Dubai is one of the most attractive tourist destinations in the world right now. As a result, travel agencies in Dubai are very lucrative. Additionally, you do not necessarily need to be a local or an Emirati to open a travel agency in Dubai.
This means that you can start this lucrative business in Dubai no matter which country you are from. So, let us look at why you should start a travel agency in Dubai and how you can do it.
According to the latest study, Dubai attracts over 15 million tourists every year. Additionally, as the COVID-19 pandemic comes to a close, the tourism business is picking back up. This means that this is the perfect time to start a travel agency in Dubai.
Recently, Dubai changed its existing ownership laws. Now, foreigners can own 100% of their businesses, so you can be the sole owner of your travel agency in Dubai.
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Key Considerations for Opening a Travel Agency in Dubai
Key Considerations When Opening a Travel Agency in Dubai:
a). Business Structure:
Determine whether the travel agency will operate as a limited liability company (LLC) or a sole proprietorship. Each structure has different registration and licensing requirements.
b). Operating Location:
Decide whether the travel agency will be established in Dubai or one of its free zones. This choice can impact factors such as taxation, ownership restrictions, and business setup procedures.
c). Local Agent:
As a foreign investor, you will need to appoint a local agent to assist with the company registration process on your behalf. The local agent should be familiar with the local regulations and requirements.
d). License Type:
Choose the appropriate type of travel agency license based on the services you intend to offer. There are different categories of licenses available, such as inbound, outbound, or both.
e). License Cost:
Understand the travel and tourism license cost in Dubai, including the fees associated with the license application, renewal, and any additional permits or endorsements required.
f). Financial Planning: Ensure that you have sufficient funds to cover the setup costs and initial operating expenses of the travel agency. This includes costs related to office space, equipment, staffing, marketing, and other essential aspects of the business.
How to start a travel agency business in Dubai?
There are a lot of legal formalities and other requirements that you need to keep in mind when starting a business anywhere in the world. These experiences come when you spend a significant amount of time in the business world.
That is why Company Setup experts have helped start numerous businesses all over the UAE. As a result, our experts have previous experience in starting travel agencies in Dubai.
Here are the steps you need to consider when open travel agency in Dubai:
1. You need to decide on a legal structure for your company
The legal structure of your travel agency in Dubai will determine the rules and regulations your business is subjected to in the future. So, take your time and select the legal structure carefully.
The most popular types of legal structures in Dubai are Sole Proprietorship, General Partnership, Civil Company, and LLC Company Formation.
2. You need to decide on an economic jurisdiction
There are two types of economic jurisdictions in Dubai where you can set up your travel agency. They are the mainland and the free zones scattered all over Dubai.
There are advantages and disadvantages of both of these economic jurisdictions. So, take your time and do your research before making a decision.
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3. Appoint a local agent to register the company in case you are a foreign entrepreneur
If this is your first time set up business in Dubai as a foreign entrepreneur, then it is highly recommended that you seek the assistance of Company Setup experts.
As Dubai has a completely new language and culture, foreigners often feel overwhelmed when moving here for the first time. However, a local agent will help you solve this problem.
4. You need to choose the type of Travel Agency you Want to Setup
There are four types of tourism licenses you can select from. Additionally, the type of tourism license you need to run your travel agency in Dubai will depend on the business activities you intend to perform through your company. So, take your time and select your business activities carefully.
5. Obtain your starting capital
Last but not the least, the size of your starting capital will have a huge impact on your decisions. For example, you will need to select an office space for your business before you can obtain one of the tourism licenses. That means the size and type of office space you can rent, or lease will depend on your starting capital.
Additionally, the economic jurisdiction you can select will be determined by your starting capital as well to an extent. This is because the mainland is more expensive for company formation than the free zones.
What are the Documents Required to Open a Travel Agency in Dubai?
Sure! Here’s the legal documents required to open a travel agency in Dubai:
- Provide passport copies of the investors, along with their resident visa or visit visa.
- Prepare a list of a few name choices for the company name reservation.
- Submit the office lease agreement as proof of a physical business location.
