How to set up a company that provides passenger transport with motor vehicles
How to step by step to set up a company that provides passenger transport with motor vehicles? What formalities should be completed? We explain.
General characteristics of passenger transport by motor vehicles
A company dealing in road passenger transport provides services in the field of passenger transport by motor vehicles. Transport can be performed by: bus, car vehicles with a capacity of 7 to 9 people - including the driver (buses) or passenger cars.
Preliminary requirements related to the operation of passenger transport by motor vehicles
The activity consisting in the transport of passengers is a regulated activity, which means that it requires appropriate permits and licenses. Persons who will manage the company may not be convicted by a final court judgment for intentional crimes: criminal fiscal crimes, against security in communication, property, economic turnover, credibility of documents, environmental protection. Moreover, the entrepreneur cannot be prohibited from carrying out economic activity in the field of road transport.
The future owner of a transport company in the field of passenger transport must:
- have a real and permanent seat,
- have the financial capacity to start a business,
- obtain a permit to pursue the occupation of road transport operator.
In addition, at least one of the persons managing the company or the person managing the road transport company must have a certificate of professional competence, i.e. a document confirming the qualifications and knowledge necessary to perform economic activity in the field of road transport.
The owner of such a company may also be required to obtain a Community license or a license for road transport in the scope of passenger car transport.
The issues of training and professional qualifications are regulated by the Regulation of the Minister of Infrastructure of April 1, 2010 on the training of drivers performing road transport.
Medical examinations for entrepreneurs engaged in the transport of passengers by motor vehicles
If the entrepreneur personally carries out road transport, he is also subject to obligatory medical and psychological examinations. The first medical and psychological examination for drivers engaged in road transport is carried out before the date of issue of the professional qualification certificate confirming the completion of qualifications, and each subsequent for a driver up to 60 years old - by the date appropriate to complete periodic training, but not later than by the date of issue of the qualification certificate. vocational training confirming completion of periodic training.
Acceptable forms of conducting the business of passenger transport by motor vehicles
How to set up a passenger transport with motor vehicles
Each entrepreneur who has decided to set up a business must register it in the Central Register and Information on Economic Activity (CEIDG). You can start running a company in the field of passenger transport by motor vehicles on the day of submitting the application for entry in CEIDG (you can also indicate another date). Entry in the register is made electronically or by traditional means. The application for entry in CEIDG consists of all its parts, if they are filled in (CEIDG-RD, MW, RB, SC, PN) and the application should be submitted to the commune or city office chosen by the owner of the company.In the case of an electronically completed application on the CEIDG website, there is no division into the above-mentioned parts.
Transport of people by motor vehicles - sole proprietorship
When setting up a company that provides passenger transport by motor vehicles in the form of a sole proprietorship, you must register your company with the city or commune office.
This type of activity, unlike companies, is self-conducted. A sole proprietorship means that the company has only one owner, but this is not binding as to the possibility of hiring employees. Initial capital is not required from the entrepreneur and the driver does not have to keep full accounting. For small enterprises, it is possible to keep simplified accounting until the turnover does not exceed EUR 1,200,000.
It is worth deciding to set up a sole proprietorship because of the possibility of taking advantage of discounts and subsidies. A beginner owner of a company providing passenger car transport services may, for example, pay ZUS contributions at a lower, preferential rate for the first 24 full months of running a business or use EU de minimis aid.
Transport of people by motor vehicles - civil partnership
A civil law partnership is characterized by the fact that it has no personality or legal capacity and operates based on the provisions of the Civil Code. It is a good choice for small and family-run businesses.
This type of company may be established by at least 2 natural or legal persons. A civil law partnership is not subject to registration in the National Court Register, but partners must remember to enter it in the Central Register and Information on Economic Activity (CEIDG). Each partner is responsible for the partnership with his / her personal property. Initial capital is not required for the registration of a civil law partnership by a driver providing passenger vehicle transport services.
