How to get a travel agency license in Singapore?

A travel agency is a person or business that arranges travel-related services. Both the sole proprietorship and the limited liability corporation are appropriate to do a company registration. Most investors, however, prefer limited liability since it provides greater rewards. To establish a travel agency in Singapore as a limited liability business, you must meet the following requirements:

Once you have determined whether your agency needs a license or not. You can choose between two types of travel agent licenses:

1. A niche license allows the licensee to sell, arrange or advertise tours only in Singapore, without any accommodation fees. For this, an applicant must have a minimum paid-up capital of S$50,000 and a net worth of the same amount to meet the minimum financial requirements set by the government.

2. A general license allows the licensee to engage in any activity beyond what is described under a niche license. Therefore, the applicant for this license must have a minimum registered capital and net worth of at least S$100,000.

Firstly, under section 4 of the Travel Industry Act, a business or person must obtain a travel agency license when engaged in, advertises, or holds itself out to be engaged in any of the following types of activities:

Secondly, although in most cases a travel agency license is required, here are some instances in which you will not need a license:

Finally, an employee or agent of the travel agency is not considered a full-fledged travel agent. Therefore, he or she will not need to obtain a separate license to perform the above activities on behalf of his or her employer or agency.

First, before applying for the travel agency license, your agency must meet the following requirements:

1. A company intending to operate as a travel agent must be registered with Accounting and Corporate Regulatory Authority.

2. The company must have a paid-up capital and net worth of the amount specified above for the type of license sought.

3. The applicant must appoint an employee with management experience in the travel industry as the senior executive responsible for the business’s management and operation.

4. The applicant must have an office and an e-mail address to communicate with clients on behalf of the travel agency.

5. The applicant and all officers must be fit and proper persons.

Secondly, to obtain a travel agency license, you must submit your completed application to the Singapore Tourism Board, which is the government agency responsible for travel agent licensing. Your application must be made online through the Travel Agent and Tour Guide Licensing System. You will also be required to pay a $200 application fee. Once your application is received, the Commission will review it. This process normally takes up to 2 weeks. Following this time frame, you will get an email with an In-Principle Approval. This approval may contain additional requirements you must meet. After meeting these additional requirements and submitting the respective documents, you will receive a final approval letter. Upon receipt of this approval, you must pay a $400 license fee and pick up your license. In addition, your agency will be listed in the Travel Agent Directory of Travel Agents and Tourist Guides Licensing System (TRUST).

Finally, the Commission may reject to award the license for a variety of reasons. This may occur if:

Firstly, it is significant to know that the license is issued for a fixed period, generally 2 years. It usually expires on December 31 of the year following the license’s issuance. The travel agency is required to renew it before October 31 to avoid any last-minute rush and to ensure peace of mind that the license is renewed for activities’ continuity.

So, for example, if your current license approval date is December 31, 2021, your license expiration date will be December 31, 2022. Therefore, you will need to renew your license on October 31, 2022.
Thus, to renew the license, the travel agency must meet the following requirements:

Then, the renewed license in its physical form will be sent to the registered address of the business.
The Board may refuse to renew the license, citing one of the grounds for refusal. Before refusing to renew an application, the Board must notify the applicant and provide an opportunity to submit reasons why the application should not be refused.

First, the Board may suspend the license for up to 6 months or permanently revoke it if:

Secondly, before suspending or revoking the license or imposing a financial penalty, the Commission must notify the licensee and allow him to submit reasons, within 14 days of such notice.

Finally, during the suspension period, you must not engage in any new activities, except for the performance of obligations to provide a travel product was incurred before the beginning of the suspension.

If you disagree with the Board’s decision, you may appeal any of the following Board decisions:

1. Refuse to grant or renew the license.

2. Modify, revoke, or impose a condition.

3. Suspend or revoke the license.

4. Requiring a financial penalty.

This appeal must be submitted to the Minister of Trade and Industry within 14 days of the mailing of the relevant notice. The Minister may decide on an appeal by confirming, amending, or reversing the decision of the Board or by requiring the Board to reconsider its decision. The Minister’s decision on appeal is final and the appellant will be notified. It is significant to note that all information submitted to the Commission must be true, and a person who knowingly provides false or misleading information to the Commission is liable to a fine of up to $10,000.