How to Set Up a Transport Company in the UK
Setting up a transport company in the UK means more than buying a truck and getting on the road. It involves business registration, legal compliance, vehicle and driver management, and ongoing oversight to meet safety and licensing standards. Here’s how to get started.
Choose the Right Business Structure
You need a legal business identity. Most transport firms start as either a sole trader, a partnership, or a limited company.
A sole trader setup is simpler, with fewer administrative tasks. But it doesn’t protect personal assets if things go wrong.
A limited company separates personal finances from business risks and often looks more professional. You’ll need to register with Companies House, keep proper records, and file annual accounts.
Register for a Vehicle Operator Licence
You need an operator licence to legally run HGVs for business. The type of licence depends on your operations:
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Standard national: for carrying goods for hire and reward within the UK
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Standard international: for UK and international haulage
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Restricted: for carrying your own goods, not for others
Applications go through the Office of the Traffic Commissioner. You must show that you meet requirements for financial standing, safety, and management.
Meet the Financial Standing Requirements
You’ll need to prove that you can maintain your vehicles safely and run the business responsibly. Financial standing is calculated per vehicle.
The Traffic Commissioner sets a base amount per vehicle, updated yearly. This ensures operators have enough resources to cover maintenance, insurance, and running costs.
Secure an Operating Centre
Your business needs a legal operating centre. That’s where vehicles will be parked and maintained when not in use.
The centre must be suitable and safe for vehicle movement, and you must have permission to use it. Neighbours or councils can object if it causes noise or congestion.
Maintain Safety and Compliance Systems
You’re responsible for ensuring all vehicles are roadworthy. That means keeping up with:
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Preventative maintenance schedules
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Daily walkaround checks
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Driver defect reporting
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Records of inspections and repairs
Failing to keep vehicles in safe condition can result in enforcement action or licence suspension.
Appoint a Transport Manager (if required)
For standard licences, you need a qualified transport manager. They oversee compliance with vehicle safety, driver hours, and licensing rules.
This person must hold a valid Transport Manager Certificate of Professional Competence (CPC). You can appoint an internal staff member or an external consultant.
Hire Qualified Drivers
All drivers must hold the correct HGV licence and Driver CPC qualification. You’ll need to check:
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Licence validity
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Driver CPC card status
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Right to work documents
You also have to manage drivers’ hours, monitor tachograph data, and ensure rest breaks are taken properly.
Set Up Record-Keeping and Tachograph Systems
Accurate records are essential. You must track:
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Vehicle maintenance
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Driver hours
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Tachograph data
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Load details
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MOT and inspection history
Digital tachographs are required for most HGVs. You’ll need company and driver cards to download and store data securely.
Insure Your Business Properly
You must have motor insurance that covers HGV use for commercial purposes. Depending on operations, you might also need:
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Public liability insurance
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Employers’ liability insurance
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Goods-in-transit cover
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Breakdown assistance
Check that insurance meets legal requirements and covers the full scope of your operations.
Plan for Growth and Sustainability
As the business grows, you’ll need to adjust your systems to handle more vehicles, drivers, and routes. That means stronger systems for:
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Fleet tracking
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Compliance monitoring
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Financial forecasting
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Licence management
It also helps to review operations regularly and prepare for audits or spot checks by DVSA or the Traffic Commissioner.
Get Help from Transport Compliance Experts
Starting a transport company involves multiple moving parts. A mistake during setup can delay operations or risk future enforcement.
Blue Flag Transport Consulting helps new operators set up their companies the right way. Services include:
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Guidance on operator licence applications
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Operating centre reviews
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Financial standing planning
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Compliance systems setup
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Ongoing support and audits
They work with you to ensure every box is ticked before you hit the road.
Contact Blue Flag Transport Consulting today for step-by-step support in setting up your transport company in the UK. Stay compliant from day one.
