China Tour Operator Permit

To officially enter into contracts with clients and partners, as well as to gain access to national resources, a tour operator's licence in China will have to be obtained. Against the backdrop of the rapid growth of domestic and inbound tourism in China, as well as increased control by regulatory authorities, registering the status of a travel company is of strategic importance. For foreign investors and entrepreneurs from CIS countries seeking to enter the Chinese market, having a licence is the most important element of business reputation.

In the following article, we will look in detail at how to obtain a travel operator's licence in China without mistakes, delays, and unnecessary costs. The reader will receive advice based on real cases. Particular attention will be paid to the specifics of the legislation, typical difficulties in submitting materials, and ways of overcoming them effectively.

Legal regulation for authorisation

To successfully register a work permit in this field, it is necessary to navigate the country's key laws and regulatory requirements. The Chinese state pays special attention to the tourism industry - it plays an important role in the economy, international image and social stability. That is why the process of obtaining a work permit to work in tourism in China is strictly controlled and requires a high level of preparation from applicants.

The basic document that defines the legal framework for this employment is the PRC Law on Tourism. This act enshrines key provisions on the rights and obligations of tour operators, conditions for licensing, liability for violation of permit requirements, and protection of tourists' interests. The regulation establishes mechanisms of interaction between state authorities and private businesses in this industry: issues of subsidies, quality control, and so on.

In addition to the sectoral act, the provisions of the Civil Code of the People's Republic of China and the Regulations on the Registration and Management of Market Entities are also important regulations. These regulations create a general legal basis for the authorisation of tour operator activities in China. Such issues as registration of a legal entity, execution of statutory documents, obligations to state authorities, liability for the provision of poor-quality services, and dispute settlement procedures are regulated.

It is important to understand that having a licence for tourism employment in China confirms an organization's eligibility:

• Legally engage in the sale of tours
• Organise tourist events
• Provide related services.

In addition to the main laws, tour operators are regulated by a number of bylaws issued by the Ministry of Culture and Tourism of the PRC. These regulations specify:

• How to apply for a permit to operate as a tour operator in China?
• How long does it take for decisions to be made?
• How is the office inspected?
• What sanctions are applied for violations of licence conditions?

The regulations also provide for a system of electronic control over the activities of tour operators and the need for regular reporting to the regulatory authorities.

A peculiarity of the Chinese system is the presence of local regulations that supplement or detail the national regulations. Each province or metropolitan area introduces its own requirements for licence applicants. For example, some regions impose additional conditions on office size, staffing, internal control format, liability levels, and mandatory insurance premiums. Some local authorities require specialised accreditation or registration with a regional association of tour operators.

Competent authorities in the process

The process of obtaining a travel licence in China is a multi-stage procedure involving interaction with several authorities at the national and regional levels. Each of these agencies plays an important role in determining whether a travel company is ready to fulfil all mandatory standards and regulations.

To successfully register a Chinese tour operator permit, it is important to understand which authorities are involved in the process and how they interact with each other. For example, the Ministry of Culture and Tourism is responsible for drafting and approving laws in the relevant area. It supervises the activities of tour operators throughout the country.

The Ministry coordinates the work of all regional bodies, controlling compliance with uniform standards throughout the state. In case of successful compliance with all the rules and verification of the submitted materials, the Ministry issues a Chinese licence to conduct tour operator activities. In addition, it has the power to suspend or cancel it in case of violations by the holder.

At the regional level, the process is implemented through local tourism departments, which directly verify local employment. Each locality has its characteristics, and therefore, authorities often impose additional requirements. For example, major tourist centres such as Beijing, Guangzhou, or Xi'an have their requirements for safety, health, and security, and organising tours to exotic regions.

Regional tourism departments carry out an initial check of the paperwork package that an organisation submits. Local authorities are often involved in monitoring the actual operations of the firm, such as checking office space and the availability of necessary equipment and personnel. They have the right to make recommendations or additions to applications.

Partner agencies bring special value to the process of obtaining a tour operator licence in China. They are consulting companies that help foreign and local businesses navigate the complex licensing system. Specialists can advise on how to prepare the office, comply with security requirements, properly prepare documents, etc.

Main requirements for applicants

Оbtaining a tour operator licence in China requires entrepreneurs to meet conditions that vary depending on the type of business, its structure, and plans. The legal entity must meet all Chinese standards in terms of financial stability and the quality of services provided. Monetary guarantees are required to prove the company's ability to conduct characteristic activities in China.

