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LPTravel & Tourism Agency

Limited Partnership (LP) in Singapore — Travel & Tourism Agency Formation Guide

Choose a jurisdiction with favorable VAT rules for tour operators (like the EU's TOMS) and easy access to multi-currency merchant accounts to handle international bookings.

Last verified: June 13, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$85

Annual Fee

$22

Forming a Limited Partnership (LP) in Singapore as a Travel & Tourism Agency means a total tax burden of 0.0% and an official formation cost of $85. There is no minimum capital requirement. Standard formation takes 3-5 business days, or 1-2 business days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$3,057

Ongoing (per year)

$2,622

Detailed cost calculator →

Why Limited Partnership (LP) for Travel & Tourism Agency?

A business model focused on organizing, booking, and selling travel, accommodation, and tour packages to individuals or groups. Requires robust payment processing and often specific local licensing.

Ideal for

  • Tour operators
  • Boutique travel planners
  • Corporate travel managers
  • Online travel agencies (OTAs)

Challenges to watch

  • Strict local licensing and bonding requirements
  • High chargeback risks in payment processing
  • Complex cross-border VAT and tax compliance
  • Seasonal revenue fluctuations

Key decision criteria

  • Does the jurisdiction require a specific travel agency license?
  • Can you easily open a merchant account that accepts high-volume, high-ticket international payments?
  • What are the consumer protection and liability laws?
  • How does the jurisdiction tax international travel packages?

Limited Partnership (LP) formation requirements

Minimum capital

None

Standard timeline

3-5 business days

Expedited timeline

1-2 business days

Local director

Not required

Registered office

Virtual office allowed

Notarization

Not required

A local manager (ordinarily resident in Singapore) must be appointed only if all General Partners are non-resident.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $250,000 revenue)

Gross Revenue$250,000
Corporate Tax-$0
Formation Cost-$85
Annual Fee-$22
Net Profit$249,893

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 9%. Registration threshold: 1,000,000 SGD. Foreign suppliers of digital services must register for GST under the Overseas Vendor Registration (OVR) regime if their global turnover exceeds SGD 1 million and B2C digital services to Singapore exceed SGD 100,000.

Banking & payments for Travel & Tourism Agency

Opening a traditional bank account in Singapore can be challenging for non-resident founders due to strict KYC and AML regulations, often requiring an in-person visit. However, digital platforms like Aspire, Wise, and Airwallex offer fully remote onboarding and are highly recommended for foreign-owned LPs.

Supported payment gateways

StripePayPalXenditAirwallexAdyenHitPay

Remote-friendly accounts

  • Aspire

    Top choice for Singapore startups. Offers multi-currency accounts, corporate cards, and fully remote onboarding.

  • Wise Business

    Excellent for multi-currency transactions and international payments with low conversion fees.

  • Airwallex

    Great alternative for cross-border businesses needing global accounts and payment gateway integration.

Singapore incentives & advantages

Section 13OA Tax Exemption

Tax exemption on specified income from designated investments.

Section 13H Venture Capital Fund Tax Incentive

Zero tax on capital gains and dividend income from qualifying investments.

Limited Partnership (LP) formation steps

1

Choose an approved business name and reserve it via ACRA's BizFile+ portal.

2

Appoint at least one General Partner and one Limited Partner.

3

Engage a Corporate Service Provider (CSP) if all partners are foreigners without Singpass.

4

Appoint a local manager (ordinarily resident in Singapore) if all General Partners are non-residents.

5

Draft and sign the Limited Partnership Agreement (LPA) outlining profit distribution and liabilities.

6

Register the LP via BizFile+ and pay the ACRA registration fees.

7

Obtain the Unique Entity Number (UEN) and Business Profile from ACRA.

8

Open a corporate bank account (e.g., Aspire, Wise) using the UEN and Business Profile.

Travel & Tourism Agency FAQ

Do I need a special license to start an online travel agency?

In most jurisdictions, yes. Countries often require travel agencies to hold specific licenses, post financial bonds, or join consumer protection schemes to legally sell travel packages.

Which country is best for incorporating a travel agency?

It depends on your target market. If targeting EU customers, incorporating in an EU country like Estonia or Cyprus is beneficial for regulatory alignment. For global, low-regulation setups, some founders choose US LLCs, though payment gateways may still require proof of local compliance.

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