How to Start a Travel Agency in India: Licences, Registration & GST Explained

For most new travel businesses, there is no single government-issued “travel agency licence” that you must obtain before starting. You can generally begin as a registered business and sell holiday packages, and you can book flights, hotels and other travel products through B2B portals and suppliers.

However, certain activities have their own rules. For example, issuing flight tickets directly on airline systems typically requires IATA accreditation or working through a consolidator or B2B portal. Some states or local authorities may have shop-and-establishment or trade requirements for a physical office. Always confirm the rules that apply to your state and business model with a qualified professional.

What this means for a beginner

You do not need to wait for a special licence to learn the business, understand suppliers or plan your launch. Start by registering your business properly and choosing how you will source travel products.

Most new travel entrepreneurs in India start with one of these structures:

• Sole proprietorship – simplest to start; suitable for many individual beginners.
• Partnership or LLP – common when two or more people build the business together.
• Private limited company – often chosen when planning larger operations or formal investment.

Registration is done through the relevant government portals (such as the Ministry of Corporate Affairs for companies and LLPs). You will also need a PAN, a bank account in the business name and basic records for invoicing. A chartered accountant can help you choose the structure that fits your plans and budget.

GST registration becomes mandatory once your turnover crosses the applicable threshold (commonly ₹20 lakh per year for services, and lower in certain special-category states). Many travel businesses register earlier so they can work smoothly with corporate clients and suppliers.

Travel services can fall under different GST treatments depending on what you sell. For example, tour operator services have specific rate options, while commission earned as an agent is treated differently from selling a package as a principal. The correct treatment depends on your exact model, so take advice from a tax professional before finalising your pricing and invoices.

Practical GST tips for new agents

• Keep clean records of every sale, commission and supplier invoice.
• Decide your pricing with GST in mind so customers see clear totals.
• File returns on time to avoid penalties and interest.

IATA accreditation is not mandatory to start a travel agency. It is an airline-industry accreditation that allows an agency to issue tickets directly on airline settlement systems. It involves eligibility criteria, financial requirements and a formal application process, which is why most new agents do not start with it.

The common alternatives for beginners are:

• Booking flights through a B2B travel portal that provides agent access to flight, hotel and bus inventory.
• Working with consolidators or suppliers for specific products.
• Using a Travel API if you are building your own booking platform.

You can consider IATA accreditation later, once your volumes and operations justify it. Read our detailed comparison in the B2B travel portal guide.

Registration and tax setup are only the foundation. To operate, you also need a way to source products, present offers and handle customers:

• Product sourcing – DMCs, suppliers and B2B portals for holidays, flights, hotels and more.
• Online presence – a website or a branded Travel Store to showcase packages and collect enquiries.
• Process – enquiry handling, quotations, payment terms, documentation and after-sales support.

If you are completely new, a structured beginner path such as Travel Business Guidance can help you understand these steps in the right order before you spend on tools or inventory.

• Paying for accreditations or technology before understanding the business model.
• Ignoring GST and invoicing until the first large client asks for a proper bill.
• Believing claims that a licence, portal or program guarantees income or bookings — no registration, tool or training can guarantee business results.
• Skipping written terms with customers and suppliers.

Take each step in order, ask questions before paying for anything, and verify legal and tax details with qualified professionals for your specific case. This article is general information, not legal or tax advice.