Forming a UK Travel Agency Company: Complete Guide for Arab Founders 2026

Do you have a passion for travel and want to launch a global travel agency targeting tourists from Dubai, Riyadh, or Cairo? Establishing a UK Travel Agency gives you a massive competitive edge; it allows you to contract directly with major global hotels and airlines and receive payments in USD and EUR without the complexities of local banking restrictions.

In 2026, with the boom in digital tourism, Eteform.com explains how to start your legal agency in London and what essential licenses you need.

Why the UK? Because it provides a strong legal framework that protects travelers and gives your agency a global “Seal of Trust,” making it easier to get wholesale rates from suppliers.

Types of Travel Companies in the UK

Travel Agent: Sells hotel and flight services on behalf of other companies.
Tour Operator: Packages complete tours (flight + hotel + tours) and sells them directly to the public.

Essential Licenses (ATOL and IATA) in 2026

Unlike many activities, travel requires special attention to licensing:

ATOL License: Mandatory if you sell flight-inclusive packages. It is a financial protection scheme for travelers.
ABTA Membership: Optional but highly prestigious, facilitating cooperation with suppliers in Europe.
IATA Number: Required if you wish to issue flight tickets directly from your own system.

Steps to Setting Up Your UK Travel Agency (How-To)

Step 1: Incorporate with the Correct SIC Code

You must choose the right codes, such as 79110 (Travel agency activities) or 79120 (Tour operator activities). This defines your tax status. See our SIC Code Guide.

Step 2: Open a Multi-Currency Business Bank Account

Travel means dealing with different currencies. We help you at Eteform to open a Wise Business account, allowing you to receive payments from clients in Saudi Arabia in SAR and pay hotels in Europe in EUR, saving on conversion fees.

Step 3: Website and Payment Gateways

No travel company can succeed without online booking. You will need to link Stripe UK to your store so that clients can pay by card immediately to confirm their booking.

Tax and VAT in the Travel Sector (TOMS)

There is a special system called the Tour Operators Margin Scheme (TOMS). Instead of paying VAT on the full amount, you only pay tax on your “profit margin” in some cases. This system is complex and requires a specialist accountant, which we provide in our accounting services.

Frequently Asked Questions (FAQ)

Q: Do I need to visit the UK to get an ATOL license?

A: The application is digital, but ATOL requires a “financial bond” and proof that the company is managed professionally. Our team can guide you through current requirements.

Q: Can I set up a travel company from Egypt?

A: Yes. You can manage operations and bookings entirely from Egypt. You just need the UK company to be your global legal and financial face for international contracts.

Q: Can I sell flight tickets only?

A: Yes, but as an “agent” for a licensed airline or aggregator, and you do not need your own ATOL license in this case.

Conclusion: The World Awaits Your Agency

Travel is the business of happiness, and the UK is the best hub to manage this business globally. Start building your brand in London today.

Ready to Launch? Order Your Travel Agency Package from Eteform.com now.