No licence is needed to open a travel agency in India: Ministry of Tourism recognition is voluntary (useful for government work and tourism-board tie-ups), and IATA accreditation, which lets you issue air tickets directly against financial security, is optional; most new agencies book flights through consolidators instead. You do need Shops and Establishment registration, GST once turnover passes Rs 20 lakh, and a TAN, because from 1 April 2026 you must collect TCS at a flat 2% on every overseas tour package. Choose your GST model early: as a tour operator you pay 5% on the whole package without input credit, as an agent 18% on your commission. Pick a niche you know, such as pilgrimages, school trips, corporate offsites or one destination, rather than competing with the big apps on flights and hotels. What kills most agencies is thin margins and money paid to suppliers in advance for customers who cancel.
A July 2026 guide to starting a travel agency: no licence is required, Ministry of Tourism recognition is voluntary and IATA accreditation optional, TCS on overseas packages is a flat 2% from 1 April 2026, and GST is either 5% on the package as a tour operator or 18% on commission as an agent.
A tighter second read that makes the "register early" case concrete: it lists 12 scenarios that force registration regardless of turnover and states plainly that below-threshold businesses register voluntarily to unlock input tax credit and to look credible. It also names the documents you need (PAN, ID proof, digital signature) so you know what to gather before you start.
The official description of Mudra loans for non-farm micro enterprises in manufacturing, trading and services: loans up to Rs 20 lakh in four tiers (Shishu, Kishore up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh for those who repaid a Tarun loan).
IATA's page for agencies that want to issue tickets for participating airlines directly and settle through IATA, with three levels of accreditation and country checklists. Worth it only once your air ticket volume justifies the financial security IATA asks for.
