The UAE is one of the top tourist hotspots of the world, making it the jewel of the Middle East. Every year, there is an increase in the contribution of the tourism sector to the GDP of UAE, and this rise is further increasing over the years. It is rapidly gaining popularity as an ideal tourist destination among people worldwide, which has led to an influx of business investors from various parts of the world intending to establish their tourism industry in the country.

While planning to launch a thriving travel agency in Dubai, certain procedures need to be carried out in compliance with the country’s rules and regulations. In the UAE, travel agencies have the option of operating as a limited liability company or a sole proprietorship. However, the documentation process is not the same in both cases. For instance, if an investor opts to establish a travel agency as a Limited Liability Company (LLC) in the UAE, they may face a lengthy and challenging documentation process.

This is due to the more stringent rules and regulations that have been put in place for LLCs in the country. But, if an investor chooses to establish a travel agency as a sole proprietorship, the law in the UAE requires that the business owner must be a certified travel agent. Only after meeting this requirement can the process of setting up a travel agency be allowed in the country.

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One should consider the following factors while setting up a business in Dubai:

  • The investor must be certain about the type of business entity they choose to set up the travel agency under.
  • It is mandatory for the investors to select an appropriate location for the company.
  • For a foreign investor, it will be easy for you to get a trade License.
  • Additionally, it is extremely important to be sure about the type of license before applying.
  • Enough funds are available for business operations.

A step-by-step guide to open a travel agency business setup in the UAE Mainland

1. Determine the nature of business Activity

A travel agency can work either in the form of an inbound Travel agency or an outbound Travel agency. This categorisation is based on the type of type of tours operated by these agencies. Upon taking a decision to open a travel agency, it is necessary to determine the type of the business activity and figure out how will you operate as a travel agency. An inbound tour operator offers services related to tours within the own country whereas an outbound tour operator is a travel agency that focuses on arranging tours to other countries.

They cater to travellers who are looking to explore and experience different destinations around the world. Outbound tour operators offer services such as booking flights, accommodation, tours, and activities at the destination country. This decision will influence the business strategy, target market, and operational aspects of the agency. It is also important to note that some travel agencies operate as both inbound and outbound tour operators, catering to both international and domestic tourists.

2. The name of the company

The subsequent step is to name your company. However, keep in mind that the name should be in compliance with the country’s rules and regulations. It should reflect the true nature of the business. Words that are offensive and hurt the religious sentiments are prohibited to use. If you strictly adhere to all of the points mentioned, only then your name would be approved by the DED or department of Economic Development.

3. Acquiring a Trade License

To set up a business in UAE, the investors must apply for acquiring a trade license as per the requirement of the business setup in Dubai. In order to set up a travel agency, it is mandatory to acquire a tourism license authorised by the Department of Economic Development (DED).

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4. Staff Visas

After acquiring the appropriate trade license, the investors can opt to apply for the employee visas of the staff members recruited to work in the new Travel Agency Business setup. This can be done virtually by applying on the e-channels portal of the Ministry of Interior. As and when the employee visas are approved, they can register for an in- country status change in order to get a permanent employee visa of the country.

5. Bank Account

After completing the entire complex process, the investors need to open a bank account. It should be a corporate bank account. However, the bank choice should be made wisely, since keeping a minimum balance in the account is mandatory to avoid the account from getting closed.

Conclusion: –

The aforementioned steps shed light on the procedure of establishing a travel agency in the UAE. If an individual desires to launch a travel agency in the mainland UAE, they must adhere to the legal procedures and complete all the formalities required to acquire the necessary license to begin business operations.

It is crucial to follow the due process of law and complete all the formalities to obtain the required license for the intended business activity. This involves careful consideration of the type of license required and adhering to the rules and regulations set forth by the UAE government.

Setting up a travel agency in the UAE mainland can be a daunting task for new investors due to the various steps involved in the process. Additionally, while completing the documentation process, an investor may lose significant time that could be better utilized on other critical aspects of the business. Therefore, it is highly recommended for new investors to engage the services of a business consultant in the mainland UAE who can assist with the documentation process, allowing the investor to focus on other key areas of the business.

By choosing the right business consultant, investors can ensure that the process is smoother and more efficient, as these consultants are familiar with the conditions and requirements that need to be met in order to successfully register a travel agency in the UAE.

Additionally, a business consultant can provide valuable guidance and recommendations in various aspects of setting up the business, including location, staffing, and other government regulations. This can help investors achieve their goals faster and more effectively, setting them up for long-term success in the competitive UAE market.