An applicant for authorisation to provide tour operator services in China must have a registered enterprise that meets the standards of legal and financial responsibility. This is a prerequisite without which it is impossible to complete the procedure. A foreign organisation must demonstrate the existence of valid founding papers and a certificate of registration. It is also important to prove competence in tourism organisation, the presence of experienced professionals, and proper security.

In addition, it is advisable to specify the types of activities to successfully obtain a tour operator licence in China. The regulations precisely spell out the different types of services:

• Organising and selling tours within and outside the state, booking and selling transport services, hotel accommodations, excursions, and more;
• Conducting trips for tourists to China, issuing visa,s and special programmes;
• Organising excursions, transport, and hotel services, as well as cultural and educational support.

The enterprise applying for authorization must indicate which of these activities it intends to carry out. Relevant evidence shall be provided that the necessary resources are foreseen for the realization of these services. This may include transport licenses, contracts with hotels, and qualified staff to organize tours.

The company must demonstrate the existence of an internal quality control system and evidence that its staff have all the necessary knowledge and skills to work in the tourism industry. This is mandatory for an organisation seeking to obtain a licence for tourism employment in China.

Writing a business plan to obtain a licence for a tour operator in China

This is a mandatory document to be submitted to the state authorities when applying for a license. The plan serves not only to obtain approval to operate as a tour operator but also to demonstrate to the state commission that the organisation is ready to fully operate in this field, comply with the laws and adhere to accepted standards. It is important to note that to obtain a tour operator licence in China, the business model must be carefully developed.

The financial part is one of the most important elements. It should detail all sources of income and expenditure items, as well as the expected profits and losses of the enterprise for the next few years. The calculations are based on real data that will help the Chinese authorities ensure that the project is capable of providing a stable financial base.

The minimum registered capital of a joint Chinese-foreign travel agency is CNY 300,000 (≈ USD 41,500). This amount can be modified, and the adjustment period is determined by the Tourism Administrative Department of the State Council in conjunction with the Foreign Economy and Trade Administrative Department of the State Council. The investment ratio of the parties shall also be regulated by these two bodies under the regulations in force.

The main components of the financial part are estimates for the initial investment in setting up the tour business, marketing costs, office rent, staff salaries, and potential costs of creating packages, organizing tours, and developing new destinations. It is important to include the costs of developing new services and possible changes to the business in the future. This will help demonstrate the company's flexibility and willingness to adapt to the Chinese market.

The plan must contain a detailed description of all the services offered and itineraries that the tour operator plans to offer to its customers. This description must be included to obtain a permit to operate a tour operator in China. It must be taken into account that tourists may have their preferences and conditions, so the organisation must show that it understands these peculiarities and is ready to offer products that are in demand in the local market.

Profit forecasting plays a key role in the process. In this section of the business plan, clear calculations must be presented to enable the authorities to assess whether the firm will be profitable and whether it will be able to compete in the long term. The expected profits should be based on real data.

It is important to consider the seasonality of tourism in the profit forecast because in China tourism demand can fluctuate greatly depending on the time of year. It is also necessary to present possible changes in the market situation, such as fluctuations in the price of services or changes in legislation.

Insurance requirements

A company seeking authorisation for tourism employment in China is required to demonstrate that it has characteristic insurance. It generally covers all risks associated with the activity. Choosing a reliable insurance firm registered in China that can provide policies with the right coverage is considered an important part of the process. These requirements will be scrutinised by the competent authorities at the permit application stage.

When applying for a Chinese tourism business licence, one of the mandatory requirements is that the minimum amount of insurance coverage must be met. These are set by Chinese law and must be sufficient to cover potential losses. These aspects are taken into account when drawing up the documentation.

Proof of valid insurance that complies with all mandatory requirements is an integral part of the application process. The organisation must provide a copy of the policy that confirms that it is insured against all risks associated with fulfilling its obligations to tourists. This may include compensation for damages caused by accidents, changes in itineraries, cancellation of tours, or other incidents.

Applying for authorisation

The process begins by drafting and submitting a petition to the regulatory agency. The application must be drafted following the regulations set by the Chinese authorities and include information about the organisation, its legal status, services offered, and itineraries. The form and content of the application for a tour operator licence in China are strictly regulated. It is filled out in a special form, which is usually provided by the Ministry of Culture and Tourism of China.

All key information about the business, such as name, location, contact details, manager's information, and details about the firm, must be provided. The application should be accompanied by evidence of infrastructure, qualified staff, insurance, and other important elements. Submitting the petition without these details or with errors will result in rejection or additional queries.

Documents for obtaining a permit

To obtain a permit to operate a tour operator in China, the firm must collect and submit the basic package of materials. It should confirm compliance with the legal framework governing the tour operator. These papers are necessary to convince the authorities that the company complies with all the standards and conditions established for work in the industry.

