A company acting as a tour agency needs to apply for a specific tour-agent license before being able to start its activity. This license has an extra cost, not included in the company registration price. It must also deposit a variable amount of money as a guarantee fund depending on the exact tour-agency services offered by the company.

If your company is not offering the tours itself but is essentially a reseller of other(s) tour operator(s), you don’t need a license, and there is a special VAT scheme applied to your company. Here you can find more information about that scenario.

For tour agencies and tour operators, this security or guarantee deposit depends on the type of trips you are offering, according to this classification:

§ 6. Classification of areas of activity of travel undertaking
The areas of activity of a travel undertaking are classified as follows:
1) organisation of packages which include travel services provided in Estonia;
2) organisation of packages which include travel services provided outside of Estonia and charter flights;
3) organisation of packages which include travel services provided outside of Estonia and scheduled flights;
4) organisation of packages which include travel services provided outside of Estonia, except for charter flights or scheduled flights;
5) intermediation of packages combined by a travel undertaking of a state outside the European Economic Area;
6) offer of linked travel arrangements and facilitation of entry into contracts.

§ 151. Requirements for security
(1) Travel undertakings engaged in the areas of activity referred to in § 6 (2) and (5) of this Act shall provide security of at least seven per cent of the travel undertaking’s planned annual total sales of packages, but no less than 32,000 euros.
(2) A travel undertaking engaged in the area of activity referred to in § 6 (3) of this Act shall provide security of at least three per cent of the travel undertaking’s planned annual total sales of packages, but no less than 32,000 euros.
(3) A travel undertaking engaged in the area of activity referred to in § 6 (4) of this Act shall provide security of at least seven per cent of the travel undertaking’s planned annual total sales of packages, but no less than 13,000 euros.
(4) A travel undertaking engaged in the area of activity referred to in § 6 (6) of this Act shall provide security of at least three per cent of the travel undertaking’s planned annual total sales of linked travel arrangements, but no less than 13,000 euros.
(5) At any given time, the security provided by a travel undertaking shall be sufficient for the performance of the obligations provided for in § 15 (3) and (4) of this Act. A travel undertaking is required to prove the sufficiency of the security.
(6) The security is calculated on the basis of the travel undertaking’s total sales of packages and linked travel arrangements during the previous calendar year if the sales exceed the travel undertaking’s planned annual total sales of packages and linked travel arrangements.

(7) A travel undertaking shall select one or both of the following types of security:
1) warranty;
2) insurance.
(8) Security may be issued by an insurance company, credit institution or financial institution located in a Member State of the European Economic Area.

(9) Security shall meet the following requirements:
1) the security is provided for securing the performance of the obligations referred to in § 15 (3) or (4) of this Act;
2) the security is available at first demand and the use thereof does not result in any monetary obligations of the Consumer Protection Board toward the issuer of the security;
3) the recipient of the security in the case of a warranty and the beneficiary in the case of insurance shall be the Consumer Protection Board;
4) the terms and conditions of use of the security shall enable the use of the security as provided for in § 153 of this Act;
5) the duration of the security shall not be shorter than six months or, if the undertaking has provided several securities, the duration of at least one security shall be no shorter than six months;
6) the premature discontinuation of the security or the premature reduction of the amount secured requires the Consumer Protection Board’s consent in a format which can be reproduced in writing;
7) security for a renewed period shall be established at least one month before the expiry of the previous security and the validity of the new security shall start no later than on the day following the day of expiry of the previous security.
(10) A document proving the existence of security shall be sent to the Consumer Protection Board promptly after the issue of security.
(11) If a travel undertaking is engaged in several areas of activity where the provision of security is required, the security shall not be smaller than required in the area of activity with the greatest amount of security.
(12) A travel undertaking is required to assess the sufficiency of the security and increase the security, if necessary.

As an example: if you offer packages that include travel services offered outside Estonia and charter flights, you would enter section 6. (2), and therefore your warranty or insurance should adhere to what’s specified in section 151. (1), which implies 7% of your annual income or 32,000 euros, whichever is greater.

Here you can access the official document with all the information.

in Requisites and conditions

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