You can start a travel agency in India with an investment starting at Rs 1.5 lakh. IATA accreditation is not required at the outset. Company registration usually takes one week, with GST approval requiring an additional week. The main challenge for new agencies is building a supplier network that delivers real value to clients, not completing paperwork.

If you are considering starting your own agency, this guide covers the registrations you need, what IATA means for new agencies, costs at each stage, and how to get your first clients.

Starting a travel agency is different from becoming an individual travel agent. For that path, see How to Become a Travel Agent in India 2026. Opening an agency means setting up a business entity, choosing a legal structure, building supplier relationships, and creating systems for your agents to work inside.

What Does It Actually Take to Start a Travel Agency in India?

You need three things: a registered business, at least one supplier relationship, and your first client.

Business registration comes first. Without it, you cannot open a bank account, apply for GST, or get approved on any B2B supplier portal. The steps are covered below.

Many guides skip over supplier relationships. If your agency only books what clients can find on MakeMyTrip or Google Flights, you are not adding real value. Your edge comes from net rates, DMC packages, group allocations, and inventory that regular consumers cannot access directly. Those connections are your actual competitive asset.

Most agencies find their first client before registration is done. Agencies that survive often start by booking for family, colleagues, or existing contacts rather than depending on advertising.

What Business Structure Should You Register?

India does not require a specific travel agency licence. You register like any other business. The three most common structures for new travel agencies are:

Structure	Best for	Registration cost	Key consideration
Sole Proprietorship	Solo agents, very early stage	Rs 2,000-5,000 (Shops Act + GST)	Unlimited personal liability
Partnership Firm	Two or more founders	Rs 5,000-10,000	Partners personally liable
Private Limited Company	Anyone planning to scale	Rs 8,000-15,000 (CA fees + MCA)	Annual compliance costs apply

For agencies focused on growth, a Private Limited Company is usually the best option. It protects personal assets, makes it easier to add co-founders, and is often required by suppliers and banks.

Registration goes through the MCA portal using the SPICe+ form. Select NIC code 79110 (Travel agency activities) or 79120 (Tour operator activities), depending on whether you plan to create packaged tours. Most founders engage a CA or company secretary for the MCA filing, costing Rs 8,000-12,000 on top of government fees.

If your agency operates from a commercial office, you must also obtain Shop and Establishment Act registration from your local municipality. This usually takes 3 to 7 working days, depending on your state.

What Licences and Registrations Does a Travel Agency Need?

India does not require a mandatory travel agency licence. Three registrations matter most.

GST registration is compulsory once your annual turnover exceeds Rs 20 lakh, or immediately if you do interstate business. Apply through the GST Portal within 30 days of starting, using SAC code 998551 (Travel arrangement services). New agencies must choose between 5% GST on packaged tours without input tax credit, or 18% with ITC. Most agencies selling packaged holidays find the 5% rate simpler. The 18% option is better only if your input costs are high enough to make the credit worthwhile. Have a CA check your numbers before you register.

Ministry of Tourism recognition is optional but helps with suppliers. You need at least three years in business and Rs 3 lakh in annual turnover to qualify. Most agencies apply after their first year, once they have a turnover record. With MOT recognition, hotels, airlines, and DMC operators are more likely to give you better access and priority.

TAAI membership (Travel Agents Association of India) is also optional. Annual fees range from Rs 10,000 to Rs 50,000, depending on the membership tier. Membership gives you networking opportunities, industry updates, and added credibility with certain suppliers. It is not required to operate, but it can help if you are targeting corporate or institutional clients.

Do You Need IATA Accreditation to Start?

No. Most new travel agencies in India begin without IATA accreditation and operate successfully for years before applying.

With IATA accreditation, you can book airline tickets directly through the Bank Settlement Plan (BSP) and earn standard airline commissions. Without it, you book flights through a consolidator such as TBO Holidays, pay a monthly access fee, and receive a lower share of the commission.

The practical comparison:

Path	Bank guarantee	Annual cost	Commission access	Suited to
IATA accredited	Rs 3-10 lakh	~Rs 1.5 lakh	Direct airline rates	High-volume flight operations
Non-IATA via consolidator	None	Rs 2,000-8,000/month	1-4% via consolidator share	New agencies building volume

The required bank guarantee stops most new agencies from getting IATA until they have steady business. Start with a consolidator, build your booking volume, and apply for IATA when it makes financial sense. For full details on the process and requirements, see IATA Registration India 2026.

