The promotion and execution of a tourism product created by a tour operator is the business activity of legal companies and/or people engaged in tourist agencies. The Republic of Kazakhstan’s laws on notifications and permissions define tour operator activity as a licensed activity. However, no license is necessary to start a travel agency. In 2017, 1.6% of Kazakhstan’s GDP came from tourism. Activities carried out by travel agencies follow a notification process. So, if you want to start a tour company, the first thing you need to do is register as a sole proprietor or limited liability company.
Selecting a business model
When considering the tourist industry, one can select from a variety of company types. The solo entrepreneur and the limited liability partnership are the two most prevalent forms. Each kind has benefits and drawbacks of its own.
The simplicity of registering as an individual entrepreneur is one of its benefits. It takes less time and only calls for a few documents. It is also more cost-effective. Additionally, this type of organization offers simple accounting and taxes procedures. In a solo entrepreneur, the amount of administrative responsibilities is significantly lower. An individual business owner who is unable to pay his obligation must give his property to creditors. This is undoubtedly a major negative. One other drawback of being an individual entrepreneur is that it precludes co-partnership because the firm is owned only by that individual.
Limited liability company
A benefit of registering a travel business as a limited liability partnership is that there may be more founders than there are with a sole proprietorship. As a result, it is feasible to establish branches and do business with partners. However, it takes a long time to start this type of firm since it needs more paperwork.
Choosing a tour operator
A business going into tourism needs to choose a tour operator. The tour operator will inform the company when new tours and deals go on sale and create services specifically for the agency based on the circumstances. The realization of a tour operator is permitted if a legal agreement for the requirement of travel insurance is present. When a tour operator engages in the activity of providing tourist services, the goal of mandatory tourist insurance is to safeguard the property and/or other interests of tourists. The promotion and realization of a tourist-only product by a tour operator in line with Kazakh law is done by the tour agent. Based on their applications, information on tour operators and tour agents is included in the state registry of people engaged in tourism.
Other prerequisites for starting a tourist business
- finding a location
- preparing the tools of the trade
- hiring personnel
- customer prospecting.
Registration of a corporation with the Ministry of Justice of the Republic of Kazakhstan is one of the initial steps in the growth of a business in Kazakhstan. A registration request must be supported by the required paperwork, such as a corporate document package and extracts from the company registry. The following paperwork must be submitted to register a corporation remotely in Kazakhstan:
- a beneficiary’s passport and a copy of it
- an English-language bank statement with a wet seal
- a utility bill attesting to the beneficiary’s residence
There are various steps in the process of registering a corporation in Kazakhstan:
- getting a C5 business visa (for individuals)
- getting a passport translated into Russian and Kazakh and getting it notarized
- getting a tax ID (TIN)
- getting an electronic signature