Running a Travel Business? Here’s How to Get Licensed with MOTAC! ✈️

Starting a travel agency in Malaysia requires proper registration with the Ministry of Tourism, Arts and Culture (MOTAC) to ensure compliance and legality. Follow these essential steps to obtain your travel agency license:

Step 1: Register Your Company
Begin by registering your company with the Companies Commission of Malaysia (SSM). Your company name should reflect the nature of a travel agency, aligning with relevant legal requirements. The business structure must be a private limited company (Sdn. Bhd.).

Step 2: Choose Your Business Category
Travel agencies fall under 2 main categories:
i) Inbound Travel Agency:
Organizes travel itineraries for foreign tourists visiting Malaysia.
ii) Outbound Travel Agency:
Organizes travel for Malaysian tourists to destinations abroad.

Step 3: Select an Appropriate Business Location For Your Business Category
Your office must comply with local regulations and be situated in a commercial area, as residential areas are not permitted for travel agency operations. Ensure your office space meets MOTAC’s standards for facilities.

Step 4: Prepare Required Documents
Prepare the following documents to submit with your application:
i) Company Registration Documents (including Articles of Association and Certificate of Incorporation)
ii) Shareholder and Director Information (identification documents required)
iii) Company Financial Reports
iv) Office Lease Agreement or proof of ownership
v) Employee Information(relevant tourism qualifications and experience)
vi) Business Plan Include a detailed plan for launching your travel agency

Step 5: Submit Your Application
When all documents are in order, submit your application through the MOTAC portal or at their office. Be sure to:
i) Visit MOTAC’s official website for the latest forms and requirements.
ii) Pay the application fee as specified.

Step 6: Await Review and Audit
MOTAC will review your application, which may include an on-site inspection of your office to ensure it meets the necessary standards. This process can take several months, so plan accordingly.

Step 7: Obtain Your License and Maintain Compliance
Once approved, you’ll receive a Tour Operating Business and Travel Agency Business License. Ensure you maintain compliance with MOTAC’s ongoing regulations, such as:
i) Regular license renewals
ii) Keeping your bank guarantee valid
iii) Submitting financial reports as required

Step 8: Join Industry Associations
After obtaining your license, consider joining the Malaysian Association of Tour and Travel Agents (MATTA) or other relevant industry associations. Membership can enhance credibility and provide valuable industry resources.

Registering a travel agency in Malaysia involves company registration, document preparation and compliance with MOTAC’s requirements. Although the process may seem complex, ensuring your documents and office space meet standards will help facilitate approval.

For additional questions or assistance, visit https://www.motac.gov.my for guidance.

FAQ – LICENSING

I am interested in starting a tour company. What is the procedure?

You need to fill in Form 1 – Application for Licence to Carry on or Operate a Tour Operating Business and Travel Agency Business and submit it together with a processing fee of RM100.00. In addition, several documents must be submitted as stated in the application checklist. For further information, please visit www.motac.gov.my.

Are there any conditions to be observed when applying for a tour operating business licence?

There are several conditions that need to be met. Among them are having sufficient paid-up capital according to the area where you wish to operate and the experience of members of the Board of Directors/shareholders in the field of tourism. For further information, please visit www.motour.gov.my.

What is the condition for the breakdown of shareholding in a tour operating company?

The breakdown of shareholding, where it involves 70% national and 30% foreign holding, the maximum limit is 30% and applies only to the inbound and travel agency (ticketing) business.

Are companies/co-operatives allowed to become shareholders?

Yes, companies/co-operatives are allowed to have shares in a tour operating company, although the breakdown of foreign equity (if any) needs to be examined.

When can I find out about the regulations that need to be observed by a tour operating company?

You can refer to the Tourism Industry Act 1992 and the regulations made thereunder for all the regulation that need to observed by a tour operating company.

Are changes to members of the Board of Directors/shareholders which involve the bumiputera and non-bumiputera allowed?

If the licence of the company was approved with a bumiputera percentage, the company is not allowed to reduce/dissolve the bumiputera percentage. However, no condition is imposed on the breakdown of the percentage between the bumiputera and non-bumiputera.

I want to move the location of my premises. Is this allowed?

Prior application needs to be submitted for each change. It is allowed if allowed if it is not outside the area stipulated based on the paid-up capital.

In a travel agency (ticketing) licence application, is an IATA licence required?

An IATA licence is not required for a travel agency licence application.

What is the approval period for an application for a new tour operating and travel operating business licence?

