Taxi company

Starting a Taxi Company in Germany: Requirements, Procedures, Costs and Minimum Number of Vehicles

The taxi sector in Germany is one of the key service industries in the country. A large share of residents and visitors rely on taxis for their mobility, especially in major cities and at airports. If you are considering setting up a taxi company in Germany, this guide covers the most important points: required licences and certificates, useful experience, official procedures, estimated costs, the minimum number of vehicles and the rules for operating between different cities.

1. Why a Taxi Company Is an Attractive Project in Germany

Constant and diverse demand: Taxis provide round-the-clock transport services: everyday trips, patient transport to hospitals, airport transfers, business trips and more.
Clear legal framework: The taxi industry is strictly regulated (e.g. by the Passenger Transport Act), which gives business owners legal certainty and a stable environment.
Room for growth: You can start with a single vehicle and gradually expand into a larger fleet, including specialised services such as wheelchair-accessible transport or school transport.

2. Required Certificates and Experience

2.1 Passenger Transport Licence (Personenbeförderungsschein – P-Schein)

Who needs it?
Every professional taxi driver in Germany must hold a Passenger Transport Licence (P-Schein) in addition to a standard category B driving licence.

Main requirements:

Minimum age usually 21 years
Category B driving licence for at least two years (exact period may vary slightly by federal state)
Medical examination, including eyesight and general fitness
Certificate of good conduct (Führungszeugnis) showing no relevant criminal record
In many cities: an “Ortskenntnis” (local knowledge) test covering streets and key locations in the city or region

2.2 Taxi Operating Licence (Taxikonzession)

Who needs it?
Every entrepreneur who wants to operate a taxi company must obtain an official taxi operating licence (Taxikonzession) from the competent local authority (usually the municipal traffic or regulatory office).

Typical conditions:

Personal reliability: No serious criminal record, proven good reputation (often checked via police clearance certificate and commercial register).
Financial capacity: Proof that you have sufficient financial resources or guarantees to operate the business.
Registered business premises (Betriebssitz): You must have a fixed, verifiable business address within the city or district where you apply for the licence.
Professional competence (Fachkunde): In some cities or federal states, you may be required to pass a professional competence exam (Fachkundeprüfung) for commercial passenger transport.
Vehicle documents and insurance:
- Proof of appropriate commercial motor insurance (Kfz-Versicherung) for taxis,
- Registration documents or lease contracts for the vehicles.

2.3 Practical experience (if any)

German law does not require a specific number of years of professional experience to open a taxi company. However, it is clearly beneficial to have:

Experience in running a business,
Previous work in transport or logistics,
Basic knowledge of accounting, tax law and staff management.

You can also hire or consult:

a lawyer specialising in transport or commercial law,
and a tax adviser experienced in the taxi sector.

3. Official Steps to Set Up a Taxi Company

Registering a business (Gewerbeanmeldung):
- File your business registration with the local trade office (Gewerbeamt).
- Declare the legal form (sole proprietorship, partnership, GmbH, etc.) and type of business (taxi / passenger transport).
Applying for the taxi operating licence (Taxikonzession):
- Submit your application to the competent traffic / regulatory authority (Verkehrsamt / Ordnungsamt).
- Attach all required documents, such as:
  - ID / residence permit,
  - certificate of good conduct,
  - proof of financial capacity,
  - lease or purchase contract for the business premises,
  - vehicle documents and insurance,
  - where applicable: a business plan or operating concept.
Registering with the tax office (Finanzamt):
- Apply for a tax number for your business.
- Once your annual turnover exceeds a certain threshold, you will be liable for value added tax (usually 19%) on taxi services (details and possible exceptions should always be checked with a tax adviser).
Vehicle inspection and taxi equipment:
- Equip your cars as taxis:
  - install a taximeter,
  - taxi roof sign and any local markings required,
  - booking / dispatch system if needed.
- Have the vehicles inspected and approved by TÜV or DEKRA, including, where required, special checks for commercial passenger transport.

