The validation is the periodic review (generally every two years) through which the authorities check that the licence continues to meet the requirements: valid insurance, tax and employment obligations up to date, and the vehicle correctly registered.
It matters because an authorisation that is not renewed on time becomes invalid: the authorities may declare it expired, and with it, the entire value of the asset evaporates. It is the private hire version of ‘the premises are fine, but they’re on the verge of falling into disrepair’.
When buying, always check:
- That the latest renewal has been completed and documented.
- That there are no unmet requirements that could complicate the next renewal (debts owed by the licence holder to the tax authorities or social security, expired insurance).
- That the transfer does not coincide with an imminent renewal deadline for which no preparations have been made.
At VTC360, a valid licence forms part of the basic verification for every certified licence, alongside ownership, encumbrances and penalties. If the listing does not confirm this, ask for it before discussing the price — or request the full dossier, which includes this information.
LAST REVIEWED · Jul 19, 2026 — VTC360 guide: general criteria, not advice for your specific case.