Conditions for establishing a domestic travel business company in Vietnam

Tourism development is becoming a spearhead economic sector of our country on the basis of effectively exploiting advantages of natural, ecological conditions, cultural and historical traditions. Realizing that potential, the demand for establishing domestic travel companies is becoming stronger. The following article of Viet An Law will provide you with some information about the conditions for establishing a domestic travel company.

Legal basis

• Vietnam’s WTO commitments;
• Business Law 2020;
• Law on Tourism 2017;
• Decree 01/2021/ND-CP on business registration;
• Decree 168/2017/ND-CP details a number of articles of the Law on Tourism, amended and supplemented by Decree 94/2021/ND-CP.
• Circular 06/2017/TT-BCHTTDL detailing a number of articles of the Law on Tourism, amended and supplemented by Circular 13/2021/TT-BVHTTDL.

What is domestic travel business?

According to current regulations in Vietnam, domestic travel business is an activity of an business specializing in providing tourism and travel services within the territory of Vietnam. This includes building a network of partners, designing and organizing domestic tours, taking care of customers and promoting domestic tourism services.

Conditions for foreign investors to access the domestic travel market in Vietnam

Within the framework of the WTO, Vietnam currently has commitments for  the Travel Agency and Tour Operator Services (CPC 7471), under which foreign service providers are allowed to provide services but only in the form of joint ventures with Vietnamese partners, and foreign capital contributions are not restricted. In addition, tour guides in foreign-invested businesss must be Vietnamese citizens.

Foreign-invested service providers are only allowed to provide inbound and domestic travel services for visitors to Vietnam as part of the service of bringing visitors into Vietnam tourism. Accordingly, foreign-invested travel companies are not allowed to bring Vietnamese and foreign tourists to travel outside the territory of Vietnam, ie not to provide outbound services.

Conditions for establishing a domestic travel business company in Vietnam

Being an business established in accordance with the provisions of law

Customers should note about the industry as well as the charter capital level when registering as follows:

• The registered business is Tour Operator, details: Business of domestic travel services and Business of international tours. In addition, customers should also register for tourism-related industry codes such as travel agencies, accommodation business, travel support services… Viet An will advise and arrange industry codes in accordance with the needs of each customer.
• About capital: Because the conditions for applying for a domestic travel license require a deposit of VND 20,000,000, customers balance to register a higher capital level, suitable for the business scale.

Documents to prepare:

• Application for business registration;
• The company’s charter;
• Personal certificate of founding members/shareholders;
• Power of attorney for Viet An Law to carry out procedures;
• Documents on proof of address: Customers should note not to register addresses at apartments and collective houses in accordance with the Law on Housing. If registered at the building, it must prove that the registered address has the commercial business function shown in the construction decision.

How to do it: Submit in person or online at the National Business Registration Portal (dangkykinhdoanh.gov.vn) website

Processing time: Within 03 working days from the date of receipt of the application, the business registration authority will respond to the validity of the application. In case of amendment or supplementation, a written notice clearly stating the reason therefor shall be given.

Procedure results: The business registration certificate has an business code and a tax code.

Note: After obtaining a business registration license issued by the Department of Planning and Investment of the province / city, the company shall engrave the seal, register the initial tax dossier at the tax department, carry out procedures for issuing invoices to prepare for operation.

Bank deposit

Individuals and organizations wishing to establish a domestic travel service company will have to make a deposit at the bank. The margin is VND 20,000,000. Businesss make deposits in Vietnamese dong at commercial banks. Or at the cooperative bank. Or at branches of foreign banks established and operating in Vietnam. And enjoy interest rates as agreed between businesss and deposit-receiving banks in accordance with the provisions of law. The deposit must be maintained throughout the duration of the travel service business.

After freezing the deposit amount. The deposited bank shall issue the Certificate of deposit for provision of travel services to the business.

Personnel conditions

Person in charge of provision of travel services: A major in travel is shown on a diploma of one of the following industries, professions and majors:

• Management of tourism and travel services;
• Travel Management;
• Tour operators;
• Tourism marketing;
• Travel;
• Travel tourism;
• Tourism management and business;
• MICE Tourism Management;
• Travel agent;
• Travel guide;
• Industries, professions and majors may show one of the phrases “tourism”, “travel”, “tour guiding” trained by educational institutions in Vietnam.
• Industries, trades and majors may show one of the phrases “tourism”, “travel”, “tour guiding” trained and granted diplomas by foreign training institutions.

In case the diploma does not show the specified majors, trades or majors, the graduation transcript or diploma appendix showing the major, profession or specialty shall be supplemented, including one of the phrases “tourism”, “travel”, “tour guiding”.”

Procedures for registration of establishment of a domestic travel business company in Vietnam

Step 1: Prepare business establishment registration documents

Step 2: Submit the application at the Department of Planning & Investment

Step 3: Disclosure of business registration information

After being granted an business establishment registration certificate by the Department of Planning and Investment, the business owner must publicly announce it on the National Portal. The contents of the announcement include the contents of the Certificate of business establishment registration, information on business lines.

Step 4: Engraving the seal and procedures after establishment

Businesss decide on their own seal samples and manage their seals. The engraving of the business should ensure that it contains information such as tax identification number, contact address of the company.

Procedures to be followed after being granted an business registration certificate.

• Hang a sign at the company headquarters.
• Open a bank account of the business, notify the bank account to the Department of Planning and Investment where the business carries out business registration procedures.
• Registration of electronic digital signatures.
• Issue invoices.
• Declare and pay license tax
• Make full capital contribution on time within 90 days from the date of issuance of business registration.

Can a person graduating in travel guide open a domestic travel service company?

The person in charge of provision of travel services specified in Clause 1 Article 3 of Circular 06/2017/TT-BVHTTDL is a person who holds one of the following titles: Chairman of the Board of Directors; Chairman of the Members’ Council; company president; private business owners; general manager; director or deputy director; Head of Travel Service Business Department.

Consulting services  on establishment of  domestic tour  operators of  Viet An Law Firm

• Advising on conditions, drafting registration dossiers for business registration licenses and procedures after company establishment;
• Advising on conditions and dossiers for registration of domestic travel business licenses;
• Carrying out procedures for obtaining permits at competent state agencies on behalf of businesss;
• Discussing and providing information to customers during the licensing process;
• Receive and return to the customer the required licenses.

Above are some of the advice of Viet An Law Firm on conditions for establishing a domestic travel company. If you have any further questions about setting up a travel business, applying for a Domestic Travel Business License, please contact us for the best support!