How to Start a Travel Agency in India (2026 Guide)

Executive Summary

How to set up a travel agency or tour operator in India: business and GST registration, the Ministry of Tourism's voluntary approval scheme, state-level registration, and accreditation for selling air tickets.

1. The travel market in India

Most new agencies in India focus on domestic & outbound holiday packages. Decide early whether you will sell to travellers in India, design trips in India for visitors and foreign agents, or both: the answer shapes your licence, suppliers and marketing.

Clients will expect quotations in INR or their own currency, fast replies, and clear terms before they pay.

2. Licences and registration

India has no single national licence to run a travel agency. The Ministry of Tourism runs a voluntary scheme for approving (recognising) travel agents, tour operators and other travel trade businesses. The Ministry describes it as purely voluntary: approval isn't mandatory to do business, but it signals quality standards. Applications are made online through the Ministry's NIDHI+ portal, and the Ministry's guidelines have granted approval for five-year, renewable periods.

Some states have their own registration laws for tourism businesses. Goa, for example, registers travel agents and tour operators under the Goa Registration of Tourist Trade Act, 1982. Check your state tourism department before you start trading.

Verification Checklist

Business registered (proprietorship, LLP or private limited company)

PAN and GST registration as applicable

State tourism registration checked for where you operate

Ministry of Tourism approval considered (voluntary)

IATA accreditation, or a consolidator, if you sell air tickets

3. Company, tax and banking

Register for GST if your turnover or services require it, and set the correct GST treatment for tour operator services on your invoices.

If you sell overseas tour packages, ask your accountant about tax collected at source (TCS) rules on those sales, which affect how you invoice and collect payment.

4. Set up sales and operations

Before the first enquiry arrives, decide how you will capture leads, build quotations, confirm suppliers, invoice and collect payments. For your market, plan these workflows from day one:

Verification Checklist

Several options in one quote: offer 3-star, 4-star and 5-star options in a single quotation, each with its own hotels and markup, priced in INR.

Follow-up discipline: every inquiry gets an owner and a follow-up date. Overdue follow-ups show on each person's dashboard so no lead goes quiet.

Permissions for growing teams: give sales, operations and accounts staff only the modules they need, with an activity log of what changed and who changed it.

5. Launch checklist

Tick these off before you take your first payment in India.

Verification Checklist

Entity, PAN and GST registration done

State registration requirements checked

Supplier agreements in place (hotels, DMCs, transport)

Air ticketing route decided (IATA or consolidator)

Booking terms and cancellation policy written

Frequently Asked Questions

Is Ministry of Tourism approval mandatory for a travel agency in India?

No. The Ministry of Tourism states that its approval scheme for travel agents and tour operators is voluntary; it isn't required to conduct business, but it is a recognised mark of quality.

How long is Ministry of Tourism approval valid?

The Ministry's guidelines have granted approval for five years, renewable. Check the current guideline on the NIDHI+ portal before applying.

Sources

Official pages this guide is based on, checked on 11 October 2026. Rules and fees change: confirm the current requirements with the authority before you apply. This guide is general information, not legal advice.