California Registration Service Bond

The California Registration Service Bond is required by the California Department of Motor Vehicles in order to obtain a license in this business.

According to the California Vehicle Code, a “registration service” is a person engaged in the business of processing for the public applications for registration, transfer of ownership, registration renewals, conducting lien sales, and processing dismantler documents.

What are the requirements in order to operate a Registration Service business in California?

In order to operate as a California Registration Service, the following application requirements must be met:

• An application for an Occupational License for Registration Service 
• A personal history questionnaire for each owner
• A Property Use Verification form
• An Appointment of Director as Agent for Service of Process form
• Fingerprints/Background Check
• Copies of the following:
  • Each owner’s identification card (driver’s licenses)
  • The business license
  • The fictitious name statement
  • A signed lease/rental agreement
  • Photographs of business location
  • If a corporation, the Articles of Incorporation filed with the state
• Inspections/Verification of the following:
  • Established Place of Business
  • Business signs
  • Property use
  • Business Records
• A $150 application fee, a $1 Family Support Program fee, and a $70 fee for each branch location
• A $25,000 California Registration Service Bond issued by a surety company licensed in California
  • Note: Surety1 represents over a dozen “A” rated markets that are licensed in California!

After this information is provided to the state and you receive your permit, a copy of the permit must be submitted to your DMV field office along with a Registration Service Questionnaire and an Employee Listing form.

The above list of requirements and necessary documents, along with an application checklist, can be found on the CA DMV website.

What is the purpose of the bond?

The bond protects the customer by guaranteeing that the company, or bond principal (the person or entity that buys the bond), will register the vehicle and pay all taxes and fees required by law.  It also ensures that the registration service does not cause any loss to the people of California because of the operation of the registration service.  Any fraud, deceit, misrepresentation and unlawful omissions or acts are protected under this bond.

Unlike standard insurance, this bond protects the clients of the registration service, rather than the registration service itself. If a client feels the registration services performed unethically or illegally, they can make a claim on the bond which the surety company (the company that issued the bond) will pay out if settled. The bond principal must then repay the surety company for any losses incurred.

Where can I get a California Registration Service Bond?

In order to obtain this bond, simply fill out our free online application! One of our licensed agents will contact you within one business day with a quote for the price to obtain your bond (the “premium”). If you choose to move forward after receiving your quote, we will have you sign any necessary paperwork and remit the premium payment, at which time we will ship your bond to you via USPS Priority Mail (with overnight shipping options also available).

Why choose Surety1?

At Surety1, our agents work with over a dozen “A” rated surety markets to ensure we are finding you the lowest price for your bond. We’ve been issuing surety bonds since 2003 and our quality, reliable service has led us to an A+ rating by the Better Business Bureau! Licensed in all 50 states.