The client charter for the approval of an application for a new tour operating business licence is 35 days from the receipt of the complete application.

What is the licence renewal period?

The licence renewal period is 1 to 3 years , depending on the licence renewal conditions. For further information, please visit www.motour.gov.my

I own a private limited company and I wish to apply for an excursion bus/hire and drive car licence. What is the procedure?

You must first have a tour agency licence from the Ministry of Tourism before you can apply for an excursion bus or hire and drive car licence.

What are the conditions for applying for an excursion bus/hire and drive car licence?

Complete Form 1 – New Application for Excursion Bus Licence or Form 2 – New Application for Hire and Drive Car Licence with a processing fee of RM50.00. In addition, submit the documents listed in the application checklist. This checklist will be appended to the application form. For further information, please visit www.motour.gov.my.

How much is the excursion vehicle licence fee?

The fee for the excursion vehicle licence is RM60.00 per year, while the hire and drive car licence fee is RM40.00 per year.

What is the age limit allowed for an excursion vehicle?

The age limit allowed for an excursion bus is 12 years while the age limit for a hire and drive car is 6 years for 1800 cc and below and 8 years for 2000 cc and above. The age limit for four-wheel drives is 10 years.

I want to use an imported vehicle as an excursion vehicle. Is this allowed?

The ministry has no objection if a company wishes to use an imported vehicle but its age will be determined according to the year of manufacture and not the year it was registered as is the case for other vehicles.

I want to apply for excise duty exemption. What is the process?

An application must be made to the Ministry of Finance by completing the excise duty exemption form and obtaining confirmation from the Ministry of Tourism that the company possesses a hire and drive car licence.

Can I apply for excise duty exemption for all types of vehicles to be used as hire and drive cars?

No. Only national cars are eligible for excise duty exemption

I understand that four-wheel drive vehicles too can be exempted from excise duty. Is this true?

Yes. However, only a 50% excise duty exemption is allowed and it is restricted to vehicles that are assembled in Malaysia.

My company has moved to another location and this has been approved by the ministry. However, the address on the excursion vehicle licence remains the same. Does it need to be changed?

Yes. You need to change the address by applying for a variation of the conditions of the licence of the excursion bus/hire and drive car.

I have a licence for an excursion bus with a capacity of 27 – 40 passengers. However, I want to use an excursion bus with a capacity of 44 passengers. What is the procedure?

You need to apply to change the number of seats by completing the application form to change the conditions of the licence or letter of approval. Please attach the bus body plan that has been approved by the RTD or the registration letter of the excursion bus which shows that the number of seats was originally 44 (for used vehicles).

Can I apply for a new tourist guide licence without the We Are The Host (WATH) Course certificate?

The We Are The Host (WATH) Course is mandatory (it is normally included in the Basic Tourist Guide Course module) and the course certificate must be attached to the application form. Nevertheless, special considerations may be made.

Is the Eco-Host Course mandatory for new TG applications and do I need to take the course as a condition for renewal?

The Eco-Host Course is mandatory. For applicants without this certificate, conditional approval will be granted but they are required to attend the course before they can submit their applications for renewal the following year. The course needs to be taken only once although it is also encouraged as a refresher course.

If my TG licence has been revoked, how do I apply for the licence again?

Applicants may be licensed again subject to the following conditions:
i) Attend a refresher course (city guide)/Eco-Host Course (nature guide).
ii) Reactivate membership in a tourist guide association.
iii) Undergo a medical examination.
iv) Submit an application by completing form 1 (Reg. 3).

If my CTREs are insufficient (for example only 2 CTREs), can my licence renewal application be processed?

Your renewal application can be processed on condition that you submit the remaining CTRE certificates within a period of 3 – 6 months (depending on the number of CTREs that you need).

Can a local nature guide change his/her guiding zone?

Changing of guiding zone is not allowed. Applicants may conduct guiding assignments only in the area where they attended the Local Nature Course.

Is a nature guide allowed to make commentaries in an excursion bus?

Commentaries in an excursion bus are the responsibility of a city guide. Nature guides are allowed to conduct their guiding assignments only in areas with natural products.

What are the major requirements for foreign nationals to apply for a tourist guide licence?

Foreign nationals may be licensed as temporary tourist guides subject to the following conditions:
i) Passed the Basic Tourist Guide Course/Induction Course/ attended the interview session to gauge the level of proficiency of (foreign) language and knowledge of tourism products in Malaysia.
ii) Secured an employment contract (full-time) with any tour operating company in Malaysia.
iii) Hold a valid passport.
iv) Member of a tourist guide association recognised by the ministry.

