ESTABLISHING CONDITIONS FOR TRAVEL COMPANY

In recent years, the economy has strongly developed, leading countries around the world to encourage the development of the tourism industry because the tourism demand of people is increasing. Opening a travel company is one of our country’s most developed business types because of the advantages of natural conditions and cultural heritages. However, establishing a company in the field of tourism now requires regulations on procedures and mandatory requirements that make many businesses difficult. Therefore, we desire to support businesses in the start-up process and those who want to develop in tourism. Accordingly, LawPlus would like to send customers the necessary information about the conditions and procedures to establish a travel company in the main field of travel services, tourist transport and tourist accommodation for your reference. ESTABLISHING CONDITIONS FOR TRAVEL COMPANY                                                                                              

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I.Travel Service Company

1.Establishing Conditions: 

According to the provisions of Article 30 of the Law on Tourism 2017, the business of travel services includes:

– Provision of domestic tours for domestic tourists.

– Provision of international tours for inbound tourists and outbound tourists.

To operate in this field, enterprises must comply with the following regulations. 

a) Establishment of enterprises operating in related fields, specifically:

Industry name	Industry code
Travel agent Details: Domestic and international travel business	7911
Tour operator Details: Travel business	7912
Reservation services and support services related to tour promotion and organization	7990
Organization of trade introduction and promotion (except press activities)	8230

Depending on the scope of the travel business operating, the operating conditions after the establishment of the company will be different:

b) For domestic travel service businesses

• Being an enterprise established in accordance with the law;
• Deposit for domestic travel service business at the bank. According to the provisions of Article 1 of Decree 94/2021 ND-CP, the deposit level for a domestic travel service business is 20,000,000 (twenty million dong);
• The person in charge of the travel service business must have an intermediate or higher degree in tourism; in case of graduating from an intermediate level or higher in another major, obtaining a certificate of domestic tourism operations;

Accordingly:

• Specialized in travel according to the provisions of Circular 06/2017/TT-BVHTTDL:
• In case the diploma does not show the fields, occupations or majors, the graduation transcripts or diploma appendices showing the majors, careers or specialties, including one of the phrases “tourism”, ” travel”, “tour guide”.
• If you graduate from an intermediate school or higher in another major, you must have a certificate of domestic tourism operation.

c) For enterprises doing business in international travel services

• Being an enterprise established in accordance with the law on enterprises;
• Escrow for international travel service business at the bank. According to Article 1 of Decree 94/2021 ND-CP, the deposit level for an international travel service business is regulated as follows:

• International tourists to Vietnam: 50,000,000 (fifty million) VND;
• Tourists going abroad: 100,000,000 (one hundred million) dong;
• International tourists coming to Vietnam and tourists abroad: 100,000,000 (one hundred million) VND”.

• Persons in charge of travel service business must have a college degree or higher in tourism; If you graduate from a college or higher in another major, you must have an international tourism management certificate.

2. Process and procedures, documents for establishing a travel service business

The establishment of a tour operator includes two steps: (i) Establishing a company operating in the tourism industry and (ii) Applying for a business license (sub-license).

(i) Step 1: Establish a company operating in the field of tourism:

– Depending on the type of business, the profile will be different, but the basic records will include:

• Business registration application form;
• Company rules;
• A valid copy of ID card/CCCD/passport;
• The decision of the capital contributing organization (capital contributing company);
• List of members/shareholders (LLCs with 2 or more members and joint stock companies);
• Power of attorney for the person carrying out the procedure (if not the legal representative applying).

– Form of application for the establishment of a travel agency and application-receiving agency

• Submit online at the National Business Registration Portal;
• Submit directly to the Business Registration Office of the Department of Planning and Investment of the province or city where the business is located.

– Application processing time

Within 5 working days from the day the application is received, the Department of Planning and Investment will consider and issue a certificate of business establishment registration or request additional adjustment if the application is invalid.

(ii) Step 2: Procedures for applying for a travel business license

Dossier of application for a domestic travel service business license:

• An application form for a license to provide domestic travel services (Form No. 04, Appendix II, issued together with Circular 06/2017/TT-BVHTTDL, amended and supplemented by Circular 13/2019/TT-BVHTTDL);
• Certified copy of Certificate of Business Registration;
• Certificate of deposit for travel service business;
• A certified copy of the appointment decision or the labor contract between the tour operator and the person in charge of the travel service business;
• Certified copies of diplomas and certificates of the person in charge of the travel service business.

