To properly operate a fleet of commercial vehicles in the Philippines, you need to apply for a Certificate of Public Convenience (CPC) but this process takes 4-6 months to complete. Everyday your vehicles sit idle waiting for a CPC is time and money down the drain. As you wait, you can legally operate your transport business with a Provisional Authority (PA).
A PA grants your fleet the immediate right to operate commercially in the Philippines. This guide will help you through the process on how to apply for a PA from the LTFRB.
What is a Provisional Authority (PA) from the LTFRB?
A Provisional Authority is a temporary permit issued by the LTFRB that allows land-based public utility vehicles to operate legally while a CPC application is pending with the agency. For companies, this means your fleet does not have to sit idle while waiting for full franchise approval.
However, a PA is not a replacement for a CPC. You are required to file a CPC before you can apply for a PA from the LTFRB. It is merely a temporary operating license that bridges the gap between filing and full CPC approval.
For most vehicle types, a PA is valid for 90 days and can be renewed once for an additional 90 days. An exception to this rule are trucks-for-hire. For this type of vehicle, their PA is valid for one year from the date of issuance.
Companies commonly apply for PAs to cover the following fleet types:
- Trucks-for-hire
- Public Utility Buses (PUBs)
- UV Express Services
- Transportation Network Vehicle Services (TNVS) under platforms like Grab
- Tourist Transport Services
- Other land-based public transport services
Importance of PA for Operating Fleets
Because a CPC can take 3-6 months to process, a PA allows you to operate without suffering delayed revenue or stalled logistics. Your fleet can start operating commercially within 30 working days after a successful PA application.
However, there is an added layer of complexity for corporate applications compared to individuals. As a business, you need to demonstrate the legal existence of your company, financial capacity, and operational infrastructure before the LTFRB will issue a PA. Understanding these requirements upfront saves time and avoids costly application rejections.
Eligibility and Document Requirements for Corporate PA Applications
Under the Philippines' Public Service Act (Commonwealth Act No. 146) (amended by RA 11659) only Filipino citizens or corporations with at least 60% Filipino ownership are eligible to apply for a PA or CPC from the LTFRB for public utility vehicles (PUVs). However, for
non-PUV public services (e.g., ride-hailing, trucking), up to 100% foreign ownership is now permitted.
For corporations, the LTFRB will also require that transport services are listed as a primary or secondary purpose in the company's Articles of Incorporation. If your company is registered for a different primary purpose, you may need to amend your corporate documents before proceeding.
Contact Emerhub to know how you can set up a transportation company in the Philippines or amend your Articles of Incorporation.
Document Requirements for Corporate Fleet PA Applications
The LTFRB requires a complete documentary package for both the PA and the accompanying CPC application. Incomplete submissions are a common reason for delays and rejections, so it is important to get this right before filing.
Here are core requirements for PA application:
- Four (4) original copies of the verified application (downloadable from ltfrb.gov.ph)
- Photocopy of the Official Receipt (OR) and Certificate of Registration (CR) for each vehicle
- SEC Certificate of Registration (for corporations)
- Articles of Incorporation stating transport as a corporate purpose
- Latest General Information Sheet (GIS)
- BIR Certificate of Registration
- Mayor's Permit / Business Permit
Additional Requirements for the CPC Application
These documents must be submitted at least five (5) working days before the scheduled CPC hearing date:
- LTO-issued OR/CR, or Certificate of Conformity (CoC) from the bank or financial institution if the vehicles are under financing.
- Proof of existence and sufficiency of a garage facility. If the company owns the garage, provide the Transfer Certificate of Title (TCT) or Tax Declaration. If leased, a TCT/Tax Declaration with a Notarized Lease Contract or Notarized Authority to Use Garage is required.
- Proof of financial capability in the form of a bank deposit certificate showing at least PHP 20,000 per unit.
- 5R photographs of each unit (front, back, and sides), with a newspaper front page in the photo to establish the date.
- DTI Certificate of Business Name Registration (if applicable).
- Affidavit of Undertaking (acknowledging submission of the CoC at the hearing).
- Proof of Publication, including the Affidavit of Publication by the publisher, copies of publication, and Affidavit of Attestation on document authenticity.
Additional Requirements for PEZA-Zone Operations
Companies operating within special economic zones or port areas may also need:
- Letter Request addressed to the Director General of the Philippine Economic Zone Authority (PEZA)
- Endorsement Letters from prospective PEZA clients
- List of PEZA and non-PEZA clients
- Audited financial statements or balance sheet
- Annual permit to operate from the Philippine Port Authority (PPA)
Step-by-step Provisional Authority Application Process
Step 1: File a CPC Application First
Before a PA can be issued, your company must file an application for a Certificate of Public Convenience with the LTFRB. The PA is issued as a provisional remedy while that application is being evaluated. Skipping or delaying the CPC application will block your PA.