Mandatory documents:

• Articles of Association of the company. The main source of information about the structure of the firm, its goals and objectives, as well as the authorised activities. The articles of association must be registered with the official authorities. Its provisions strictly comply with Chinese regulations. The document contains clear guidelines and provisions.
• Foundation papers. The package includes a certificate of registration, extracts from the state register, and materials confirming the legal status of the organisation. All documents for opening a travel agency in China must be provided in an up-to-date form. This includes signed copies or notarised copies.
• The insurance contract confirms that the company has the necessary financial protection to operate as a tour operator. It should cover liability to clients if the company fails to fulfil the terms of the contract or other problems arise with the organisation of tour services.

In addition to these basic documents, other papers are sometimes requested during the China tourism authorisation process to confirm:

• Qualifications of employees - a certificate of appropriate qualifications for key employees of the company who will directly work with clients
• Technical equipment of the office - in this context, it is important to have appropriate equipment that meets the security standards and technological requirements for working in tourism
• Lease or ownership of premises - firms operating as tour operators must demonstrate that they have a physical office where they will provide their services.

Obtaining a licence to operate a tour operator in China requires careful preparation. It is important to remember that any deficiencies in the submission of materials to the regulatory authorities may result in delays in the processing of the application or even denial of the licence.

Any questions?

Contact our specialists

Send your application

Reasons for refusal to issue an official authorisation

Not issuing a certificate to start working in this direction can be for several reasons. They should be taken into account in advance to avoid mistakes at the beginning of the process. Let's look at the most common cases for refusal:

• The documents for obtaining a permit for the activities of a tour operator in China do not comply with the rules of the state acts
• The company cannot provide evidence of the qualifications of its employees.
• The company does not fulfil the education and training requirements necessary to work in the tourism industry
• Lack of insurance that proves liability to customers
• Failure to comply with the minimum insurance amount required by law;
• The company does not have a permanent office in the country, or it does not meet the standards
• The organisation fails to comply with environmental or social regulations, such as ensuring the safety and sustainability of services
• The company cannot provide detailed information about the routes or services offered.

If an organisation faces a refusal to obtain a permit to work in the tourism industry in China, it has the right to appeal the decision in due course. After the verdict, the enterprise has 15-30 working days. This is a mandatory period during which the owner must officially declare their intention to appeal the decision. The corresponding statement will have to detail the reasons why, in the opinion of the company, the refusal was unjustified. It is important to point out deficiencies or errors that could have influenced the decision.

If the refusal was due to insufficient materials provided, the company can attach them to prove its validity. It is important that all paperwork is in order and complies with the conditions. Once an appeal has been lodged, the authorities that issued the refusal are required to review it within a set timeframe, usually within 1 month. In case of a satisfactory decision, the applicant will receive an official authorisation to operate as a tour operator in China. In case of refusal, there is a possibility of judicial appeal.

Period of validity of the official licence

The authorisation clearly defines rules and deadlines that must be followed to avoid negative consequences. It is important to realise that it is a good opportunity to do business in China; meanwhile, businesses should comply with the applicable regulations and standards. The minimum licence period is 12 months, and the maximum is 5 years. This enables companies to plan their activities in the tourism sector for the long term.

After the end of the period of relevance of the permit for tour operator employment in China, the company has the right to apply for renewal. However, it is important to remember that the process involves fulfilling every condition set. The application for licence renewal must be submitted in advance - usually 30-60 days before the current certificate expires.

The renewal process is generally straightforward if the firm has complied with all rules and requirements during the validity period. There are several grounds for cancellation of a licence for tourist employment in China. If a company violates the conditions set by the law, its licence can be revoked.

Renewing a licence in the PRC

If any data or structures need to be updated, it is worth understanding the steps that need to be taken. When a company decides to change its registered office, it requires a re-registration process. The location of the company is considered official information, and all changes should be reflected in the state register.

When there is a change in the founders, such as adding or removing new partners, shareholders, or owners, this also requires the re-issuance of a licence to operate a tour operator in China. Regulatory authorities must be notified of such changes, and new founding materials must be submitted. There may also be additional requests depending on the specifics of the change and the type of founders.

If an organisation decides to change its name, this also requires reissuing. The process involves applying to the competent authorities and providing the necessary evidence and paperwork. It is important to ensure that the new name complies with all the rules.

