diff --git a/app/__init__.py b/app/__init__.py
index 563960e..dadcf94 100644
--- a/app/__init__.py
+++ b/app/__init__.py
@@ -2,5 +2,9 @@
 
 app = Flask(__name__)
 
+from app import database
+from app import utils
+from app import models
+from app import services
 from app import views
 from app import error_handlers
diff --git a/app/database.py b/app/database.py
new file mode 100644
index 0000000..582ab77
--- /dev/null
+++ b/app/database.py
@@ -0,0 +1,9 @@
+import os
+from app import app
+from flask_sqlalchemy import SQLAlchemy
+
+
+db_path = os.path.join(os.path.dirname(__file__), '..', 'database.sqlite')
+app.config['SQLALCHEMY_DATABASE_URI'] = 'sqlite:///{}'.format(db_path)
+app.config['SQLALCHEMY_TRACK_MODIFICATIONS'] = False
+db = SQLAlchemy(app)
diff --git a/app/models.py b/app/models.py
new file mode 100644
index 0000000..241a346
--- /dev/null
+++ b/app/models.py
@@ -0,0 +1,10 @@
+from app import database
+
+
+class LicencePlate(database.db.Model):
+    plate = database.db.Column(database.db.String(8), primary_key=True)
+    time = database.db.Column(database.db.BigInteger, primary_key=True)
+
+    def save(self):
+        database.db.session.add(self)
+        database.db.session.commit()
diff --git a/app/services.py b/app/services.py
new file mode 100644
index 0000000..c9c6561
--- /dev/null
+++ b/app/services.py
@@ -0,0 +1,78 @@
+from app import models
+from app import utils
+import cv2
+import imutils
+import numpy
+import pytesseract
+import time
+
+
+def contains_licence_plates(licence_plates, date):
+    # noinspection PyUnresolvedReferences
+    stored_licence_plates = models.LicencePlate.query.filter(
+        models.LicencePlate.time >= date
+    ).all()
+    resp = []
+    for licence_plate in licence_plates:
+        plate = next((x for x in stored_licence_plates if x.plate == licence_plate), None)
+        # Add date check
+        resp.append({
+            "plate": licence_plate,
+            "detected": plate is not None,
+            "time": utils.convert_timestamp_to_iso(plate.time) if plate is not None else ""
+        })
+
+    return resp
+
+
+def parse_image(image):
+    models.database.db.create_all()
+    if image is None:
+        return None
+
+    image = cv2.imdecode(numpy.fromstring(image, numpy.uint8), cv2.IMREAD_UNCHANGED)
+    image = cv2.resize(image, (640, 480))  # reduce image size
+
+    gray = cv2.cvtColor(image, cv2.COLOR_BGR2GRAY)  # remove colors
+    gray = cv2.bilateralFilter(gray, 13, 15, 15)  # blur image to remove noise
+
+    # find image contours
+    edges = cv2.Canny(gray, 30, 200)  # detect image edges
+    contours = cv2.findContours(edges.copy(), cv2.RETR_TREE, cv2.CHAIN_APPROX_SIMPLE)
+    contours = imutils.grab_contours(contours)
+    contours = sorted(contours, key=cv2.contourArea, reverse=True)[:10]
+
+    plate = None
+    for contour in contours:
+        # approximate the contour
+        approx = cv2.approxPolyDP(contour, 0.018 * cv2.arcLength(contour, True), True)
+        # if our approximated contour has four points, then we can assume that it is plate
+        if len(approx) == 4:
+            plate = approx
+            break
+
+    if plate is None:
+        return None
+
+    # Masking the part other than the number plate
+    mask = numpy.zeros(gray.shape, numpy.uint8)
+    cv2.drawContours(mask, [plate], 0, 255, -1, )
+    cv2.bitwise_and(image, image, mask=mask)
+
+    # Now crop
+    (x, y) = numpy.where(mask == 255)
+    (top_x, top_y) = (numpy.min(x), numpy.min(y))
+    (bottom_x, bottom_y) = (numpy.max(x), numpy.max(y))
+    cropped = gray[top_x:bottom_x + 1, top_y:bottom_y + 1]
+
+    # Read the number plate
+    config = utils.get_tesseract_config(pytesseract)
+    text = pytesseract.image_to_string(cropped, config=config)
+
+    # remove new lines and remove '-' character
+    return text.partition("\n")[0].replace('-', '')
+
+
+def save_licence_plate(plate):
+    licence_plate = models.LicencePlate(plate=plate, time=int(time.time()))
+    licence_plate.save()
diff --git a/app/utils.py b/app/utils.py
new file mode 100644
index 0000000..c87ac02
--- /dev/null
+++ b/app/utils.py
@@ -0,0 +1,23 @@
+from dateutil import parser
+from datetime import datetime
+import time
+import os
+
+
+def convert_iso_to_timestamp(date):
+    return int(time.mktime(parser.isoparse(date).timetuple()))
+
+
+def convert_timestamp_to_iso(timestamp):
+    return datetime.fromtimestamp(timestamp).strftime('%Y-%m-%dT%H:%M:%S')
+
+
+# noinspection SpellCheckingInspection
+def get_tesseract_config(pytesseract):
+    # for Linux it's usually available trough environment path
+    if os.name == 'nt':
+        pytesseract.pytesseract.tesseract_cmd = r'C:\Program Files\Tesseract-OCR\tesseract.exe'
+
+    # we could also use user-pattern like \A\A \d\d\d-\A\A
+    config = '--psm 11 -c tessedit_char_whitelist=123456789ABCDEFGHIJKLMNOPRSTUVZ-'
+    return config
diff --git a/app/views.py b/app/views.py
index 3130a05..68809fa 100644
--- a/app/views.py
+++ b/app/views.py
@@ -1,5 +1,7 @@
 from app import app
 from flask import jsonify, request
+from app import services
+from app import utils
 