4. Minimum Number of Vehicles and Intercity Operation

Minimum number of vehicles:

As a rule, you can start your taxi business with just one vehicle; there is usually no statutory minimum fleet size.
Some cities, however, may apply local policies, for example limiting new licences or setting additional criteria for new operators. It is therefore advisable to contact the local traffic authority early on.

Operating between cities:

Your taxi licence is normally valid within a specified licensing area (city or district).
You may take passengers from your licensed area to any other destination, including other cities and federal states.
In many cases, you are not allowed to pick up new passengers outside your own licensing area unless special rules apply (for example pre-booked trips or return journeys, depending on local regulation).
If you want to work on a regular basis in another city (for example in Hamburg besides Berlin), you will normally need an additional licence from the local authority there, and possibly a second business address.

5. Estimated Costs

5.1 Start-up costs

Licence fees (Taxikonzession):
- Typically between €300 and €1,000 per application / vehicle, depending on the city and size of the business.
Vehicle purchase:
- Suitable used taxi vehicles often cost between €8,000 and €15,000.
- New vehicles commonly start at around €30,000 and can be much more expensive depending on brand and equipment (diesel, hybrid, electric).
Taxi conversion and equipment:
- Taximeter, navigation device, communication system, taxi roof sign and any other required modifications: usually €1,000–2,500 per car.
Insurance (commercial motor insurance):
- Taxi insurance premiums are significantly higher than private ones: often €1,500–3,000 per year per vehicle, depending on vehicle type, driver profile and region.
Administrative and advisory costs:
- Business registration, notary and commercial register (if needed), legal and tax advice: roughly €500–2,000 in the start-up phase.

5.2 Ongoing monthly costs

Fuel or electricity (for electric vehicles):
- For combustion engines, often around €300–500 per month per vehicle, depending on mileage and fuel prices.
- Electric vehicles usually have lower energy costs but higher purchase prices and possible charging infrastructure costs.
Maintenance and wear:
- Regular inspections, repairs, tyres and TÜV fees can average €100–300 per month per vehicle.
Staff costs (if you employ drivers):
- Gross salary for a full-time driver is often in the range of €2,000–2,500 per month, plus employer’s social security contributions, depending on region and experience.
Accounting and tax services:
- Fees for a tax adviser, bookkeeping software and payroll services depend on the size of your business and volume of transactions.

6. Practical Tips for a Successful Taxi Business

Choose a strategic location:
- Place your business close to railway stations, airports or densely populated areas.
Invest in digital marketing:
- A professional website and possibly a mobile app make it easier for customers to book rides.
- Working with online platforms such as FreeNow, Uber (where allowed) or local dispatch centres can increase your booking volume.
Focus on service quality:
- Clean vehicles, polite and professional drivers, punctuality and transparent pricing build a strong reputation and ensure repeat customers.
Specialise and diversify:
- Offer additional services like patient transport, school runs, large-capacity vehicles or wheelchair-accessible taxis.
- Diversification opens up new revenue streams and customer segments.
Modernise your fleet:
- Switching to hybrid or electric vehicles can give you access to subsidies, environmental benefits and sometimes lower operating costs, while improving your public image.

7. Conclusion

Starting a taxi company in Germany can be a promising investment in the mobility and service sector. It is essential to fully comply with legal requirements – above all the taxi operating licence (Taxikonzession) and the Passenger Transport Licence (P-Schein) for drivers – as well as safety regulations, tax rules and insurance obligations.

You can start with a single vehicle and expand gradually as demand and financial capacity grow. Operating in additional cities generally requires separate licences from the respective local authorities. A thorough business and financial plan, covering start-up and running costs, marketing strategies and quality management, is crucial for long-term success in a competitive, highly regulated market.

Note: All figures and details in this article are approximate and can vary significantly between cities and federal states. It is strongly recommended to consult local legal and tax experts and to verify the latest legal provisions before launching your business.

The editorial team of the website strives to provide accurate information based on in-depth research and multiple sources. Nonetheless, errors, inaccuracies or information that is not yet fully confirmed may occur. Therefore, the contents of this article should be regarded as an initial reference only; for binding and up-to-date information, always contact the competent authorities and professional advisers.