How to Start Travel Agency in Dubai, UAE

Posted on August 16, 2022

Due to its prominence as one of the world’s most enticing cities, Dubai is often viewed as a popular tourist destination. Foreign investors are attracted to Dubai’s expanding tourism industry for a variety of reasons, including the possibility of establishing travel agencies there.

As a direct result, travel agencies in Dubai earn very large profits. In addition, you do not need to be a resident of Dubai or an Emirati national to open a travel agency there.

This means that you, regardless of your country of origin, are allowed to begin this profitable business in Dubai. Now that we’ve established why and how you should open a travel agency in Dubai, let’s examine the advantages of doing so.

Recent data reveals that Dubai receives more than 15 million yearly tourists. In addition, as the COVID-19 outbreak nears its conclusion, the tourism sector is showing indications of recovery and expansion. This means that the current time is great for launching a new tourism company in Dubai.

Furthermore, Dubai revised its previous laws regarding property ownership. It is now permitted for non-citizens to solely own a firm, rather than relying on a local agent.

Due to Dubai’s growing economy, the city is a prime location for foreign investors seeking to build tourism companies.

If you are looking to start a travel agency in Dubai, there are some important things you need to know. In this blog post, we will walk you through the steps to starting your own travel agency in Dubai. So, what do you need to do? Keep reading for all the information you need!

Benefits of Starting a Travel Agency in Dubai

Opening a travel business in Dubai can provide its owners with a lot of advantages, despite the fact that the process may appear like it would take a long time. Among them are considerable salaries and a huge incoming and outgoing market. This is due to the fact that many inhabitants of Dubai leave the United Arab Emirates for their holidays, while at the same time many people from other countries travel to Dubai.

Tourism Sector Makes Most of DUBAI’S GDP

It is believed that the tourist industry in the UAE is expanding at an annual rate of about three percentage points and that tourism makes up almost 10 percent of the GDP of the UAE. The UAE government places a lot of attention on the tourism sector.

The travel businesses in the United Arab Emirates thus reap the benefits of a sector that is already thriving. In addition, the individuals who live in Dubai have not lost their enthusiasm for traveling all over the globe. Because of this, every travel agency in Dubai will see a meteoric rise in profits.

Ease of Access to Enter the Country – Boosting Sales

In recent times, a number of nations have implemented policies that require either no visas or visas upon arrival. Consequently, the money generated by the tourist business has expanded significantly; even the government of the UAE has made its visa policy more liberal.

The majority of modern nations, including a significant number of GCC nations, have electronic borders and do not need visitors to obtain visas to enter. This is one of the reasons why the number of people visiting the UAE each day has been steadily increasing.

Tax Exemption

Because the United Arab Emirates is a tax-free nation, owners or visitors visiting Dubai do not have to worry about paying any taxes while they enjoy the city’s splendor and friendliness. The majority of the world’s most exclusive hotels, clubs, yachts, and gulf clubs are concentrated in the city of Dubai.

Easy To Start Up

Travel agencies in Dubai are required to issue licenses to any foreign national who resides in the emirate and has a valid permit to do so. This exemplifies the expedient and transparent procedure that the government uses to make it possible for investors to launch their own travel agency in Dubai.

Once you get a license for a travel agency in Dubai, you will have the ability to organize a variety of activities falling within the MICE umbrella (meetings, incentives, conferences, and exhibitions). Due to the fast development of Dubai’s MICE business, more opportunities have been available to foreign investors.

Steps to Start a Tourism Business in UAE

The market is closely regulated, so expert counsel might spare you troubles down the road if you’re unsure how to launch a travel agency firm. Let’s deep dive into these steps:

Step #1: Define Your Business Activity

You must choose the kind of travel company you want to operate, such as whether you choose to specialize as a travel agency, an incoming tour operator, or an outbound operator. There is a multitude of activities to choose from throughout the many markets that you might potentially serve.

Step #2: Choose Your Company Name

When it comes to naming businesses, the UAE is quite strict; thus, it is crucial to be aware of the laws governing this practice. Simply said, you should avoid using any language that may be seen as disrespectful or obscene. You must avoid using any name that is presently being used by a respected organization. If you want to name your company after yourself, your name should not be abbreviated in any manner.

Step #3: Choose Your Desired Business Location

If you have a mainland presence, you will be permitted to deal with the UAE market and compete for government contracts. You also have the option of using free zones, which provide a zero percent tax rate, total exemption from customs duty, the possibility to repatriate one hundred percent of revenues, and a variety of other attractive advantages.

Even if your free zone company is unable to participate in direct trade with the UAE market, there are potential solutions that might make this a reality in the future. Given the significance of this decision, a professional in the formation of enterprises will be able to advise you on the best course of action.

Step #4: Apply For Tourism License

The time has arrived for you to submit your application since everything is in its appropriate place.

Outline Of Your Business Plan
Clean Criminal Ceertificate
No-Objection Certificate from Civil Authority
Passport Copy of Proposed Owners
2 Colour Passport sized photographs

Step: #5 Apply for UAE Visa

Ensure that your application is submitted within 30 days of an employee’s entry into the nation. By this time, they should have been awarded a tourist or visit visa.

Simply register on the Ministry of the Interior’s e-channels website to get staff entry permits (another name for a provisional 60-day employment visa). After obtaining entry permission, employees are able to activate it by conducting what is known as an “in-country status change.” This is a crucial need for obtaining a comprehensive work visa.

Step #6: Open Corporate Bank Account

If your firm lacks a business license, no bank will recognize it. However, you should select your bank with caution, since making a mistake might be costly.

The majority will need a continual minimum balance between one million and five thousand UAE Dirhams. In addition, some need proof of residency for at least one shareholder, while others do not, and some do not require this at all.

Tourism License Cost in UAE

The cost of a license to operate as a travel agency depends on a variety of criteria, such as the size of your company, the kind of commercial activities you want to participate in, etc. Minimum initial expenditures should be about 20,000 AED.

Is Starting a Tourism Business in Dubai Profitable?

International investors often choose Dubai as their preferred site to do business because of its status as one of the world’s most important financial centers. Since it has had such rapid development over the last several decades, Dubai has emerged as one of the most attractive locations for entrepreneurs looking to start their firms and profit in the process.

The favorable tax environment, excellent infrastructure, and various development prospects in free trade zones with first-rate facilities are just a few of the criteria that foreign investors consider before choosing Dubai as a destination for their business.

How can Airzone help you Start a Travel company in Dubai?

At Airzone, we help businesses establish their foundation in the United Arab Emirates by helping them find the best service. Getting started is easier when you contact us straight away. We can help you connect with the right service providers to help you grow your business in the UAE.

We can help you connect with our trusted partners that can help you register a new company, and receive a Dubai trade license or free zone license in the UAE. While you concentrate on establishing your business, we’ll connect you with the right people to handle everything from the visa application procedure to any and all important administrative obligations.

Conclusion

Despite the fact that starting a travel agency in Dubai may seem like a daunting task, there are several benefits that come with doing so. With around 16 million international visitors, Dubai’s tourism sector is quite lucrative.

Travel companies may apply for licenses to hold a range of events in Dubai’s MICE industry, which is well-developed. To start a travel agency in Dubai, a non-Dubai resident with a valid residence permit may apply for a license to operate one. When things go awry, Airzone is here to assist.

If you want to learn more about how to set up a business in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country.