Manpower Agency Compliance in Nepal

Manpower Agency Compliance in Nepal

Manpower Agency Compliance in Nepal

वैदेशिक रोजगार कम्पनी दर्ता नेपाल

Manpower agency compliance in Nepal and manpower license check Nepal is guided by strict regulatory frameworks designed to protect migrant workers and ensure ethical recruitment practices. The Department of Foreign Employment (DOFE Nepal) (वैदेशिक रोजगार) , operating under the Ministry of Labour, Employment and Social Security, serves as the primary regulatory authority. Only licensed agencies may legally recruit Nepali citizens for foreign employment.

Why Manpower Agency License is important in Nepal to operate recruitment business? 

Nepal's foreign employment sector contributes significantly and predominently to the national economy through remittances. However, worker exploitation cases have drwan robust compliance systems, and strict regulatory framework Nepal. The Foreign Employment Act 2064 (2007) and Foreign Employment Rules 2064 establish mandatory standards. Agencies failing compliance face license suspension, blacklisting, or legal case before the Foreign Employment Tribunal Nepal.

Laws Regarding manpower company incorporation nepal

Core Statutory regulations

Legal Instrument

Year

Primary Purpose

Foreign Employment Act 2064

2007

Licensing, penalties, worker protection

Foreign Employment Rules 2064

2008

Implementation procedures

Labour Act 2074

2017

Employment standards

Company Act 2063

2006

Corporate governance

Local Government Operation Act 2074

2017

Local registration

Government Authorities

Multiple agencies oversee manpower company registration nepal . The Department of Foreign Employment Nepal handles licensing and monitoring. The Ministry of Labour, Employment and Social Security formulates policies. The Foreign Employment Board manages welfare funds. Nepal Rastra Bank monitors financial guarantees. District Administration Offices verify local registrations.

Financial Requirements for Manpower Compliance

Manpower company registration fee nepal

Financial security mechanisms protect workers from agency default. All amounts must be maintained continuously.

Requirement

Amount (NPR)

Nature

Renewal Frequency

Paid-up Capital

20,000,000

Non-refundable

Annual verification

Bank Guarantee

2,000,000

Refundable

Annual renewal

Cash Security Deposit

3,000,000

Refundable

Continuous

Welfare Fund per Worker

1,500

Per placement

Per transaction

License Fee

100,000

Non-refundable

Annual

Application Fee

50,000

Non-refundable

One-time

Note: Recent 2026 amendments have increased some requirements.

Office Infrastructure Standards

 Manpower company register kathmandu requires physical office verification. Minimum 500 square feet space is mandated. Separate sections for reception, administration, interviews, and documentation must be established. CCTV cameras, fire safety equipment, and computer systems with internet connectivity are compulsory. Office location must be accessible and properly marked.

How to register manpower company in nepal?

Step-by-Step Compliance Process for Manpower Registration and license in Nepal

Step-by-Step Compliance Process for Manpower Registration and license in Nepal

Step 1: Company Registration at Office of Company Registrar (OCR Nepal) (5-10 Days) 

  • Private limited company registration under the Company Act 2063 is the first step.
  • The Memorandum and Articles of Association must include foreign employment objectives.
  • PAN registration from the Inland Revenue Department follows immediately.
  • Local ward office registration provides municipal authorization.

Step 2: Financial Compliance (7 Days)

  • Bank guarantee of NPR 2,000,000 must be obtained from a scheduled commercial bank.
  • Paid-up capital of NPR 20 million must be deposited and verified.
  • Cash security deposit of NPR 3,000,000 must be maintained.
  • Financial statements must be audited by a recognized firm.

Step 3: Document Compilation (3-5 Days)

Comprehensive documentation is critical for foreign employment agency registration nepal.

How to get manpower license in Nepal? 

