In Nigeria, the travel and tourism industry has witnessed exponential growth in recent years, making it a lucrative venture for entrepreneurs and investors.
Setting up a travel and tour company involves offering diverse services, including hotel accommodation, tour packages, car rentals, travel consultancy, travel insurance, airline ticketing, documentation, foreign exchange procedures, and more.
However, navigating the legal landscape for establishing such a business can be complex. In this comprehensive guide, we will explore the legal structure and regulatory requirements for starting a travel and tour company in Nigeria.
We are specifically covering company formation and registration, protection of trademarks, Special Control Unit Against Money Laundering (SCUML) Registration, and contract agreements required for any company.
Before delving into the regulatory requirements, it is crucial to determine the legal structure of your travel and tour company. In Nigeria, you have diverse options, including business-based, religious-based, leisure-based, medical-based, or education-based travel and tour companies.
A travel and tour company must first meet the following requirements to be registered as a company.
Only one person can register a company and act as both director and shareholder where there are no foreigners involved in the creation of the company.
Where foreigners will be involved, a minimum of two directors will be required. Where the shareholders are individual foreigners, a minimum of two persons are required to be shareholders for the company.
Every company must have an address in Nigeria at the time of registration (registered office address).
A person qualified to be a director of the company must:
– Be above 18 years but not older than 70 years.
– Be a person of sound mind (not a mentally unstable person)
– Must not be a person declared by the bank to be a debtor.
– Not be disqualified by a High Court from being a director.
Requirements for SCUML Registration include the following:
– Certificate of Incorporation
– Memorandum and Articles of Association
– Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
– Tax Identification Number (TIN)
– BVN, Bank Name and Account Number
INTELLECTUAL PROPERTY PROTECTION
Intellectual property refers to property that you create from your intellect which the law protects from unauthorized use by others.
In Nigeria, there are patents, copyrights, and trademarks.
For a travel and tour company and the nature of business you will be involved in, it is important to protect your trademark, once the company is registered.
What are trademarks? Trademarks are marks that distinguish the goods and services of a company from the goods and services of another company.
These marks can either be a name, a logo, a phrase, logo, symbol, design, image, or a combination of these elements.
Marks are valuable because over time, as the company’s brand grows, the marks become known with quality and consumer expectations in that company’s goods or services. For example, some products are synonymous with their trade name e.g., Coca-Cola, Apple, Mercedes Benz whilst some are synonymous with a trade symbol like Apple(symbol), Jaguar, Toyota etc.
Patents protect inventions while Copyrights protect literary and artistic works.
When you register your trademark, you have the legal right to take legal action against anyone who wants to steal or use your travel and tour company trademark illegally.
Requirements for registering your trademark include:
- Logo, which may include Words and/or Device
- A description of the goods or services covered by the trademark.
- Name of the owner of the company
- Contact details of the owner of the company
- Power of Attorney appointing an agent to do the registration (an accredited agent/lawyer may help to prepare the power of attorney)
- After registration is completed, the travels and tour company gets a trademark certificate which is valid for 7 years and can be renewed.
CONTRACTS FOR YOUR TRAVEL AND TOUR COMPANY
As important as registrations are, contracts are a big part of commercial transactions, and all companies must have some contract agreements to keep the company business running.
In fact, a travel and tour company has been set up to sell travel and tour services. That is a contract of sale.
Apart from the basic contract for selling, your company will enter a series of contracts that must be valid.
A contract is a legally binding agreement between two or more parties and for it to be valid, your lawyer must make sure these contract documents contain the necessary features for it to be valid.
Some of the contracts required include the following:
Employee Contract
A comprehensive employee contract is essential for your travel and tours company. It provides a detailed framework, clearly stating working hours, job responsibilities, salary structure, benefits, termination terms, and confidentiality agreements.
By clearly defining expectations, this contract minimizes misunderstandings, promoting a harmonious and productive work environment within your company.
Company Policies and Handbook:
Establishing a well-defined set of company policies and an employee handbook is crucial. These documents outline workplace rules, the code of conduct, safety guidelines, and procedures for conflict resolution. By providing a structured work environment, they contribute to a harmonious workplace, boosting employee morale and overall productivity.
Website Terms of Use
For any travel and tours company conducting business online, having explicit Website Terms of Use is imperative.
These terms outline acceptable use, privacy rules, intellectual property rights, dispute resolution mechanisms, and user responsibilities.
This not only protects the company from misuse of its online platform but also ensures a safe and secure online experience for customers, fostering trust and credibility.
Privacy Policy
To safeguard both the company and its customers, a robust Privacy Policy is necessary.
This document clearly details what customer information is collected, how it’s used, the security measures in place, and procedures for data access or deletion.
By demonstrating a commitment to protecting personal information, the Privacy Policy builds trust with customers, ultimately enhancing the company’s reputation.
Refunds Policy
A well-crafted Refunds Policy is a customer-centric necessity.
It outlines the conditions for refunds, including time frames, eligibility criteria, and any special circumstances.
This not only provides transparency but also improves customer satisfaction and loyalty by setting clear expectations around the refund process.
Independent Contractor Agreement
When working with freelancers or temporary hires, an Independent Contractor Agreement is vital. This contract clearly defines the scope of work, payment terms, deadlines, confidentiality agreements, and ownership of work. It ensures clarity in work arrangements, protects the company’s interests, and establishes expectations for project outcomes.
Service Level Agreement (SLA)
For a travel and tours company, a well-crafted Service Level Agreement (SLA) is crucial in setting clear expectations for service quality. This document specifies the services provided, expected response times, performance metrics, and procedures for dispute resolution. An SLA enhances customer satisfaction and trust in the company’s services.
Lease/Tenancy Agreement
If your company operates from a rented space, a Lease or Tenancy Agreement is essential.
This document details rental terms, responsibilities of both parties, conditions for termination, and any special arrangements.
It ensures legal compliance and secures operational space, clarifying responsibilities for both the company and the property owner.
Buying your own property? ensure to follow the due process to avoid getting scammed, you can watch this video here for more.
CONCLUSION
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Good evening, please do registered travel agency company requires SCUML?
Yes, it is required.