Flagging out?
Page 27
Page 28
If you've noticed an error in this article please click here to report it so we can fix it.
A moving tale
The procedures of EU states vary considerably. In principle, however, the following steps will be necessary to flag out an operation effectively—and legally:
• If you are an individual you must physically ROM to the host state. Otherwise you must set up a separate legal entity, that is, a limited company, in accordance with the relevant rules of the host state.
• In most EU states you must obtain a business licence in order to operate any business. It is usually necessary to prove that someone is resident in the host state to run the business (this will often be the CPC holder).
• To obtain a business licence you will have to prove you are of good repute and appropriate financial standing. Those are similar tests to the ones for an 0-licence. The difference in many EU states, however, is that you may physically have to deposit money or provide some form of bond or other security.
• You will have to obtain an 0-licence and an international authorisation. All EU states are governed by the same directive so the procedures are very similar to the UK system.
• To obtain your international authorisation in some states you will be required to deposit a contract of employment showing that your drivers are being employed under the laws of • All the vehicles will have to be registered and tested in accordance with the laws of the host state. These vary throughout the EU. You will always have to effect some minor alteration, but the fact that your vehicle is right-hand drive will not generally cause any problems.
• The laws with regard to operating centres vary considerably throughout the EU. In some states, such as France, you will be required to have an operating centre. In others, such as Luxembourg, you will not. There are many states whore there is a formal requirement, but the checks are not very comprehensive.
• All vehicles registered in another Ell state must be insured in that host state. II There are separate laws in each member state with regard to ownership and finance of vehicles. What is clear, however, is that if you have vehicles in your possession which are financed under UK law. you will not simply be able to transfer the vehicles to a new company
registered in a foreign state. If you do that then your finance agreement will almost certainly be broken and the finance company will have the right to—and almost certainly will—terminate it. You will have to negotiate new finance agreements giving the finance company protection under the laws of the host state.