We are aware that transport operators do not always keep their Transport Service Licence (TSL) updated. When a business changes its structure or if an individual transitions from a sole trader to a company, they must reapply under the new entity.

In New Zealand, having a TSL is a legal requirement for operating various transport services. There is a process to follow, and it takes time. When there is a change of entity, you must complete a new certificate of knowledge. We recently heard how someone applied and was not approved so now they cannot operate due to needing a TSL license.

The definition is: A goods service delivers or carries goods, whether or not for hire or reward, using a motor vehicle with a gross vehicle mass of 6000kg or more, including one that is ‘on hire’ to carry goods. Gross vehicle mass means the maximum safe operating mass for a vehicle (including the mass of any accessories, crew, passengers, or load) that is derived from the design, capabilities and capacities of the vehicle’s construction, systems and components, and that:

(a) is determined by:

(i) Waka Kotahi NZ Transport Agency; or

(ii) the manufacturer of the vehicle; or

(iii) if the vehicle is modified after manufacture, a certifier approved by Waka Kotahi; and

(b) may be recorded in kilogrammes on the register of motor vehicles.

An individual can hold a TSL. The TSL holder is responsible for meeting all regulatory requirements associated with the TSL. If the business is structured as a sole trader or partnership, the TSL will typically be in the name of the individual who applied for it. Although a spouse can be involved in the business, their role may be more informal unless they directly manage operations or are named in the application as a person of responsibility.

For businesses set up as companies, the TSL must be held in the company’s name rather than an individual’s. This is because the company, as a legal entity, is responsible for adhering to transport regulations and managing the operational aspects of the service. Directors or shareholders of the company are not required to hold the TSL personally. Instead, the company itself must ensure that the TSL is managed in compliance with the relevant laws and standards. However, the individuals in managerial roles must ensure that the company meets all regulatory requirements, including maintaining the “fit and proper person” criteria.

When a company holds a TSL, it becomes the legal entity’s responsibility to comply with all transport regulations. This includes meeting safety standards, maintaining vehicle conditions and adhering to operational rules. Directors and managers must ensure that the company operates within the legal framework.

The company must also manage the financial aspects of the transport service, including insurance, maintenance and operational costs. Failure to meet these obligations could affect the validity of the TSL.

Regardless of whether the TSL is held by an individual or a company, the “fit and proper person” test remains a crucial component. For individuals, this test involves demonstrating the character, financial standing and legal compliance required to operate a transport service. For companies, the test applies to key personnel involved in managing and operating the service.

In terms of daily operations, whether an individual or a company holds the TSL, the day-to-day management of the transport service must adhere to all operational and safety standards. This includes maintaining vehicle safety, ensuring driver competency and following legal requirements.

To sum up, the Transport Service Licence can be held by either an individual or a company, depending on the business structure. For sole traders and partnerships, the TSL is typically in the name of the individual or partnership. For companies, the TSL must be in the company’s name, reflecting the legal entity’s responsibility for compliance. Understanding these ownership rules is crucial for maintaining legal and operational standards within the transport industry. Regardless of who holds the licence, ensuring adherence to all relevant regulations is essential for the smooth and lawful operation of transport services.

Contact the team at NZ Trucking Association if you are unsure about your TSL ownership. 0800 338 338 or info@trucking.nz