How Much Does It Cost to Start a Travel Agency in India?

Realistic startup budgets at three stages:

Stage	What's included	Budget range
Home-based solo	Company registration, GST, B2B portal, laptop, phone	Rs 1.5-2.5 lakh
Small commercial office	Above + office rent deposit, signage, basic CRM software, Shop Act	Rs 3.5-5 lakh
Full-scale with IATA	Above + bank guarantee, IATA annual fee, two IATA-certified staff	Rs 7-12 lakh

Skip IATA at the start and you cut your initial costs by more than half.

Many new agencies underestimate software expenses. A decent CRM costs Rs 1,500 to 5,000 per month. A B2B portal subscription or GDS sub-agent arrangement runs Rs 2,000 to 8,000 per month. Accounting software adds another Rs 500 to 1,500. Budget these as monthly operating costs, not one-time items.

Working capital is separate from setup funds. You need enough cash to pay suppliers before clients pay you, cover hotel deposits, and get through slow months. A buffer of Rs 50,000 to 1 lakh is a reasonable minimum for your first six months.

How Do You Build Your First Supplier Network?

Your supplier network is what you are actually selling. Without it, you are just another search interface.

Start with a B2B aggregator portal. Platforms like TBO Holidays consolidate hotels, flights, tours, and visa services in one place. Approval usually takes 2 to 3 days. Rates are better than consumer booking sites, giving you access to inventory from day one.

Hotels are the next step. Once you are booking 20 to 30 room nights per month, contact hotels directly. Start with 3- or 4-star properties. They are more accessible to independent agencies than 5-stars and more open to negotiating. Direct agreements typically pay 10 to 15% commission, compared to 8 to 10% through a bed bank. Ask for credit facilities only after you have a booking record they can see.

DMCs (Destination Management Companies) are how most agencies access international inventory. A DMC manages hotel contracts, transfers, and tour programs in a specific destination, selling at net rates with a 15-25% markup built in. You add your own margin on top. For how this works, see What Is a DMC.

Include insurance in your supplier list from the start. Travel insurance pays 40 to 50% commission on the premium. On a family of four travelling to Europe at Rs 8,000 total premium, that is Rs 3,200 to 4,000 from one booking. Clients need it, the margin is real, and the booking itself creates the need.

What Niche Should You Choose?

Going broad puts you in a price race against OTAs that have more inventory and faster systems than any new agency can match.

Niche agencies build supplier relationships and repeat clients faster. Destination specialists do well here: agencies that go deep on one market, say Bali, East Africa, or Switzerland, can negotiate direct DMC relationships faster and give clients advice no OTA can replicate.

Group travel is another strong option. School trips, corporate offsites, and pilgrimage circuits mean larger single-transaction revenue and more travellers to earn ancillary income from per booking. See Group Travel Packages India 2026 for how group pricing and margins work.

Corporate travel management converts domestic flights that pay near-zero commission into predictable, fee-based income. Companies pay a service fee per booking, which changes the economics entirely.

Women-only group tours, senior travel, and accessible travel serve clients who prioritize trust over price, book on repeat, and are underserved by most OTAs.

If possible, choose your niche before registering your company. It shapes which supplier relationships matter first and where your early marketing effort should go.

How Do You Make Your First Bookings?

Many agencies stall waiting for their website to launch, their GST certificate to arrive, or a marketing campaign to start.

Your first five bookings will almost certainly come from people you already know. Be specific about what you offer. Saying "I handle corporate travel and group holidays" works better than "I'm starting a travel agency."

Once you have your registrations and one supplier relationship:

List five people most likely to book travel in the next 90 days.
Call them. Texts and emails are easy to ignore.
Ask one question: "Do you have any travel coming up that I could help plan?"
Quote quickly. Use your B2B portal rates, add your margin, and send a written quote within 24 hours.
After your first booking, ask for two referrals by name, not a general "please recommend me."

From there, revenue grows. Agents earning Rs 5 to 8 lakh per month are not always booking more trips. They use multiple income streams on every booking: markup on packages, insurance commission, and ancillary earnings after the client confirms. For the full picture, see How Do Travel Agents Get Paid and Travel Agent Commission Rates in India 2026.

How to Write a Travel Agency Business Plan in India

A business plan does not need to be a 50-page document. For most new travel agencies, a clear one-pager is enough to focus the first six months and have something ready if a supplier or bank asks.

