REGISTERING A COMMERCIAL VEHICLE

What is a commercial vehicle?

A vehicle under 3 tonnes of net mass is called a commercial vehicle. It can belong to an individual or to a company for professional or commercial activities. For instance, it is used as a taxi, a passenger transport, a driving school car, etc. A commercial vehicle can be a goods car, a lorry, a pickup truck, a van or even a SUV.

Necessary verification before registering

The first thing to know before registering a commercial car is, if your company is recorded on the REQ ( registre des entreprises au Québec) since you will need a NEQ in order to register the car.

Check with the RDPRM ( registre des droits personnels et réels mobiliers) if the car doesn't have the link, meaning it is under warranty or if the vehicle is entirely paid, otherwise it can be seized by the creditor. This step is essential when you buy a used car. If you had bought the car from an individual you have to do this verification yourself, however if you buy a car from a dealer you have to  make sure the verification is fully done, which usually should be the case.

Check if your car can be registered as well, the checking is not free of charge at the SAAQ service.

Additionally, check if the car is discounted, or if it is not allowed to circulate freely. If that is the case, the car needs an appropriate mechanical check certification issued by a certified business. No registration can be done without the certification.

Carefully check if the dealer or the buyer had paid off all their tickets (fines) received during violations of the Highway Security Code or the Traffic and Park By-law provisions. In case of non-payment of those fines at the Violations and Fines office, the car cannot be registered.

Finally, if your car is on a long-term rental with a lender or a creditor, make sure that the later accepts F license plates.

Documents needed for registration:

Driver's license or other official documents with photos are mandatory.

If the car is new: the buyer must require a transaction certification with the dealer (Attestation de Transaction Avec Commerçant ou ATAC) and a description of the new car issued by the dealer.

If the car is a used car: the documents required for registration differ according to the company statute or the car seller. The mileage is always required specifically:

✓ In the case of a purchase from a trader: an ATAC will be needed, as well as a registration document signed by the former owner and the trader.

✓ In the case of a purchase from an individual: a certificate signed by the trader is needed.

✓ In the case of a purchase from a self-employed person or a company registered for GST and QST: the contract of sale between the client and the self-employed person or the company is necessary. If none of the company directors cannot attend, the person who will do the registration must bring the original of the warrant authorizing them to act on the behalf of the company.

Taxes to be paid before registration:

GST and QST taxes must be paid by the buyer at the time of the purchase. Whether the car is new or used, those taxes must be paid if the car is from a self-employed person or a GST-registered company or a trader. If the car is bought from an individual, the buyer only pays the QST.

Registration fees:

Registration is charged. The cost of registration is higher for less than 7 years  vehicles, and whose values are more than 40 000$. Additional fees are represented by 1% of the surplus values of 40 000$. It is higher for cars with a 3,95 litre engine as well.

The insurance:

Any vehicles freely circulating within Quebec must have at least liability insurance of $50,000. If a commercial vehicle, registered with a F license plate, is intercepted by the police and is non insured or is involved in a traffic accident causing other's property damages of more than 500$, that could have serious repercussions. The company will have to pay a hefty fine and all their cars may not be allowed to circulate freely.

When should I renew my registration?

Once a year, SAAQ will send a registration renewal notice and will propose various methods to pay off your renewal.

Before buying a commercial vehicle, make sure to be well-informed to avoid unpleasant surprises during the registration.