Any business in the transportation industry will surely thrive if run properly. It is always necessary to move people, goods and equipment from one place to another. Freight transport is particularly advantageous because it offers a better return on investment compared to other companies in the transport sector. Transportation involves moving goods and raw materials from one end to the other; they can be raw materials from the ports to the factory where they will be used; or finished products from factories to end users.
Due to the level of risk associated with transporting goods, there are many legal requirements that must be observed. Some of them include:
Top 10 Legal Requirements to Start a Trucking Business
1. Company registration … First, you need to register your business with the agency responsible for business registration in your country. For example, if you live in Nigeria, the Corporate Relations Commission ( CAC ) must register your business You can register your business name or register your business in Nigeria depending on how much growth you expect from your business, but it is always recommended to include your business so that you can be more secure and you adapt For growth.
This is very necessary, especially if you want to work between states. Failure to comply with this instruction could lead to embarrassment on the part of the police. easy to register your business in Nigeria; You can go to the nearest CCC office or hire an experienced lawyer or accountant to do it for you.
2. Get insurance -: You cannot do without insurance in the transport sector. This is due to the high level of risk associated with the business. Accidents can happen and result in the loss of your vehicle or even of the goods you contracted for transport. In Nigeria, there have been cases of tankers carrying petroleum products falling and spilling their contents, causing a fire; burns a lot of property belonging to other people. Such events cannot be predicted, but the effect can be reduced by insurance.
3.driving license … The type of driver’s license required for heavy truck drivers is different from a driver’s license. Therefore, you will either need to obtain a heavy vehicle driver’s license for your employees or hire people who already have such a license. But the most important thing is to only hire people who are professional and experienced drivers. This will go a long way in reducing recklessness and vehicle accidents. These licenses can be obtained from a motor vehicle registration center in your country after your drivers have been tested and verified for their ability.
4. Motor vehicle license … You will also need some car licenses. In Nigeria, for example, you will need a road certificate, a Niger Delta permit, customs documents if your vehicles have been imported, and permits from the local government. These permits are generally obtained and renewed annually and must be obtained for each vehicle in your fleet.
5. Registration in trade unions: You may also need to register with some specific unions. If you want to start shipping oil to Nigeria, you will need to register with the Oil Tanker Drivers Association, which is an association for people involved in transporting oil to Nigeria. You may also need to register with the National Union of Road Transport Workers in Nigeria (NURTW), National Union of Oil and Gas Workers (NUPENG) and NARTO.
6. Contractual agreement – … Many companies find it more economical to use the services of transport companies to transport goods and goods for them for a monthly payment. If you intend to work with one of these companies, you will need a legally binding agreement signed between you and the company. This agreement will specify all the conditions of the contract, as well as the terms of payment and the conditions of exit. This agreement will serve as protection for both parties.
7. Sales / rental / rental contract: Buying your own truck is expensive and many people in the transportation industry choose to lease vehicles or buy for hire. Both of these methods provide flexibility in the payment methods so that you can pay for the vehicles from your income. If you choose this method of financing, you will need to make an agreement with the seller. This lease / rental will also specify all the conditions that both parties have accepted.
8. Fire safety rules – … If you intend to work with oil companies such as Total or Oando, there are strict safety rules that you must strictly follow to avoid accidents and explosions. You may also need to hire a security guard or security consultant who will be responsible for advising and overseeing operations to ensure compliance with security regulations.
9. Taxation – … Taxation is another important legal requirement for the transport of goods. You will need to register with the Federal Tax Service to pay income tax, value added tax (, if applicable ) and other applicable taxes. You will also need to register with the State Internal Revenue Service to pay income and employee taxes.
After registering, you need to make sure you pay all taxes on time. PAYE employee taxes must be collected monthly, as are value added taxes and withholding taxes. When it comes to income taxes, they must be filed annually after preparing your financial statements, so it is important for you to always keep proper financial records.
10. Employee health, welfare and safety – … Finally, you need to take steps to protect your employees, including purchasing insurance for your employees, especially drivers. You should also take out health insurance so that you can take good care of it in the event of illness or accident.