Niche and services. What are you selling and to whom? A Bali destination specialist, a corporate travel desk, a pilgrimage circuit operator, and a group school travel agency all need different suppliers and different marketing. Pick the niche before writing anything else.

Target market. Who are your first 20 clients? Be specific. Young professionals booking international honeymoons, SME companies needing corporate travel management, families planning school holiday trips. Knowing this determines where you spend your early marketing time.

Startup budget. Use the ranges above. Home-based: Rs 1.5-2.5 lakh. Commercial office: Rs 3.5-5 lakh. Add Rs 50,000-1 lakh in working capital separately.

Revenue model. Write down which income channels you plan to use: commission on insurance and international hotels, markup on packages, service fees on flights and visa work. Most agencies stall because they relied on a single channel that barely pays.

Suppliers. List the three suppliers you need to sign up with before your first booking. A B2B air portal, a wholesale hotel or DMC access, and an insurance provider covers most scenarios.

Marketing. Where will your first 10 clients come from? Referrals from existing contacts, a WhatsApp Business profile, a Google Business listing. You do not need a website in the first month, but you do need a way for clients to find and contact you.

Udyam (MSME) Registration for a Travel Agency

Udyam registration is a free government registration for Micro, Small, and Medium Enterprises. For a travel agency, it is worth doing alongside or after company registration because it opens access to government schemes, priority bank lending, and some state-level subsidies.

Register at udyamregistration.gov.in using your Aadhaar and PAN. The process is fully online and takes about 20 minutes. There is no fee.

Use NIC code 79110 (Travel Agency Activities) if your primary business is booking and arranging travel for clients. Use 79120 (Tour Operator Activities) if you create and sell packaged tours. You can select both if your agency does both.

Udyam registration does not replace company registration. It is a separate certificate that identifies your business as an MSME. Most new agencies get it within the first month because it costs nothing and the benefits are real: easier access to MSME bank loans, government tender eligibility, and reduced fees on some certifications.

Is There a Free Way to Register as a Travel Agent in India?

Yes, two routes cost nothing out of pocket.

The first is operating as a sub-agent under an existing IATA-accredited agency. You sign up on their B2B platform, earn a revenue share on every booking, and never pay for company registration, IATA accreditation, or GST filing. Many solo agents in India start this way. The trade-off is that you earn 60-80% of the commission rather than 100%, and you operate under someone else's brand and systems.

The second is Udyam (MSME) registration if you already have a business entity. Udyam itself is free and online. The cost comes from the company registration that must already exist for Udyam to apply.

So: if you want to start selling travel for free, the sub-agent path is the only truly zero-cost route. If you want your own business entity, company registration costs Rs 8,000-15,000 in CA and MCA fees. There is no middle ground. A registered travel agency in India requires a legal business entity, and that has a cost.

Travel Agency Licence Cost in India

There is no travel agency licence in India. None is required by law to operate as a travel agent or to run a travel agency.

People searching for a "travel agency licence cost" are usually looking for one of three things, none of which is technically a licence:

Company registration: Rs 8,000-15,000 in CA and government fees for a Private Limited Company, or Rs 2,000-5,000 for a sole proprietorship. This is mandatory to operate as a legal business entity, but it is a registration, not a licence.

GST registration: Free to file, but compulsory once turnover crosses Rs 20 lakh or if you do interstate business. A CA may charge Rs 2,000-5,000 to file on your behalf.

IATA accreditation: Optional. The bank guarantee alone runs Rs 3-10 lakh, plus Rs 1.5 lakh per year in fees. Most new agencies skip this until they have enough booking volume to justify the cost.

The Ministry of Tourism offers optional "recognition" for established agencies, not a licence. State tourism departments in some states have their own optional registration schemes. Neither is legally required to operate.

If someone is quoting you a cost for a "travel agency licence", they are either referring to one of the registrations above or they are selling something that does not exist.

Frequently Asked Questions

Is a licence required to start a travel agency in India?

No travel agency licence is required in India. You need company registration through the MCA portal, GST once your turnover crosses Rs 20 lakh or if you do interstate business, and a Shop and Establishment certificate if you are running from a commercial office. IATA accreditation and Ministry of Tourism recognition are both optional. Most agencies apply for those once they have a year's turnover to show.

How much does it cost to start a travel agency in India?

