Application for TAT license
Entrepreneurs who wish to operate a tourism business must obtain a tourism business license from the Department of Tourism before they can legally operate a tourism business. Operating business without a license, not only being an unreliable entrepreneur but also must be punished by law for an imprisonment of not exceeding 2 years and/or a fine of not exceeding 500,000 Baht.
Business operations that are considered to be a tourism business under the Tourism Business and Guide Act B.E.2551 (2008) are the business operations that provide services or take tourists on the trips for some purposes by providing one or more services or facilitations, such as accommodation, food, guides, or any other services as prescribed in the Ministerial Regulations;
—– > An application for a tourism business operators license can be applied for in the name of a natural person or a juristic person.
Qualifications of a person who wishes to apply for a tourism business license.
An application for a tourism business license for a natural person:
1. Having Thai national and at least twenty years of age on the date of submitting an application for a tourism business license.
2. Having domicile or residence in the Kingdom of Thailand.
3. Must not be a bankrupt person or is under absolute receivership.
4. Must not be an incompetent or quasi-incompetent person.
5. Must not be a person whose tourism business license or a tour guide license is suspended and whose tourism business license or a tour guide license has never been revoked. However, if the license has been revoked, it must be revoked for not less than 5 years up to the date of filing an application for a tourism business license.
An application for a tourism business license for a juristic person:
1. Must be registered as a juristic person under the Thai law by having the objective of operating tourism business. In case of the limited partnership, the unlimited liability partner must be of Thai national. In case of a limited company, not less than 51% of the company’s capital must be held by a natural person with Thai national and more than half of the company’s directors must be of Thai national.
2. Having an office in the Kingdom of Thailand.
3. A director or a person having the authorization to perform on behalf of a juristic person must have qualifications and must not have any prohibited characteristics as follows:
3.1 Having Thai national and at least twenty years of age on the date of submitting an application for a tourism business license.
3.2 Having domicile or residence in the Kingdom of Thailand.
3.3 Must not be a bankrupt person or is under absolute receivership.
3.4 Must not be an incompetent or quasi-incompetent person.
3.5 Must not be a person whose tourism business license or a tour guide license is suspended and whose tourism business license or a tour guide license has never been revoked. However, if the license has been revoked, it must be revoked for not less than 5 years up to the date of filing an application for a tourism business license.
In applying for a tourism business license, the tourism business operator must provide the accident insurance for tourists, guides and tour leaders during their travels with the sum insured in the event of death, loss of organs or disabilities not less than one million Baht per person and in case of injury, not less than five hundred thousand Baht per person and must have a policy term of not less than one year from the date of submission of an application for a tourism business license.
Types of collateral deposits for tourism business:
There has been a change in the requirements of the amount of collateral for operating a tourism business for tour operators as of May 1, 2020, which must be registered and deposited with the Office of Tourism Business Registration and Guides, which are divided into 4 types as follows:
1.The license to operate a tourism business in a specific area, the tourism operator must pay the deposit as a collateral in the amount of 3,000 Baht. The tour operators with this type of license are able to operate tourism business only in the registered province and within the neighboring provinces specified but cannot sell tours online.
2. Domestic tourism business license (Domestic) must deposit 15,000 Baht as a collateral. The tour operators with this type of license are able to operate tourism business in every province in Thailand but not allowed to travel abroad. They can serve both Thai and foreign tourists but cannot sell tours online.
3. Inbound tourism business license (Inbound) must deposit 30,000 Baht as a collateral. They are allowed to take tourists traveling from abroad to travel in Thailand. The tour operators with this type of license are able to operate tourism business in Thailand in every province without permission to travel abroad. They can serve both Thai and foreign tourists and can sell tours online.
4. Outbound tourism business license (Outbound) must deposit 60,000 Baht as a collateral. The tour operators with this type of license are able to operate both domestic and international tourism business. They can serve both Thai and foreign tourists but cannot sell tours online.
Code of practice for tourism business licensees:
A tourism business entrepreneurs must display a tourism business license in a conspicuous place at the tourism business premises specified in the tourism business license.
A tourism business license is valid for 2 years, and the entrepreneurs must pay a fee of 2,000 Baht for a tourism business license for both as natural person and juristic person and pay a tourism business license renewal fee at 1,000 Baht every 2 years.
The tourism business licensee must submit documentary evidence of change to the registrar of the central tourism business and guide if there is a change in the list of tourism businesses such as changing the name of a person or juristic person or changing the office address or the name of the business, adding or cancelling a branch office, changing the branch office address or changing the director or authorized person of the company.
Starting a tourism business:
The tourism business name must be registered with the Department of Business Development, Ministry of Commerce. If you wish to run a business in the form of a juristic person, you must start from a registration for a company or limited company or limited partnership. You have to specify the objectives of the establishment of the company that you want to provide tourism services as well as other related services, otherwise the registration for a tourism business license will not be approved.
If the entrepreneur wants to sell the travel programs via the Internet, for example, having its own website, an E-commerce registration is also required.
Buying the travel accident insurance policies for tourists and tour guides. The tourism business operators must provide the accident insurance while traveling for tourists and their tour guides. The said policies can be purchased with an insurance company with the conditions set for the sum insured in the event of death, loss of organs or disabilities not less than one million Baht per person and in case of injury, not less than five hundred thousand Baht per person and must have a policy term of not less than one year from the date of submission of an application for a business license.