Singapore is often regarded as “The Gateway to Southeast Asia.” It is one of the most sought after destinations for both leisure and business travelers. As a result, the tourism industry has seen a massive boost in recent decades. It makes sense that many entrepreneurs, wishing to indulge in company incorporation Singapore, are choosing travel agency as the best option to make an optimum profit in volatile economy of the city-state.
What is a Travel Agency in Singapore?
A travel agency is an individual or a company that provides any travel and tour related services to the travelers. In Singapore, the travel agent is an entity that offers packages related to travel and tour including travel service by land, air, and sea. As per the Section 4 of the Travel Agent’s Act (Cap 334), every travel agent must obtain a license from the Singapore Tourism Board (STB). It is worth noting that all transportation companies may not be considered as a travel agent.
Who Needs a Travel Agency License?
Any entity or individual interested to conduct business as travel agent must obtain a travel agency license from Singapore Tourism Board (STB). A travel agent in Singapore may provide following services:
Sells tickets to the individual for traveling to any destination.
Provides services of the hotel or other accommodations for individual traveling in or outside of Singapore.
Make purchases for resale the right of passage on any conveyance.
Steps to be Taken Before Obtaining Travel Agency License
Singapore Company Registration: To open a company in Singapore as a travel agency, the business must get registered with ACRA (Accounting & Corporate Regulatory Authority). The business must be registered under the Singapore Standard Industrial Classification (SSIC) codes of either 78211 for Travel Agents, or 78212 for Ticketing Agencies.
Meet the Minimum Paid Up Capital Threshold: The company must have minimum paid-up capital of S$100,000.
Appoint a Key Executive: The company must have a suitable person as the Key Executive. Ideally, he should be a Singapore citizen, permanent resident, or employment pass holder who have the relevant work experience and qualifications to manage the company.
The Character of Executives and Managers: The executives and managers of the company must be of good moral character and fame. You may require submitting evidence such as police clearance certificate, letter of good conduct, credit backgrounds, and any other documents.
TRUST and Email Address: The company must have an email address. They must see and follow the terms and conditions of a website called “Travel Related Users’ System” (TRUST). It keeps on updating information, resources, and advisory for the travel industry in Singapore.
Sign Board and Office: The company must have an exclusive space dedicated to the travel business. That space cannot be shared with any other business. You may also use residential space as your official address. But for that, you have to take prior approval from HDB (Housing Development Board) or URA (Urban Redevelopment Authority). Make sure to arrange the office well before STB grant your travel agency license.
The applications for the travel agency license are made online. The processing time for application will take approximately 3 to 5 business days. As long as you adhere to the obligations of the authority, there is no reason to the get the application rejected. The travel agency license is valid for two years, and the holder must renew the license one month before it expires.
You can jumpstart your company incorporation Singapore with a travel agency. This blog excerpt will help you get insight to the ins and outs of starting a travel business in Singapore. As the island nation attracts a hoard of tourists every year, it is one of the most lucrative businesses where one can make a huge profit out of it.