Logistics company registration in the Czech Republic

What’s the process of registering a logistics company in the Czech Republic like and why should I choose the Czech Republic for this type of business?

The Czech Republic is a member of the European Union (EU) and also a member of the European Economic Area (EEA), which opens up the free movement of goods, services, individuals and capital. The Czech Republic is located at the very center of Europe and at the same time is considered the most affordable location in terms of labor and services. There are also relatively low taxes, simple and understandable laws and a language that is not difficult to learn, which makes it possible to consider the Czech Republic as one of the best countries for starting a business in Europe.

The first stage is company registration. The registration of a logistics company actually begins with the registration of the company itself. You can also buy a ready-made company, but no seller can guarantee you 100% company purity and the absence of hidden debts. Therefore, registering an organization with limited liability (s.r.o.) is best suited for this kind of business.

The next stage is obtaining a transport license. There are two types of cargo transportation licenses: for vehicles up to 2.5 tons and for vehicles over 2.5 tons. The process of obtaining a license for cargo transportation using vehicles over 2.5 tons is described below.

To obtain a license, the following is required:

1. A License Representative (odpovědný zástupce). The license representative may be a person who has passed a special profile exam and received a certificate. Such a person can be the owner of the company, an employee, or a third party. As a rule, a third party is involved at the stage of registration of a transport company. The average price of payment for this service to the license representative is CZK 4,000 per month. Some representatives prefer to receive a one-time payment (set individually). Later, when the company has a driver with such a certificate, the representative can be replaced. It is necessary to provide a contract between the company and the authorized representative (Smlouva nebo Dohoda o provedeni prace – mezi spolecnosti a odpovednim zastupcim).
   
   
2. The financial solvency of the company (finanční zpúsobilost). Following Article 7 of the Regulation of the European Parliament and of the Council No. 1071/2009, each undertaking engaged in cargo transportation is obliged to have disposable capital and reserves totaling at least EUR 9,000 when only one vehicle is used and EUR 5,000 for each additional vehicle used. Confirmation must be received every year. The application (“Žádost o osvědčení o finanční zpúsobilosti dopravce”) is submitted to the Magistrate no later than July 31st of the reporting year.
   
   As a confirmation of financial solvency, the application is annexed with:
   • Annual financial statements, from which it can be seen that the company’s equity covers the entire fleet;
   • Confirmation of the carrier’s liability insurance, financial solvency insurance, or a bank guarantee.
   
   

   When business commences, it is also possible to attach an initial balance sheet and a business plan with an overview of business assets. If the company’s equity capital is not sufficient, it can be increased by increasing the foundation capital or by increasing the equity capital through the formation of a fund. The second method is much faster, does not require changing the foundation documents and does not incur notary costs.

3. Confirmation of the presence of at least one truck with a maximum permissible weight of more than 3.5 tons. It can be a car that you own, rent or lease. You must provide a copy of the vehicle registration document in which your company is registered as the owner or user, or the vehicle registration document and the contract on the basis of which you will use it.
   
   After receiving the concession, you must submit changes to the Trade Register stating that you have added a type of activity – logistics (Předmět podnikání:-silniční motorová doprava – nákladní provozovaná vozidly nebo jízdními soupravami o největší povolené hmotnosti přesahující 3,5 tuny, jsou-li určeny k přepravě zvířat nebo věcí).
   
   
4. Obtaining an EU Community licence. The EU Community license is a license for undertakings carrying out international cargo transportation with vehicles over 3.5 tons, which allows the transportation of goods within the EU without any additional entry permits. It is issued for a period of 10 years, and a copy of it must be in every vehicle. The application is submitted to the Magistrate, an administrative fee of CZK 1,000 is paid for one license and CZK 500 for each additional copy. If you cannot prove your financial solvency, the Community licenses must be returned, since they will be automatically revoked.
   
   
5. Driver’s certificate. In accordance with Article 12 of EU Regulation No. 1072/2009, anyone who hires drivers from a third country (not a Member State) is obliged to request a document confirming that the driver works in a Member State country. A logistics company holding a Community license or applying for it must submit a completed form to the appropriate authority to obtain a driver’s certificate. The application must be accompanied by valid driver’s documents (a passport, a driver’s license, confirmation of registration with the CSSZ social agency and an employment contract). In accordance with Regulation No. 2016/679 of April 27, 2016, on the processing of personal data, the company must simultaneously request the driver’s consent to the processing of their personal data for this purpose.
   
   

Our services involve several advantages for the client:

• You get full support from company registration to comprehensive accounting services from one place;
• A team of professionals with more than 10 years of experience will be at your disposal;
• You get a ready-made business and can start trading almost immediately;
• we respect trade secrets and guarantee confidentiality.

To get started, contact us in any way convenient for you. One of our specialists will contact you to clarify the details.

All information received about your company is confidential and is not subject to disclosure.