Brainstorming ideas for LLC formation in Dubai is something that most entrepreneurs love to do. And the reason is endless business opportunities in the Emirates. Establishing a Travel business in the UAE is one such scope, especially after the COVID-19 pandemic where the travel industry had to suffer a lot. Thanks to the liberal laws for setting up an LLC in the Emirates.
Presently, the UAE Government is making constant efforts for ensuring the growth of the tourism industry in the country. So, starting a travel business across the Emirates would be a worth-investing idea. Let’s dive in and check the various tourism activities you can pick from.
What Are the Various Tourism Activities Available For An LLC Formation in Dubai?
There are some types of tourism activities that come under the travel agency license according to the UAE tourism department. You can pick from any of the following travel activities to start a business in Dubai:
1. Sale of plane tickets
2. Travel insurance issuance
3. Sale of tour packages through a website
4. Support services during the visa issuance
5. Creation and marketing of tour packages through various channels
6. Offers for accommodation options
Eligibility Criteria for launching a Travel Business in Dubai
Being a business owner, there are a few things you need to consider before incorporating a travel company in Dubai. Here are they:
1. 3 years of relevant work experience with a diploma or certification in the travel and tourism industry
2. 5 years of experience in case the individual just has a high school diploma
3. You must present a lease contract or blueprint of the location where the travel agency will be operating
4. A physical office space with at least 30 meters of available area for each activity
5. As a travel agent, you must have a certificate issued by the Civil Aviation Department in Dubai
4 Ultimate Steps Tourism Businesses Must Follow For Smooth LLC Company Formation in Dubai
Launching a travel agency in the UAE involves a few essential steps that you need to follow. Scroll down to know all the steps required for travel company formation in the Emirates.
1- Select Your Travel Agency License
First of all, make sure you’re aware of the types of travel agency licenses available for doing business in Dubai. Currently, there are three types of travel agency licenses you can choose from. Here are they:
1. Inbound Tour Operator License
2. Outbound Tour Operator License
3. Travel Agent License
2-Collect All the Required Documents
Once you choose a suitable license for your travel business in Dubai, start collecting the required documents for it. Given below is the list of required documents to start your travel company in the UAE:
1. Get an application form from the relevant authorities and fill it with complete details
2. Valid passport copies of the applicants
3. Certificate proof of work experience and professional qualifications
4. Certification of clean criminal record
5. A well-researched case study report of the technical and economic feasibility of the project
6. NOC (No Objection Certificate) letter issued by the Civil Aviation Authority
3- Meeting Up All The Special Conditions
After submitting the essential documents for travel business registration in Dubai, you also have to meet some special conditions like:
1. Your Travel LLC must have 49% shares owned by you and the remaining 51% owned by a local sponsor
2. In case of the inbound tour operator business in Dubai, provide the irrevocable bank guarantee in the name of DTCM
3. If you’re an outbound tour operator, then you need to submit the irrevocable bank guarantee of AED 200,000 in the name of DTCM
4. Submission of irrevocable bank guarantee of AED 100,000 in case of travel agent activity
5. Suppose you need to run all the three travel business activities, make sure to submit the total bank guarantee of AED 400,000
4-Submission of Application and fee payment
Lastly, you need to submit the license application and pay the fees after providing the aforementioned documents. It’s an extremely essential step that you need to perform carefully. We would suggest you seek guidance from a world-class business consultancy firm in the UAE.
Ques 1) What is the best way to start a travel business in Dubai?
One of the best ways to start a travel business in Dubai is to seek guidance from a business consultancy firm and then follow the certain steps they ask you to do. These steps involve travel activity selection, documentation collection, deciding on the company name, and much more.
Ques 2) Can you tell me how much it costs to start a travel agency in Dubai?
The cost of starting a travel agency in Dubai completely depends on the type of travel activities you will perform. For instance, if you wish to incorporate an outbound travel company in Dubai, you need to submit the irrevocable bank guarantee of AED 2000,000.
Ques 3) Is it possible to set up a travel company in Dubai as a foreigner?
Yes, it’s possible to set up a travel company in Dubai as a foreigner. All you need is a local sponsor who is ready to invest in 51% of your company’s shares.
Ques 4) How can I acquire a travel agency license in Dubai?
In order to acquire a travel agency license in Dubai, there are certain steps you need to follow. Here are some of them:
1. Payment of initial approval fee
2. Agency’s trade name approval
3. Submission of insurance policy
4. Provide a lease contract
Wrapping it up:
Undeniably, if we talk about LLC company formation in Dubai for a travel business, there is unimaginable growth. And after going through this article post, you will definitely agree with it.
Hopefully, this article post gave you a rough idea about starting a tourism business in the Emirates. Feel free to get in touch with Industry experts if you need some advice for incorporating a travel LLC in the UAE.