Dubai, UAE is the favourite tourist destination globally. Here people from around the world can visit and spend their holidays beautifully. Hence it is the best opportunity to start a tourism company in Dubai. Where the company can book the full package for the visitors and earn a handsome amount from this business.
Dubai is the place where they provide ease of doing business without any hassle of corporate and income tax. There is no exchange restriction and you can repatriate 100% of your business profit.
As per recent updates, Department of Economic Development (DED) – Dubai removed the requirement of bank guarantee which is levied on the company at time of starting of tourism company in Dubai to attract more investors.
Let’s jump into the more details regarding to start tourism company in Dubai.
Suitable Activities
| Activity code | Activity name | Activity Description |
| 7912004 | In Bound Tour Operator | Includes firms that organize local incentive tours or tours for foreigners to attend conferences and events, it involves handling visas, transport and residence. |
| 7912005 | Out Bound Tour Operator | Includes firms that organize and sell tourist programs abroad via travels and tourism agents. |
| 7911004 | Travel Agency | Includes any person who sells air tickets outbound trip, and provides related services including accommodation, visas, tours organizing and transportation, in addition to selling tourist programs organized by outbound tour operators. |
All activities mentioned above can be taken under one license. License type shall be “Professional license” for formation of tourism company.
Legal type and ownership
As the license type of tourism company is Professional license hence the company can be 100% owned by expat but the company has to appoint a UAE national as Local Service Agent (LSA) for labour and immigration work.
The legal type of the shall be “Sole Proprietor” if it is owned by a single owner. If there are 2 or more owners then the legal type of the company shall be “Civil Company”.
External approval requirement
The “Travel Agency” activity will require external approval from Dubai Civil Aviation Authority (DCCA).
The other two activity “In Bound Tour Operator” and “Out Bound Tour Operator” does not require any external approval but it required insurance coverage of AED 2,000,000/-.
Office requirement
Every company which is registered in Dubai local land is required to have a physical office to run the business. The tourism company will require a minimum office space of 300 Sq. Ft. The office cost mainly depends upon the size of the office and the location. The office rent starts from AED 40,000/- per year in a good area of Dubai.
Estimated cost of setting up tourism company
- Trade name reservation : AED 800/-
- Initial approval : AED 300/-
- Legal charges : 1,000/-
- DED license cost : AED 18,000/- to 21,000/-
- Dubai Civil Aviation Authority approval charges : AED 7,000/-
- Insurance charges (For coverage of AED 2 million) : Depends upon the quotation provided by the insurance company
- Local Service Agent (UAE national) : AED 5,000/- to 10,000/-
- Labour card and Establishment card charges : AED 1,500/-
- Office rental cost (Min. size 300 Sq. Ft.) : Depends upon the size and location
Process of formation of company
Here is the stepwise process for formation of tourism company in Dubai:
- Reservation trade name of the company
- Apply and obtain the initial approval
- Apply and obtain external approval from DCCA
- Preparation and signature of MOA-AOA
- Finalize the office and obtain Ejari certificate
- Apply for insurance of AED 2,000,000/
- Obtain company trade license
After obtaining a trade license of tourism company, you have to apply for a labour card and immigration/establishment card of the company so that you can apply for owners and employees visa.
List of documents required
Below is the basic list of required documents.
Expat owners
- Passport
- UAE residence visa/Visit visa
- Emirates ID (if available)
- Address proof
- NOC from the sponsor (If owner has already UAE residence visa)
UAE national (LSA)
- Passport
- Emirates ID
- Family book
We, The Prefect Advisors DMCC can assist you in the formation of a tourism company in Dubai. Kindly let us know if you need any further clarification.
