This is an easy-to-understand guide on several options available in India to register travel agency business in the easiest and quickest way possible.
So you are looking to register your venture. Accept our most sincere congratulations on making it this far!
As you might know, registering businesses nowadays is easier than ever before.
It is strongly advised to choose the simplest, easiest, and convenient option when just starting out.
You will always have the option to expand and change your firm’s entity later on.
So here we go…
Sole Proprietorship
When you are a solopreneur, this is the easiest and cheapest of all the registration processes out there since it is not governed by any specific laws.
It has very minimal compliances to follow such as no corporate tax, no auditors are required, etc.
All you required to set up your company is:
Adhaar Card
PAN Card
Bank Account details
Registered office details
- In case of rented property: Rental agreement and NOC from the landlord
- In case of self-owned property: Electricity bill or any other address proof
You can directly call your CA and submit these documents with him or her.
Or else you can also use reliable online services like:
Apart from this, you must also apply for Udyam which is a free registration under the MSME act.
Applications can be filled online with this link.
You only require your firm’s name & address, Aadhaar card, and PAN card to apply for Udyam registration.
It’s advisable to apply for Udyam so as to get the loans at concessional rates of interest.
Generally known as the Shop act, this registration is not mandatory.
But it is required in some cases.
Like in case if you choose not to register under GST, then the Shop Act can be used to open a current bank account.
It can be obtained online or offline.
Documents required are:
- Shop or Business Establishment address proof.
- ID proof of the proprietor.
- PAN Card of the proprietor
- Details of the employees.
- Payment challan.
You can get your GST registration in 3-4 days by applying online.
GST registration is necessary if you have an annual turnover of more than 20 lakh rupees.
But if you are selling travel services, then it becomes mandatory to have a GST number in the first place.
Documents required:
PAN Card
Aadhaar Card
Address proof of business (Electricity bill/rent agreement)
Bank statement
Your passport size photo
Getting all these done from your known CA or online services like Cleartax, myonlineCA, legalwiz.
They will charge reasonable fees for their services and your work will be done without any headache.
Trademark registration gets you exclusive rights and more brand value.
Anyone can register a trademark even without any registered company. Trademarks can be owned by the individual, partners, firm, and company.
Moreover, your brand can be protected from unwanted use and infringement.
Documents requirement:
- Copy of the logo (Optional). The trademark application can be filed for the word also.
- Signed Form-48. (an authorization form)
- Udyam Registration
- DSC (digital signature certificate) in case of online trademark filing
- A list of services for which registration is required
- Incorporation certificate or partnership deed (if not for sole proprietorship case)
- Identity Proof of the signatory
- Address Proof of the signatory
Partnership Firm
A partnership firm is formed when 02 or more individuals form a business.
Like sole proprietorships, partnership firms also have minimal compliances.
A partnership deed is created that contains:
- Name and address of the firm and all the partners.
- Nature of Business
- Date of business commencement
- Capital to be contributed by each partner
- Profit/loss sharing ratio among all the partners
- Any specific details or clauses can be added by mutual discussion.
Documents requirement:
A duly filled application form needs to be submitted to the registrar of firms of any particular state where the firm is situated along with documents:
Form 1,
Affidavit,
Partnership deed,
Address proof of the firm
Limited Liability Partnership
LLP has become the popular choice among entrepreneurs and startups.
Limited liability partnership can be said as the combination of partnership firm with the essence of a company.
It has a separate legal entity just like a company.
But the important difference is that the liability of each partner is limited to the contribution made by the partner.
Documents requirement:
- DSC (digital signature certificate) for all designated partners.
- DPIN for all designated partners.
- Name of the LLP, which should not be similar to any existing LLP or trademark.
- LLP Agreement between the partners.
- Proof of registered office of the LLP.
- Capital contribution by the partners of the LLP.
One Person Company
Very similar to a sole proprietorship but the major difference is limited liability.
OPC requires 01 directors, 01 nominees, the minimum authorized capital of 01 lakh rupees, and a registered office.
In a sole proprietorship, the owner uses a personal PAN card, while in OPC, the proprietor uses a company PAN card.
When it comes to compliances, it is required to follow the usual compliance just like a private limited company.
Technically, OPC is still required to have a nominee director at all times for the sake of its perpetual existence.
OPC basically comes into the picture when you’re not able to find the right director or you like to run it as a solo venture.
Documents required:
- Digital signature certificate (DSC)
- Director Identification Number (DIN)
- MCA RUN (Reserve unique name by Ministry of corporate affairs)
- Name of the company
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Form INC-3 (consent from the nominee)
- Declaration by the professional CA
Private Limited Company
The most popular type of business entity in India.
Entrepreneurs and startups choose this type of entity to raise investments through venture capital because shares can be purchased within the company as equity.
Financial institutions also prefer private limited companies over partnership firms or sole proprietorships.
This type of business entity can be owned by shareholders with a minimum requirement of two subscribers. The maximum number of subscribers is two hundred.
Once the limit of two hundred subscribers exceeds, the private limited company ceases to exist and becomes a public limited company with more stringent compliances.
All you need is a minimum of 02 directors, rupees 01 lakh authorized share capital, and a registered office.
Documents required:
- Digital signature certificate (DSC)
- Director Identification Number (DIN)
- MCA RUN (Reserve unique name by Ministry of corporate affairs)
- Name of the company
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Declaration by the professional CA
The biggest advantage of a private limited company is the limitation of liability for business debts which is separated from the owners of the company.
That means the owners are not personally liable for the company’s debts.
Moreover, the other advantage of a private limited company is its perpetual existence where an incorporated company never dies unlike a person but exists as long as the compliances are met.
