Which License is Required for Travel Agency

Business

Which License is Required for Travel Agency

Registrationwala

A travel agency is a popular business choice among entrepreneurs who have a passion for travel, adventure and helping tourists plan experiences they’ll never forget. If you have ever dreamt of opening your own travelling agency, then check out this blog post. 

Here, we’ll explain to our readers the necessary licenses and certifications to start a travel agency in India.

Why Start a Travel Agency?

A travel agency business is basically a business that acts as an intermediary between customers with travel related services like flight tickets booking, booking hotels and resorts, activities, planning itineraries, advising on travel documents and insurance and more.

The Indian tourism industry keeps rising due to increased domestic travel, government investment in infrastructure and expanding international visitor numbers. As a result, starting a travelling agency can be a good idea. 

You can take advantage of this growing demand by helping people plan memorable trips they’ll always cherish, earning good commissions from bookings and building a steady/stable business with almost minimal upfront investment.

Licenses and Certificates Required for Travel Agency

Below, we have explained some of the most important licenses, registration and certificates required for starting and operating a travel agency within India:

Certificate of Incorporation

One of the most important certificates to start a travel agency is certificate of incorporation. This certificate is issued by the Registrar of Companies and is proof of a registered company. To secure this certificate, you must first decide the type of company you want to register from available options like one person company, private limited company, public limited company, etc. Then, you need to file a company registration application online via the official MCA portal. 

Along with the application, you will need to attach documents like memorandum of association and articles. After the ROC receives the application, it reviews it to ensure that it meets all the requirements. If all the requirements are satisfied, then your company will receive the company incorporation certificate.

If you do not want to register your business, you can choose sole proprietorship (appropriate for single owner) or partnership firm (appropriate for multiple partners). These models do not require mandatory registration. Remember that each and every business model has its own pros and cons. Therefore, choose the model carefully. You can seek assistance from a professional company registration consultant to decide the right model for your business.

GST Registration

If the business annual turnover exceeds threshold of Rs. 40 lakh for goods or Rs. 20 lakhs for services, then registering under the GST system is mandatory. To secure the GST registration, you must visit the official GST portal and apply there. The process is completely an online process. 

After filing the application, you need to wait for approval. Your business will be registered under GST regime if your application meets all the requirements. Then, your business will receive a GSTIN - goods and services tax identification number. This number is formal proof that your business is a GST-registered entity. 

Shop and Establishment Certificate

To run a shop or commercial establishment in India, it is necessary that you obtain a shop and establishment license is essential. This license is issued by the Labour Department of the respective state government, in accordance with the provisions of the Shop and Establishment Act. 

It is important to note that each state has its own version of this Act, making it state-specific. It is typically required to secure the shop and establishment license within 30 days of starting business activities. By obtaining this license, you can ensure that your business operates in a manner that is smooth as well as legal.

IATA Accreditation

If you want to book international flights directly with airlines, then you must get International Air Transport Association (IATA) accreditation for your travel agency. For this, you must file an application with the authority and submit business and financial documentation and proof of staff qualifications. 

The agency must meet the standards set forth by IATA for industry credibility and operational integrity. The accreditation lets the agency issue airline tickets, make reservations directly and access programmes and services of IATA. It also enhances the credibility for clients. 

Conclusion

In this blog post, we provided you with some of the most important licenses and certificates for starting and running a travelling agency in India. They are Certificate of Incorporation, GST registration, shop and establishment license and IATA accreditation. Apart from them, you might require additional approvals depending on your state. Do you need assistance in company incorporation? If yes, then feel free to connect with our experts at Registrationwala!

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