Order, procedures and competence to grant licenses:

• The enterprise applying for a license to provide domestic travel services shall submit 1 set of documents to the specialized tourism agency of the province where the enterprise is headquartered;
• Within 10 days from the day the valid application’s receipt, the provincial-level specialized tourism agency shall appraise and grant the domestic travel service business license to the enterprise; In case of refusal, it must be notified in writing and clearly state the reasons therefore.

Dossier of application for an international travel service business license:

• An application form for an international travel service business license (Form No. 04, Appendix II issued with Circular 06/2017/TT-BVHTTDL, amended and supplemented by Circular 13/2019/TT-BVHTTDL);
• A true certified copy of the Certificate of Business Registration or the Certificate of Investment Registration issued by a competent state agency;
• Certificate of deposit for travel service business;
• Certified copies of diplomas and certificates of the person in charge of international travel service business;
• A certified copy of the appointment decision or the labor contract between the travel service business and the person in charge of the travel service business.

Order, procedures and competence to grant licenses:

• Enterprises applying for an international travel service business license shall submit 1 set of documents to the Vietnam National Administration of Tourism;
• Within 10 days from the receipt of a valid dossier, the Vietnam National Administration of Tourism shall appraise and grant an international travel service business license to the enterprise and notify the tourism authority of the province where it is located. Enterprise is headquartered; In case of refusal, it must be notified in writing and clearly state the reasons therefore.

NOTE:

– Enterprises providing international travel services are entitled to provide international and domestic travel services.

 – If an international travel service business is a foreign-invested enterprise, it may only provide international travel services for international tourists to Vietnam, except in the case of international treaties. The economic conditions to which the Socialist Republic of Vietnam is a member have different provisions.

In which, a foreign-invested enterprise providing travel services is an enterprise in which a foreign investor is allowed to contribute capital with a Vietnamese partner to establish a travel service business in accordance with Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a signatory.

II. Tourist transport business:

1.Establishing Conditions:

Pursuant to Article 45 of Law on Tourism 2017, Tourist transport business is the provision of air, sea, water, railway and land transport services for tourists according to tour programs and at tourism areas and tourist attractions.

To operate in this field, enterprises must comply with the following regulations. 

–  Establishment of enterprises operating in related fields, specifically:

Industry name	Industry code
Passenger transport by road within the inner city and suburbs (except for transport by bus)	4931
Road passenger transport other Details: Transporting passengers by bus within the province, inter-province.	4932
Transport of goods by road (except liquefied gas for transportation)	4933
Other supporting service activities related to transportation Details: Agents selling air tickets, ships, trains and cars. Tourist transportation service activities	5229
Motor vehicle rental Details: Engine rental	7710

Tourist transport companies that have registered for business establishment may apply for business registration with the following industry codes:

NOTE:

This field does not require conditions when establishing a business but tourist transport companies must meet the conditions for transportation business; technical regulations, environmental protection of means of transport; conditions of means of transport drivers, service personnel, equipment, and service quality on each type of means of transport by law.

2.Process and procedures, documents for establishing a tourist transport company

Step 1: Set up a tourist transport company

The dossier and application form are similar to that of a travel agency

Step 2: Apply for signboards for means of transport

• A dossier of application for a signboard for tourist transport means includes:
• An application form for a signboard for tourist transport means (Form No. 02 specified in the Appendix attached to Decree 168/2017/ND-CP);
• A list of information on the equipment of each means of transport, service quality, and service personnel on tourist transport vehicles meeting the prescribed conditions;
• A copy of the vehicle registration certificate or an appointment to receive the vehicle registration certificate from a competent authority, a copy of the certificate of technical safety and environmental protection.

In case the vehicle is not under the ownership of the transport business unit, an additional copy of the vehicle rental contract with the organization or individual owning the means of transport or a copy of the service contract between the member and the vehicle owner shall be presented. Cooperative.

III. Tourist accommodation Company

1. Establishing Conditions: 

Pursuant to Article 48 of Law on Tourism 2017 and Circular 168/2017/NĐ-CP, tourist accommodations include: 

• Hotel.
• Tourist villa.
•  Tourist apartment.
• Cruise ship.
• Tourist guest house.
• Houses with rooms for rent.
• Tourist campsite.
• Other tourist accommodation establishments.

