Public Limited Company Registration for Tourism Businesses

Introduction

Tourism is a thriving business that contributes to the economies of numerous countries and creates many job opportunities. Numerous business people are entering this sector to take advantage of the business opportunities it presents due to the rising demand for tourism services. The registration of the company as a public limited company is one of the most important processes in starting a tourism business. In this article, we will discuss the importance of public limited company registration for tourism businesses.

How can we define a Public Limited Company?

A Public Limited Company (PLC) is a type of business organization that is publicly traded on a stock exchange, offering shares to the general public. It is a legally distinct entity with limited liability, meaning that shareholders are only responsible for the amount they have invested in the company. This structure allows the company to raise capital from a wide range of investors and provides greater opportunities for growth and expansion.

Process for starting a Public Limited Company Registration for Tourism Businesses

To start a Public Limited Company Registration for tourism business in India you need to fill a single application i.e., SPICe+. The process to fill out the form is given below:

• SPICe+ is divided into two parts as follows:

  1. Part A: Name reservation for the company:

  • Apply for name reservation of the company in Part A of the form Spice+.
  • It can be used for taking name approval of the proposed Company and also for filing Company registration in one go.

  2. Part B: In Part B of the Form Spice+, apply for the following services:

  • Incorporation
  • DIN allotment
  • Mandatory issue of PAN
  • Mandatory issue of TAN
  • Mandatory issue of EPFO registration
  • Mandatory issue of ESIC registration
  • Mandatory issue of Profession Tax registration(Maharashtra)
  • Mandatory Opening of Bank Account for the Company and
  • Allotment of GSTIN (if so applied for)

Why is Public Limited Company Registration Important for Tourism Businesses?

To set up a tourism business, one of the key steps is to register the company as a public limited company (PLC). Following are some key reasons why a tourism business needs to register itself as a Public Limited Company:

1. Credibility and Trustworthiness: One of the primary benefits of registering a tourism business as a PLC is the enhanced credibility and trustworthiness it provides. Customers are more likely to trust a registered company than an unregistered one. The registration process involves a thorough check of the company’s documents, financial records, and other important details, which helps build the company’s credibility in the eyes of potential customers and investors.

2. Limited Liability: Limited liability is an important benefit of incorporating a tourism firm as a PLC. The shareholders of the corporation are only responsible for their initial investment in the event of any legal problems or monetary obligations. This indicates that their private property is not in danger. This provides a safety net for the shareholders and encourages them to invest in the business.

3. Access to Capital: A public limited company can raise money for business growth through a variety of methods, including bonds, loans, and equity. This is because investors and lenders view registered companies as more dependable and trustworthy. For tourism firms, having access to capital is essential, especially when they are first starting and need to spend on things like marketing, hiring, and infrastructure.

4. Improved Administration: Compared to other commercial entities, public limited companies have a more formal structure and governance framework. As a result, the business will be handled effectively and efficiently with defined roles and responsibilities. This is important for tourism businesses, which require effective management to ensure customer satisfaction and safety.

Documents require for starting a travel business in India

To start a travel business in India, you need to complete certain documentation and obtain the necessary licenses and permits. Here are the essential documents typically required:

1. Business Registration Documents:

• Identity proof (PAN card, Aadhaar card, Passport, etc.) of the business owner(s)
• Address proof (Electricity bill, rent agreement, etc.) of the business premises
• Partnership deed or Memorandum of Association (in case of partnership or company)

2. Trade License

3. GST Registration

4. IATA Membership (Optional)

5. Travel Agency License

6. PAN Card

7. Bank Account

8. Insurance

9. Website and Online Presence

10. Other Permits and Licenses

Conclusion

Registering a tourism business as a Public Limited Company has several advantages, including enhanced credibility and trustworthiness, limited liability for shareholders, access to funding, and better governance. These benefits are essential for tourism businesses to succeed in a highly competitive industry. Therefore, entrepreneurs should consider registering their tourism businesses as public limited companies.