Required Documents for manpower license in Nepal |Manpower company registration documents nepal

  • Company registration certificate (OCR)
  • PAN/VAT registration certificates
  • Memorandum and Articles of Association
  • Citizenship copies of all promoters/directors
  • Police clearance certificates
  • Tax clearance certificate
  • Office lease deed or ownership proof
  • Bank guarantee certificate
  • Character certificates
  • Organizational structure chart
  • Staff appointment letters
  • Office photographs (interior and exterior)
  • Commitment letter for Foreign Employment Act compliance

Required Documents for manpower license in Nepal

All documents require notarization and attestation where applicable.

Step 4: Application Submission (10 Days)

  • Applications are submitted to DOFE Nepal through the FEIMS Nepal portal (feims.dofe.gov.np).
  • Physical submission at Tahachal office is also accepted.
  • Application fee of NPR 50,000 must be paid via government revenue account.
  • Receipt must be attached to the application.

Step 5: Inspection and Verification (20-25 Days)

  • Office infrastructure, document authenticity, and promoter credibility are verified.
  • Bank guarantee and deposit confirmations are cross-checked with Nepal Rastra Bank.
  • Character verification is performed through police databases.
  • Inspection reports are prepared within 7 days.

Step 6: License Issuance (7 Days)

  • Upon positive inspection report, license is granted for one fiscal year.
  • License number is published on the DOFE Nepal website.
  • Agencies must display the license prominently in their office.

Post-Licensing Compliance Obligations

Annual Reporting Requirements

Licensed agencies must submit quarterly reports detailing worker placements, destination countries, and fees charged. Annual audited financial statements must be filed. Worker complaint records must be maintained. Recruitment agreements with foreign employers must be registered.

Pre-Departure Orientation Compliance

Manpower agency compliance in Nepal mandates 15 hours of pre-departure orientation per worker. Training must cover destination country laws, worker rights, emergency contacts, and cultural adaptation. Only DOFE-approved training centers may conduct sessions. Certificates must be uploaded to FEIMS Nepal before labor approval.

Welfare Fund Contributions

NPR 1,500 per worker must be contributed to the Foreign Employment Welfare Fund. Contributions are processed through the FEIMS portal. Funds provide repatriation support, death benefits, and emergency assistance. Non-payment results in license suspension.

Common Compliance Violations and Penalties

Major Violations

Manpower agency compliance in Nepal is strictly enforced. Violations result in severe penalties.

Violation Type

Penalty

Authority

Operating without license

Fine up to NPR 500,000, imprisonment up to 3 years

Foreign Employment Tribunal

Overcharging fees (exceeding NPR 10,000 limit)

License suspension, fine NPR 200,000

DOFE Nepal

Fake document submission

License cancellation, criminal charges

District Court

Failure to renew annual license

NPR 50,000 daily penalty

DOFE Nepal

Sending workers to banned countries

License revocation, imprisonment

Foreign Employment Tribunal

Non-payment of welfare fund

Suspension until compliance

DOFE Nepal

Blacklisted Agencies and Employers

As of January 2026, 67 foreign employers have been blacklisted by DOFE Nepal. Additionally, 126 agencies sending workers to Japan face renewal delays due to directive conflicts. Fourteen agencies are currently under investigation for inadequate training compliance.

Worker Protection Mechanisms

Complaint Filing Process

Workers may file complaints through multiple channels. The FEIMS Nepal grievance portal processes complaints in 7-15 days. In-person complaints at Buddhanagar office take 15-30 days. Nepali embassies abroad accept complaints with 30-day response time. The call center (1141) provides immediate acknowledgment.

Foreign Employment Tribunal Nepal

Disputes are adjudicated by the specialized tribunal. Three-member panel includes an appellate court judge. Decisions can be appealed to the Supreme Court within 35 days. Cases are processed under Summary Procedure Act 2028.

Insurance Requirements

Life and accidental insurance coverage is mandatory before departure. Minimum coverage amounts are specified by DOFE Nepal. Insurance must be purchased from approved providers. Claims are coordinated through the welfare fund.