 
 def error_response(message):
@@ -21,24 +23,16 @@ def upload_camera_image():
     if image.mimetype not in ["image/png", "image/jpg", "image/jpeg"]:
         return error_response("Allowed image files are in PNG or JPG format")
 
-    # TODO add OCR logic here
-    return jsonify({"message": "Image was successfully stored"})
-
-
-# TODO use database instead of hardcoded value
-sk_lp = {
-    "RI1234AB": "2020-12-01T22:45:37"
-}
+    plate = services.parse_image(image.read())
+    if plate is None:
+        return jsonify({"message": "No licence plate found", "status": 404})
+    else:
+        services.save_licence_plate(plate)
+        return jsonify({"message": f"Licence plate '{plate}' found", "status": 200})
 
 
 @app.route("/check-licence-plate/<licence_plates>/<date>", methods=["GET"])
 def upload_image(licence_plates, date):
-    resp = {}
-    for licence_plate in licence_plates.split(","):
-        # TODO Fetch data rom database for given date and licence plate
-        resp[licence_plate] = {
-            "detected": licence_plate in sk_lp,
-            "time": sk_lp[licence_plate] if licence_plate in sk_lp else ""
-        }
-
-    return jsonify(resp)
+    licence_plates = licence_plates.split(',')
+    date = utils.convert_iso_to_timestamp(date)
+    return jsonify(services.contains_licence_plates(licence_plates, date))
diff --git a/database.sqlite b/database.sqlite
new file mode 100644
index 0000000..c7e3e21
Binary files /dev/null and b/database.sqlite differ
diff --git a/requirements.txt b/requirements.txt
index 7deaf3b..3e7ed7b 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1 +1,6 @@
-Flask==1.1.2
\ No newline at end of file
+Flask==1.1.2
+python-dateutil==2.8.1
+opencv-python==4.5.1.48
+imutils==0.5.4
+numpy==1.20.1
+pytesseract==0.3.7
\ No newline at end of file
diff --git a/run.py b/run.py
index 357912d..5e74554 100644
--- a/run.py
+++ b/run.py
@@ -1,4 +1,4 @@
 from app import app
 
 if __name__ == '__main__':
-    app.run(debug=True)
+    app.run(debug=True, port=80)