The railway undertaking licence

The railway undertaking license

is a document authorising the railway undertaking to run trains.

The Rail Authority grants railway undertakings licenses (authorisations) to run trains

• on national railways,
• on regional railways,
• within a siding,
• on local railways.

Holders of a valid railway undertaking license licensed to run trains on national and regional railways may also run trains on local railways or within sidings. Holders of a valid railway undertaking license licensed to run trains on a local railway or within a siding or railway undertakings not holding a safety certificate may also run trains on a junction with the national and regional railways.

• A valid railway undertaking licence issued by a competent authority of another Member State in accordance with the European Union directive establishing a single railway area shall also be deemed to be a valid railway undertaking license to run trains on national and regional railways.
• The railway undertaking licence to run trains on rail systems, with the exception of special rail systems (metro) or test tracks, is in the Czech Republic granted by the Czech Rail Authority.
• The licence to operate vehicles on tramway, trolleybus or special rail systems is granted by the municipality.
• There is no licence to operate a cable installation or a test track.

The licence holder is obliged to notify the Rail Authority of any change to the information contained in the licence within 30 days of the date on which the change occurred. In this case, the Rail Authority records the change in the licence already issued and, if this is impossible, issues a new licence.

The applicant shall:

• be more than 18 years old and have full legal capacity, if the person is a natural person,
• have no criminal record,
• be professionally competent,

A person shall be deemed to be professionally competent who:

1. • has completed a bachelor's, master's or doctoral degree in engineering science and technology, transport, economics or law and has at least 3 years' experience in management activities in the field of transport by rail or using other guided transport systems, or
   • has completed higher vocational education or secondary education with the baccalaureate in a field related to transport by rail or using other guided transport systems and has at least 5 years' management experience in the field of transport by rail or using other guided transport systems.

The fields related to transport by rail or using other guided transport systems are listed in Section 76b of Decree No 173/1995 Coll., issuing the Transport Code for Railways and Other Guided Transport Systems, as amended.

• be financially fit,

A person is financially fit if he or she has the financial resources allowing them to ensure the commencement and proper operation of trains for a period of at least 12 months.  The financial fitness is demonstrated in particular by means of annual financial statements or an opening balance sheet if the applicant has not been keeping accounts so far. A person is not deemed to be financially fit in the following cases:

1. • the person's assets are subject to liquidation or reorganisation on the basis of a decision of an insolvency proceedings court;
   • the liquidation in respect of the person has been reversed by court on the grounds that the debtor's assets are wholly insufficient to satisfy creditors;
   • the person owes taxes, social security contributions or penalties, state employment policy contributions or general health insurance premium.

• have not seriously breached labour laws,
• have not seriously breached customs regulations in respect of the authorisation to operate freight train services,
• be insured as of the date of commencement of rail transport operations against the obligation to compensate for damage caused by such operations; and
• be established in the territory of the Czech Republic.

The applicant shall:

• be more than 18 years old and have full legal capacity, if the person is a natural person,
• have no criminal record,
• be professionally competent,

A person shall be deemed to be professionally competent who:

1. • has completed a bachelor's, master's or doctoral degree in engineering science and technology, transport, economics or law and has at least 3 years' experience in management activities in the field of transport by rail or using other guided transport systems, or
   • has completed higher vocational education or secondary education with the baccalaureate in a field related to transport by rail or using other guided transport systems and has at least 5 years' management experience in the field of transport by rail or using other guided transport systems.

The fields related to transport by rail or using other guided transport systems are listed in Section 76b of Decree No 173/1995 Coll., issuing the Transport Code for Railways and Other Guided Transport Systems, as amended.

• be established in the territory of the Czech Republic.

PLEASE NOTE! The licence to operate vehicles on tramway, trolleybus and special rail systems is granted by the municipality.

In the case where the applicant for the railway undertaking licence is a legal entity, the condition of professional competence must be met by at least one member of the applicant's governing body. This requirement cannot be delegated to another person who is not a member of the governing body.

For licences granted before 1 April 2017, the obligation to notify changes in the information applies to all changes listed in the (most recent) decision still in force. In the event of a change, the Rail Authority will issue the railway undertaking with a new model railway undertaking licence to operate vehicles on rail systems.

The railway undertaking must comply with the conditions set out in Section 25 of Act No. 266/1994 Coll. the Railways Act, as amended, for the entire period of validity of the railway undertaking licence.