What Should Startups Consider When Starting a Tourism Business?

To facilitate starting a tourism business, startups need to pay attention to essential issues. With the current trend of developing various tourism models, travel business is a field chosen by many investors. To help investors easily access this information, Long Phan provides details on starting a tourism business in the following article.

Starting a Tourism Business

What fields does tourism business include?

• Currently, the tourism business includes threemain areas as follows:
• Travel business: travel agency, travel business company
• Accommodation business (Article 48 of the Law on Tourism 2017): hotels, motels,…
• Business of other tourism services: entertainment, art gallery development,…

Travel itineraries

What Should Startups Consider When Starting a Tourism Business?

Conditions and Procedures for Establishing a Tourism Business Company

To establish a tourism business company, it is necessary to meet all the conditions and procedures stipulated by business law.

Conditions

When establishing a tourism business company, please note the conditions depending on the specific type of tourism:

• For a Travel Agency Business:
  • Must be established according to the regulations of business law.
  • Must deposit a business guarantee at a bank.
  • The person in charge of the travel service must have a degree in tourism; if from another field, they must have a travel operation certification.
  • Legal reference: Article 31 of the Law on Tourism 2017.
• For a Accommodation Business:
  • Must be registered according to the law.
  • Must meet conditions related to security, order, fire safety, environmental protection, and food safety as required by law.
  • Must meet minimum standards for facilities and services for tourists.
  • Legal reference: Articles 48 and 49 of the Law on Tourism 2017.
• For Other Tourism Service Businesses:
  • Organizations or individuals providing other tourism services can voluntarily register for recognition of their business as meeting tourist service standards with the competent authority.
  • Legal reference: Clause 1, Article 56 of the Law on Tourism 2017.

Establishment Procedures

Preparing Documents for Establishing a Travel Agency Company

To establish a travel agency company, the business needs to prepare a complete set of documents, including:

• Application for business registration with the following content:
  • Company charter (not required for sole proprietorships);
  • List of members or shareholders (for limited liability companies with two or more members or joint-stock companies);
  • Valid notarized copies of one of the following documents:
    • ID card/passport of the company owner, legal representative, founding shareholders/members, and the person authorized to submit the documents;
    • Business registration certificate for organizations (except for Ministries/Provincial or City People’s Committees) along with personal identification documents and authorization decisions;
    • Capital contribution decision for organizational members.
  • Legal reference: Chapter II of the Enterprise Law 2020.

After completing the company registration procedures, the business must check for necessary conditions. Next, proceed with obtaining a business license for the corresponding business activities based on the business model.

Establish an action company

Choosing a Tourism Business Model

Depending on the investor’s situation and conditions, selecting a suitable business model is essential. In Vietnam, tourism business models can be diverse and varied. Below are some common models:

• Tour and Travel Services:Companies in this field typically focus on organizing and selling tour packages, including group tours and individual tours, as well as providing booking services for flights, hotels, and other local services.
• Adventure and Extreme Tourism:Offering experiences such as mountain climbing, scuba diving, cave exploration, and other adventure sports.
• Ecotourism and Cultural Tourism:Emphasizing exploration and experience of local culture and nature, including visiting cultural heritage sites, local food experiences, and participating in environmental conservation activities.
• Educational Tourism:Providing educational travel programs, such as visiting schools and universities, organizing courses, workshops, and training programs.
• Medical Tourism:Offering medical tourism services including visits to hospitals and medical centers, health care, beauty treatments, and participation in wellness programs.
• Arts and Creative Tourism:Focused on exploring and experiencing local art and creativity, including attending cultural and art events, and participating in courses and workshops.
• Community Tourism:Collaborating with local communities to provide travel experiences that benefit both the community and tourists, such as homestay, farming experiences, and involvement in community development projects.

These models can often be combined to create diverse and rich tourism products that meet tourists’ needs and benefit both businesses and local communities.

Legal Issues to Consider When Starting a Tourism Business

While the tourism business is quite popular, startups will inevitably encounter various legal issues. When Starting a Tourism Business, consider the following legal matters:

• Foreign enterprises cannot conduct domestic travel services.
• Choose the appropriate business model.
• Register the business and obtain a business license: register the brand name, tax identification, and other legal procedures.
• Comply with tax and accounting regulations.
• Follow labor regulations: employment contracts, wages, and working conditions.
• Understand local and national policies and regulations.
• Meet fire safety, infrastructure, and other standards.
• Prepare documents and follow legal procedures correctly.

Understanding and complying with legal regulations not only helps startups avoid legal risks but also creates opportunities and a favorable environment for the development and success of the business.

Consulting Services for Starting a Tourism Business

For general business and specifically Starting a Tourism Business, companies need to prepare all necessary legal documents and acquire a certain level of legal knowledge to maintain a sustainable company. To support businesses in this process, Long Phan provides consulting services including the following key areas:

• Consulting on conditions (qualifications, certifications, capital requirements, service licenses) and procedures for establishing a company.
• Consulting on registration documents and obtaining operational licenses.
• Preparing registration documents.
• Assisting with the registration process.
• Supporting tax declaration and account opening.
• Assisting in designing the brand identity.
• Contacting seal engraving services.

Additionally, based on the actual situation and customer requirements, our consulting services for tourism business startups can be expanded to meet specific needs and expectations.

These are the considerations for effectively Starting a Tourism Business that Long Phan wants to share with you. We hope this article addresses the issues you may be facing. If you need assistance with any aspect of starting a business, please call our hotline at 0906.735.386 for further support.