Starting a travel agency in Dubai can be a smart business move as the city is a massive tourist hub. As the UAE is well-connected with most major continents, there are always people looking to visit the city.
This guide walks you through how to open a travel agency in Dubai and the types of tourism licenses available so you know exactly what to expect before investing.Working with seasoned, local business setup consultants in Dubai is a simple way for entrepreneurs to avoid getting delayed by government regulations.
What is a Dubai Tourism License?
A Dubai tourism license is a legal permit issued to companies that want to operate travel and tourism-related activities in the emirate. This license is regulated by Dubai’s tourism authority and is mandatory for offering services like tour planning, ticketing, hotel bookings, and holiday packages.
You cannot legally open a travel agency in Dubai without this license. Even online travel businesses targeting local customers need a trade license to operate. Basically, travel company registration in Dubai always involves a tourism license when travel services are part of your business activity.
Can Foreigners Open a Travel Agency in Dubai?
Yes, Dubai allows foreign investors to set up and fully own travel agencies, depending on the license type and jurisdiction you choose. Most entrepreneurs complete travel company registration without needing a local partner.
What Licenses Do I Need to Start a Tourism Company?
The type of tourism license you need depends on the services you plan to offer. This is why choosing the right business activity makes all the difference. In Dubai, tourism companies are broadly categorized into three main license types:
- Inbound tourism license: This allows you to organize tours, safaris, excursions, and holiday activities within the UAE. It is commonly used by companies offering desert safaris, city tours, cruise handling, and local experiences.
- Outbound tourism license: This license allows you to sell international travel packages, airline tickets, hotel bookings, and overseas tour arrangements to UAE residents.
- Travel agency license: It allows you to provide both inbound and outbound tourism services, including ticketing, visa assistance, hotel reservations, and packaged tours.
How to Open a Tourism Company in Dubai? Step-by-Step
This is how you can start a tourism company in Dubai:
1. Choose your business activity
You start by deciding what type of tourism services you want to offer. If your services are unclear or too broad, approvals can take longer. Being specific at this stage helps you apply for the right type of license.
2. Choose a jurisdiction
Most travel agencies choose a Dubai mainland license because it allows you to work directly with customers, hotels, airlines, and tour operators across the UAE.
Mainland companies also find it easier to open offices in commercial areas and handle corporate clients. Free zones can work for specific travel models, but they often limit how tourism businesses operate on the ground.
3. Pick a trade name
Your business name should reflect a professional travel company. It also needs to follow UAE naming rules. Having a few name options ready helps in case your first choice is not available. Generally, you have to present three name choices with your license application.
4. Get initial approval
Most businesses need to get initial approval from the relevant regulatory authority before applying for a license. You will need to submit your business plan and company details as part of your application. You will also need to find a workspace.
5. Apply for a trade license
Once you get initial approval, you can apply for the license with the same authority. You will need to submit your office address, shareholder details, trade name reservation, and a copy of your initial approval certificate. You will also need approval from the local tourist authority to proceed further.
6. Open a bank account
A business bank account is non-negotiable for local businesses. There are many local banks in the country that can suit your needs.
Is a Physical Office Required for a Tourism Company?
Travel agencies operate from a physical office in Dubai. Virtual offices and shared desks are usually not accepted for tourism licenses, as authorities expect a proper business location with a registered address.
What is the Cost of a Travel Company Registration in Dubai?
The average cost to open a travel agency in Dubai is between AED 25,000 to AED 45,000. The location of your office, size of your business, and your business activity all affect the price.
Your total cost is influenced by:
- Type of tourism license chosen
- Mainland or free zone setup
- Office rent and location
- Tourism authority approvals
- Business size and activity scope
Generally, the Dubai mainland company formation cost is higher than setting up in a free zone.
How Long Does Travel Company Registration Take?
Tourism businesses are regulated more closely than standard commercial companies, which is why approvals can take longer. In most cases, the process takes a few weeks. The exact timeline depends on how quickly documents are submitted, office space is finalized, and tourism authority approvals are completed.
Starting a travel agency in the UAE can be lucrative as the local tourism industry is growing. Helen and Sons provides expert support for starting your business, including helping you get a trade license, processing visas, and opening a bank account.