To operate in this field, enterprises must comply with the following regulations. 

-Establishment of enterprises operating in related fields, specifically:

Industry name	Industry code
Short-stay services Details: Services for villas or apartments for short-stay business	5510
Other accommodation Details: Other accommodation n.e.c	5590
Restaurants and mobile catering services Details: Restaurants, eateries, food stalls (except for restaurants belonging to fast food chains)	5610
Providing catering services under occasional contracts with customers	5621

A tourist accommodation company that registers to establish an enterprise may register its business with the following industry codes:

– Conditions of operation after business registration:

• Having business registration as prescribed by law;
• Satisfy conditions on security, order and safety in terms of fire prevention and fighting, environmental protection, and food safety as prescribed by law;
• Meet the minimum conditions for technical facilities and services to serve tourists. (Decree 168/2017/ND-CP)

2.Process and procedures, documents for establishing a tourist accommodation company

Step 1: Establish a tourist accommodation company:

The process, procedures, and documents for setting up a tourist accommodation company are similar to those of the two types of businesses above.

After business registration at the Department of Planning and Investment, the enterprise must carry out other procedures and comply with the following regulations:

 Step 2: Apply for a Certificate of eligibility for security and order:

– Executing agency: Police Department for administrative management of social order

– The certificate of satisfaction of security and order conditions does not specify the expiry date

Dossier for new issuance of Certificate of satisfaction of security and order conditions applicable to industries and professions

1. A written request for a Certificate of satisfaction of security and order conditions of the business establishment (Form No. 03 in the Appendix issued together with Decree 96/2016).
2. A valid copy of the Business Registration Certificate;
3. Valid copies of papers and documents evidencing the assurance of fire prevention and fighting safety conditions for the business area and the warehouse for storing raw materials and goods
4. The resume (Form No. 02 in the Appendix to this Decree) enclosed with the criminal record card or the personnel declaration (Form No. 02b in the Appendix to this Decree) of the person. be responsible for the security and order of the business establishment

Step 3: Apply for a Certificate of Eligibility for Fire Prevention;

– Minimum conditions for technical facilities and services: (CSPL: Article 5 of Decree 142/2018/ND-CP)

Houses with rooms for tourists to rent: Houses with areas equipped with equipment and facilities for tourists to rent and stay; Guests live with the host family.

– Minimum conditions for material and technical facilities and services for houses with rooms for tourists to rent

1. There are lights and clean water.
2. Having a common living area; there are accommodation areas for guests; with kitchen, bathroom, toilet.
3. Have a bed, mattress or mat; have blankets, pillows, mosquito nets, face towels, towels; change mattress covers or mats; change blankets, pillow covers, face towels, towels when there are new guests.
4. Landlords who have rooms for tourists to rent are trained in tourism operations.

At least 15 days before going into operation, the tourist accommodation establishment is responsible for sending a written notice to the Department of Tourism, the Department of Culture, Sports and Tourism where the tourist accommodation establishment is located about the the following content:

– Name, type and size of tourist accommodation establishment;

– The address of the tourist accommodation establishment, information about the legal representative;

– Commitment to meet the conditions for providing tourist accommodation services as prescribed in Article 49 of the Law on Tourism and Decree 168/2017/ND-CP.

Step 4: Register for Rating (to voluntarily register for rating of tourist accommodation establishments with competent state agencies)

1. a) An application form for recognition of the tourist accommodation establishment class according to the form prescribed by the Minister of Culture, Sports and Tourism (Form No. 07, Appendix II of the 2017 Tourism Law)
2. b) A self-assessment of the quality of the tourist accommodation establishment according to the provisions of the national standards on ranking of tourist accommodation establishments;
3. c) List of managers and employees in the tourist accommodation establishment;
4. d) Certified copies of diplomas, certificates, certificates of professional development and certificates of working time in tourism of the manager, head of the department in the tourist accommodation establishment.

Above is Lawplus’s analysis conditions to establish a travel agency, tourist transport company and tourist accommodation company. With the desire to help your businesses and customers better understand the legal regulations to apply in practice. For more detailed advice, please contact LawPlus at hotline +84 2862 779 399, +84 3939 30 522 or email info@lawplus.vn.