Liability for breach of regulations

Violation of regulatory requirements when applying for a licence to operate as a tour operator in China can have unpleasant consequences. Liability measures relate to administrative sanctions, criminal liability, and financial penalties. For example, if a company does not comply with the regulations, it may be subject to administrative penalties, and in the case of repeated violations, deprivation of the licence. An enterprise needs to draw up all necessary documents in a timely and correct manner to avoid consequences. Violation of the rules can seriously disrupt the reputation and monetary position of the organisation.

Criminal liability in issuing a licence for tour operator activities in China applies in more serious cases. This is relevant in cases of fraud, when a tour operator uses forged materials to obtain a licence or when a firm operates without a licence.

Financial penalties are another important form of liability for breach of the conditions prescribed in the regulations. Actions related to improperly obtaining a licence or incomplete paperwork can result in fines being imposed on a company. Monetary sanctions are imposed when a company provides services that violate the rules of business in the tourism sector.

Violations of certain provisions are punishable by sanctions in the form of termination of illegal activities and confiscation of profits. The fine may range from 10 to 50 thousand CNY (≈ 1.4 to 7 thousand USD). For a wider range of violations, there are requirements to eliminate them within a set period. Confiscation of illegal income takes place. In case of failure to eliminate, suspension of activity for 15-30 days. Penalty from 5 to 20 thousand CNY (≈ from 700 to 2.8 thousand USD). In case of serious errors, cancellation of the licence.

All these types of liability emphasise the importance of compliance with the law when obtaining a permit to operate a tour operator in China. Violation of regulations can not only cause serious losses but also lead to the closure of the activity. To avoid these serious consequences, you need to carefully monitor the process and address any potential violations promptly.

Cancellation of a tour operator's employment licence in China

A licence for a tour operator's employment in China can be invalidated on several grounds. These include both gross and less serious offences. The main reasons for the cancellation of a licence for tour operator employment in China are

• Violation of the conditions and requirements spelled out in the licence. If a tour operator fails to comply with the conditions that were stipulated when the licence was obtained, this can be a reason for cancellation.
• Lack of qualified personnel. If the company does not confirm the availability of specialists with the necessary qualifications, the permit for tourist employment in China will be invalidated.
• Failure to fulfil financial and tax obligations. Violation of owed to Chinese authorities will lead to undesirable consequences.
• Engaging in illegal activities. If a firm engages in activities that are not specified in the licence, a cancellation procedure will follow.
• Providing false data. A tour operator may be deprived of a licence if it demonstrates false or fraudulent materials.

The process for canceling a licence is strictly regulated by Chinese law. The procedure involves several stages, during which the operator must have the opportunity to defend their interests. The official cancellation of a permit to provide tourist services in China occurs in several steps.

When the authorities identify a breach of the licence terms, they may initiate an investigation. This typically includes checks on paperwork, compliance with office and technical requirements, scrutiny of financial documentation, and employee qualification data. The investigation is carried out through inspections, requests for information, and audits.

If the tour operator is found to be in breach, they are allowed to rectify the issues within a specified timeframe and submit supporting evidence in the form of reports. If, during the investigation or the rectification of issues, the Chinese authorities are not satisfied with the results, or if they discover significant breaches, they may decide to cancel the Chinese tour operator's licence. This fact will be recorded in an official document.

Why it's better to consult professionals

Obtaining a licence to operate as a tour operator in China requires a high level of qualification, attention to detail, and a thorough understanding of the nuances of each law. The complexity of this process can lead to oversights that will slow down or block the application. By seeking help from professionals, the client gains a significant number of advantages.

By working with our specialists, the client receives complete support at every stage of obtaining a Chinese work permit for tour operators. We provide comprehensive assistance and help at all steps. Our team of experts possesses in-depth knowledge of all aspects of the process, which helps to avoid mistakes and simplifies the entire procedure for the client.

Our agency staff closely monitor all changes in legislation. This helps to ensure full compliance. The process of registering a licence for tour operator activities in China rarely goes smoothly. We handle all the preparatory work in advance, which significantly speeds up the review of the application. With us, the client will be able to organise the entire process.

Final notes

Obtaining a permit to provide tourist services in China is a mandatory process for anyone wishing to operate in this sector. It consists of various procedures requiring a meticulous approach and a thorough understanding of the regulations. The correct completion of materials and adherence to all conditions are key to the successful acquisition of a licence and the future operation of the business.

Every tour operator planning to enter the country's market needs to have a special document. This will allow them to legally offer tourist services and be eligible for favourable working conditions. Striving to comply with all the rules and standards established by the Chinese government mitigates the risk of refusals and penalties.

The sooner a candidate proves their reliability and obtains the Chinese permit to operate as a tour operator, the sooner they can start working towards their goals. Consulting specialists significantly increases the likelihood of a successful start, especially when it comes to new entrepreneurs.