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Travel Agency Licensing

Do I need a license to start a travel agency in Georgia?

There is no specific license, but you must register the business in the Public Registry and comply with the new Law on Tourism, which requires registration as a tourism entity and potentially liability insurance.

Is liability insurance mandatory for tour operators?

For certain types of high-risk tourism and generally under the new law, liability insurance is becoming a requirement to protect against accidents involving tourists.

Can I operate as a sole entrepreneur (Individual Entrepreneur)?

Yes, you can register as an Individual Entrepreneur with "Small Business" status and pay 1% tax on revenue, provided your annual turnover is below 500,000 GEL and you meet other criteria.

How are refunds handled if a tour is cancelled?

Refund policies are governed by the contract and the Law on Consumer Rights. If the cancellation is not due to force majeure, the consumer generally has the right to a refund. Clear terms in your contract are vital.

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Travel Agency Licensing and Registration: New Regulations

Travel agency activities in Georgia, which were deregulated for years, have recently undergone significant legislative changes. Under the new "Law on Tourism," tourism service providers (tour operators, agencies) are required to register in the Registry of Economic Activities as tourism subjects and meet certain standards. Furthermore, for companies involved in inbound tourism, civil liability insurance and the legal soundness of contracts with tourists are becoming critically important. "Licensing" in the current context implies full compliance with the law, registration, and adherence to mandatory standards, for which qualified legal assistance is essential.

What Does This Service Cover?

Specialists on Legal.ge assist tourism companies and startups in legally launching and managing their operations. Services include:

  • Registration in Economic Registry: Registering with the correct activity code (NACE codes) in the Public Registry and submitting necessary data to the National Tourism Administration.
  • Contract Preparation: Drafting tourism service agreements (package tours), contracts with guides, and transport companies.
  • Liability Insurance: Consulting on mandatory and voluntary insurance issues, protecting the company from financial loss in case of tourist injury.
  • Consumer Protection: Bringing website "Terms & Conditions" into compliance with the Law on Consumer Rights Protection.
  • Tax Consultation: Specifics of VAT taxation on tourism services (especially regarding export/import) and marginal taxation for tour operators.
  • Copyright: Rights to use photo/video materials in marketing campaigns.

Common Situations When You Need a Lawyer

Tourism business is risky and often generates legal problems. Here is when a lawyer is needed:

  • Tour Cancellation or Modification: A tour is cancelled due to force majeure (e.g., pandemic, natural disaster) or other reasons, and tourists demand a full refund, which the company refuses.
  • Accident During Tour: A tourist is injured during an excursion and sues the agency for violation of safety norms.
  • Dispute with Partners: A hotel or transport company violated terms, causing client dissatisfaction, and you want to claim damages from the partner.
  • Online Sales Regulations: Your website does not meet e-commerce and personal data protection standards.
  • Foreign Partners: You work with foreign tour operators and need to sign an international agreement.

Georgian Legal Framework

The main regulatory act is the Law of Georgia on Tourism, which defines tourism activity subjects and their obligations. Also crucially important are the Civil Code of Georgia (regarding tourism contracts) and the Law of Georgia on Protection of Consumer Rights, which sets strict requirements for information provision and service cancellation terms. In the tax section, the Tax Code of Georgia applies, while data processing is governed by the Law on Personal Data Protection.

Process: How Collaboration with a Specialist Works

The process usually involves the following steps:

  1. Status Determination: Determining whether you are a tour operator or tour agent and what specific obligations you have.
  2. Registration: Updating data in the Public Registry and specifying activity codes.
  3. Documentation Development: Preparing client contracts, voucher forms, and website policies.
  4. Risk Management: Selecting insurance policies and writing safety instructions.
  5. Ongoing Support: Responding to claims and resolving disputes.

Why Choose Legal.ge?

Tourism business regulations in Georgia are changing and tightening. Legal.ge allows you to find lawyers specializing in tourism law who constantly monitor legislative updates. Specialists selected through our platform will help you avoid fines, protect yourself from unfounded consumer claims, and build a sustainable business. Find your legal partner on Legal.ge.

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