How to Open a Travel Agency in Saudi Arabia?

How to open a travel agency in Saudi Arabia? It’s not a crucial aspect to open and operate a travel agency as it is a rapidly growing industry in Saudi Arabia. The Saudi government has promoted the latest plans to diversify its economic and industrial conditions, declaring the country a world-famous tourist destination.

Travel and tourism agencies can be highly profitable businesses in the Saudi Kingdom. This industry is rapidly growing, and the kingdom offers more relaxing conditions and regulations to foreign visitors.

This guide outlines the quick and simple steps for setting up a travel agency in Saudi Arabia. It provides all the relevant information on the legal and financial requirements for starting a travel agency business in the Saudi Kingdom.

Why Travel Agency Business in Saudi Arabia?

Travel agency in Saudi Arabia is a highly profitable business for the quickly expanding market of this industry. The Saudi Kingdom offers various attractions to travelers, such as a rich culture, historical and religious heritage, natural wonders, and modern civilization. The country is continuously investing in the development of modern infrastructures for travel and tourism. For example, luxurious hotels, new airport terminals, modern resorts, fun and entertainment spots, food and restaurants, and other cultural events. For example;

  • The Saudi government launched the latest tourism visa policy, allowing various tourists from forty-nine countries to stay in the kingdom for up to three months.
  • They allow tourists and the public to visit their historical and archeological sites.
  • They host various entertainment and international events for the public and visitors.
  • They focused on the latest developments in modern projects to offer the best amenities and memorable experiences for visitors in the country.
  • The Saudi government supports local and international travel and tourism agencies and launches multiple policies, programs, and incentives.
  • Existing companies in the Saudi kingdom must check their visa status regularly to prevent any legal penalties and obligations. They can verify their visa status before planning to launch a travel agency in the kingdom.
  • This business is highly beneficial due to the increasing demand for travel and tourism services in the country. It’s quick and easy to acquire car rental, visas, hotel bookings, tourism packages, and flight bookings in the country.
  • Visitors can also acquire various segments for the travel and tourism industry, such as business travel, religious pilgrimage, and adventure trips.

Understand the Foreign Company Registration in Saudi Arabia

Start a foreign business in Saudi Arabia is now more accessible, and here we discuss a quick breakdown of foreign company registration in KSA;

Ownership of Foreign Companies: Foreign companies can acquire a hundred percent ownership in Saudi Arabia. However, a few industrial sectors still need a local sponsor in the kingdom.

License for a Foreign Company: Foreign investors must obtain a foreign investment license from the regulated authorities and the Ministry of Investment Saudi Arabia to proceed with setting up the company or opening a new branch office.

Documents Requirements: The company must require the notarized and published articles of association of the company. Required documents are the director’s passport copy, evidence of equity, and bank statements.

Registration Process: The company must submit the required documents with its application to the Ministry of Investment in Saudi Arabia. After approval, it can acquire commercial registration from the Ministry of Commerce in Saudi Arabia. Companies can seek legal advisors for professional assistance and to prevent legal obligations.

How to Obtain a Travel Agency License?

To obtain a Travel Agency License in the Saudi Kingdom includes various steps;

Legal Structure: Companies can choose a legal structure, such as sole proprietors, limited liabilities Companies (LLC), and registration with the Ministry of Commerce Saudi Arabia.

Travel Agency License: Companies can apply for a travel agency license through the online web portals of Travel and Tourism Ministry Saudi Arabia. They must acquire NOC and valid registration from the legal authorities.

Legal Requirements: To meet the pre-defined criteria for KSA’s travel agency business, such as;

minimum equity must be according to size, type, location, services, professional expertise, qualifications, and workspace licenses.

License Costs: Companies will pay the licenses and registration charges to the regulated authorities to proceed further. The cost may vary depending on the types, sizes, and services of travel agencies.

The Ministry of Travel and Tourism Saudi Arabia offers a more detailed overview and potential resources on its website. Companies can consider business consultants and specialists for comprehensive support and assistance in smoothly navigating the process.

Steps to Start a Travel Agency in Saudi Arabia

These are essential steps to start a travel agency business in Saudi Arabia.

Select a Business Name

The company must choose a unique travel agency name for registration. They may acquire a list of suggested names from the regulated authorities.

Register with IATA

IATA registration in KSA is mandatory for travel agency business. It will provide quick and easy access for airline interactions with a requirement of separate registration with IATA instead of the Saudi government.

Register with the Chamber of Commerce of KSA

It’s mandatory to register with the Chamber of Commerce in the KSA. Membership offers more benefits, such as networking and communication, business support services, and certifications to extend the travel agency’s credibility. Companies can go through the local offices of the Chamber of Commerce KSA to verify their requirements and avail themselves of travel agency-related programs.

Get a GST Registration Number

Saudi Kingdom has no more GST or goods and services taxation for businesses. So, a GST registration number is not a requirement for travel agency business in Saudi Arabia. There will be no GST payments or collections from Travel agencies in Saudi Arabia.

Set Up Your Physical Office

Travel agencies in KSA must choose a physical office location to attract potential customers and provide higher visibility and quick access to a targeted market. They must choose a workspace size to accommodate professional teams and business operations. They can consider shared office spaces as a cost-effective solution to save capital. Travel agencies must acquire a professional setup with a reliable atmosphere, tech-savvy equipment for presentations, and travel agency brochures to display tour packages and discounts.

Collaborate with Saudi Travel Agents

Travel agencies are required to collaborate with local travel agents for mentorship. They can consider approaching local and experienced travel agents to establish their new business and obtain market insights, Saudi regulations, changes, updates, and extended supplier relations.

They can explore partnerships for specific services and collaborate with local agencies for visa processing and airport services to validate travel agency business expertise.

They can also attend multiple events and conferences to network and join local travel agency associations to connect and establish strong business connections. These network connections may lead them to potential customers and collaborate with more travel business ideas.

They can also strategically collaborate with more established travel agencies and set up a highly equipped and well-interior workspace to acquire a strong reputation in the local market.

The Final Word

Establishing a travel and tourism agency in Saudi Arabia is a beneficial and profitable business idea. Although it has multiple challenges and few complexities, it is an easy and quick process.

We provide all the relevant information to opening a travel agency in KSA, but it’s wise to consider a professional consultant to register and establish a travel agency business in KSA and comply with all the laws and regulations implied by the Government of Saudi Kingdom.

Saudi Formation Company has been helping various companies register and establish their businesses in KSA. Their team of experts provides complete assistance, resolves queries, and guides you to proceed further and establish a successful travel and tourism company in Saudi Arabia.

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