Updated on - 13 Jan 2026
Are you planning to start a self-drive car hire business or lease your personal cars to hotel guests to earn additional income? Understanding what the black number plate means for vehicles is the first step towards operating legally in India. The number plate is mandatory for all vehicles used for commercial self-drive purposes. While this opens up legitimate business opportunities, it also entails higher car insurance costs, stricter rules and regulations, frequent renewals and mandatory paperwork.
This guide explains what a black number plate is, its eligibility requirements, application steps, cost and impact on insurance, so that you can make the right decision before entering the commercial vehicle market.
What is a black number plate?
Black number plates feature yellow or white writing on a black background and are specially designated for commercial vehicles that are used for personal purposes. Examples include hire cars and self-driven cars offered by travel agencies and rental companies. These plates were introduced to create a separate category for commercial vehicles that don’t fall under the traditional yellow plate category used by taxis, goods carriers and private transportation. Personal car owners who intend to offer their private vehicle as a self-driven rental car must convert their registration to a black number plate.
These unique plates help law enforcement and other road users quickly distinguish between cars used for business purposes and those used for personal reasons. They also indicate that the vehicle owner has obtained proper commercial registration, pays the appropriate commercial vehicle road tax, holds the particular car insurance policy and follows commercial vehicle regulations.
When are black number plates used?
Black number plates are mandatory in the following driving situations:
- Commercial self-drive and rental vehicles: Black plates are primarily used for self-driven rental cars and vehicles leased out by car rental companies, where no driver is provided.
- Private commercial use: When individuals want to use their personally-owned car (even if it’s just one car) for commercial use for additional income.
- Business leasing and luxury hotels: Companies, resorts and hotels that have registered their cars under a commercial registration but lease the vehicles to employees or guests to drive them personally.
Requirements and regulations
To obtain a black number plate in India, you must meet specific eligibility criteria and adhere to established rules. They are:
- The vehicle should be registered under the Motor Vehicle Act, explicitly for commercial leasing purposes or self-driven rentals.
- The individual or company must be registered as a car hire firm or have a valid and up-to-date GST registration.
- If converting from a private white plate to a commercial black plate, the owner must submit an application for change along with the company registration or GST documents.
- The vehicles must have at least third-party car insurance coverage at least and pay commercial road tax.
- The owners are subject to stricter traffic penalties for traffic violations. They must maintain proper records for vehicle usage, regular maintenance and inspections, earnings, permits and tax payments.
- A commercial driving licence is not required to drive black number-plated vehicles. A regular driving license and a clean driving record are sufficient.
Documents required for the application and cost
To obtain a black number plate, you must submit the following documents:
- Form 20 (application for registration)
- Form 21 (vehicle sales papers)
- Form 22 (road safety/fitness certificate)
- Proof of valid car insurance
Plate printing typically costs ₹500–₹1,000, which includes compliance with High Security Registration Plate (HSRP) standards. The self-drive commercial permit fee generally ranges from ₹5,000 to ₹10,000, depending on the specific state regulations in which the vehicle is registered.
Importance and benefits
The black number plate system plays an integral part in regulating India’s rapidly growing vehicle rental and ride-sharing industry.
It creates a transparent framework that bridges the gap between private white-plated vehicles and traditional yellow-plated commercial taxis. The visual identification system helps maintain order in the transportation sector while protecting both service providers and consumers. It also legitimises the ride-sharing and car hire industry, helping prevent tax evasion and ensuring fair competition in the market.
The black number plate offers several advantages:
- Easy identification: Helps law officers quickly identify rental and business cars, making it easier to conduct targeted inspections and enforce commercial vehicle regulations specific to these services.
- Regulatory compliance: Ensures proper registration and tracking of business cars meant for personal driving. This enables authorities to maintain accurate databases of semi-commercialised cars used for income generation.
- Brand trust: Allows customers to verify they’re using legally registered rental services. This provides peace of mind that the vehicle and the company comply with safety standards and carry a suitable commercial insurance policy.
Impact of black number plates on car insurance
Switching to a black number plate significantly impacts your vehicle’s car insurance costs and requirements. This makes it vital to understand the financial implications before converting to commercial registration.
- Higher premium: When you convert your vehicle into a black number plate for commercial purposes, your car insurance policy costs usually go up.
- Reason for increased premium: The premium increases because commercial vehicles are used more frequently, cover longer distances and carry multiple passengers. This raises the chances of accidents and claims.
- Stricter insurance requirements: Insurers mandate frequent renewals, regular vehicle inspections and continuous coverage for black number-plated vehicles.
- Heavy penalties: Driving a black number-plated vehicle without valid insurance can result in penalties up to INR 5,000 for repeated offences, vehicle seizure by authorities and even cancellation of commercial registration.
Conclusion
Essentially, the black number plates represent a middle ground between private vehicles and commercial vehicles, i.e., India’s growing self-drive car rental sector. Understanding the black number plate meaning is essential if you are planning to enter the car hire industry, as it involves a different set of traffic laws, safety permits and insurance premiums.
The initial cost of investment may seem substantial, but obtaining proper commercial registration will protect you from legal trouble and fines.
While you take the effort to drive legally in India, let us ensure financial safeguard for your vehicle with the right car insurance policy. Fill out the form on the page to get a personalised commercial car insurance solution with suitable add-ons that meet your specific needs.
FAQs
1. What is a black number plate used for in India?
Black number plates with yellow text are designated for self-drive commercial vehicles, such as rental cars offered without a driver by companies or individuals.
2. Can I use my personal car with a black number plate for business?
Yes, if you register it for commercial use under the Motor Vehicles Act and comply with insurance and tax requirements, you can lease it for self-drive rentals or hotel guest use.
3. Do I need a commercial driving licence to drive a black number plate vehicle?
No. A regular driving license is sufficient since these vehicles are meant for self-drive use, not chauffeur-driven services.
4. Can hotels or resorts use black number plate vehicles for guests?
Yes. If the vehicle is registered for commercial use, hotels and resorts can lease them to guests for self-driving purposes.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.