The rate at which the Travel and Tourism sector has been growing makes it apt to set up a travel and tourism company in Saudi Arabia, due to the government’s Vision 2030 plan. Saudi Arabia, Known for its breathtaking landscapes, museums, and rich history, puts forward a golden opportunity for individuals and companies seeking to establish a travel and tourism company.
In the blog, we aim to give an understanding on the legalities and requirements to start a travel and tourism company in Saudi Arabia successfully. Analytix will cover answers to all your questions and clear, the doubts you might have while setting up a travel and tourism company in Saudi Arabia here.
Why Travel and Tourism Company in Saudi Arabia
Saudi Arabia, located in the heart of the Middle East, is a central business hub linking all the four corners of the Globe. Thanks to the government’s Vision 2030 plan, the country is no longer dependent on its oil reserves, and the country has been investing in the development of its infrastructure for the tourism sector and bringing in some new initiatives that will enable growth like implementing a new visitor visa that will allow visitors from 49 countries to stay up to even 90 days, making historical places like AlUla, Diriyah, and Mada’in Saleh, accessible to the public, organizing International events such as Formula 1, Dakar Rally, Red Sea International Film Festival, and Riyadh Season, undertaking mega projects like NEOM, Qiddiya, Amaala, and Red Sea Project which offers unparalleled experiences and facilities to the tourists, bringing up the local business owners and SMEs through various initiatives and incentives.
The Kingdom of Saudi Arabia offers more than just events and architecture, the Kingdom has a rich cultural and religious history and offers tours around its important landmarks which boosts tourism.
How to Start a Travel and Tourism Company in Saudi Arabia?
Understand the market, and competition, know your audience, and develop a business plan which will be used to obtain the required funds, before getting started on anything.
To start a travel and tourism company in Saudi Arabia, follow the following steps:
1. Choose Business Structure:
Determine the business structure based on the operational strategy such as an LLC, a JSC or a branch of a Foreign Company.
2. Register Business Name:
Choose your business name and register with the Ministry of Commerce and Investment (MCI)
3. Meet Capital Requirements:
Compute the minimum capital you want to invest in your company. It also depends on the type of business and where it’s located.
4. Obtain Licenses and Permits:
Acquire the necessary licenses and permits from the Saudi Arabian General Investment Authority (SAGA) and other government agencies.
5. Register with the Chamber of Commerce:
Register your company by getting the Commercial Registration (CR) certificate with the respective Chamber of Commerce within your local area.
6. Tax Registration:
To comply with tax regulations in Saudi Arabia, register with the General Authority of Zakat and Tax (GAZT).
How to Apply for Travel and Tourist Activities’ Licenses in KSA
Step 1: Choose the Legal form
Choose between forming either an LLC or the branch office of the foreign firm. An LLC must have a minimum of two shareholders, one must be a citizen of Saudi Arabia and the minimum capital required for an LLC is SAR 500,000. If it is a branch of a foreign company, the minimum capital must be 100000 SAR and a local agent/sponsor is mandatory.
Step 2: Ministry of Commerce and Investment Registration
Along with the application, you must provide a copy of your ID or passport, a letter from the local agent/sponsor if any, and fees for the permit.
Step 3: Apply for a Commercial Registration
Register your company by providing the company name certificate, Articles of Association or branch agreement (if applicable), lease contract or ownership deed for your office, bank certificate that shows the certificates of your capital deposit, an ID or Passport of all the shareholders; ID or Passport of the local agent or sponsor (if any) and fees.
Step 4: Membership of the Chamber of Commerce and Industry in the region
Provide your CR certificate or lease certificate or ownership deed of the office premises, identity proof or passports of shareholders, local agents or sponsors (if applicable) and pay the fees.
Government Support and Incentives for Tourism Companies in Saudi Arabia
Saudi Arabia has become an attractive destination for Travel and Tourism entrepreneurs due to the government’s support and incentives. The government understands the importance of travel and tourism and offers a variety of benefits which makes it easier to set up a Travel and Tourism Company in Saudi Arabia and do business.
1. Available Governmental Assistance
The Saudi Tourism Authority (STA) is responsible for the tourism industry’s regulation, development, and promotion. They offer various services and resources for tourism business such as licensing, training, marketing, research, and events. The Tourism Development Fund (TDF) offers loans and guarantees to support the financing of tourism-related assets, facilities, and services. The General Authority of Civil Aviation (GACA) oversees the aviation industry and provides subsidies and incentives for domestic flights and routes to tourist attractions.
2. Promotion of Travel and Tourism Companies
The government offers incentives including income tax exemption for ten years, customs duty exemption for imported equipment and materials, exemption of VAT on tourism services and zakat exemption for tourism projects. Also, there are grants and land leases for tourism projects such as hotels, resorts, entertainment centers and cultural sites depending on certain conditions and standards. Subsidies and discounts on utilities and services such as electricity, water, gas, telecommunication, internet, waste collection, security, and maintenance are also provided by the government.
3. Support Networks and Associations
Several associations and organizations represent and support travel and tourism business in Saudi Arabi such as Saudi Commission for Tourism and National Heritage (SCTH), Saudi Travel Agencies Association (STAA), Saudi Hotel Association (SHA), Saudi Exhibition and Convention Bureau (SECB), and Saudi Entertainment Industry Association (SEIA). The following organizations offer networking, advocacy, training, certification, accreditation, marketing, events, awards, and recognition for setting up a travel and tourism company is Saudi Arabia.
Analytix Help You In setting up a tourism company in Saudi Arabia
Starting a travel and tourism company in Saudi Arabia is a promising opportunity for budding entrepreneurs and investors, thanks to government’s support. However, it is a complex process and may seem overwhelming. This is where Analytix comes in to assist you in the process of setting up your Travel and Tourism Company in Saudi Arabia.
With over fifteen years of experience, Analytix offers services in not only company formation but much more. We are your strategic business partners that provide high-quality services to manage it effectively. Apart from getting you started and establishing your business in the Saudi market, we provide continued services so that you can effectively manage and focus on the business.
Analytix is here to deliver you the high-quality business services required for establishing your Travel and Tourism Company in the kingdom. We promise to make it all simple, easy and perfect. Schedule a call with our consultant now.
Conclusion
We’re glad you are here!
We hope you got a much better understanding on how to set up a travel and tourism company in Saudi Arabia.
If you feel like we’ve missed out on something, let us know in the comments.
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