How do I set up a tour and travel business? What's the difference between travel agency and tour operator? How do I start a travel agency business? Is a travel agency a retailing business?
Tour Operating Business & Travel Agency Business (TOBTAB) Licence Application
Application Requirements
(a) Private limited company with the issued paid-up capital and equity limit requirements as set out in Appendix A (Companies having foreign equity exceeding 51% equity are not permitted to hold the tourism vehicle licence in the case of companies in Sabah, Sarawak and the Federal Territory of Labuan).
The name of the company shall signify a company undertaking the tour operating business and travel agency business (travel, tours, holiday, vacation, adventure, etc.). The Memorandum and Articles of Association or Form 11 (Notice of Resolution) shall state that the business conducted is the tour operating business and travel agency business (“To carry on business in tour operating business and travel agency business”).
(b) Shareholders (foreign company) shall have been in operation in their countries of origin for at least 5 years. Shareholders shall not have any interest (share equity) in any other tourism agency company.
At least one (1) representative of the company shall have attended the Travel and Tour Management Course (TTMC) organised by a tourism training institution licensed by the Ministry of Tourism and Culture as following:
i. A member of the Board of Directors; and
ii. An employee holding a position in the company’s top management (example: Chief Executive Officer / Chief Operating Officer / General Manager, etc.).
(c) Draft of the proposed tour packages that will be offered, in the case of application for Inbound / Outbound licence. Working paper containing business planning, target numbers of tourist arrivals in Malaysia and short-term revenue for companies with shareholders that are foreign companies. Letter of business cooperation with foreign tourism agency, in the case of application for Outbound licence.
(d) Premises floor space requirement in accordance with Appendix B; The head office premises must be situated within a structure and shall have a permanent address; The premises must not be shared with any other businesses other than the business for which it is licensed; and the premises must be within a commercial area and not in a residential area.
(e) Free from any compound.
Documents Required
(a) Memorandum and Articles of Association (MAA);
(b) Form 9 (Certificate of Incorporation of Private Company);
(c) Form 11 (Notice of Resolution); – if applicable
(d) Form 13 (Certificate of Incorporation on Change of Name of Company); – if applicable
(e) Form 24 (Return of Allotment of Shares);
(f) Form 32A (Form of Transfer of Securities); – if applicable
(g) Form 44 (Notice of Situation of Registered Office and Office Hours and Particulars of Changes);
(h) Form 49 (Return Giving Particulars in Register of Directors, Managers and Change of Particulars);
(i) MyKads (Malaysian citizen) / Passports (non-Malaysian citizen) of shareholders and members of the Board of Directors;
(j) Proof of Work Experience:
Letter of confirmation of work experience from previous or current employer for shareholders / members of the Board of Directors /staff.
Resume for shareholders / members of the Board of Directors / staff.
Form 24 & Form 49 & the registration of the relevant company if the Director and shareholder are owners / directors of other companies; and
MAA & Form 24 & Form 49 & company profile if the shareholder is a corporation.
(k) A copy of the Certificate of Registration of Company and company licence in case the shareholder is a foreign company. Such copy of the document shall be verified by the Malaysia Tourism Promotion Board (Tourism Malaysia) / Embassy of Malaysia / Office of the High Commissioner of Malaysia in the relevant country.
(l) Academic certificates in the field of tourism/business of the shareholders / members of the Board of Directors / employees (if any).
Approved Application
The licence number will be stated in the letter of approval, the company shall:
(a) Prepare its business premises and submit the following documents for purposes of inspection of premises within the period of two (2) months of the date of the letter of approval:
A copy of the tenancy agreement of the premises which shall be for at least one (1) year or a copy of the sales & purchase agreement if the premises are owned by the company; A sketch of the floor plan; Photographs (in colour) of the interior and exterior of the premises.
(b) Submit a copy of the Certificate of Membership of a Tourism Association recognised by the Ministry of Tourism and Culture as per Appendix C.
(c) Submit a copy of the TTMC Certificate:
(d) Pay the licence fee:
Upon receipt of the letter notifying that the relevant premises fulfil the criteria set by the ministry and upon compliance of all the criteria set (if applicable), the company shall receive the licence and sticker.
Processing Fee
RM100.00: Online payment or in the form of postal order / bank draft / money order made payable to the PESURUHJAYA PELANCONGAN (Commissioner of Tourism) for each application.
