Notice of economic activities for a travel undertaking

A travel undertaking is an undertaking which operates with packages and linked travel arrangements for economic or professional purposes either as a tour operator, a travel retailer, or an undertaking facilitating the conclusion of contracts on linked travel arrangements.

A tour operator is a travel undertaking who combines packages and offers them or enters into package contracts itself or through another travel undertaking or together with them; as well as an undertaking who transmits the passenger’s data to another undertaking pursuant to clause 7 (2) 5) of the Tourism Act (transmission of passenger data to another undertaking if it is carried out on the linked online booking sites of different undertakings).

A travel retailer is a travel undertaking who offers packages combined by a tour operator or enters into package travel contracts on behalf of a tour operator. Travel retailers who offer packages combined by travel undertaking established outside the European Economic Area or enter into package travel contracts on behalf of the latter are subject to requirements provided by the Tourism Act for tour operators.

Before the start of their activities, the following travel undertakings must submit a notice of economic activities to the Register of Economic Activities:

  • Tour operators
  • Travel retailers who offer packages combined by travel undertakings established outside the European Economic Area or conclude package contracts on behalf of the latter
  • Undertakings facilitating the conclusion of contracts on linked travel arrangements

The most important legal acts governing the operation of travel undertakings:

Requirements for an applicant

A tour operator shall provide security to fulfil the obligations listed in subsection 15 (3) of the Tourism Act in case the tour operator becomes unable to perform their obligation arising from the package travel contract due to their solvency. An undertaking facilitating the conclusion of contracts on linked travel arrangements must have a security for fulfilling the obligations listed in subsection 15 (4) of the Tourism Act if the travel service that is part of the linked travel arrangement is not provided due to the undertaking’s solvency.

A travel undertaking’s security must be sufficient at all times for the fulfilment of the obligations listed in subsections 15 (3) and (4) of the Tourism Act and the travel undertaking is required to prove the existence and sufficiency of the security. The security may be a warranty or an insurance policy issued by an insurance company or a credit or financial institution located either in Estonia or another member of the European Economic Area. The detailed requirements for the security are established in sections 15 and 151 of the Tourism Act.

The table below specifies the minimum size for the security depending on the area of activity of the travel undertaking. The travel undertaking must analyse and assess the undertaken and arising obligations related to the sale of packages and linked travel arrangements to determine a security which complies with the requirements of the law in accordance with their area of activity.

If a travel undertaking operates in several areas of activity requiring a security, the security may not be smaller than is required for the area of activity with the largest security. The security is calculated on the basis of the travel undertaking’s total sales of the packages and linked travel arrangements in the previous calendar year if it is bigger than the travel undertaking’s planned annual total sales of packages and linked travel arrangements.

During its operation, the travel undertaking is required to assess the size of the security and, if necessary, increase it.

The total sales of packages and linked travel arrangements is the total amount of all payments by or on behalf of passengers made to the travel undertaking (including the travel retailer) for package travel contracts and linked travel arrangements contracts, including the amount received as prepayment and unused gift vouchers.

Area of activity Minimum size of security
1. Organising packages including travel services provided in Estonia There is no requirement for the minimum size of the security, but a security is required
2. Organising packages including travel services provided outside of Estonia and charter flights At least 7% of the planned annual total sales of packages, but not less than 32,000 euros
3. Organising packages including travel services provided outside of Estonia and scheduled flights At least 3% of the planned annual total sales of packages, but not less than 32,000 euros
4. Organising packages including travel services provided outside of Estonia except charter or scheduled flights At least 7% of the planned annual total sales of packages, but not less than 13,000 euros
5. Intermediating packages combined by a travel undertaking of a state outside the European Economic Area At least 7% of the planned annual total sales of packages, but not less than 32,000 euros
6. Offering linked travel arrangements and facilitating entry into contracts At least 3% of the planned annual total sales of linked travel arrangements, but not less than 13,000 euros

The travel undertaking does not have a security obligation if:

  1. Passengers pay for the packages in full after the provision of travel services and the packages do not include carriage of passengers (applicable only for areas of activity No. 1 and 4);
  2. The undertaking facilitating the conclusion of contracts on linked travel arrangements is not responsible for the carriage of passengers that is part of the linked travel arrangements and the passengers do not pay to the undertaking facilitating the conclusion of contracts on linked travel arrangements or they pay for the linked travel arrangements in full only after they have been provided (applicable only to area of activity No. 6);
  3. A travel retailer intermediating the packages of a travel undertaking in a country outside the European Economic Area provides proof that the security obligation has been fulfilled by the actual tour operator in accordance with the requirements of the Tourism Act (applicable only to area of activity No. 5).

If the undertaking is not subject to the security obligation (the undertaking must show this with an X in the register data), the travel undertaking is not subject to the minimum size of the security applied for the selected area of activity specified in the table above or the general security requirement.

In areas of activity No. 2 and 3, the undertaking is always subject to the security obligation.

Cross-border operation

Undertakings located in another member state of the European Economic Area who provide services in Estonia temporarily do not have to submit a notice of economic activities.

