One of India’s main industries and a major employment is the travel and tourism sector, commonly referred to as travel agents and agencies. The quick expansion of tourism-related firms is indicative of India’s strong startup and company growth. By 2027, it is projected that the travel and tourism industry will have increased its GDP by over one billion dollars. This faster growth rate will therefore have a very positive impact on it. Everyone in this area thinks that the next ten to twenty years will be prosperous as a result. It’s time to look at comprehensive details on how to become a licensed travel agent or enter the travel industry!
Who is a Licensed Travel Agent?
According to the legislation, a Licensed Travel Agent is any person or entity that assists in making plans for:
- Travel tickets, whether by air, rail, road, or waterways,
- Accommodations within the nation or outside
- Personalized travel and leisure packages
- Any services that involve tourism.
Between 2020 and 2030, job growth for travel agents is projected to be 5%, which is less than what is expected for every job category. Despite the slight increase in employment, there are predicted to be 7,000 fresh openings for travel agents on average over the ten years to come. It is expected that the requirement for substituting workers who change jobs or retire will account for almost all of those positions.
Governmental Acknowledgment
To be a recognised agent in India, an individual must receive accreditation from the Deputy chief of the Department of Tourism. This recognition is granted for a period of five years at the beginning. The applicable Regional Director and the five-person TAAI team must submit and evaluate a visit and initial report before this recognition can be granted. A request must be submitted in order to have your recognition restored or extended beyond the initial term.
The request for an extension of recognition for a further five years will be reviewed by one TAAI member and the relevant Regional Director after it has been submitted. The provided documentation will also be reviewed by the Travel Trade Division before the renewal is processed. It will take around sixty working days to complete the entire process.
Business Entity Choices for Travel Agency
A travel agency must carefully consider the legal and financial ramifications of choosing the right company entity. Common options include limited liability partnerships (LLPs), private limited companies, partnerships, and sole traders. While partnerships have shared liability, sole traders are simpler but do not have a separation of law from the owner. A private limited company offers limited responsibility together with a distinct legal personality, while an LLP integrates a restricted liability with an organizational structure. When making this important choice, take ownership structure, responsibility, and scalability into account.
GST Registration for the Travel Business
Travel agencies that operate in India must register for GST. This procedure entails going to the GST site, filling out the necessary information, and finishing the verification process. Travel agencies can benefit from input tax credits as a result of the GST registration’s streamlining of tax compliance. In order to stay out of trouble and maintain a travel agency’s efficient functioning, compliance with GST requirements is essential.
GST Payable by Air Travel Agent:
Goods and Services Tax (GST) must be paid by air travel agencies for their services. The kind of transportation service and the category of lodging determine the applicable GST rate. For air travel agencies to stay out of legal trouble and avoid fines, they must adhere to GST requirements. Comprehending the particular Goods and Services Tax obligations linked to air transportation services guarantees the smooth operation of the travel firm.
Trademark Required for the Travel Business
For a travel company to preserve its distinctive personality and create a unique online presence, obtaining a trademark is an essential first step. To make sure the chosen trademark is distinct and not already in use, a comprehensive trademark search can be conducted. If the application is approved, the travel agency’s brand will be legally protected against unapproved use by being registered with the relevant trademark authorities. This strengthens the company’s distinctive character in the tough travel sector and protects it from future legal problems.
Employee Requirements
- A full-time member with the necessary expertise and qualifications must own or manage the agency.
- A lot of focus needs to be placed on developing effective and efficient communication skills.
- It must employ a minimum of four people, at least one of whom must hold a bachelor’s degree in travel and tourism management from a business that has earned AICTE accreditation.
- The academic requirements may be reduced if the staff has at least three years of experience and has worked for an IATA or UFTA agency.
Fees and Taxation
- For a candidate to apply, the agency needs to have submitted its information technology return for that particular year.
- A payment of INR 3000 is required at the time of application for recognition.
Miscellaneous
- The agency’s office must always have the Certificate of Approval on display.
- The Ministry of Tourism’s judgment is final in all cases related to license recognition and renewal.
- In addition, if it thinks it’s essential, the Ministry of Tourism may revoke a license.
- To let the employer know about the upcoming decision, an Advance Show Reason Notice will be sent out beforehand.
Become a Travel Agent with the Government of India’s approval!
It is beneficial and provides recognition upon the travel agent to register as an Embassy of India-approved travel agent, while it is not mandatory. The goal of the travel agency recognition program (TA) is to encourage the travel industry’s high standards of quality and service. For the travel agency to be recognized by the Indian government, they must fulfill an array of conditions pertaining to money spent, personnel hired, upkeep of a minimum amount of workspace, and other needs. In addition, to become a Travel Agent recognized by the Government of India, submit an application in the proper format to the Ministry of Tourism.
Conclusion
Travel agents are a great place for budding business entrepreneurs to get their start. Get in touch with the Zenith Campus team if you’re one of them and need assistance from an expert to guide you through the procedure. Experts like Zenith Holidays will assist you with the registration process, which is actually legal for you, as it is the leading provider of legal services in India.