License Fee
SCOPE | LICENSE FEE / YEAR |
Inbound | RM250.00 |
Outbound | RM500.00 |
Ticketing | RM200.00 |
Inbound & Outbound | RM750.00 |
Inbound & Ticketing | RM450.00 |
Outbound & Ticketing | RM700.00 |
Inbound, Outbound & Ticketing | RM950.00 |
Note:
Inbound = Domestic tour operating business
Outbound = Overseas tour operating business
Ticketing = Travel agency business
Foreign company = Tourism agency enterprise licensed outside Malaysia
APPENDIX A
Shareholder, Equity Limit and Paid-Up Capital Requirements
SCOPE | SHAREHOLDER | SHAREHOLDING EQUITY LIMIT (MAXIMUM) | LOCATION OF PREMISES | ISSUED PAID-UP CAPITAL (MINIMUM) |
Inbound | Foreign Company (ASEAN / Non-ASEAN) | 100% | Urban / Rural | RM1,500,000.00 |
Inbound & Ticketing | Foreign Company (ASEAN) | 70% - Singapore / Cambodia only 51% - other than Singapore / Cambodia | Urban / Rural | RM1,000,000.00 |
Inbound & Ticketing | Foreign company (Non-ASEAN) | 30% | Urban / Rural | RM 500,000.00 |
Outbound | Foreign Company (ASEAN / Non-ASEAN) | Not permitted | Not applicable | Not applicable |
Inbound | Citizen / Local Company | 100% | Urban / Rural | Urban RM200,000.00 / Rural RM 50,000.00 |
Outbound | Citizen / Local Company | 100% | Urban / Rural | RM200,000.00 |
Ticketing | Citizen / Local Company | 100% | Urban / Rural | Urban RM200,000.00 / Rural RM100,000.00 |
Inbound & Outbound | Citizen / Local Company | 100% | Urban / Rural | RM200,000.00 |
Inbound & Ticketing | Citizen / Local Company | 100% | Urban / Rural | Urban RM200,000.00 / Rural RM150,000.00 |
Outbound & Ticketing | Citizen / Local Company | 100% | Urban / Rural | RM200,000.00 |
Inbound, Outbound & Ticketing | Citizen / Local Company | 100% | Urban / Rural | RM200,000.00 |
Note:
Urban category if the business premises are located within areas under the jurisdiction of the City Council or Municipal Council
Rural category if the business premises are located within areas under the jurisdiction of the District Council
APPENDIX B
Premises Floor Space Requirement
URBAN (CITY COUNCIL & MUNICIPAL COUNCIL)
Master licence (head office)
SCOPE | MINIMUM SIZE (Sq. Ft) |
Ticketing | 80 |
Inbound | 200 |
Outbound | 200 |
Inbound & outbound | 250 |
Inbound & ticketing | 250 |
Outbound & ticketing | 250 |
Inbound, outbound & ticketing | 300 |
URBAN (CITY COUNCIL & MUNICIPAL COUNCIL)
Supplementary licence (branch office)
SCOPE | MINIMUM SIZE (Sq. Ft) |
Ticketing | 40 |
Inbound | 100 |
Outbound | 100 |
Inbound & outbound | 125 |
Inbound & ticketing | 125 |
Outbound & ticketing | 125 |
Inbound, outbound & ticketing | 150 |
RURAL (DISTRICT COUNCIL)
Master licence (head office)
SCOPE | MINIMUM SIZE (Sq. Ft) |
Ticketing | 50 |
Inbound | 100 |
Outbound | 100 |
Inbound & outbound | 150 |
Inbound & ticketing | 150 |
Outbound & ticketing | 150 |
Inbound, outbound & ticketing | 200 |
RURAL (DISTRICT COUNCIL)
Supplementary licence (branch office)
SCOPE | MINIMUM SIZE (Sq. Ft) |
Ticketing | 25 |
Inbound | 50 |
Outbound | 50 |
Inbound & outbound | 75 |
Inbound & ticketing | 75 |
Outbound & ticketing | 75 |
Inbound, outbound & ticketing | 100 |
Floor Space Exemption (No Minimum Floor Space Requirement)
Master licence (head office)
Ticket / Tour counters at airports, tourist jetties and bus terminals
Tour desks at hotel lobbies
Kiosks / Booths in shopping complexes
Supplementary licence (branch office)
Ticket / Tour counters at airports, tourist jetties and bus terminals
Tour desks at hotel lobbies
Kiosks / Booths in shopping complexes
APPENDIX C
List of Tourism Associations Recognised by the Ministry of Tourism and Culture of Malaysia
Malaysian Association of Tour & Travel Agents (MATTA)
Bumiputera Travel and Tour Agents Association of Malaysia (BUMITRA)
Malaysian Chinese Tourism Association (MCTA)
Malaysian Indian Tour & Travel Association (MITA)
Malaysian Inbound Tourism Association (MiTA)
Car Rental Association of Malaysia (CRAM)
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