If the undertaking is established and operates as a travel undertaking in another member state of the European Economic Area but wants to permanently provide the service in Estonia on behalf of a foreign company, the undertaking must register a branch in the Estonian commercial register and submit a notice of economic activities to the Register of Economic Activities. In this case, the undertaking can fulfil the security obligation in accordance with the requirements of their country of establishment.

A travel undertaking established in a country outside the European Economic Area that offers packages or linked travel arrangements or concludes package travel contracts or operates as an undertaking facilitating the conclusion of contracts on linked travel arrangements in Estonia or directs their activity in any way to Estonia must register a branch in the Estonian commercial register and submit a notice of economic activities.

Filling out and submitting the notice

A notice of economic activities must include the following data:

  1. Business name and registry code, postal address, and valid contact details of the company;
  2. The trademark(s) used, if used;
  3. The desired areas of activity with an X;
  4. The address and contact details of the place(s) of business, the address of the website in the case of e-commerce;
  5. The size of the security corresponding to the travel undertaking’s areas of activity, the start and end date of validity, and the name of the undertaking which issued the document verifying the existence of the security. If the chosen area of activity is not subject to the security obligation, the corresponding basis for the absence of the security obligation must be marked with an X; a travel retailer intermediating packages combined by a travel undertaking of a state outside the European Economic Area, who marks the basis for the absence of the security obligation with an X, must submit proof that the tours sold through them are secured by the actual tour operator with a security corresponding to the requirements of the Tourism Act (an insurance policy or a letter of warranty is attached as a file);
  6. If the submitter of the notice of economic activities has granted the right to offer packages combined thereby and the right to conclude package travel contracts to other travel undertakings, the details of the respective travel undertakings must be indicated, including their name, address, and other contact information, the economic activity registration number or, in its absence, the commercial registry code, or the name and number of another relevant registry;
  7. If the travel undertaking mediates packages combined by travel undertakings from a state outside the European Economic Area, the details of the respective travel undertakings must be indicated, including their name, the name and number of the relevant registry of the country of location, address, and other contact information;
  8. The Classification of Economic Activities (EMTAK) code of the area of activity;
  9. Date of the beginning of the economic activities if it differs from the date when the notice of economic activities was submitted;
  10. The date of termination of the economic activity if the economic activity is planned for a certain date;
  11. The date of payment of the state fee (if the application is submitted in another way than via the website eesti.ee);
  12. The data of the signatory who submitted the notice. The notice of economic activities is signed by a member of the management board or another signatory. If an authorised person signs the notice, the application must be accompanied by a letter of authority.

The notice of economic activities can be submitted:

Payment the state fee

If the notice of economic activities is submitted otherwise than via the State Portal, a state fee of 10 euros must be paid. The state fee must be paid before submitting the notice.

The state fee can be paid to the Ministry of Finance’s account with the reference number 2900073083:

  • SEB – EE891010220034796011
  • Swedbank – EE932200221023778606
  • Danske Bank – EE403300333416110002
  • Luminor – EE701700017001577198

One does not have to pay a state fee for changing the information of the notice of economic activities on the website of the register and submitting a notice of renouncement of economic activities. If the information of a notice of economic activities is changed in another way, a state fee of 10 euros must be paid.

Changing the information of a notice of economic activity

As an undertaking, you must inform the registrar of changes in information regarding your economic activities, including changes in the information regarding your security, immediately, but not later than within 5 working days. You can check the information on the website of the Register of Economic Activities. Please make sure that your contact details are correct.

You can change the information of a notice of economic activities by entering the Register of Economic Activities via the State Portal (usage of this service requires authentication with ID-card, with mobile-ID or via an internet bank).

Confirming the information of a notice of economic activity

As an undertaking, you are required to confirm your information in the Register of the Economic Activities once a year by annual report or income tax return. Prior to confirmation, check the correctness of the information, and in the case of changes in the information, bring the information into conformity with the reality.

Renouncement of economic activity

In case of temporary renouncement of economic activity, submit a notice of temporary renouncement of economic activity, indicating the date of renouncement of economic activity and its re-commencement.

In case of permanent renouncement of economic activity, submit a notice of renouncement of economic activity, indicating the date of renouncement of economic activity.

Supervision

Supervision over the activities of a travel undertaking is carried out by the Estonian Consumer Protection Board.

A travel undertaking is obliged to submit a document verifying the existence of security to the Estonian Consumer Protection Board immediately after the security is issued.

Hereby, we draw the travel undertakings’ attention to the legal obligation to submit to the Consumer Protection Board on a quarterly basis, by the 20th date of the month following the reporting quarter, a report on the total sales of packages and linked travel arrangements and updated total sales of packages and linked travel arrangements planned for the following quarter.

Upon commencement of activity and thereafter annually together with the previous year’s 4th quarter report on the total sales of packages and linked travel arrangements, the travel undertaking must submit the planned annual total sales of packages and linked travel arrangements used as the basis for the calculation of security, including the quarterly sale of packages and linked travel arrangements.

Contact details

Substantive information

Kati Kikas

Ministry of Economic Affairs and Communications, phone: +372 625 6328 e-mail: kati.kikas@mkm.ee

Registry information and technical questions

Register of Economic Activities, phone: +372 668 7080, e-mail: register@mkm.ee

Last amended: 17-07-2018 14:44 | Compiled by: Technical Regulatory Authority