What are the functions of tourism training institutions and what are the courses offered?

The functions of tourism training institutions are to provide training or courses relating to the tourism industry and the courses offered are diploma and certificate-type skill courses.

How do I set up a tourism training institution?

Those interested should set up a private limited company which is incorporated under the Companies Act 1965.

How much paid-up capital is required to set up a tourism training institution?

The paid-up capital required to set up a tourism training institution is a minimum of RM200,000.

How do I obtain the application form and how much is the processing fee?

The application form may be obtained from the Licensing Division of the Ministry of Tourism and regional licensing offices. It can also be downloaded from the website of the ministry. The processing fee is RM100 in bank draft or postal order.

My prospective business partner (50% shareholder) is also a shareholder in another licensed tourism training institution. Can he become a shareholder in this new tourism training institution?

No, because no individual is allowed to monopolise more than one company in the same field.

Does the licensing of tourist accommodation premises fall under the responsibility of the Ministry of Tourism?

No. The Ministry of Tourism is responsible only for registering and classifying tourist accommodation premises. The licensing of tourist accommodation premises is under the responsibility of the local authorities.

I have already registered with the Ministry of Tourism under the Registration of Tourism Projects. Do I still need to register under the Registration of Tourist Accommodation Premises?

Yes, the Registration of Tourism Projects and the Registration of Tourist Accommodation Premises have different objectives. The Registration of Tourist Accommodation Premises is for classification and inventory purposes, while the Registration of Tourism Projects is for promotion and incentive purposes.

Do tourist accommodation premises in the form of serviced apartments need to be registered and classified?

There are two types of serviced apartments, namely residential serviced apartments involving long-term rental or permanent ownership which do not have to be registered and classified, and commercial serviced apartments which provide services offered by other hotels and which need to be registered.

What is the Orchid classification scheme?

The Orchid rating is a classification system created for budget accommodation premises which do not meet the requirements of the Star Classification Scheme.

Do tourist accommodation premises with less than 10 rooms need to be registered?

Yes. The registration of tourist accommodation premises is mandatory for all accommodation premises as defined under the Tourism Industry Act, regardless of the number of rooms.

What types of complaints can I submit to the ministry?

Complaints that may be submitted to the ministry should be with regard to the following matters:-

i)Tour operating business and travel agency business (TOB TAB).
ii) Excursion buses and hire and drive cars.
iii) Tourism training institutions.
iv) Tourist guides.
v) Tourist accomodation premises.

How do I make a complaint?

You may submit your complaint in writing, or by phone, fax or e-mail with your full name and address.

What documents do I need to provide when I submit my complaint?

The documents that you should attach when submitting your complaint are those that are related to the package purchase invoice, the itinerary, payment receipts, photographs or any document that can support the validity of your complaint.

How long does it take to resolve my complaint?

If your complaint is related to an external agency, it will be resolved within 3 working days and if it is directly related to matters under paragraph 1, it will be resolved within 21 working days.

What types of enforcement are carried out by the ministry?

The types of enforcement carried out by the ministry are as follows:-

i) Search of licensed and unlicensed tour operating businesses and travel agency businesses (TOB TAB).
ii) Inspection of licensed and unlicensed tourism vehicles.
iii) Inspection of licensed and unlicensed tourist guides.

How do I recognise the ministry’s enforcement officers?

The enforcement officers will normally show their authorisation cards signed by the Minister of Tourism.

What acts are applied by the ministry in enforcing the laws in the tourism industry?

The ministry enforces the following acts and regulations:-

i) Tourism Industry Act 1992
ii) Tourism Industry (Tour Operating Business and Travel Agency Business) Regulations 1992
iii) Tourism Industry (Licensing and Control of Tourist Guides) Regulations 1992
iv) Tourism Industry (Licensing of Tourism Training Institutions) Regulations 1994
v) Tourism Industry (Compounding of Offences) Regulations 1992;
vi) Tourism Vehicles Licensing Act 1999
vii) Tourism Vehicles (Licensing and Control of Tourism Vehicles) Regulations 2000.

What forms of action can the ministry take in the event of the contravention of any of the abovementioned laws and regulations?

The forms of action that may be taken by the ministry are as follows:-

i) Prosecution in court.
ii) Offer of fine.
iii) Suspension of licence.
iv) Revocation of licence.

Got your MOTAC license? The next step is to master the essentials of setting up and running your own Sdn Bhd. Join our upcoming online webinar to learn how!