Car rental is a flexible and cost-effective option for businesses that need transportation without investing in a fleet. Whether it’s for delivery, business trips, or employee use — here’s what legal entities or entrepreneurs (sole proprietors) should keep in mind.

1. Rental Types

• Short-term (under 30 days) — ideal for occasional or event-related use

• Long-term (30+ days) — an alternative to leasing with lower maintenance overhead

2. Required Documents

• Company registration details (Tax ID, legal address)

• Power of attorney or internal order for the driver

• Driver’s ID and license

• Company stamp (if applicable)

3. Contracts and Invoicing

• A vehicle rental agreement must be signed

• Payment is made via the corporate account

• Documents provided: contract, vehicle handover act, and invoices

4. Accounting and Expenses

• Rental payments can be listed as business expenses

• If the company is VAT-registered, VAT on rentals can be claimed as tax credit

5. Tax Compliance

• The rental provider must be a legally registered business

• Keep all documents in proper form for accounting and audits

Tip: For foreign companies operating locally, contracts may need to be bilingual and comply with local legal standards.