- Present the manager’s degree certificate, attested by the UAE embassy in the country of origin.
- Obtain an indemnity insurance policy to ensure adequate coverage.
- Enter into a travel agent appointment contract with relevant suppliers and partners.
Remembering all the steps and ensuring that all the documents have been provided is not an easy task on one’s own. In order to ensure that the correct procedure is being followed, it is best to confer with professional company setup consultants before applying for licenses.
The Most Common Types of Travel Agency License in Dubai
Depending on the business activities you want to perform through your travel agency in Dubai, you will need to apply for a specific tourism license in Dubai.
So, before applying for a travel agency license, select your business activities carefully. After that, cross-check which tourism license will allow the business activities you selected and then apply for that.
Here are the four types of tourism licenses you can apply for in Dubai:
- Travel Agency License
- Travel Company License
- Inbound Travel Operator License4
- Outbound Travel Operator License
Cost of Travel Agency License in Dubai
The cost of a travel agency license in Dubai can vary depending on various factors such as the size of the company, the nature of its activities, and the number of owners involved. However, travel agency license cost in Dubai is AED 35,000 if the agency is owned by a single individual who is eligible for one visa in the country.
Advantages of Starting a Travel Agency in Dubai
Opening a travel agency in Dubai can be a lucrative opportunity due to several reasons:
#1. Strong Contribution to UAE’s GDP:
The tourism industry in Dubai contributes around 10% to the UAE’s GDP, making it a significant sector for economic growth. The government of Dubai actively supports and invests in the development of tourism, ensuring a favorable business environment for travel agencies.
#2. Welcoming Diverse Tourists:
Dubai attracts visitors from over 200 countries, creating a diverse customer base for travel agencies. The city’s open and welcoming nature makes it an appealing destination for people from all around the world, increasing the potential market for travel services.
#3. Iconic Landmarks and Tourist Attractions:
Dubai is renowned for its iconic landmarks, such as Palm Deira, Palm Jabel Ali, and the upcoming Dubai World. These extraordinary attractions, combined with luxurious hotels and resorts, make Dubai a highly desirable tourist destination. As a travel agency, you can offer tailored packages to showcase these attractions and provide unique experiences to tourists.
#4. Tax-Free Luxury:
One of the major advantages of Dubai is its tax-free status. Visitors can enjoy the city’s luxurious amenities and experiences without having to pay additional taxes. This attracts affluent tourists who seek high-end services and luxury accommodations, providing opportunities for travel agencies to cater to their needs.
#5. Growing Tourism Industry:
Dubai’s tourism industry has been consistently growing at a rate of approximately 3% each year. This growth is expected to continue in the future, presenting a favorable market for travel agencies. With the city’s ambitious plans to become the top global tourist destination, there will be increased investment and support for the tourism sector, creating further opportunities for travel agencies.
#6. Business-Friendly Environment:
Dubai offers a business-friendly environment with well-established infrastructure, modern facilities, and a robust transportation network. The city’s efficient connectivity through air, sea, and land enhances accessibility for tourists and facilitates smooth travel arrangements. Additionally, Dubai’s strategic location serves as a gateway to other popular destinations in the Middle East, making it an ideal base for organizing regional tours and excursions.
#7. Cultural Diversity and Experiences:
Dubai embraces a rich cultural heritage, providing a diverse range of experiences for tourists. From traditional souks and cultural festivals to modern entertainment and shopping centers, Dubai offers a blend of old and new attractions. As a travel agency, you can curate unique itineraries that showcase the city’s cultural diversity, ensuring a memorable experience for your clients.
Overall, opening a travel agency in Dubai presents a promising opportunity to tap into a growing tourism market, cater to diverse clientele, and leverage the city’s iconic attractions and business-friendly environment.
Frequently Asked Questions About How to Open a Travel Agency in Dubai, UAE
How can I Get a travel Agency license in UAE?
To get your travel agency license in Dubai and the UAE, you will need to apply for it from the relevant licensing authority in your preferred economic jurisdiction.
