Running a travel agency in Singapore can be profitable because many travelers prefer to book reservations through certified companies to make their trips easier and less stressful. As a result, there is a significant market opportunity for travel firms in Singapore as more people desire to travel within and outside of the country.
In this post, we’ll go over the step-by-step procedure of establishing a travel agency in Singapore, as well as the requirements for incorporation.
What is a Travel Agency in Singapore?
A Travel Agency is an individual or corporation that arranges and organizes travel and tour services. A Travel Agent in Singapore is an organization that provides travel and tour packages involving travel by air, sea, or land. This definition excludes companies that merely provide transportation (such as taxi companies or trucks that convey commodities).
What is the Process for starting a Travel Agency in Singapore?
Choose your Business Name
The initial phase is to choose a business name that will attract clients from inside and outside of Singapore. As a travel agency, it is critical to register the business name so that clients can immediately deduce the nature of the firm, especially since many foreign visitors are unfamiliar with the available travel companies in the country.
Find a Suitable Location
Every company requires a place to perform day-to-day operations, and travel agencies require a room where you can effectively file documents while meeting with clients. Clients often come into the workplace to submit paperwork and meet with relevant personnel, thus having an accessible spot for the facility will benefit the company’s visibility.
Prepare a Business Plan
Create a travel agency business plan. Will the agency focus on foreign travel and tours, or will it focus solely on domestic travel and local tourism? These are some things to think about when writing a business strategy.
Register your business with ACRA
After you’ve defined your business goals, you can register your company with the Accounting and Corporate Regulatory Authority (ACRA). ACRA regulates all business entities and facilitates company formation. ACRA may request the following from the travel agency:
- At least 1 shareholder with details
- At least 1 Local Resident Director with details
- Local Resident Office
- Register Business Name
- Minimum Capital of SGD 1
- Detailed Information about the Business Plan
Get the Necessary license and Permits
Aside from the paperwork required by ACRA, a Singapore travel firm must also get permission from the Singapore Tourism Board (STB). To operate as an approved travel agency, the travel agency will need to get a license from the STB. Other permits may be required based on the extent of services provided by the company, the number of employees, and the location of its office.
Types of Trade Agent License in Singapore
The different types of trade agent licenses in Singapore are:
- Niche License: A Niche License allows the licensee to sell, arrange, or market trips only within Singapore, with no accommodation rights. To meet the government’s minimal financial requirements, an applicant must have a minimum paid-up capital of S$50,000 and a net worth of the same amount.
- General License: A General License allows the user to do any activities that are not covered by the scope of a Niche license. An applicant for such a license must have at least S$100,000 in net worth and a minimum paid-up capital.
Renewal of Trade Agency license in Singapore
The license is valid for a set period, usually two years. It normally expires on December 31 of the year following the issuing of the permit, and the travel company must renew it before that date.
Renewal Process of Trade Agency License in Singapore
- Submit audited financial statements and annual business profile returns for the last two years.
- Pay any overdue fines, penalty payments, or financial penalties.
- Confirm business specifics;
- If the net value of the business is less than $100,000 for General Licenses or $50,000 for Niche Licenses, increase paid-up capital.
- Provide any additional information requested by the Board.
- Pay the $400 license fee to the Board.
Benefits of the Singapore Trade Agency
The list of benefits that are associated with Singapore Trade Agency are as follows:
- Gaining entry to new markets and opportunities
- Increased brand visibility and reputation
- Improved international collaboration
- Reduced risk of doing business internationally
- Increased profitability and competitiveness
Conclusion
The Singapore Trade Agency (STA) is a valuable resource for businesses of all sizes. The agency’s services can help companies connect with international partners and markets, reduce risk, improve competitiveness, enhance brand reputation, and build stronger partnerships.
If you are considering starting a travel agency in Singapore, OnDemand International can assist you with every step of the process. We can help you obtain the necessary licenses and permits, develop a business plan, find a suitable location, and market your business. Contact us today to learn more about how we can help you to succeed in the travel industry.