Travel
Are you in the business of booking travel? By law, any person or business that provides travel services to the public needs a licence.
Travel services include transportation, accommodation, or another service that is combined with transportation or accommodation. There are two types of licences; one for travel agents and one for travel wholesalers/ accommodation providers. Your business model may need both. If you do not know what kind of licence you are applying for – travel agent or travel wholesaler, read the information below on “Do you need to be licensed?”
If you operate from a retail location, are home-based, or consider yourself to be an independent contractor, you still need a licence. All locations need to be licensed. Travel agents and travel wholesalers are not allowed to work from a virtual office or a non-permanent place of business. What is a virtual office?
Read the Business Practices and Consumer Protection Act.
Read the Travel Industry Regulation.
Do you need to be licensed?
If you are selling travel services, the following business models need to be licensed.
- A travel agent: sells or provides travel services directly to the public but those services are supplied by a third party.
- A wholesaler: either buys or gets the rights to resell travel services from a third party or deals with travel agents or other wholesalers to sell travel services supplied by a third party.
- A branch office: is a smaller, remotely located office that is separate from the corporate headquarters, but is responsible to the head office. A branch acts on behalf of the head office.
- An independent contractor/agent: is a person who operates as an agent of a licensed travel agent and is engaged in the occupation of selling or providing travel services. They operate under a contract or other arrangement that allows them to enter into contracts and engage in other activities on behalf of the licensed travel agent when selling travel services. Often, these people are paid on a straight commission basis and often issued Revenue Canada T4A employment slips for tax purposes. Independent contractors/agents need a travel branch licence.
- An accommodation provider: arranges short-term vacation rentals for locations or units that they don’t own. Accommodation providers need a travel wholesaler licence.
If you are still unsure, contact us with your business model and a description of your service.
How to get licensed
As a travel agent or wholesaler
To be licensed, you must download and complete the licence application, checklist, and provide the associated materials in the steps below. Wherever possible, please submit documents in PDF format. However, we may accept other graphic formats such as JPG, BMP and TIF.
Step 1: Obtain proof of registration or incorporation
As part of your application, you must provide proof of incorporation or business registration. To register your business in BC, visit OneStop BC Business Registry. If you are starting a new business, visit Small Business BC. If your business is a partnership or proprietorship, as part of your application you must provide:
- the names of the partners or proprietors
- a current copy of any trade name registration(s) under which you intend to operate
If your business is a corporation, you must provide
- the names of directors, senior officers, and beneficial owners with voting shares
- a current copy of any trade name registration(s) under which you intend to operate
Wherever possible, please submit documents in PDF format. However, we may accept other graphic formats such as JPG, BMP and TIF.
Step 2: Obtain municipal business licence
As part of your application, you must provide a copy of your business licence issued by your local municipality. Some municipalities will not issue a business licence until they see that you have one of our licences. If this is the case, please apply for your municipal licence and forward a copy of the application and receipt to us as part of your application.
Wherever possible, please submit documents in PDF format. However, we may accept other graphic formats such as JPG, BMP and TIF.
Step 3: Complete a criminal record check
Senior officers, partners or proprietors of your business must complete a criminal record check. For Canadian residents, get your criminal record check through our third-party supplier. The results will be sent directly to us.
For non-Canadian residents, a criminal record check from a law enforcement agency in your home jurisdiction is required and should be submitted as part of your application. For U.S. residents, criminal record checks must be state-wide or federal. Wherever possible, please submit documents in PDF format. However, we may accept other graphic formats such as JPG, BMP and TIF.
Step 4: Obtain security
You must obtain and provide financial security as part of your application. Financial security may be provided in any of the following forms:
- Letter of Credit – in favour of Consumer Protection BC issued by a financial institution. See sample.
- Cash – presented as bank draft or money order. These funds will be held in trust by Consumer Protection BC. Note: no interest is paid on cash securities once they are no longer required.
- Surety Bond – an insurance policy issued by an insurance company authorized to operate in BC. See sample.
- Safekeeping Agreement (i.e. GIC or similar investment issued by a financial institution) – in favour of Consumer Protection BC. See sample.
Once you are licensed, the required amount may change depending on your gross sales each year. These are starting amounts based on your licence type:
- Travel agent only – $15,000
- Travel wholesaler only – $15,000
- Accommodation provider only – $15,000
- Both a travel agent and a wholesaler – $30,000
The original document issued by the financial institution or insurer must be included with your application. This security will be held throughout the term of your licence plus 6-months after the cancellation or expiry of your licence.