Determination of PKD for a company providing passenger transport by motor vehicles
PKD for a company providing passenger transport by motor vehicles is 49.39.Z - Other passenger land transport, not classified elsewhere. This code applies to:
- other passenger road transport, such as:
- scheduled long-distance bus transport,
- rental of buses with a driver, excursion and tourist transport as well as other occasional bus services running without a fixed schedule,
- shuttle services between the airport and fixed points in the city center of transport
2. school and work bus transport
The best form of taxation for a company that provides passenger transport by motor vehicles
Carriage of passengers by motor vehicles, taxation of activity on general principles
With an income lower than PLN 85,528, the owner of a company providing passenger transport by motor vehicles will be obliged to pay tax in the amount of 18% of income, if the income is higher - the tax will amount to 32%. What are the advantages of taxation under general rules? After deciding on this type of business settlement, the future entrepreneur will be required to keep a book of revenues and expenses.
Carriage of passengers by motor vehicles - flat tax
An entrepreneur planning to achieve high income (over PLN 100,000) should benefit from flat taxation. Then it applies a flat tax rate of 19%. The choice of this form of taxation requires the keeping of the KPiR. In addition, remember that it is not possible to:
joint settlement with the spouse,
take advantage of tax reliefs.
Carriage of passengers by motor vehicles - a lump sum on recorded revenues
The lump sum is a simplified form of settlement and it is possible when the annual income does not exceed PLN 250,000. euro. The amount of tax depends on the amount of income, therefore entrepreneurs will not be able to deduct tax deductible costs in such a case. After the end of the tax year, until the end of January of the following year, the entrepreneur uses a lump sum account for the revenues that he achieved in the previous year under this method of taxation by submitting the annual PIT 28 tax return.
When the entrepreneur decides to provide passenger transport services, the rate does not depend on the capacity and is uniform for all services. It amounts to 8.5% regardless of the form of passenger transport. It can be carried out by taxis, buses or coaches.
Transport of passengers by motor vehicles with or without VAT?
Business owners who intend to perform activities for other VAT payers or plan to achieve high turnover from business activity should decide to register themselves as an active VAT payer on the VAT-R form. In this case, being a VAT taxpayer is associated with the benefits of the possibility of deducting VAT from purchase invoices.
A company providing passenger transport services is taxed at the rate of 8%. However, in some cases, such services may be taxed at 0% or even exempt from VAT.
Social security contributions for a company providing passenger transport by motor vehicles
Application for insurance
The owner of a company providing passenger transport with motor vehicles, who starts running a business, reports it on the CEIDG-1 form. This form is also a notification to ZUS.
Nevertheless, the entrepreneur must additionally submit an appropriate form in order to register for social insurance and health insurance. The owner of the company has 7 days for this from the date of commencement of business activity. To do this, fill in the form:
ZUS ZUA - if the person running the company is subject to social and health insurance,
ZUS ZZA - if the entrepreneur is subject only to health insurance (social insurance is covered by full-time work or running other activities or by using the start-up relief).
Sickness insurance is voluntary for the entrepreneur. ZUS covers him with this benefit upon his application. It is submitted on the ZUS ZUA form, along with registration for compulsory social security and health insurance.
Relief to start
Thanks to the start-up relief, a taxpayer starting a business has the option not to pay social security contributions (retirement pension, disability pension, accident, sickness) for 6 months from commencement of business activity. However, in order to be able to take advantage of the start-up relief, the entrepreneur must meet the following conditions:
- be a natural person (i.e. conducting sole proprietorship or a partner in a civil law partnership)
- starts business activity for the first time or resumes it after at least 60 months from the date of its last suspension or termination
- does not perform activities for a former employer for whom they worked full-time in the current or previous calendar year and performed activities falling within the scope of their current activity
- is not insured by KRUS
If a person starting a business meets the conditions and takes advantage of the start-up relief, they will only be required to submit to ZUS a health insurance application on the ZUS ZZA form within 7 days of starting the business.
