Conditions for establishing a company in Vietnam for tourism

With the increasing demand for enjoying life comes the need to travel more. That helps the tourism business grow more and more, more and more travel business companies have been established in recent years. So what are the conditions to set up a travel company? What procedures are needed to set up a travel agency? To answer your questions, Viet An Law Firm offers the following article on conditions for establishing a company in Vietnam for tourism.

Legal basis

• WTO, CPTPP.
• Law on Tourism 2017.
• Law on Investment 2020.
• Decree 168/2017/ND-CP detailing and implementing a number of articles of the Law on Tourism.
• Decree No. 31/2021/ND-CP guiding the Law on Investment.
• Decree No. 01/2021/ND-CP on business registration.
• Circular No. 06/2017/TT-BVHTTDL detailing a number of articles of the Law on Tourism.

What is a tourism agency?

According to the provisions of tourism law, a tourism business company, also known as a tourism service business company, is an enterprise operating in the business of tourism services.

Tourism service business is the provision of products such as services and travel programs. Accordingly, companies doing this business will organize, develop, and implement package tours and sell these products to their customers.

Individual tourism services such as transportation, accommodation, meals, experiences, entertainment, guidance, and other services will be arranged by tourism companies into a “tour” to meet and satisfy the needs of customers and at the same time for the purpose of making a profit for the person doing this service.

Market access conditions for foreign investors

Investment conditions for foreign investors are conditions that foreign investors, when conducting investment activities, must meet in investment sectors and trade with investment conditions for foreign investors. in accordance with the provisions of international treaties on investment, relevant laws, ordinances, and decrees.

According to the provisions of international treaties to which Vietnam is a contracting party:

Conditions for investment in travel and tourism services prescribed by WTO, FTAs, and AFAS are unlimited, except for the following cases:

• Form of joint venture investment (as a company with an international tourism business license)
• Foreign-invested economic organizations will only be allowed to provide services of bringing international tourists into Vietnam and domestic tourism for visitors to Vietnam as part of tourism bringing visitors into Vietnam. South and are not allowed to do business in the service of bringing tourists from Vietnam to abroad.
• Tour guides in economic organizations and foreign-invested enterprises must be Vietnamese citizens.

Regulations of Vietnamese law for foreign investors

For tourism services

Forms of investment in joint ventures or other forms consistent with specific regulations and roadmaps in international treaties to which Vietnam is a contracting party.

The Vietnamese partner participating in the investment is a Vietnamese enterprise with an international tourism business license.

Only organizing tours for foreigners entering Vietnam and domestic tourism in Vietnam. Vietnamese tourists are not allowed to go abroad.

For tourism agency services

With tourism agency services, foreign investors are only entitled to receive and sell tour programs of tourism businesses to tourists for commissions, but not to organize the implementation of tourism programs.

Conditions for establishing a company in Vietnam for tourism

Conditions on company name

Regarding this condition, in order to ensure compliance with the provisions of the law, the name of a tourism company must have at least two elements: Type of business and proper name of the company.

• The name of the tourism agency can be in Vietnamese or a foreign language. If the name is in a foreign language, the nameplate must be printed smaller than the Vietnamese name at the head office, branches, and business locations and on transaction papers, documents and publications issued by the company.
• The company name must not be the same or cause confusion with the companies registered on the business registration portal nationwide.

Conditions for application for registration of establishment of a tourism company

To set up a tourism agency, you will need to prepare the following documents:

• Business registration application form.
• Company charter.
• List of members or shareholders of the company (in the case of a joint stock company or a multiple-member limited liability company).

In addition, you will need to prepare a valid copy of one of the following documents:

• One of the legal documents as prescribed in Decree No. 01/2021/ND-CP in case the founder is an individual.
• Certificate of enterprise registration or establishment decision, legal papers of the authorized representative, authorization documents in case the founder is an organization.
• For foreign-invested organizations, an investment registration certificate is required in accordance with the Law on Investment and relevant legal documents.

Capital conditions

To open a tourism agency, you need to make a deposit at a bank. Accordingly, the deposit level is specified in Article 14 of Decree 168/2017/ND-CP for the deposit level for domestic tourism service business: 100,000,000 VND (One hundred million Vietnam Dong). As for the deposit for international tourism service business, there will be different prices, specifically as follows:

• For international tourists to Vietnam: 250,000,000 VND (Two hundred and fifty million Vietnam Dong).
• Business tourism services for tourists going abroad: 500,000,000 VND (Five hundred million Vietnam Dong).
• For tourism business for international tourists to Vietnam and tourists going abroad, the price is: 500,000,000 VND (Five hundred million Vietnam Dong).

Note:

• For international tourism services, the required charter capital must be equal to or greater than the deposit capital.

Conditions for establishing a tourism service business

Article 30 of the Law on Tourism 2017 stipulates that the scope of business tourism services includes:

• Business domestic tourism services for domestic tourists.
• International tourism service business serving international tourists to Vietnam and tourists going abroad.

Accordingly, for domestic tourism service business, the following conditions must be fully satisfied:

• An enterprise established in accordance with the law on enterprises.
• Already have a business deposit for domestic tourism services at the bank.
• In terms of professional qualifications, the person in charge of tourism service business must have an intermediate or higher degree in tourism. In case of graduating from another major, a certificate of domestic tourism operation is required.

For conditions on international tourism service business:

• An enterprise established in accordance with the law on enterprises.
• Deposited international tourism service business at the bank.
• In terms of professional qualifications, the person in charge of the tourism service business must have a college degree or higher in tourism, and in case of graduation from another major, a certificate in international tourism operations is required. economic.

Conditions for establishing a tourism transportation business

Tourism transport business is the provision of transportation services by air, sea, and road.

Accordingly, organizations and individuals establishing tourism transport companies must satisfy the following conditions:

• An enterprise established in accordance with the law on enterprises.
• Satisfy transportation business conditions as prescribed by law.
• Conditions of technical regulations and environmental protection of means of transport.
• Conditions on transport means drivers, equipment and service quality on each type of means of transport as prescribed by law.

Conditions for establishing a company providing tourist accommodation services

Currently, in Vietnam, there are several types of tourist accommodation establishments as follows:

• Tourist apartment.
• Tourist villa.
• Tourist apartment.
• Cruise ship for tourist accommodation.
• Tourist accommodation.
• Tourist campsite.
• The house has rooms for tourists to rent.

Accordingly, in order to meet the conditions for business in tourist accommodation services, enterprises need the following conditions:

• An enterprise established in accordance with the law on enterprises.
• Satisfy conditions on security, order and safety in terms of fire prevention and fighting, environmental protection and food safety as prescribed.
• Meet the minimum conditions for technical facilities and services to serve tourists.

For customers wishing to find out more information about the conditions for establishing a company in Vietnam for tourism, please contact Viet An Law Firm for our best support!