4.3 Possibility of using NewCo to conduct automobile for rent and driver service business
4.3.1 If the NewCo uses automobiles that can carry no more than seven passengers, private automobile seating exceeding seven passengers but not exceeding twelve seats, or a private truck having its weight not exceeding two thousand two hundred kilograms, it will be out of the scope of the Land Transport Act, and will not need any of the licenses described above.
4.3.2 However, if NewCo will use automobiles which can carry more than seven passengers, private automobile seating exceeding twelve seats, a private truck having its weight exceeding two thousand two hundred kilograms, it will require license for non-fixed-route transportation service. In this respect, as NewCo will be held by Shinki International 51%, it will not be qualified for applying for the license under the Land Transportation Act as one of the qualifications of the application is that not less than 51 percent of its capital must be held by natural persons of Thai nationality or a company which has natural persons of Thai nationality holding not less than 51%.
One possibility is to have Shinki International conduct this business but the board of directors' structure will have to change.
4.3.3 If NewCo will buy its own automobiles and use them in the operation of its business, it will have to register those automobiles with the registrar at the Bangkok Land Transport Office, or the Provincial Land Transport Office, the Department of Land Transport. The process for the vehicle registration is illustrated in Schedule VI. In addition, under the Automobiles Act, an owner of a vehicle has the duty to pay annual tax, which must be paid in advance for a term of one year. Default of the tax payment in the prescribed period means the owner will be liable to an additional fine of one percent of the amount of the default per month, or fraction of a month.
4.3.4 An officer at the Department of Land Transport has told us unofficially that the application process for a non-fixed route transport license will take approximately one month from the date the complete application is submitted. The procedure, timeline, and documents required for the application for a non-fixed route transport license are summarized in Schedule V.