Preferential social security contributions
An entrepreneur who starts a business or the period of the 6-month start-up allowance has expired, may take advantage of preferential ZUS contributions, which cover a period of 24 full months. The amount of ZUS contributions depends on the average salary in Poland. The basis for the amount of contributions for people who pay social contributions on a preferential basis is 30% of the minimum wage in a given year.
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Improving the management of a transport company
A transport company is widely recognized as a high-risk activity. Despite its huge market share, this industry is particularly exposed to a loss of financial liquidity. This situation is influenced by long payment terms of invoices by contractors, leasing installments, sudden and unexpected vehicle repairs, low margins and the lack of drivers to work. Another challenge for transport companies is the proper management of subordinate employees as well as the administration of the circulation of documents, invoices and reports.
Efficient document management in the company
Particularly important, especially for small transport companies, where the owner is both the boss and the employee, and also employs several subordinates, is taking care of the proper management of the company. Running a business related to transport is connected with the necessity to take care of a number of legal requirements. Depending on the type of goods transported, the required documents include:
extract from the authorization to pursue the occupation of transport operator or from an extract from a Community license
a phytosanitary certificate for the transport of specific goods
a license for international road transport (if the company assumes cooperation with foreign contractors)
car liability insurance
The aforementioned documents constitute only a fraction of the collection of letters that the transport company and its drivers should present. It is also worth remembering that the transport company could not function in accordance with the law without reliably kept accounting and HR documents. In order to improve this part of the entrepreneur's obligations, it is worth considering the choice of a system that facilitates issuing invoices (with the option of changing the language versions), or monitors vehicle mileage records and company car settlement. A comprehensive program that includes, among others the mentioned function is the wFirma.pl system. In addition, thanks to the appropriate modules, the entrepreneur will also be able to:
draw up contracts with employees and settle them
- keep records of working time
- generate payroll
Business account for the entrepreneur's company
A person running a company in the field of passenger transport by motor vehicles is not required to set up a separate company account. May use a private bank account for business purposes. However, it should remember that the account must have one owner (couples with a joint account cannot use it for corporate purposes).
Making or receiving payments related to the performed business activity should be carried out via the entrepreneur's bank account whenever:
another entrepreneur is a party to the transaction from which the payment results
the one-time value of the transaction, regardless of the number of payments resulting therefrom, exceeds the equivalent of PLN 15,000.
GDPR in the shipping company
A future entrepreneur running a transport company in situations where he processes personal data, under the GDPR Regulation, is obliged in particular to:
- ensuring an appropriate level of security for the processing of personal data, in accordance with the principles set out in the GDPR Regulation, i.e., for example, to ensure that data are not disclosed to unauthorized persons,
- performing obligations arising from the rights of persons to whom personal data relate,
- appointing a personal data protection officer (in a situation where the entity is obliged to do so in accordance with Article 37 (1) of the above-mentioned regulation)
- legal processing of personal data, i.e. based on the premises indicated in the GDPR.
The introduction of the GDPR in a transport company is extremely important, because running such a company involves the processing of personal data: employees (for HR purposes) or passengers.
Marketing for a company providing passenger transport by motor vehicles
Transport companies are focused on accepting, above all, standing orders, which will allow them to obtain a stable position on the market. In the transport of people by motor vehicles, the most important aspects, and at the same time elements of advertising, are:
Starting marketing for a fresh company providing passenger transport services by motor vehicles should take the following forms:
Internet advertising on portals - as the basic form of communication with the market, e.g. Taelo.pl - a free website for advertising the company,
mass, paid and impersonal form of presenting the sale offer,
personal sale - presenting the offer of a company providing passenger transport with motor vehicles through a direct conversation between the seller and a potential buyer;
direct marketing - works by using non-personal contact tools with potential customers;
public relation - striving to create, consolidate and expand social trust and a positive image of the enterprise.