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5. Provisions related to the registration of company and bank guarantee

5. Provisions related to the registration of company and bank guarantee :

(1) The person desiring to perform the job of travel or  trekking company shall have to register the firm or company taking the license and having the following current or paid capital.
(a) In case of firm for the travel agency at least 5 lakhs  (Five Hundred Thousand) Rupees and for trekking
agency at least 3 lakhs (Three Hundred Thousand) Rupees,
(b) In case of company, for travel agency at least 10 lakhs (One Million) Rupees and for trekking
agency at least 6 lakhs (Six Hundred Thousand) Rupees,
(2) The travel or trekking agency applying for license shall have to keep the bank guarantee for the tenure of license, in the name of the Ministry prior to taking the license as a security and equivalent to in case of travel agency, at least 3 lakhs (Three Hundred Thousand)  Rupees and in case of trekking agency 2 lakhs (Two Hundred Thousand)
Rupees.
(3) The person taking the license before the commencement of these rules shall have to do as follows, within one year of commencement of these rules:–
(a) Maintain the 1 current or paid up capital pursuant to  sub rule (1),
(b) Shall keep the bank guarantee pursuant to rule (2) in the name of the Ministry.
2 …………….
3 (3a) Not withstanding anything contained in sub rule (3), the person who has holding the license and have not maintained the current or paid up capital or have not kept the bank guarantee in the Ministry within the period mentioned in that sub rule, shall have to submit the bank guarantee pursuant to sub rule (2) by maintaining the current or paid up capital pursuant to sub rule (1) to the Ministry, within the one year of commencement of this sub rule.
(3b) The license of the license holding person shall be ipso factor void, if he/she has not maintained the current or paid up capital or has not kept the bank guarantee within the period pursuant to sub rule (3a).
(4) Not withstanding anything contained anywhere in this rule, If any travel agency or trekking agency has to be registered as public limited company then the required paid up capital pursuant to prevailing law for public limited company shall be maintained.

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