you want to convert the vehicle. If you’ve got those in place, click “Yes” and keep going.

After that, confirm it’s your vehicle.

They’ll ask for your chassis number and your mobile number. Put both in. You’ll get an OTP on your phone. Type that in and the site pulls up your vehicle’s details.

Look at what’s there. If your insurance has expired, stop right there and get that sorted first. The portal won’t let you go further with expired insurance.

Fill in what you’re converting it to.

You’ll be asked what the vehicle is going to be used for now — transporting goods, carrying passengers, whatever it is. Pick the right type and class. Don’t guess. Pick what actually applies, because this is what gets printed on the papers later.

Time to pay.

Once you’re done with the details, you’ll get to the payment screen. There’s a fee. Amount can vary depending on where you live. Accept the terms, choose your bank, and pay online.

You’ll get a receipt. Download it or print it. Just don’t lose it.

One last thing — they might want to see the vehicle.

This isn’t always the case. But sometimes, especially in certain states or with older vehicles, the RTO will ask you to bring the vehicle in. It’s usually just a basic inspection. They check the chassis number, see if everything matches, and sign it off.

If they call you in, take all your documents and show up on time. That’s it.

Once it’s approved, your vehicle officially switches over to commercial status. You’re legal, you’re insured, and you’re clear to get to work.

Documents You’ll Need

You’ll need a bunch of paperwork to get this done. Some of it’s obvious, some of it isn’t — and if even one’s missing, the application can stall.

Here’s what to keep ready:

• Registration Certificate (RC)
  Must be in your name. If it isn’t, get that transferred first.
• Valid Insurance Certificate
  Not expired. This should be active during the conversion process. You’ll switch to commercial insurance after approval.
• PUC (Pollution Under Control) Certificate
  Needs to be up to date. Even a few days out of date, and they’ll block the process.
• Fitness Certificate
  Required for older vehicles, or depending on the vehicle category. Some states are strict about this.
• No Objection Certificate (NOC)
  Only if the vehicle’s under loan. Get this from your bank or finance company.
• Letter of Intent (LOI)
  Just a simple handwritten or typed note saying you want to convert the vehicle for commercial use.
• Identity Proof
  Aadhaar usually works. Carry one more (like PAN or Voter ID) just in case.
• Address Proof
  Utility bill, rent agreement, or anything that matches the address in your ID.
• Tax Receipts
  If you’ve already paid any part of the commercial road tax or permit fees, take the receipts along.
• Permit-Related Documents
  Depends on whether the vehicle is being converted for goods or passenger use. Check with your local RTO if unclear.
• Passport-Size Photographs
  Not always needed, but if you’re called in for inspection, they might ask.
• Affidavit (if applicable)
  Some RTOs ask for a signed declaration stating that the vehicle will be used only for commercial purposes going forward.

Tip: Keep scanned PDFs ready if applying online, and hard copies neatly filed if you’re asked to visit in person. Having both saves time—and arguments at the counter.

Fees and Permits

There’s no fixed amount for this. You’ll pay in pieces, and it depends on what kind of vehicle you have, which state you’re in, and what kind of work you’re using it for.

Here’s what you’re likely to deal with:

Basic RTO Conversion Fee

• Conversion processing: ₹1,000–₹1,500
  What you pay to update your registration from private to commercial.
• New RC / Smart card fee: ₹200–₹300
  If your RTO issues a fresh card with the new details.

Road Tax (The Big Variable)

This is the part that changes the most. You don’t pay lifetime tax for commercial vehicles like you do for private ones. It’s usually quarterly or annual.

Bigger vehicle = higher tax
Every RTO has its own slab — check locally or on the Vahan site

Permit Charges (If Applicable)

Not every vehicle needs one. But if you’re crossing districts or state borders — or carrying passengers for money — you will.

• Local goods permit: ₹1,500 – ₹3,000
• National permit: ₹15,000+
• Taxi/school van permit: ₹4,000 – ₹10,000 (varies by RTO)

These are mandatory if you’re carrying goods or people for hire

Other Possible Charges

These aren’t always mentioned, but they pop up:

• Affidavit for commercial use: ₹50 – ₹100 (not all states)
• Late fees: If PUC or fitness cert is expired
• Agent service fee: ₹2,000 – ₹5,000 (if you go through a middleman)

Real Talk: Total Cost?

