Travel Agency License in Dubai: Benefits,Cost & Process

Dubai, one of the globe’s most famous tourist points of interest, saw a huge variety of travellers in 2019 and boasts the third-busiest airport globally. The UAE government works tirelessly to promote Dubai as a pinnacle tour destination. It is a pinnacle tourism destination internationally, making it a superb place to release a travel business.

Are you considering coming into the journey and tourism sector? Maintain analysing to learn how to release a travel commercial enterprise in Dubai.

1. Research and Planning: Before starting a travel agency in Dubai, conducting thorough research and planning is crucial for a successful venture. Begin by understanding the travel industry in Dubai, including market demand, competition, and legal requirements.
2. Choose a Business Activity and Legal Structure: Select the specific travel agency business activity you wish to pursue. Dubai offers various options, such as inbound tourism, outbound tourism, online travel agency, or a combination of services. Determine the most suitable legal structure for your business, such as sole proprietorship, partnership, or limited liability company (LLC).
3. Local Sponsorship: Non-UAE nationals looking to establish a travel agency in Dubai require a local sponsor or service agent who is a UAE national or a company wholly owned by UAE nationals. The local sponsor will not have operational control or financial involvement in the business but is required by law. Engage with a reliable local sponsor or service agent who understands the travel industry and can fulfill sponsorship requirements.
4. Trade Name Reservation: Choose a unique and appropriate trade name for your travel agency and get it approved by the Department of Economic Development (DED) in Dubai. The name should comply with the DED’s naming guidelines and not infringe on any existing trademarks. Submit the required documents and fees to reserve your trade name.
5. Office Space: Secure suitable office space for your travel agency in Dubai. The DED requires travel agencies to have a physical office with adequate facilities and space to conduct business operations. Ensure that your office location meets the specifications set by the DED and other relevant authorities.
6. Documentation and Application: Prepare the necessary documents for your travel agency license application, which you may include.
7. Approval and Licensing Fees: Pay the necessary licensing fees as specified by the DED or the issuing authority. Fees may vary depending on the type of license and services you intend to offer. The DED or the authority will review your application, documents, and business plan before granting the travel agency license.
8. Insurance and Bank Guarantee: Obtain the required insurance coverage for your travel agency, such as professional indemnity insurance and liability insurance. Additionally, some authorities may require a bank guarantee as a security deposit.
9. Post-Licensing Requirements: After obtaining a travel agency license, fulfill any post-licensing requirements, such as opening a bank account for your business, registering for relevant tax obligations, and complying with other regulations and legal obligations set by the authorities.

Inbound licences

 

This company provides local trips or activities for tourists.

This kind of travel companies provides abroad tours.

The application form needs to be collected, details are filled, the authorized signature and company stamp is collected and it is sent to the counter at Dubai Chamber. At the same time, a Certificate will be provided from the Dubai Chamber.

Documents Required to Obtain a Tourism License in Dubai.

• Application form.
• Copies of the passports of the applicants and manager.
• A family record and a copy of the identification documents for UAE nationals.
• A notarized copy of the manager’s certificate of experience.
• The owner and manager’s certificates of good conduct.
• A no objection letter issued by the Civil Aviation Authority.

This certificate is mandatory to register a company in Dubai with various departments of government and for expanding the business as well. Along with the Tourism License fees, payment has to be made at DED. The license provided to travel agencies is usually valid for one year. This license must be extended later as it is compulsory to have a valid license to practice any kind of business in any part of the UAE.

One needs to choose between setting up a limited liability company or a sole proprietorship when starting a travel commercial enterprise in Dubai. In a sole proprietorship, the proprietor of the travel business enterprise ought to be a licensed tour agent.

Before establishing his firm, the corporation’s owner must additionally keep in mind a few other factors, which include:

• Will the travel corporation perform in Dubai or a free zone?
• Choose a travel agency license in accordance with the organisation form.
• Ascertain if there are sufficient resources to launch the travel agency business.

1. Initial fees that need to be paid
   

   The company size, business activities, type of activities, and the number of owners are a few factors on which the cost of the license depends in Dubai. A travel agency license costs a minimum of AED 20,000.

2. Agency trade name needs to be approved
   

   Agency’s trade name is the name by which the agency is known. This name needs to be approved so that none of the offensive words in any of the languages, mainly Arabic or English, are used in the name. The name can be selected with the help of business setup consultants in Dubai.

3. Insurance policy needs to be supplied
   

   All businesses have their own set of risks and liabilities and therefore an insurance policy needs to be supplied. In the case of a travel agency, General Liability Insurance is suitable.

4. Blueprint and lease need to be provided of the location where the agency is supposed to work
   

   Blueprints and a lease of the location where the agency is supposed to function need to be provided. This lease needs to be updated timely and regularly to continue with one’s business legally.

The owner wishes an inbound, outbound, or both licences that allows you to provide tour applications internal or outside of Dubai. By means of filing an application to the Department for Tourism and Commerce Marketing, the proprietor can get various licences. If the proprietor isn’t an Emirati citizen, a replica of his passport ought to be submitted. A manager’s certificates of qualification, the proprietor’s certificates of good conduct, and a feasibility report of the project have to also be presented.

How can RadiantBiz help in travel agency license in Dubai?

Based on a research of consumer behaviour and emerging travel traits, every travel corporation has to identify a niche and incorporate a range of strategies. It is also cautioned that the new travel retailers refrain from attempting to fill each marketplace niche. The techniques indexed above explain a way to launch a travel organisation in Dubai, however they need to be adjusted in accordance with marketplace trends.

We, at RadiantBiz, are determined to help you succeed. Get in touch with our experts and get started with your business setup in Dubai journey.