A home-based setup needs roughly Rs 1.5 to 2.5 lakh: company registration, GST filing, a B2B portal login, a laptop, and a phone. A commercial office adds rent deposit, signage, and software, pushing the total to Rs 3.5 to 5 lakh. Going IATA from day one is expensive: the bank guarantee alone runs Rs 3 to 10 lakh, so total costs reach Rs 7 to 12 lakh. Separately, keep Rs 50,000 to 1 lakh aside as working capital. Suppliers often need payment before your client pays you.

Do I need IATA accreditation to start a travel agency in India?

No. Most new agencies in India skip IATA at the start and use a consolidator like TBO Holidays instead. You still book flights, just at 1 to 4% commission rather than direct airline rates. IATA requires a bank guarantee of Rs 3 to 10 lakh plus roughly Rs 1.5 lakh a year in fees. For most agencies, that math only works once booking volume is already high.

What GST rate applies to a travel agency in India?

Two options. Five percent on packaged tours, with no input tax credit. Or 18% GST on commission income only, not the full booking value, with ITC on your costs. Most new agencies go with 5% because it is simpler. Whether 18% works better depends on how heavy your input costs are. Check with a CA before you register either way.

How long does it take to register a travel agency in India?

Company registration through the MCA SPICe+ form takes about 5 to 7 working days if a CA files it. GST takes another 7 to 10 working days after that. If you need a Shop and Establishment certificate for a commercial office, add 3 to 7 more days depending on the state. Start to finish, expect three to four weeks before everything is confirmed.

How do travel agencies make money in India?

Three ways. Commission from suppliers: airlines pay 1 to 10%, hotels 10 to 15%, and insurers 40 to 50% of the premium. Markup: you buy at a net rate from a DMC or wholesaler and charge the client more. International packages typically leave 15 to 25% margin. Service fees: flat charges for visa filing, itinerary work, or corporate booking management. Experienced agents stack all three on a single booking. Domestic flights pay almost nothing on base commission, so those bookings only make sense inside a package where you are earning on everything else.

What is the NIC code for a travel agency in Udyam registration?

Use NIC code 79110 for Travel Agency Activities, which covers businesses that book and arrange travel for clients. Use NIC code 79120 for Tour Operator Activities if your agency creates and sells packaged tours. If you do both, you can select both codes during Udyam registration. The same codes apply when registering your company through the MCA SPICe+ form.

Can I register as a travel agent for free in India?

Yes, with limits. The cheapest route is signing up as a sub-agent under an existing IATA-accredited agency. Most B2B platforms like TBO Holidays allow free sub-agent registration. You earn 60-80% of the commission rather than 100%, and you operate under someone else's accreditation. Udyam (MSME) registration is also free, but it requires a legal business entity to already exist. If you want to run your own registered travel agency, company registration costs Rs 8,000-15,000 and there is no way around that.

Do I need a business plan to start a travel agency?

Not formally, but having one helps. No registration authority in India requires a business plan to issue company registration or GST. A plan matters for your own clarity: which niche, which suppliers, how you will find your first clients, and whether your startup budget covers the first six months. If you are applying for a business loan or trying to get credit terms from a supplier, a simple one-page plan makes those conversations easier. Most successful agencies also choose their niche before registering, which is itself the most important decision in any business plan.

The Bottom Line

Starting a travel agency in India takes about three weeks and Rs 2 lakh to get registered with supplier access. That part is manageable.

Agencies that earn real revenue in year one pick a niche before opening, build supplier relationships before their website is live, and treat their first ten clients as the start of a referral network. Registration gives you the right to operate. Your niche and supplier relationships give clients a reason to book with you.

Both take longer than three weeks. That is where the actual work is.

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Sources & References

MCA (Ministry of Corporate Affairs): SPICe+ registration process and NIC codes 79110/79120 for travel and tour operator businesses, 2026
GST Portal: SAC code 998551, registration thresholds, and the 5% vs 18% rate options for travel agencies, 2026
IATA: BSP India documentation, bank guarantee requirements, and agent accreditation criteria, 2026
TAAI: membership tiers and annual fee structure for Travel Agents Association of India, 2026
Ministry of Tourism, India: recognition criteria for inbound and outbound travel agencies, including turnover and operational requirements, 2026
Google Trends India: 'how to start a travel agency in India' shows consistent high search interest, 2026

Cost ranges, registration timelines, and IATA thresholds reflect industry practice as reported by Indian travel agencies in 2026. Fees vary by city, business structure, and CA. Verify current numbers directly with MCA, IATA, and your CA before committing.

How to Start a Travel Agency in India 2026