Step 5: Provide financial information
As a new business, you must include a balance sheet:
- that is current to within 90 days of the application and clearly indicates your current assets, liabilities, and equity
- includes the applicant’s legal name
- dated and certified correct by an authorized signing officer(s) of the applicant
If your business has operated for more than a year, you must include a financial statement:
- certified correct by the authorized signing officer(s) of the applicant
- current to within 90 days of application
- prepared in accordance with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS)
Here are some considerations for the preparation of your balance sheet or financial statement that you should discuss with your financial professional:
- Security cannot be considered a current asset.
- Receivables owed to the business must be excluded from the calculation of current assets.
- The amount owed by the business to other parties must be excluded from the calculation of current liabilities.
- A credible cash flow statement for one year indicating sufficient working capital may be accepted in lieu of the suggested amount of start-up working capital.
Your balance sheet or financial statement will be reviewed to ensure you have enough working capital to operate. You may want to review the information below with your financial professional as they prepare your balance sheet or financial statement. The suggested minimum amount is based on your business model:
Business Model | Franchised? | Home-based minimum working capital | Commercial space minimum working capital |
Travel agent | No | $10,000 | $20,000 |
Travel agent | Yes | $5,000 and cost of the franchise | $15,000 and cost of the franchise |
Travel wholesaler | No | $10,000 and cost of the first 3-months of travel services purchased for resale | $20,000 and cost of the first 3-months of travel services purchased for resale |
Accommodation provider / wholesaler | No | $10,000 | $20,000 |
If your business owes money which is payable to its owner(s) or shareholder(s) on demand, you must complete a subordination of loans agreement.
Step 6: Set up a business phone number
You can maintain a landline or a cell phone number as your business line. The number must be made public and be searchable somehow (for example through directory assistance or Canada411). The number must also be easily found on your website, receipts and other business documents.
Step 7: Verify bank account information
You must provide your bank account information verified by your financial institution. If you are a travel wholesaler or accommodation provider, you are also required to set up a consumer trust account separate from your general operating account.
Complete the verification of financial information form.
Step 8: Apply for a licence
Review the application checklist.
Download, complete and submit a licence application form.
Payment of the new licence application fee and initial Travel Assurance Fund (TAF) contribution, as per the current fee schedule, can be made by cheque or by credit card authorization form and must accompany your application.
If you are operating from your home, download, complete and submit a statutory declaration residence as a place of business form.
If your business has more than one location, each location requires its own licence (your main location is the head office, and other locations are branches).
You must submit all your supporting documents noted in Steps 1-7 above with your application. Each application may take up to four weeks to process.
Wherever possible, please submit documents in PDF format. However, we may accept other graphic formats such as JPG, BMP and TIF.
Step 9: Read and understand your obligations
It is your responsibility to review all applicable laws pertaining to your industry and to understand your obligations.
Add a licensed branch
By law, all locations of your travel agency/wholesaler business must have its own licence. It may be a branch, or home-based. To us, these are all considered branches and must be licensed.
A branch office is a location that is separate from a company’s corporate headquarters but is responsible to the head office. It allows your company to have a presence in more places. A branch acts on behalf of the head office.
The head office assumes all liabilities for the branch office and their actions. The head office must complete all the paperwork, applies for all licences, submits financial reports and makes all the payments (including Travel Assurance Fund payments and all fees). A home office can be a branch. The same rules apply as a storefront office. A Statutory Declaration for Residence as a Place of Business must also be filled out by the homeowner.
Read the Business Practices and Consumer Protection Act.
Read the Travel Industry Regulation.
Get your branch licensed
Each location must be licensed. Before you get another location licensed, the head office must be licensed with us. The head office must complete the branch application, not the Branch Manager. A branch office is a location that is separate from a company’s corporate headquarters but is responsible to the head office. It allows your company to have a presence in more places. A branch acts on behalf of the head office. A branch can’t be a separate legal entity.
Step 1: Provide your municipal business licence
You must provide a copy of your business licence issued by your local municipality.
Step 2: Set up a business phone number
You can maintain a landline or a cell phone number as your business line. The number must be made public and be searchable somehow (for example through directory assistance or Canada411). The number must also be easily found on your website, receipts and other business documents.
Step 3: Apply for a licence for each location
Fill out the travel agent branch application form and submit it to us with the payment. If the branch is home-based, a statutory declaration is required confirming that the residence is also a place of business.
Submit the travel agent branch application form
Submit a statutory declaration form.
Step 4: Read and understand your obligations
It is your responsibility to review all applicable laws pertaining to your industry and to understand your obligations.
Licence application forms
To be completed by the Head Office:
- Travel agent, travel wholesalers/accommodation provider application checklist
- Travel agent, travel wholesalers/accommodation provider application form
- Travel agent branch application form
- Verification of financial information form
- Subordination of loans agreement
- Credit card authorization form
To be completed by the home-based agent or location manager: