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Company Formation Czech Republic



Set up a Czech Business for the Sale of Motor Vehicles

Updated on Wednesday 11th September 2019

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Set-up-a-Business-for-Sale-of-Motor-Vehicles-in-Czech-Republic.jpgOne of the top economic sectors in the Czech Republic is the automotive industry, the country being known as one of the leading jurisdictions for the production of cars. The production of motor vehicles in the Czech Republic is represented by both local and foreign manufacturers, who have set their operations here, due to the attractive local business climate. 
Czech Republic has a long-term tradition in this sector and it benefits from a skilled workforce. A way to open a company in the Czech Republic related to the automotive sector is by starting a business for the sale of motor vehicles; as there are plenty of aspects that have to be concluded in a given order, it is highly recommended to receive the assistance of professionals who have an in-depth experience in the registration of a local business and here our team of specialists in company formation in Czech Republic can be of help. 

What are the requirements for importing vehicles in the Czech Republic? 

One of the ways to start a business for the sale of motor vehicles in the Czech Republic is by entering import activities. Provided that the businessmen prefer this option, there are several procedures that are required under the local legislation. Some of the basic requirements are presented below: 
  • an imported vehicle in the Czech Republic must be inspected by the Technical Inspection Unit;
  • the Technical Inspection Unit will issue a certificate that has a three months validity;
  • the document is used for the registration of the vehicle in the Czech Republic, stating that the product meets the required criteria;
  • when importing more than five vehicles per year, the inspection has to be requested by the importer of the products;
  • provided that the same company will import additional vehicles in the same year, the inspection will not be required (for the same types of motor vehicles that were previously imported);
  • any vehicle imported into the Czech Republic must follow the requirements prescribed by the Regulation No. 102/1995 Coll
Once these procedures are completed, the vehicle can be registered in this country with the Transport Inspectorate of the Czech Police. This step is also bound by complying with specific criteria, such as having a vehicle operating manual, a low emission rate, the vehicle’s steering wheel on the left side and others; our team of consultants in Czech company formation can assist with more information on other regulations applicable to the import of vehicles in this country. 

How many motor vehicles are sold in the Czech Republic?

The sale of motor vehicles in the Czech Republic has fluctuated over the years, while the production of vehicles in this country increased at a steady rate. At the level of 2014, the total production of vehicles was of 1,27 million units, most of them being sold as personal or small commercial vehicles. The market is also represented by the manufacturing of buses, motorcycles and trucks. When we refer to the sale of personal vehicles and small commercial vehicles, the following data is available:
  • in 2014, Czech Republic sold 192,314 personal vehicles and 13,215 light commercial vehicles;
  • compared to the data available for 2013, there was an increase in the sale of vehicles of 16.5%;
  • at the level of 2015, sales of motor vehicles accounted for 230,857 personal vehicles and for 17,300 light commercial vehicles;
  • on a year to year basis (from 2014 to 2015), this accounted for an increase of 20.7%;
  • in 2016, 259,693 personal vehicles and 19,239 light commercial vehicles were sold here;
  • the yearly increase for the sale of motor vehicles in 2016 stood at 12.4%. 

What are the documents needed for the registration of a vehicle in Czech Republic? 

A motor vehicle that is available for sale in the Czech Republic must be registered with the local authorities. For this, a set of documents has to be submitted and the types of papers required will depend based on the type of vehicle purchased – a new or a second hand vehicle; our specialists in Czech company formation can provide more information on this matter. 
In the case of a new car that was purchased in this country, the following are needed: the vehicle’s original registration document, the invoice issued when purchasing the vehicle, personal information of the new owner (in the case of natural persons, the residence permit is required if the buyer is foreigner), but also the car insurance documents
When selling a used car here, it also required to submit a copy of the previous owner’s identity documents. The car insurance document must state the name of the new owner. Those who want to find out more details on other regulations that are necessary to follow when starting a Czech business for the sale of motor vehicles are invited to contact our team of consultants in company formation in Czech Republic; our representatives can also assist with advice on the business permits that can be requested when opening a company in the Czech Republic

Meet us in Brno

Call us at +420 721 565 868 to set up an appointment with our specialists in company formation in Brno. Alternatively you can incorporate your company without traveling to Czech Republic.

As an CorpexLab client, you will benefit from the joint expertize of local experts and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Czech Republic.

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