How To Sell A Company Car?

How To Sell A Company Car?

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
Insurance 1

INDIVIDUAL DOCUMENTS REQUIRED TO SELL A COMPANY CAR

Pan card 1
Address proof 1
Photographs 1

COMPANY DOCUMENTS REQUIRED TO SELL A COMPANY CAR

Pan Card 1
Address Proof 1
Memorandum of Association (MOA) 1
Authority Letter or Board Resolution 1
Service Tax Receipt 1

RTO FORMS REQUIRED TO SELL A COMPANY CAR

Form 28 3
Form 29 3
Form 30 3
Form 26 2
Form 35 2

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!

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