Do you want to turn your passion for travel into a successful business? Imagine helping clients book and plan vacations, religious pilgrimages, and unforgettable destination events while earning a profit. Whether you are enthusiastic about travel tourism or looking to start a side hustle, learning how to establish a travel agency is the perfect opportunity for you. In this article, we will guide you through how to start a travel agency in Nigeria.
HOW TO START A TRAVEL AGENCY IN NIGERIA
Step 1: Choose a niche
The travel industry is extensive, offering a wide range of areas and packages to explore. It is essential to define your niche or area of focus to differentiate yourself from competitors. Examples of potential niches include student travel, religious pilgrimages, luxury vacations, tourism, business travel, local flight booking, visa services, guided tours, and international ticketing. By determining your niche, you can better position yourself in the industry.
Step 2: Register Your Travel Agency
The best way to earn your clients’ trust and loyalty is by following all regulatory rules and procedures. First, register your travel agency with the Corporate Affairs Commission. Then, get a license from the National Association of Nigerian Travel Agencies (NANTA) and the Nigerian Civil Aviation Authority (NCAA). Depending on your specific niche, you may also need additional licenses or approvals from agencies like IATA, Customs, and Immigration. The steps for registering a travel agency in Nigeria with the CAC are outlined as follows:
- Conduct a name availability check on the portal
- Apply for name reservation
- Once the name reservation has been approved, you can then apply for registration
- The application for registration shall contain the details of the proposed company, aims and objectives of the company, the particulars of the directors, the minimum share capital being not less than 30 million, and other relevant information.
- Payment of the necessary charges, including stamp duty.
- Once the Commission is satisfied with the application, a certificate of incorporation shall be issued indicating that the company is now a legal person in law.
Step 4: Obtain Necessary Licenses and Permits
To operate legally and earn trust, a travel agency must obtain a membership certificate from the Nigeria Civil Aviation Authority (NCAA), the agency responsible for regulating the activities and operations of travel agencies in Nigeria. To apply, the agency must submit a completed application form to the Director-General of the NCAA, along with the certificate of incorporation and other relevant documents. A non-refundable fee of N100,000 is required for the application.[1]. To qualify for membership, the applicant must have at least two full-time qualified personnel who have completed a course in airline ticketing and reservation at a recognized aviation training institution.[2] Having an International Air Transport Association (IATA) license or approval is important, but it is not mandatory for international flight ticketing or global flight bookings. Obtaining a full IATA membership certificate opens up a travel agency to numerous international opportunities.
Step 5: Obtain tax registration
It is essential to process a tax identification number and VAT (Value Added Tax) registration after incorporating your travel agency. According to Nigerian tax laws, tax registration must be completed within six months of the company’s formation. Failing to do so may result in penalties.
Another important reason for tax registration after establishing a travel agency is that the company becomes eligible to obtain a tax clearance certificate when required.
Step 6: Ensure your travel agency is registered with the Special Control Unit Against Money Laundering (SCUML) to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
Conclusion
Along with having the right mix of skills, strategy, and persistence, as well as the appropriate tools and partnerships, ensuring compliance with relevant regulations places your travel agency on a solid foundation for building success.
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[1] https://ncaa.gov.ng/services/air-transport/guidelines-and-requirements-for-registration-of-travel-agency-grant/
[2] https://ncaa.gov.ng/services/air-transport/guidelines-and-requirements-for-registration-of-travel-agency-grant/