• Bare minimum (no permit, light vehicle, self-managed): ₹1,500 – ₹2,500
• With permits, inspection, and tax: ₹10,000+
• With national permit or agent help: Can go up to ₹20,000 or more

Tip: Call your RTO or talk to someone who’s done it last week. That’ll give you the most accurate number.

How to Check Your Application Status

So you’ve submitted the conversion application, made the payment, maybe even uploaded your documents. Now what?

Instead of waiting around or calling the RTO, you can check the status online. It doesn’t take long — if you know where to click.

Here’s how it actually works:

Start by heading to the Vahan Citizen Services site. Same place you used to start your application. Once you’re there, choose your state and the RTO your vehicle’s registered under. You’ll have to agree to the privacy terms (click, move on).

Look for a section called “Know Your Application Status.” Depending on the version of the site, this might be tucked under a “Status” tab, or sitting on the left-hand side. Found it? Good. Click through.

Now comes the important bit. You’ll be asked to enter either:

• The application number (if you saved it), or
• Your vehicle registration number (in case you didn’t)

Once you type that in, fill out the captcha (the blurry characters — you know the drill), and hit submit.

What you’ll see next is a live update on your application. It’ll tell you whether:

• Your payment has gone through
• They’re still reviewing documents
• A physical inspection has been scheduled
• Or — best case — your conversion has been approved

If something’s wrong — like a document missing or payment not processed — that’ll usually show up there too.

And if nothing changes for more than a few working days? That’s when you call or visit the RTO. But usually, things move along without needing a follow-up.

Commercial Vehicle Insurance — What You Actually Need

Once your vehicle becomes commercial, your old insurance doesn’t work. Even if it’s still valid, it’s not enough. If you get into an accident while doing business, your claim will be denied. No discussion.

So yes, you need a new commercial policy.

Call your insurer and tell them you’ve converted the vehicle. Some will cancel your private plan and offer a commercial one. Others won’t — in that case, just find another company. You’re not stuck with them.

Big names like ICICI, HDFC, SBI, and others sell these policies. Compare a few quotes. Pick one. Expect the premium to be higher — that’s normal.

They might ask for:

• Your updated RC
• PUC certificate
• Fitness cert (if the vehicle’s old)
• A few photos

Once you’ve paid, you’ll get the new policy. Save it. You might need to upload it or show it during inspection.

And don’t wait. If you’re using the vehicle for work and still have private insurance, you’re completely exposed. Get this sorted before you hit the road.

Renewing Your Commercial Vehicle Registration

Commercial registrations don’t last forever. At some point, usually after a few years, you’ll need to renew it. And unlike private vehicles, commercial ones get looked at a little more closely.

Here’s what usually happens:

First, head to your RTO. Some states let you start the process online, but most will want the vehicle brought in for inspection — especially if it’s over eight years old.

They’ll ask you to fill out a renewal form. It’s a basic one — nothing complicated. Bring your documents with you:

• RC
• Fitness certificate
• Valid insurance
• PUC
• ID proof

You pay the renewal fee, then wait for the officer to inspect the vehicle. If everything checks out — tyres, chassis number, overall condition — you’ll get the green light. They update the record, and you’re good for another term.

If something’s off — say the fitness cert is expired or the vehicle’s not in usable condition — they might hold it up. So make sure you’ve done the prep before showing up.

That’s it. Get the papers ready, bring the vehicle in, get the stamp. Done.

Conclusion

If you’re using your vehicle for work, there’s no way around it — you have to convert the registration. Driving with private tags while doing commercial work is asking for trouble. One stop at a checkpoint, one claim rejection, and it’ll cost you way more than the time it takes to do this properly.

The process is a bit of a hassle, yeah. You’ll fill forms, upload docs, maybe visit the RTO. But once it’s done, you’re legal. You’re covered. And more importantly, you can actually get to work without looking over your shoulder.

Get your papers in order, don’t delay the insurance, and follow through. It’s a one-time effort that saves you from constant risk.

FAQs