TICO (Travel Industry Council of Ontario) is a governing body of the travel industry in Ontario. It’s a government organization that oversees Ontario travel agents and travel-related businesses. If you’re not registered with them, you’re not allowed to have a travel business in Ontario. Once your business is registered, you must present your financial statements to TICO once a year and meet certain financial requirements in order to retain this license.

Here are 7 questions to help you get started:

1. Why do we need TICO?

TICO was created in response to a very serious problem. Previously, some fraudulent travel agents would take money from customers, promise to arrange travel and take off with the money. The Ontario government set up TICO in order to restore confidence in the industry.

2. How does the registration process work?

The TICO registration process is a bit time-consuming, taking up to six months in some cases. In addition to filling out required forms, some members of management will have to go through criminal background checks. With that in mind, it’s important that you leave time for these steps before launching a travel business, as you can’t start operations until you receive your license.

3. What if you don’t register?

If you forget to register for TICO, you will be asked to correct this oversight. If you still don’t register after that happens, you’re knowingly breaking the law, making your company susceptible to fines or, in extreme cases, being shut down.

4. How do you stay out of trouble?

Once you register with TICO, there are certain operational guidelines you need to follow. And it’s not just financial statements that are required. From time to time, TICO will come in and perform an audit to make sure your business is up to their standards, so it’s essential you get regular advice from a professional on how to meet minimum requirements.

5. What do you need to know about working capital?

There’s a financial ratio that you need to meet at all times. If the minimum required working capital isn’t in place, TICO will ask you to correct that, so you stay in compliance with this standard.

6. Is any travel business exempt?

Quite a few event planners have been setting up businesses that include travel services and they are also required to register for TICO. However, businesses providing tours that last for less than one day don’t need to be registered. For example, a tour guide running their own day-long tours doesn’t need to register – unless he’s providing overnight services.

7. What are the advantages?

Consumers benefit from TICO, but so do the businesses that register. Registration confirms that your business is providing the services you’re advertising with no hidden agenda. TICO registration works in much the same way as a Better Business Bureau seal of approval. If a business is registered, you know they won’t take your money and run away. It gives consumers confidence that they are dealing with a legitimate business.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.