Vietnam is a great trading and touristic destination and the establishment of a company in any of these two industries here can generate significant profits. When it comes to tourism, there are several types of businesses which can be established among which restaurants, hotels, and travel agencies. Among these, setting up a travel agency is more accessible to foreign investors even if there are very strict requirements one must comply with.
Foreign investors who want to open travel agencies in Vietnam need to register a company here and then find a local partner already registered as a tour operator in order to be able to offer its services. Below, our company formation specialists in Vietnam explain the steps related to opening a travel agency in this country. You can also rely on us for assistance in registering this type of business.
Foreign entrepreneurs opening a travel agency in Vietnam
Tourism is one of the most prolific economic sectors of Vietnam and the offering of accommodation services is not subject to any restrictions, however, most travel agencies here also include transportation in their services, and the transport of passengers is subject to particular restrictions when provided by foreign companies. This is why, when seeking to open a travel agency as a foreign investor in Vietnam, the following regulations must be observed:
- the investor must register a company which offers tourism services in his or her home country;
- the local partner must also have a company registered according to the Vietnam Company Law;
- the Vietnamese company must operate in the tourism sector and have a license under which it can offer foreign tourism services issued by the government;
- the two companies must set up a joint venture under which the foreign company will be able to offer its services in Vietnam.
Our Vietnam company formation agents can advise on the requirements imposed by the government in relation to the conditions a foreign investor can offer tourism services in this country.
We can also advise on opening a company in Vietnam as a limited liability entity.
Registering a travel agency in Vietnam
Once the conditions above are met, the two parties can register their joint venture as a tour operator in Vietnam. The registration is completed with the Trade Register just like in the case of any other type of company.
Once the Vietnamese company is incorporated, it must:
- apply for the foreign tourism license with the Vietnamese government based on a business plan created to offer tourism services;
- create a tourism schedule for foreign visitors and file it together with the business plan;
- the company must also comply with the share capital requirements imposed by the local legislation;
- the company must fulfill the management and employment conditions in order to start operating.
The creation of a joint venture is not complicated, and if you plan on setting up a company in Vietnam which will operate as a travel agency, our local representatives can help you prepare the necessary documentation to get started.
Other conditions to open a travel agency in Vietnam
As mentioned above, there are few other conditions to be met when setting up a travel agency in Vietnam as a foreign investor. Among these, we mention the fact that the joint venture established as a Vietnamese tour operator must have a minimum share capital of 250,000,000 VND (approximately 12,500 USD) for offering inbound tourism services or 500,000,000 (around 50,000 USD) for offering inbound and outbound tourism services.
The Vietnam travel agency also requires a manager who has at least 4 years of experience in the tourism field. Another important condition for opening a travel agency in Vietnam is for it to hire at least 3 certified travel agents who have a foreign tour guide license.
Our company registration advisors in Vietnam can offer more information on the conditions related to setting up a travel agency. Furthermore, the accountants at our accounting firm in Vietnam can also assist your business in complying with the laws regulating the country. You should know that accounting services aid businesses in reducing unneeded risks associated with their operations and manufacturing processes. However, it can be difficult for small and medium-sized businesses, in particular, to find skilled personnel who are informed about accounting, tax, and law. But the services of our accountants are available to them.
Why start a travel agency in Vietnam?
Tourism is one of the most important industries in Vietnam and the creation of a travel agency here will bring many benefits to foreign investors willing to set up such a business venture. The registration procedure of a travel agency is not complicated considering the issuance of the travel agency license takes less than a month to be issued, provided that the application file is complete. For this purpose, we kindly invite you to solicit the help of our company formation experts in Vietnam who can help you prepare it.
If you want to open a travel agency in Vietnam, please contact our local specialists. Our company registration agents in Vietnam will guide and help you through the entire procedure of setting up your own travel agency in this country.