For example, if you want to obtain a travel agency license in Dubai then you will need to obtain it from the Department of Economic Development in Dubai. Alternatively, you can contact Business Setups Consultants to obtain it for you no matter where you want to start your travel agency business in the UAE.
If this is your first time starting a business in UAE, then it is normal to feel a bit lost. This is because the UAE has a different culture and language that most non-Middle Eastern foreigners are not familiar with.
As a result, it is suggested that you seek assistance from Company Setup Consultants if you do not have previous experience starting a business in the UAE. Additionally, it pays to use a Company Setup expert, because you can avoid expensive mistakes that would otherwise cost you both time and money.
How can I Get a Dubai Tourism License?
The Department of Economic Development in Dubai is responsible for handling the registration of new businesses in the city. This means that if you want to obtain a Dubai tourism license then you will need to apply for it from the Department of Economic Development in Dubai.
Alternatively, you can seek the assistance of Company Setup experts who will help you to obtain the Dubai tourism license. Additionally, they have the necessary expertise and connections necessary to obtain the Dubai tourism license for you in the shortest amount of time.
Here are the steps you need to follow in order to obtain the Dubai tourism license:
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- Decide which business activities you want to perform through your travel agency.
- Register a trading name for your travel agency in Dubai.
- Apply for the Dubai tourism license from the Department of Economic Development in Dubai.
- Submit the required documents and complete the payment.
- Get your visas and sponsor the visas of your employees.
- Open a corporate bank account.
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What are the Requirements to Start a Travel Agency?
First and foremost, to start a business and obtain a business trade license in the UAE, you need to obtain an office space as it is mandatory. Recently, the government of the UAE started a sustainability program that allows businesses with no physical operations to fulfill this requirement with Virtual Offices which are much cheaper.
Additionally, all businesses need to provide some mandatory documents like passport copies, visa copies, detailed business plans, and a Memorandum of Association (MOA).
Besides the previously mentioned requirements, there are certain factors that you need to remember if you want to start a travel business in Dubai and the UAE. Here are the important factors to remember when starting a travel agency in the UAE:
- Decide which business activities you want to perform beforehand.
- Select a business trade license that allows the business activities you want to perform.
- Research about the company structures that are available for travel agencies in the UAE.
- Create a solid business plan including all the finances of the business.
- Raise enough funds for business setup and operation.
How do I Register my Tourism Company?
There are various economic jurisdictions in the UAE and the two types of economic jurisdictions you can start your tourism company in are the free zones or the mainland. So, the first step in registering your tourism company in the UAE is to select an economic jurisdiction.
Both of these two types of economic jurisdiction have their own advantages, so research before making your decision. Your decision will determine where you need to register your tourism company in the UAE.
For example, if you want to register your tourism company in Dubai mainland, then you need to get it registered from the Department of Economic Development in Dubai.
Here are the steps you need to follow to register your tourism company:
- Choose your business activities
- Select a company structure
- Find a trade license
- Get the initial approval from the relevant licensing authority
- Obtain an office space
- Get the external approvals
- Submit the required documents
- Complete the payment voucher
What is a tourism license in UAE?
The tourism license in UAE allows you to perform business activities related to tourism legally inside the country. This means that if you want to start a travel agency in the country, then you need to obtain a tourism license in UAE.
The tourism license was introduced by the government of the UAE to regulate the tourism industry in the country. Additionally, the tourism license in UAE also allows businesses to receive various benefits like tax exemption, full repatriation, etc. from the government.
There are four types of travel agency licenses available in the UAE. The tourism license that you need to get will depend on the business activities you want to perform. Here are the four types of tourism licenses in UAE:
- Travel company license
- Travel agency license
- Inbound travel operator license
- Outbound travel operator license
How can Company Setup Consultants help you?
If you want to start a travel agency in Dubai, UAE? but do not know where to get started, then you are in the right place. Company Setup Consultants have helped numerous businesses get started all over the UAE. Contact us today and hit the ground running.
For further information and assistance on how to start travel agency business in UAE? To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
