Conditions for establishing a transportation service business

Create at: 21/06/2022 12:47

1. What is a transportation service business?

🔰 Transport services are understood as economic activities that take place between the carrier and the user and payer. This service is conducted by various means: road, waterway, railway, air, and pipeline.

🔰 Types of transportation business:

✔ Air transport business.

✔ Inland waterway transport business.

✔ Inland coastal transportation business.

✔ Transport business by car.

2. Conditions for establishing a transportation service business:

2.1. Air transport business:

Minimum charter capital requirements:

➥ Operating up to 10 aircraft: 700 billion Vietnam dong for enterprises operating in international air transport; 300 billion Vietnam dong for enterprises operating only domestic air transport;

➥ Operating from 11 to 30 aircraft: VND 1,000 billion for enterprises operating in international air transport; 600 billion Vietnam dong for enterprises that only operate domestic air transportation;

➥ Operating more than 30 aircraft: VND 1,300 billion for enterprises operating in international air transport; 700 billion Vietnam dong for an enterprise that only operates domestic air transportation.

Transportation regulations:

➥ Each air transport business enterprise must have its own charter and the charter of the air transport company must not. Conditions of Carriage are an integral part of the contract of carriage by air, stipulating the carrier's conditions for the carriage of passengers, baggage, cargo, parcels, parcels, and mail by air.

➥ The carriage charter must not go against the provisions of the Civil Aviation Law of Vietnam and the provisions of international treaties to which the Socialist Republic of Vietnam is a contracting party.

2.2. Inland waterway transport business:

🔗 Having registered for inland waterway transport business.

🔗 Vehicles must ensure technical safety and environmental protection according to regulations; suitable with the form and business plan.

🔗 Seafarers must have professional degrees and certificates as prescribed. Crew members must meet the health standards prescribed by the Ministry of Health.

🔗 Seafarers and service personnel have a written labor contract with a transport business unit according to the form of the Ministry of Labor, War Invalids and Social Affairs (except for cases where they are both the head of the business household or the father, mother, wife, husband, children of business household head).

🔗 Buy vehicle owner's civil liability insurance for passengers and third parties.

2.3. Inland coastal transportation business:

️⛳ Financial conditions: Must have a guarantee in accordance with the law with a minimum amount of 05 (five) billion Vietnam Dong or buy insurance to ensure the obligations of the ship owner to the crew according to regulations.

️⛳ Conditions on ships: Having the legal right to use at least 01 seagoing vessel; if a seagoing vessel flies the Vietnamese flag, it must conform to the national technical regulations promulgated by the Minister of Transport.

️⛳ Conditions on organizational apparatus and human resources are as follows:

➥ Regarding the organizational structure, including: Safety management department according to the provisions of the International Code of Safety Management (ISM Code); the maritime security management department according to the provisions of the International Code on Security of Ships and Ports (ISPS Code);

➥ Regarding human resources: Persons assigned to be in charge of maritime safety and security management must be trained, and granted certificates according to regulations of the Minister of Transport.

2.4. Transport business by car:

✔️ To register the transport business by car according to the provisions of law;

✔️ To ensure the quantity, quality, and useful life of the vehicles in accordance with the business form; the means of transport business must be fitted with a device to monitor the vehicle's journey in accordance with the Government's regulations;

✔️ Ensure that the number of drivers and service personnel on the vehicle is consistent with the business plan and must have a written labor contract; service personnel on the vehicle must be trained in transport business and traffic safety; not use drivers who are banned from practicing as prescribed by law;

✔️ Persons directly managing transport activities of enterprises or cooperatives must have professional qualifications in transport;

✔️ Having a parking space suitable to the size of enterprises, cooperatives, and business households, ensures requirements for order, safety, fire prevention, and fighting and environmental sanitation.

3. Procedures for establishing a transportation service business:

3.1. Place of business license:

⏩ Apply directly at the Department of Transport of the provinces and centrally-run cities

3.2. Procedures for setting up an advertising company:

👉 Step 1: Advise business people on the regulations on setting up a company

👉 Step 2: Prepare documents and give them to business people to sign.

👉 Step 3: TASCO will submit the application on your behalf and receive the results.

👉 Step 4: Hand over the registration certificate to entrepreneurs.

👉 Step 5: Post-establishment consultation.

3.3. Performance records include:

➥ Charter of advertising company;

➥ An application for registration of the establishment of a company;