With tourist numbers on track to exceed the government’s Tourism Vision 2020 objective of 20 million visits to Dubai alone, now is an excellent moment to establish a travel firm in the UAE (UAE). Tourism is expected to be valued at AED 116 billion by 2027, accounting for 5.4 percent of UAE GDP and directly or indirectly supporting over 750,000 employments.
Because the industry is highly regulated, seeking expert guidance on how to establish a travel agency firm while adhering to the regulations might save you money in the long run.
Let’s have a look at those key steps in the correct order.
1. Determine your business activity
You must select what type of travel firm you want to run; will you be a travel agency, an inbound tour operator, or an outward operator? There are a plethora of activities to pick from across all of the markets you might service.
2. Select a firm name
Don’t get too attached to any names unless you’re familiar with the rules; terms like ‘global,’ ‘international,’ ‘East,’ or ‘West’ are permitted but may incur additional expenses, and there are numerous limits.
Offensive words, for example, are naturally forbidden, as is God’s name, whether in English or Arabic.
Why does it make sense to hire a business formation expert?
The Department for Economic Development (DED), Dubai’s issuing body, will not issue a trade license if your company name is even somewhat similar to another firm in the same industry, therefore it’s critical to get guidance on what’s acceptable.
The implications of doing this on your own can be time-consuming; the DED will not give a business license if your company name violates the requirements, and you may be penalized for abusing a name that the DED has approved but later fails to reflect your principal activity.
3. Apply for a business license
The DED issues trade or business licenses (commercial, professional, industrial, and tourist) in Dubai. All businesses, regardless of industry, must acquire a trade license. Depending on the legal structure of your firm, your memorandum of association, certificate of incorporation, and shareholder passport copies are typically required for the application.
Certain industries need extra licenses from appropriate issuing agencies, such as the Department of Tourism and Commerce Marketing (DTCM) in the case of tourism.
4. Apply for a tourism license
The next step is to apply to the DTCM for one of the three extra licenses listed above: outbound operator, inbound operator, or travel agent.
If you want to sell airline tickets, you’ll need an outline of your business strategy, a clean criminal record certificate, and a ‘No Objection Certificate’ (NOC) from the Civil Aviation Authority if you’re opening a travel agency in Dubai. This must be renewed annually, 30 days before the expiration date.
5. Obtain employee visas
Make sure to apply within 30 days of an employee’s arrival in the nation, at which point they will be issued a tourist or visit visa.
Simply apply for a staff entrance permit on the Ministry of Interior’s e-channels page (another name for a provisional 60-day employment visa). Once obtained, employees can conduct an ‘in-country status change’ to activate their entrance permit, which is a necessary step in acquiring a full employment visa.
You’ll need your trade license, copies of your passport, and an establishment card – a service that registers your firm with the General Directorate of Residency and Foreigners Affairs (GDRFA). Keep in mind that you also should acquire ‘OK to Board’ clearance before inbound travel for personnel from the South Asian Subcontinent.
6. Open a corporate bank account
Without a trade license, no bank will recognize your firm; nevertheless, choose your bank prudently; a poor decision may come back to harm you.
Most will demand a constant minimum balance ranging from AED 1m to AED 5,000. Furthermore, some need confirmation of resident status for at least one stakeholder, whilst others do not.
Why choose Corproots?
Six crucial stages may start you on the path to building a profitable travel business, but they come with a lot of paperwork and a lot of hidden pitfalls. Corproots can help you with the entire process very quickly which will save a lot of your valuable time.
Disclaimer
UAE rules and regulations, as well as business formation prices, are subject to change without notice. While we conduct extensive research to provide our information, laws, and regulations may have changed after this article was written. Furthermore, the operator of the third-party website would be responsible for any information contained in external links.
For assistance in Business setup in Dubai, Company formation in Dubai, Company setup Dubai, Dubai free zone, Pro, services Dubai, Trademark Registration Dubai, Iso certification in Dubai, Accounting Services, and similar services, visit Corproots.
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