Travel agency registration

In Ontario, a travel agency’s right to operate rests on its registration, and TICO says clients of a registered business have consumer protection when they book with it. Because a registration cannot be transferred, a buyer of the assets needs its own; in a share purchase, any change in the corporation’s officers or directors needs the registrar’s consent.

How Ontario handles it

Under Ontario’s Travel Industry Act, 2002, a person may not act, or hold itself out as available to act, as a travel agent or travel wholesaler unless registered as one, subject to any exemptions made under the Act’s regulation-making power. Section 8(3) says a registration is not transferable. Section 5(1) says a change in the officers or directors of a registered corporation may be made only with the consent of the registrar. The Act also continues the Travel Industry Compensation Fund. The Travel Industry Council of Ontario says a registered business must renew its registration every year.

Other provinces

The rules above are Ontario’s and should not be read as national. Check the rules in any other province where the business sells travel.

What to ask

• Whether the buyer or its corporation must apply for its own registration before closing.
• Whether the deal changes the officers or directors, which needs the registrar’s consent.
• How client deposits and any claims against the compensation fund are handled at the changeover.

The licence and permit transfer checklist shows where registration fits, and licence re-application explains the new-applicant step.