The Transport and Logistics Bureau on Monday proposed to regulate online car-hailing platforms by requiring them to obtain a licence to operate.

In a document submitted to the Legislative Council, the bureau said it aims to present the legislative proposal next year.

Before making the new rules, the bureau will carry out a study on passenger demand and how their needs are changing.

The government said it has already increased penalties for illegal ride-hailing services, but there are limits to enforcement.

It is proposing to increase the deterrent effect by withdrawing a driver's licence for a minimum period of time, such as 12 months.

The bureau said it would work with the Department of Justice and the police to work out the details.

The government has also looked at how other places deal with illegal ride-hailing services, noting that there are already laws regulating online car-hailing platforms in places such as Shenzhen, Singapore, Japan and London.

It said in Shenzhen, for example, people who provide unlicensed ride-hailing services can be fined up to 30,000 yuan.

In response, Uber said it welcomed the government's plan to create a regulatory framework.

However, a spokesman for the car-hailing platform said authorities should avoid imposing limits on the number of vehicles that can operate under each platform, warning that this could make ride-hailing services more expensive.