Carriage by large vehicles: conditions and proof of financial standing

Are you interested in the road transport business operated by large vehicles? Find out what conditions to meet to obtain a licence and how hauliers prove their financial fitness.

What is large vehicle transport?

The category of "large" road transport includes:

• Passenger transport by vehicles carrying more than 9 persons including the driver;
• freight transport by vehicles heavier than 3.5 tonnes or by vehicles weighing between 2.5 and 3.5 tonnes with which you carry out either international road transport or national road transport in the territory of a State other than that in which you have your registered office as a haulier.

Requirements for a road transport licence

Whether you run a road haulage business as a self-employed person or set up a company, you'll need to get a trade licence. Road transport is one of the licensed trades, so it's not enough to simply report to the trade office, but you need to apply for a licence and prove:

• full legal capacity;
• professional competence;
• fulfilment of the conditions of the trade according to the law.

Your application will then be considered not only by the trade licensing authority, but also by the transport authority, without whose approval you cannot start a road transport business.

Special conditions for engaging in road haulage

The Road Transport Act sets out special conditions that you must meet on a permanent basis as an entrepreneur in road transport by large vehicles:

1/ Establishment

Establishment means that you have an actual registered office or place of business in the Czech Republic where you store all important documents so that the authorities can access them for verification. This includes accounting documents, documents relating to your employees, company vehicles, etc.

As part of the establishment, you must also provide proof that you can use at least one large vehicle (typically a bus or truck), whether owned or leased. For this, you must have the car's registration certificate and a document proving your right to use the car. The vehicle must be registered in the Czech Republic.

2/ Good reputation

In order to meet this condition, you must prove your good standing under both the Trade Licensing Act and the Road Transport Act. In addition to a clean criminal record, you must not lose your integrity as a haulier by:

• exceeding the maximum driving time limit;
• failing to take safety breaks;
• using deceptive devices that alter vehicle records, etc.

3/ Professional competence

By law, you must operate a large vehicle transport business through a responsible agent. This is an individual (you, your employee and a contractor) who meets the professional competence requirements and holds the position for no more than 4 hauliers who do not have more than 50 large vehicles in total.

The representative obtains professional competence by passing an examination with the transport authority. This will test his knowledge of road safety, environmental protection and technical standards as well as of law and operational economics. The test differs for freight transport and for passenger transport by large vehicles.

4/ Financial competence

You prove your financial competence from the start of your business - either with an opening balance sheet (if you keep accounts) or with an opening business assets summary (as a self-employed person with tax records).

You need to prove your financial capacity again every year.

How and to whom do I prove financial fitness as a carrier?

You must prove your financial fitness, i.e. your ability to meet your financial obligations, to the transport authority by 31 August each year. If you do not comply with this obligation, the authority may have your licence revoked.

Demonstrating financial fitness means that you have sufficient capital and financial reserves for all the vehicles in your fleet. You are counting on assets of:

• EUR 9,000 for the first or only vehicle used;
• EUR 5 000 for each additional vehicle used;
• EUR 900 per vehicle from 2.5 tonnes to 3.5 tonnes for international transport.

These limits are converted each year into Czech crowns based on the exchange rates published in the Official Journal of the European Union. The exchange rate applicable shall be that in force on the first working day of October, but shall not apply until 1 January of the following year.

You do not fill in a special form for reporting, but be sure to include information at least to this extent:

• Identification data - for a natural person, name and surname, business registration number and place of business registered in the public register; for a legal person, business name, business registration number and address of the registered office;
• the subject of the declaration - that is, proof of continuing financial capacity;
• identification of the transport authority to which you are sending your declaration - this is the regional authority/magistrate (Department of Transport) responsible for your place of business;
• signature - this obligation also applies to electronic communication.

You can send all this information to the transport authority both by post and, of course, electronically to a data or e-mail box. This fulfils your reporting obligation.

We can help you to obtain a licensed trade

Are you thinking about running a road transport business? With our help you will save time and avoid complications. Contact us today - we can help you get a trade license or start a business.

Contact information

Write to us and we’ll get back
to you within 24 hours.

+420 226 224 724

info@jake-james.cz

Revoluční 736/15, Praha 1

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