How to start a Travel Agency business from HOME [Part 1 – Permits Application and Registration]

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Libon Melangas Travel and Tours “Unleash your endless possibilities to conquer the world” -LibonMelangas

“A small business is an amazing way to serve and leave an impact on the world you live in.” -Nicole Snow

When you get started, you have the vision, you have your own goal that you wanted to achieve. The road is rough. Ups and downs are on its way. All you need is a heart full of ambition and trust yourself in the entire journey.

Starting a business haven’t crossed my mind ever, until one day I found myself registering my business name, accepting clients, booking their trips, answering queries and seeing myself busy like bee. Never in my wildest dream that I will become a TravelPreneur. But I ended up to be one.

I have been receiving a lot of queries especially when I created my video and uploaded it on YouTube. Please check below link.

And the very famous question I have been getting up to these days is “How to get started”. Today I will try to give a complete list of items that might help those aspiring TravelPreneurs out there especially those who are eager and 200% decided to start one soon. Please see below:

1. Check with the Municipality / City you’re in if they requires Department of Tourism accreditation for newly registered Travel and Tours business.

If yes, then you will need to get your business accredited too, which is way expensive if you just started. In my case, the Municipality where I registered my business does not require it up until this year when I renewed my Mayors permit. I might be lucky, however it’s better to know it beforehand so you’re time will not be wasted. You can check the DOT’s website to know more about it.

2. Register your Business Name.

If you’re in the Philippines you can look for any Department of Trade and Industry offices that facilitates business name registration. Registering your business name is supposedly the very first step. However just this year, the DOT accreditation has been implemented to various cities and municipalities. It would be wise to check whether you are required or not. Going back to business name registration, in case you are not in the Philippines and still wish to get it done, no need to worry, you can do it online. With business name registration it is categorize into 3 levels; a) National [Cost 2000 Php] b) Regional [Cost 1000 Php] and lastly c) Barangay [Cost 200Php]. National coverage will allow you to operate anywhere in Philippines. Regional coverage will be within the region. Lastly barangay coverage is within your barangay. As to which coverage is the best, I would say National, but this is going to be up to you.

This is the DTI Permit.


3. Mayor’s Permit Application.

Once you’re done with Department of Trade and Industry business name registration, your next step is applying for a Mayor’s permit. This document is will be released in two weeks, that is an estimated turn around time depending on your Municipality. To get started, first get a Barangay permit based on the Barangay address you indicated as an official business address of your newly registered business. This may vary depending on your Barangay, it usually cost around 200 Php. After getting your Barangay permit, bring it altogether with the DTI business name registration document to your Municipality office which facilitates business registration. From there, if it’s you’re first time they will give you a list of items that you need to acquire, such as sanitary permit, police clearance, cedula, fire inspection permit etc, again this will vary depending on the Municipality. Mayor’s permit varies in every Municipality some offers it low and some are high. On the average it would be around 5000 Php to 8000 Php. Once done you’ll get notified when you can pick up your document.

This is the Mayor’s Permit.


3. Certificate of Registration or BIR 2303.

This is going to be the final application in the entire business registration process. On how to know where to register your business, you may check with BIR website and look for RDO list or the Regional District Office list. This list will give you the complete address of the RDO where you need to settle your taxes in the future. This document too will be released in two weeks. Hang in there, be patient you’re almost done. Upon reaching this step, you should already have your DTI document and Mayor’s permit with you. These are the two important documents when registering your business in BIR and don’t forget to bring with you a valid ID. To get started you need to have a valid Tax Identification Number. If you don’t have one, then you can apply it first and obtain the TIN and register your business under the newly applied TIN. Otherwise, use your employment TIN if you happen to be a mixed incomer like me. You may also apply for receipts. It’s not necessary to get it done at the BIR office, I’m not sure if they do it there. What we did is we have ask for a list of accredited printing company that can print receipts in our area which way less hassle.

This is the BIR 2303 Certificate of Registration.


Congratulations…You made it!

Once you successfully registered your business, it feels like you are one step ahead already, but the real game has not been started. The other question that I constantly get is why is there a need to register even if it is just a homebased or online? Well, pretty simple it is because we earn and we pay taxes for it. Personally, I just want everything to be in placed. I dont want to get taxes issue along the way. Besides, the above documents not only proved your legitimacy as a business it will also help you acquire partnerships with travel suppliers in the future especially if you wanted to acquire portal, systems etc.

Watch out for my next article where I will discuss the systems, portals and tools for Travel agency business. Stay safe everyone! Bye.

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