Starting a Travel Agency in Singapore: Licensing Requirements and Registration

Starting a Travel Agency in Singapore: Licensing Requirements and Registration

Singapore is a vibrant, multicultural city, with many visitors arriving each year. Not only is Singapore an exciting destination, it is also a hub to many amazing countries in South East Asia, connected via short flights through the award winning Changi Airport. The travel industry in Singapore can be a lucrative opportunity. However, it is crucial to understand the legal requirements and processes involved in setting up a travel agency. This article provides a comprehensive guide on how to register a travel agency license in Singapore, ensuring you comply with all necessary regulations.

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Introduction to Registering a Travel Agency License in Singapore

In Singapore, any business involved in making travel arrangements or conducting tours must obtain a travel agency license from the Singapore Tourism Board (STB). This license is essential for operating legally and maintaining credibility in the industry.

A travel agency license is required for activities such as selling travel packages, booking air tickets, arranging hotel accommodations, and organising tours. These activities are defined under Section 4 of the Travel Agents Act (Cap 334).

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What License Does Your Business Need?

There are two types of travel agency licenses in Singapore: the Niche License and the General License. Each license allows the business to provide varying types of services. The financial requirements for a travel agency license also vary. This capital investment ensures that the agency has sufficient funds to operate and manage its services effectively.

• Niche License: This license requires a minimum paid-up capital of SGD 50,000 and allows the agency to sell or organise tours within Singapore that involve transportation but does not cover accommodation services.
• General License: This license requires a higher paid-up capital of SGD 100,000 and enables the agency to provide a wider range of travel services, including selling travel packages, booking air tickets, and arranging hotel accommodations.

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Documents Required for the Travel Agency License Application

To apply for a travel agency license, you will need to submit several documents, including:

• Latest business profile of the company
• Business Activities and Market Specialisation Form
• Business Plan/Business Model
• Resume of the Key Executive
• Front and back copy of the Key Executive’s National Registration Identity Card (NRIC), Employment Pass Card, or EntrePass Card
• Director Resolution on the appointment of the Key Executive
• Key Executive Letter of Employment and Business Entity’s Organisation Chart
• Tenancy agreement and Certificate of Stamp Duty of the premises
• Approval from HDB/URA Home Office Scheme (for home office only)
• Credit Bureau Singapore report (for sole-proprietor/partners)
• Latest bank statements reflecting the injection of the paid-up capital
• Latest set of management accounts (both Balance Sheet and Profit & Loss Statement).

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Submitting the Application and Required Documents

The application for a travel agency license must be submitted online via the Travel Agents and Tourist Guides Licensing System (TRUST). Ensure that all required documents are included to facilitate the review process.

After submitting the application, the STB will review it within 1-2 weeks and respond with an In-Principle Approval (IPA) letter. This letter may outline additional requirements that need to be fulfilled for the final approval. Once all requirements are met, you will be notified to pay the license fee and collect the license.

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Conclusion

Starting a travel agency in Singapore requires careful planning and compliance with legal requirements. By understanding the licensing process and financial obligations, you can ensure a smooth and successful setup of your travel agency. If you’ve recently set up a travel agency, and need to take the next steps into accounting and best practices, please reach out to us at Harvest Accounting.