The United Arab Emirates is one of the most attractive and tempting countries in the world for visitors to visit. It has drawn millions of visitors on an annual basis, and that number is expected to continue to rise to unprecedented heights in the future.
Now that the number of tourists is on track to reach the government’s Tourism Vision 2020 goal of 20 million visits to Dubai alone, it is an excellent moment to establish a travel agency company in the United Arab Emirates. Official figures indicate that tourism will be valued AED 116 billion by 2027 – equivalent to 5.4 percent of the UAE’s gross domestic product – and will support more than 750,000 jobs directly or indirectly.
Because the industry is so tightly synchronised, if you’re confused about how to open a travel agency in Dubai while also complying with the rules, seeking advice from our specialists can save you from high-budget extravagant headaches associated with setting up a travel agency business later down the road.
The following is the procedure for establishing a travel agency in Dubai:
1. Establish your business activity: This is the first step.
In order to begin your company, you must first choose precisely what kind of business activity you want to engage in. Will you operate a travel agency business, an incoming tour operator business, or an outward operator business? There are a plethora of activities to select from across all of the many marketplaces in which you may participate.
2. Pick a name for your company:
Before settling on a name, it’s important to familiarise yourself with the regulations. Words like “global,” “international,” “East,” and “West” are allowed, but they may result in additional costs and limitations.
For example, insulting terms such as God’s name, which are wisely prohibited in both English and Arabic, are strictly prohibited.
3. Submit an application for a business licence:
The Department of Economic Development (DED) issues trade or business licences in Dubai (commercial, professional, industrial, and tourist). All businesses, regardless of industry, should at the very least be in possession of a business licence. The application will often need your memorandum of association (depending on the legal structure of your company), certificate of incorporation, and copies of your shareholders’ passports, among other documents, to be submitted.
Specialized licences are required by some industries from the appropriate licencing authorities, and in the case of tourism, this is the Department of Tourism and Commerce Marketing (DTCM).
4. Submit an application for a tourist licence:
It will be your next step to submit an application to the DTCM for one of the three additional licences available: outbound operator, incoming operator, or travel agent.
For establishing a travel agency in Dubai, you’ll need an overview of your business strategy, a clean criminal record certificate, and a ‘No Objection Certificate’ (NOC) from the Civil Aviation Authority (if you want to offer airline tickets). Furthermore, this must be renewed every year 30 days before the expiration date.
5. Arrange for staff visas:
Make sure to submit your application within 30 days of an employee’s arrival in the nation, and you should obtain a tourist visa in no time.
Staff entrance permits may be obtained by registering on the Ministry of Interior’s electronic channels site. Once the entrance permit has been granted, workers may undertake a ‘in-country status change’ to activate it, which is a tough step in the process of obtaining a complete employment visa.
You’ll need your trade licence, copies of your passport, and an establishment card – a service that registers your business with the General Directorate of Residency and Foreigners Affairs – to get the process started (GDRFA). Remember that it is also your duty to get ‘OK to Board’ permission before to sending workers from the South Asian subcontinent on incoming flights to your company.
Sixth, set up a business bank account:
No bank will recognise your company if you do not have a trade licence, so choose your bank carefully; a poor pick may turn out to be a terrible option for your travel agency business.
Most would need a continual minimum balance, which may range from AED 1 million to as little as AED 5,000 each month. Some need evidence of residence status for at least one of the shareholders, while others do not require such documentation.
Why it is beneficial to hire a business formation professional
Company formation experts can save you time by ensuring that you have all of the necessary documentation. Some banks may demand business plans as well as reference letters from business partners before they would lend money. But the majority of lenders will need a copy of your business licence as well as the company’s memorandum and articles of incorporation in addition to your trade licence.
Processes that run well in the travel agency company save time and money.
Establishing a successful travel agency company may be accomplished via the completion of six critical stages outlined below. They do, however, require a significant amount of documentation and include many traps. Is it possible for you to afford to make a mistake? It’s never been simpler to start your own company than it is now. Generis Global takes care of everything so that you can concentrate on what really matters – growing your company.