Step 2: Schedule an Appointment with the LTFRB
Appointments are required before submitting your application. Slots are processed on a first-come, first-served basis at the LTFRB Technical Division. For fleet applications covering multiple units, it is advisable to coordinate with the LTFRB in advance to ensure sufficient slots are available on your chosen date.
Step 3: Submit Your Documents and Pay the Fees
Appear on your scheduled appointment date with the complete documentary package. Upon submission, you will be required to sign and submit an Affidavit of Undertaking confirming that your Certificate of Conformity (CoC) will be presented during the CPC hearing. Non-compliance with this undertaking is grounds for dismissal of your application.
Step 4: LTFRB Processing
Once the application is accepted and fees are paid, the LTFRB will begin its evaluation. Processing normally takes around 30 working days, provided all documents are complete and in order.
Step 5: Receive the Provisional Authority
Upon approval, the LTFRB will issue the PA, valid for 90 days for most vehicle types (or one year for trucks-for-hire). No extension will be granted unless the CPC application is also progressing, meaning all required documents have been submitted for resolution.
Step 6: Attend the CPC Hearing
While operating under the PA, your company must attend the scheduled CPC hearing. For TNVS applications, only the accredited TNC's authorized counsel on record may represent the applicants at this hearing.
Ongoing Compliance for Your Fleet
Once a PA is issued, you must still maintain compliance with LTFRB regulations. Your company must continue to maintain vehicles in accordance with LTFRB standards, keep all vehicle registrations current with the LTO, and work towards obtaining the full CPC.
The LTFRB also monitors compliance with road safety standards, minimum insurance coverage, and fare regulations throughout the period of your PA. Companies operating colorum vehicles (without proper franchise authority) face fines of up to PHP 200,000 and vehicle impoundment for a minimum of three months for first-time offenses.
Once your CPC is issued, it covers the vehicles listed in your application and must be maintained and renewed according to LTFRB schedules. Note that if your fleet includes both trucks and buses, each vehicle type requires a separate CPC.
Renewing Your Provisional Authority
A PA can be renewed once for an additional 90 days (for standard vehicle types) or remains valid for one year in the case of trucks-for-hire. Keep in mind that renewal is not automatic. Your company must submit a renewal request and demonstrate that the CPC application is actively progressing.
Important: PAs cannot be used indefinitely as a substitute for a CPC. The LTFRB will not continue granting renewals if the full franchise process is stalled. Companies should treat the PA period as a window to complete all CPC requirements, not as a long-term operating solution.
Ready to secure a PA from the LTFRB for your company's fleet? Fill out the form below and we will connect you with one of our local experts.
Frequently asked questions
Can a foreign-owned company apply for a Provisional Authority in the Philippines?
Under the Public Service Act, only Filipino citizens or corporations with at least 60% Filipino-owned equity can apply for a PA or CPC from the LTFRB. Foreign companies that do not meet this ownership threshold cannot hold a franchise in the Philippines. If your company is foreign-owned, you will need to restructure your ownership or explore partnership arrangements with a Filipino-majority entity before applying.
What are PA application fees I need to pay?
When filing for a new CPC and PA from the LTFRB, companies should prepare to pay the following fees: Note that these fees are per vehicle type. If your company operates both trucks and buses, the LTFRB requires a separate CPC and PA application for each vehicle category.
How long does it take for the LTFRB to process a corporate PA application?
Processing normally takes approximately 30 working days from the date of acceptance, provided the documentary requirements are complete and there are no discrepancies. Incomplete submissions or document misalignments can significantly extend this timeline. For fleet applications covering a large number of units, it is advisable to work with an Emerhub compliance specialist to ensure everything is in order before filing.
Can our company operate all vehicle types under one Provisional Authority?
The LTFRB requires a separate CPC and PA application for each vehicle type. If your fleet includes both trucks-for-hire and buses, you will need two separate applications and will pay the applicable fees for each. This also applies if your business expands to additional vehicle categories after initial approval.
What happens if our Provisional Authority expires before the CPC is issued?
If your PA expires before your CPC is issued, your fleet is no longer authorized to operate commercially. You can apply for one renewal of the PA (for an additional 90 days for most vehicle types). However, this renewal will only be granted if your CPC application is actively progressing and all required documents have been submitted. Operating after expiration without a valid PA or CPC constitutes a colorum violation, which carries heavy penalties.
Does the LTFRB require a separate PA for each vehicle in our fleet?
The PA covers the units listed in your CPC application. You will need to ensure each vehicle's OR/CR is included in the documentary package and that the filing fees are paid per unit (PHP 70 per unit beyond the first two). If you add vehicles to your fleet after the initial application, you will need to file additional applications for those units.
Is a garage facility required before we can apply?
The LTFRB requires proof that your company has access to a sufficiently sized garage or terminal for your fleet. If your company owns the property, you will need to submit the Transfer Certificate of Title (TCT) or Tax Declaration in the company's name. If the garage is leased, you must provide the TCT or Tax Declaration along with a notarized lease contract or a notarized authority to use the facility. This requirement applies to the CPC application, which must be filed alongside or before the PA application.