What is China’s Travel Agency Business License and Who Needs One?

The Travel Agency Business License (旅行社业务经营许可) is a mandatory regulatory requirement for businesses operating travel services in China. Issued by the Ministry of Culture and Tourism (MCT), this license authorises domestic entities to legally organise, market, and sell tourism products, such as packaged tours, guided experiences, hotel bookings, and local travel arrangements.

China has tightened its oversight of the tourism sector, making the license increasingly challenging to obtain. Qualified domestic companies can still secure approval by fulfilling a clearly defined set of requirements. Wholly Foreign-Owned Enterprises (WFOEs) cannot apply for this license; they can only do so through a local partner such as AppInChina. At AppInChina, we provide end-to-end support to help businesses navigate this complex regulatory landscape and establish fully compliant operations in China’s travel market.

Who Needs a Travel Agency Business License?

Any domestically registered company that intends to offer travel-related services in China must apply for and obtain a Travel Agency Business License. This applies to both online and offline businesses whose operations include organising or selling travel products or services.

The license is required for:

• Companies offering packaged domestic or outbound tours
• Online platforms promoting guided travel experiences or bundled itineraries
• Travel agencies organising cultural, leisure, or business trips
• Businesses providing hotel, ticket, or transportation bookings as part of a travel product
• Marketplaces or aggregators that sell or facilitate tour bookings
• Event firms offering travel services as part of conferences or group packages

Companies that provide standalone services such as hotel bookings or flight aggregators without packaged offerings may not require this license, but this depends on their operational model.

Wholly Foreign-Owned Enterprises (WFOEs) are not eligible to obtain this license due to restrictions on foreign investment in China’s tourism sector. Foreign companies must collaborate with a licensed domestic partner to enter the market legally.

Why Do You Need a Travel Agency Business License?

Operating a travel agency without a proper license is a direct violation of China’s tourism regulations. Enforcement has become stricter in recent years, with regulatory authorities cracking down on unlicensed travel services.

Consequences of non-compliance include:

• Forced shutdown of operations
• Confiscation of all illegal income
• Administrative fines and legal penalties
• Public credit score damage
• Potential criminal charges in severe cases
  

The license also plays a crucial role in building consumer trust, ensuring that businesses follow China’s strict quality, safety, and service standards. Without it, companies cannot join formal travel platforms, register itineraries with authorities, or legally conduct group tours.

Key Requirements for Obtaining the Travel Agency Business License

To qualify for the Travel Agency Business License, businesses must meet requirements related to corporate structure, financial capacity, infrastructure, and qualified personnel.

1. Corporate Eligibility

• Must be a domestically registered company (i.e., not a WFOE)
• The company’s business scope must clearly include tourism or travel-related services

2. Personnel Qualifications

• A manager and deputy manager must be appointed
• Both must submit resumes and hold valid travel industry qualification certificates, recognized by national tourism authorities

3. Financial Requirements

• Proof of sufficient registered capital
• A bank-issued credit certificate verifying financial solvency
• A capital verification report from a certified accountant or auditing firm
• A refundable security deposit, usually held to cover consumer compensation in the event of disputes or service failures

4. Operational Infrastructure

• A feasibility study report detailing the travel agency’s market strategy, service offerings, and operational plans
• A formal travel agency charter describing the company’s governance and scope of services
• Proof of office premises, communication systems, and booking or travel service platforms sufficient for daily operations

5. Supporting Documentation

Businesses must submit the following materials to their local Culture and Tourism Bureau:

• Application for establishing a travel agency
• Feasibility study report
• Travel agency charter
• Resumes and qualification certificates of managerial staff
• Credit certificate from a bank and capital verification report
• Business license and company registration certificate
• Documentation showing ownership or lease of premises and equipment

The approval process typically takes 3 to 4 months, depending on the city and completeness of the application materials. Authorities will conduct a thorough review of documentation, financial background, and business feasibility.

• Estimated Processing Time: 3 to 4 months
• Estimated Cost (Including Legal, Preparation & Submission): 40,000–50,000 CNY

Who Can Obtain This License?

Wholly Foreign-Owned Enterprises (WFOEs) are not permitted to apply for or hold a Travel Agency Business License in China. This restriction is rooted in China’s Foreign Investment Negative List, which limits foreign participation in several sensitive sectors, including tourism.

For international businesses seeking to operate in China’s travel industry, the following alternative paths exist:

• Joint ventures with domestic companies that hold a valid license
• Partnerships with licensed Chinese entities to resell or co-brand travel packages
• Consulting or technology service agreements that do not involve direct sale of travel products

These structures must be carefully designed to comply with both investment and tourism regulations, and they are subject to detailed scrutiny by Chinese regulators.

How Can AppInChina Help?

Navigating China’s travel licensing requirements is complex, especially in an environment of heightened regulatory oversight. At AppInChina, we help domestic entities and international partnerships:

• Determine licensing eligibility
• Prepare and organize all required application documentation
• Coordinate with local Culture and Tourism bureaus.
• Secure necessary qualification certificates for key personnel
• Ensure operational readiness and compliance
• Monitor post-approval compliance obligations
  

Our bilingual team brings years of experience supporting businesses in regulated Chinese sectors. From business strategy and application submission to operational compliance and government communications, we help build a strong and compliant foundation for success.

Ready to launch your travel business in China? Contact us today to begin your Travel Agency Business License application and start offering compliant, trusted travel services in the world’s most dynamic tourism market.