How To Sell A Company Car?
How To Sell A Company Car?

How To Sell A Company Car?

19 Dec 2023
11 Mins Read
Table of contents

Before getting into the details of how you can sell a company car, let's quickly see what all documents are required to sell a company owned car.

Documents Required To Sell A Company Car

CAR DOCUMENTS REQUIRED TO SELL A COMPANY CAR

Type of Document

No. of Copies

Registration Certificate (RC)1
Pollution Under Control Certificate (PUC)1
Insurance1

INDIVIDUAL DOCUMENTS REQUIRED TO SELL A COMPANY CAR

Pan card1
Address proof1
Photographs1

COMPANY DOCUMENTS REQUIRED TO SELL A COMPANY CAR

Pan Card1
Address Proof1
Memorandum of Association (MOA)1
Authority Letter or Board Resolution1
Service Tax Receipt1

RTO FORMS REQUIRED TO SELL A COMPANY CAR

Form 283
Form 293
Form 303
Form 262
Form 352

What Is A Company Owned Car?

A company owned car is a car provided by an organization to its employees as an added benefit but with certain guidelines. It not only helps in saving tax but also helps in building a brand image of the organization. The real problem which arises with such a car is when either the employee or the employer wants to sell it - it’s simply confusing. Generally, you might find hundreds of articles on “How to sell a car” but you won’t find one which specifically tells you “How to sell a company car”. Technically, the process to sell company car generally differs due to the additional documents that are required in it. So, let’s first start with the various documents that are required to sell company car.

A). Car Documents Required To Sell A Company Car

These documents are mandatory when you have to sell a company car. Without these, your car cannot be sold or transferred. 1. RC (Mandatory): The Registration Certificate (RC) is a mandatory document which is a valid proof that your vehicle is registered under the government of India. You need to submit the original one along with a copy of the RC. 2. PUC (Mandatory): The Pollution Under Control (PUC) certificate is used to certify that the toxic emissions from the vehicle are under control. It is mandatory to provide the PUC while selling the car as it is illegal to drive the car without a valid PUC. 3. Insurance (Mandatory): The insurance policy covers your car against any damage and provides claim against it. Without a valid insurance policy, one cannot drive a car on the Indian roads, hence, it is a mandatory document while selling a car.

B). Individual Documents Required To Sell A Company Car

Individual's Documents Required To Sell Company Car 1. Pan Card (Mandatory) - 1 Self-attested copy You need to submit one self-attested copy of PAN card. If you haven’t got your PAN Card made, then you can provide Form 60 to the buyer. 2. Address Proof (Mandatory) - 1 Self-attested copy Govt. issued ID proofs establish the identity of the seller along with his address. Accepted proofs are:
  • Voter ID
  • Aadhar Card
  • Passport
Rent agreement, Telephone bill, and electricity bill are also accepted in some states. The ID proof should be self-attested.  3. Photos (Mandatory) - 2 Self-attested Two self-attested photographs are mandatory.

C). Company Documents Required To Sell A Company Car

1. Pan Card (Mandatory) - 1 Self-attested copy You need to submit a copy of the company’s pan card. It is one of the mandatory documents which are required while selling company car. 2. Address Proof (Mandatory) - 1 Self-attested copy This document determines the permanent address of the company. Accepted proofs are:
  • Telephone bill
  • Electricity bill
You need to submit one self-attested copy of an address proof. 3. Memorandum of Associations (MOA) (Mandatory) The purpose is to verify the signature of the authorized representative from the company. It is a mandatory document and you need to submit a copy of it when you sell your car. 4. Authority Letter Or Board Resolution (Mandatory) It authorizes the employee to sell company car. Submit a copy of this along with the rest of the documents. 5. Service Tax Receipt (Mandatory) Submit a copy of the company’s service tax receipt while selling your company owned car.

D). RTO Forms Required To Sell A Company Car

RTO Forms Required To Sell Company Car 1. FORM 28 This RTO form is used to apply for a “No Objection Certificate” from the registering authority. It also proves that you don’t hold any liabilities and encumbrances that can stop you from selling your car. You need to submit three copies of Form 28. 2. FORM 29 This RTO application is used to intimate the RTO that the vehicle has been sold by the owner. Form 29 claims that all the car related documents such as RC, insurance, PUC have been handed over to the buyer. 

You would be needing two copies of Form 29.

3. FORM 30 Form 30 acts as a confirmation of Form 29. After intimating the RTO about the selling, it is your responsibility to intimate the RTO that the vehicle ownership transfer needs to done. Form 30 states that all the legal bonds and responsibilities you had with your car are now being transferred to the buyer of your car including the consent of financier (if any). You will have to submit two copies of Form 30. 4. FORM 26 Form 26 is required in the case that your RC is damaged or lost. It is an application which is submitted to the RTO to intimate them. However, if you lose your RC, then along with the form, you would also need to submit a copy of FIR. Submit two copies of Form 26 along with other documents. 5. FORM 35 If you have a financed car, you would need NOC from your bank and Form 35 to get the car transferred in the name of the buyer. This will remove the “HP” from your RC. HP here stands for hypothecation which means your car is financed. The bank provides two copies of Form 35. Now, first things first! You might have most of the above-mentioned documents but you would still need to visit the RTO office to procure the RTO forms. However, you can download them here: Download RTO Forms Required To Sell Car Above are the documents required to sell a normal company owned car. 

“What if the car’s RC is damaged? How do you sell a company owned car then?” 

In such cases, you will need some additional documents as explained below:

1. In case of damaged RC/ misprint on RC/ lost RC

We normally don’t look at our car’s RC until and unless a policeman stops us somewhere and asks for it. Imagine pulling out your RC only to find it broken, cracked. Not just that, with daily usage, the information on your RC can easily fade away leaving incomplete details.
  • If seller’s details are a misprint on the RC - If the seller’s or company’s details are misprinted in the RC, then you need to submit an affidavit stating your correct details along with an ID proof.
  • If car’s details are not printed properly on the RC - If the car’s details are misprinted then a copy of the original invoice of the car needs to be submitted along with other documents.
  • If RC is damaged - Other than that, if your RC is damaged, you would need Form 26 from the RTO. This document needs to be duly filled in and submitted in duplicate (two copies).
  • If RC is lost - In case you have lost your RC, then you need to file a FIR and submit the copy of FIR along with Form 26. If you are based in Delhi and don’t have time to visit a police station, you can submit online FIR too.

2. In case of loan on car/ financed car

If the car was purchased on a loan from the bank, then you will have to clear the dues with the bank and get two copies of Form 35 for termination of loan/ deletion of hypothecation from RC along with one copy of NOC that will be provided by the bank. Both of these documents will be required along with the others to sell a company-owned car.

3. In case the company car is owned by partnership

If the company car is owned by a partnership firm then the following additional documents need to be submitted.
  • Partnership deed
  • NOC from all the partners stating that the car can be sold by the authorized representative
  • Partnership address proof ( Bills older than 3 months are not valid)
  • Partnership letterhead

4. In case the company car is owned by sole proprietorship

If the company car is owned by sole proprietorship then below two documents need to be submitted.
  • Sole proprietorship letterhead
  • Address proof

5. In case the letterhead does not match the address of the company on the RC

In such a scenario, where the company has shifted its location and there is a change in its address, the RC of the car will still have the old address. While selling the car, the original letterhead belonging to the old address will have to be submitted. If that is not available, then a new RC will have to be made for the car. The same is also applied in the case if the car is owned by partnership/ sole proprietorship. Once you have completed filling up your forms and attached all the necessary documents along with it, that is when the real struggle would start. Why?

Well, you would have to visit the RTO in order to submit them and that can be quite an ordeal. Not only you would find a plethora of people at the counter but it will also lead you to waste quite a lot of your precious time.

People At RTO Submitting Forms Required To Sell Company Car Once you successfully tackle the long queue and get the forms back home, filling them up can be quite an effort.
You need to fill the forms along with their copies and if you commit an error, then you would have to fill them all over again. Filling and submitting the forms will take hours. Generally, waiting times to submit the form ranges from 1 to 2 hours.  After this, you will have to stand in the adjacent queue which is equally long and submit the fee to complete the sale and get the new RC for the new owner.
Long Queue At The RTO For Submitting Forms Required To Sell Company Car
Tiring, isn't it? Well, there is another option to sell your company car at the best price and is trusted by lakhs of customers. You can choose to sell it to us at CARS24 and we'll make sure that you and your car get what you truly deserve. The payment will be done instantly and RC transfer and other paperwork will be done for free.
If you have any questions on selling your car, do let us know and we'll be happy to help!
Latest from Autoverse
2024 tata curvv vs citroen basalt suv comparison
Reviews
Tata Curvv vs Citroen Basalt - Clash Of The Coupe SUVs
Summary

Head over to our website to read a comparison between the soon-to-be-launched Tata Curvv and Citroen Basalt, discussing their design, engine options, features and tentative prices.

Aryan Aggarwal
Aryan Aggarwal
23 Jul 2024
4 Mins Read
How To Unlock Your Car Door If You've Locked The Keys Inside
Reviews
10 Most Expensive Cars in the World in 2024
Summary

Explore the top 10 most expensive cars in the world in 2024. These cars are not just expensive, but works of art that blend hyper-personalization, cutting-edge technology, and superior performance. They are a status symbol for the ultra-rich, crafted with meticulous attention to detail both inside and out.

Author Image
Karan Khilnani
23 Jul 2024
19 Mins Read
How To Unlock Your Car Door If You've Locked The Keys Inside
Car Advice
How To Unlock Your Car Door If You've Locked The Keys Inside
Summary

Encountered an unexpected lockout situation? Fret not! This guide provides valuable insights for regaining access to your vehicle. While seeking assistance from a qualified locksmith is always the recommended course of action, there are a few temporary solutions you can attempt in an emergency.

Author Image
Karan Khilnani
23 Jul 2024
11 Mins Read
How To Transfer Vehicle Registration From One State To Another with Cost
Car Advice
How To Transfer Vehicle Registration From One State To Another with Cost
Summary

Transferring car ownership in India requires following the rules of the relevant state. The process can be within the same state or across states. Documents like Registration Certificate (RC), Pollution Under Control (PUC) certificate and insurance certificate are required. No Objection Certificate (NOC) is needed for transfer across states. Fees and timelines vary.

 

Author Image
Karan Khilnani
23 Jul 2024
13 Mins Read
Driving Licence Status Online in Assam
Car Advice
Driving Licence Status Online in Assam – DL Application Status in Assam
Summary

This guide will help you check the application status online in just a few minutes! You have two options: the Sarathi Parivahan portal or the Assam Regional Transport website. All you'll need is your application number, date of birth, and a captcha code.

Author Image
Karan Khilnani
23 Jul 2024
6 Mins Read
Tata Curvv Design Sketches
Auto Insider
Upcoming Tata Curvv Interior Revealed In Sketches - Details
Summary

Tata Curvv interior sketches and renders have been released by Tata Motor Design’s Instagram handle. Check out how the interior layout of the Tata Curvv would look like.

Aryan Aggarwal
Aryan Aggarwal
23 Jul 2024
2 Mins Read
Car Image
Auto Insider
Upcoming 2025 Hyundai Creta EV Spied Again — Top 5 Things To Know
Summary

The upcoming Hyundai Creta EV launch is around the corner and ahead of its India debut, we share the top things you need to know about the 2025 Hyundai Creta EV.

Author Image
Amit Saraswat
23 Jul 2024
3 Mins Read
Engine Parts and functions_ Working of the Car Engine Explained
Car Advice
Engine Parts and functions: Working of the Car Engine Explained
Summary

Car engines work by sucking in air and fuel, compressing it, igniting it to create a small explosion, and then pushing out the leftover exhaust. This four-stroke cycle happens inside cylinders and with the help of many parts like pistons, valves, and crankshafts. Understanding these parts and how they work together is key to understanding how a car engine functions.

Author Image
Abhik Das
23 Jul 2024
12 Mins Read
Best super cars in India
Reviews
Best Super Cars in India – Price, Mileage, Specifications
Summary

India's supercar scene is booming! Our list spotlights the top 10 contenders in 2024, from the record-breaking Lamborghini Revuelto to the electric Lotus Eletre R. Find details on mileage, performance, and features for each to fuel your supercar dreams.

Author Image
Karan Khilnani
23 Jul 2024
18 Mins Read
BH Number Plate_ Bharat Series Number Plate Registration
Car Advice
BH Number Plate: Bharat Series Number Plate Registration
Summary

The BH series number plate is a new program in India that makes life easier for people who move from state to state for work. Instead of having to re-register your car every time you move, a BH plate allows you to drive your car anywhere in India. This is especially beneficial for government employees, defense personnel, and certain private sector employees who transfer locations frequently.

Author Image
Karan Khilnani
23 Jul 2024
12 Mins Read