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Opening a Transportation Company in Ireland

Opening a Transportation Company in Ireland

Transport legislation in Ireland

The transportation sector represents an important economic activity in Ireland, being the primary means through which the economy develops in this country. One of the main rules of law addressed to the Irish transportation sector is the Public Transport Regulations Act, enacted in 2009 by the National Transport Authority of Ireland.

The new legislation requires all Irish companies to obtain a license if they are providing transportation services. The same legislation applies to both public and private companies in Ireland. Licensing requirements differ for companies providing services under a Public Service ContractOur team of consultants in company registration in Ireland can provide assistance on the obligations of all transportation businesses operating here. 

Transport license applications in Ireland

All Irish companiesproviding transportation services are required to apply for a license before starting operating. The only exceptions from these regulations are applicable in the case of the following types of businesses: companies providing services for the carriage of children to and from school, companies providing international services and which are authorized under the EU legislation and Irish private companies in Ireland hired by a group for a certain fee.

In all other cases, transportation businesses are required to apply for a license and the transport license application should contain a set of details. Our company formation specialists in Ireland can advise on how to apply for a local transportation license, which should contain the following information upon registration: 

  • • details about the nature of the service provided by the Irish transportation company;
  • • an estimation concerning the capacity of vehicles (the number of persons a vehicle can carry);
  • • the fare to be imposed for a specific transportation service of the company;
  • • an electronic timetable for the services provided and an Ordinance Survey Ireland map establishing each station.

If you want to set up a company in Ireland, we can help you. From the first to the last step of business registration, you can count on company registration advisors. Get in touch with us if you intend to start a new business, and our agents can handle the entire process on your behalf. Moreover, we also provide assistance in accounting matters.

What are the main transportation licenses in Ireland? 

Ireland provides a set of transportation licenses that are issued in accordance with the specific objects of activity of the transportation company. If the company in Ireland provides services for the transportation of goods, a Road Haulage Operator’s License will apply. The license is necessary as long as the entity transporting the goods is paid for the respective service, which creates a commercial relation between the parties. Persons or companies transporting goods in their own name to a given destination are not required to obtain this document.  

A license is also necessary for the transportation of persons. In this case, the transportation company in Ireland has to apply for a Road Passenger Transport Operator’s License. This is legally necessary when a commercial relation is established, this meaning that the transportation operator is paid to provide these services. The license is issued for a transportation operator that has a suitable transportation vehicle (designed to accommodate the transportation of passengers) and that transports more than nine persons

What are the regulations concerning the issuance of Irish transportation licenses? 

The main requirements that have to be met by the applicant transportation companies depend on the nature of the license. For instance, in the case of the types of licenses presented above, the company’s representatives have to register with the Road Transportation Operating Licensing Unit, a sub-division of the Department of Transport, Tourism and Sport; the institution is in charge with the issuance of the licenses, which also incur specific fees. 

In the case of businesses that need licenses for the transportation of persons, it is necessary to know that additional licenses may apply, this being the case of the Route License. This type of license is necessary when transporting passengers between two terminals or on specific routes. However, investors must be aware that this type of license falls under the regulations of the National Transport Authority; our team of consultants in company registration in Ireland can offer advice on how to apply for this type of license. 

The issuance of the license for the transportation of persons is bound by the fulfillment of several conditions and some of the main requirements are the following: the company is registered in Ireland and the company’s personnel has the appropriate professional competence, this being some of the main aspects. Please note that the application for this license provides different forms based on the legal nature of the applicant (sole trader, company, partnership). 

What are the requirements to register a transportation company in Ireland?

The first step to start a transportation company is to register the company with the Irish Trade Register and select the right NACE codes from the Nomenclature of Economic Activities. For those providing transportation services the NACE codes are found under Section I Transport, storage and communication.

The following codes apply for this sector: 60 for land transport, 60.1 for transport via railways, 60.2 for other land transport, 60.21 for scheduled passenger land transport, 60.22 for taxi operations, 60.24 for freight transport by road, 63.11 for cargo handling, 63.21 for other support land transport activities and 63.30 for activities involving travel agencies and tour operators.

What are the main trends of the Irish transportation sector? 

The transportation sector in Ireland expanded in the last years and this can also be seen in the number of employees hired in this industry. In the fourth quarter of 2017, the industry accounted for 95,200 persons employed in the transportation sector. It is also necessary to mention that the transportation industry marked a noticeable trend regarding the usage of electric vehicles. In 2017, there were 914 new electric vehicles registered on the market, up by 33%. Other important matters are the following: 

  • • most of the Irish citizens commute to work by using cars, this being applicable to approximately 65,6% of all the persons using transportation in this country (in 2016);
  • • a share of 9,3% walk to work, while the bicycle is used in Ireland by 3% of the Irish commuters;
  • • the main public transportation means used by Irish persons are the bus and train;
  • • in 2017, there were registered 254,400 flights at the country’s main airports;
  • • the number of passengers in the aviation industry increased by 5% in 2017, reaching 34,5 million;
  • • in 2017, Ireland had a total of 5,333 kilometers of national roads;
  • • the maritime sector also expanded in 2017, accounting for 2,8 million passengers (increase of 2%).

For a complete list of all the available NACE codes please contact our specialists in company registration in Ireland. Our consultants can assist throughout the entire incorporation procedure available for an Irish transportation company and can also provide advice on the taxation and accounting requirements imposed to a local business.