Recent Regulatory Updates (2024-2025-2026)

Japan Manpower License Renewal Crisis

Since July 2025, renewal of licenses for Japan-bound agencies has been stalled. The 2066 BS directive for JITCO-based recruitment is being scrapped. 126 manpower agencies remain in limbo despite removal of 100-worker annual quota requirement. Ministry of Labour cites coordination issues between DOFE Nepal and ministry levels.

Enhanced Digital Compliance

FEIMS Nepal integration has been strengthened. All transactions must be processed digitally. Paper-based approvals are being phased out. Real-time monitoring dashboards have been implemented. Biometric verification for workers is now mandatory.

Stricter Financial Verification

Nepal Rastra Bank now directly verifies bank guarantees. Automated alerts are sent for guarantee expirations. Capital adequacy is monitored quarterly. Fake bank guarantee cases have resulted in 23 license cancellations in 2024.

Compliance Checklist for Manpower Agencies

Monthly Tasks

  • Worker placement data entry in FEIMS
  • Welfare fund contribution reconciliation
  • Complaint log maintenance
  • Foreign employer agreement updates

Quarterly Tasks

  • Financial statement preparation
  • Tax deposit verification
  • Office infrastructure self-audit
  • Staff training record updates

Annual Tasks

  • License renewal application (30 days before expiry)
  • Bank guarantee renewal
  • Comprehensive audit submission
  • Tax clearance certificate procurement
  • Compliance report filing

How Workers Can Verify Agency Compliance | Manpower License Check Nepal 

License Verification Steps

  1. Visit feims.dofe.gov.np
  2. Enter agency license number
  3. Check validity period and status
  4. Review complaint history
  5. Verify bank guarantee status

Red Flags for Non-Compliance

  • License not displayed prominently
  • Fees exceeding NPR 10,000
  • No FEIMS Nepal receipt provided
  • Pre-departure orientation skipped
  • No insurance documentation
  • Unwillingness to show bank guarantee

International Compliance Standards

Bilateral Labor Agreements

Manpower agency compliance in Nepal is influenced by 12 bilateral agreements. Malaysia, UAE, Saudi Arabia, and Qatar agreements include employer-paid visa provisions. However, enforcement gaps persist. Agencies must verify each destination country's specific requirements.

ILO Conventions

Nepal has ratified ILO Convention 181 on Private Employment Agencies. Compliance requirements include fee-free recruitment for workers. However, discrepancy exists between government-set limits and actual charges. The Department of Foreign Employment Nepal monitoring has been criticized as ineffective by the US TIP Report 2025.

Expert Legal Assistance for Compliance

When to Consult Legal Professionals

  • Initial license application complexities
  • Renewal deadline management
  • Violation defense preparation
  • Tribunal representation
  • Policy interpretation disputes

Benefits of Professional Support

  • 40% faster application processing
  • 90% reduction in rejection risk
  • Continuous compliance monitoring
  • Emergency violation response

Common Insights relating to manpower company in Nepal? 

1: What is the current bank guarantee amount for manpower agency compliance in Nepal?
: NPR 2,000,000 is mandated by Rule 10 of Foreign Employment Rules 2064. This must be renewed annually through a scheduled commercial bank.

2: How long does manpower license renewal take at DOFE Nepal?
: Renewal applications are processed within 15 working days if submitted 30 days before expiry. Late submissions incur NPR 50,000 daily penalties.

3: Which countries are banned by Department of Foreign Employment Nepal?
: Afghanistan, Iraq, and Libya are prohibited. Workers are permitted to 111 approved countries as of January 2026.

4: What is the maximum fee a manpower agency can charge workers?
: NPR 10,000 is the government-set limit under 2015 guidelines. However, monitoring remains ineffective, and many agencies charge higher amounts illegally.

5: How can complaints be filed against non-compliant manpower agencies?
: Three channels exist: FEIMS Nepal grievance portal (7-15 days), in-person at Buddhanagar office (15-30 days), or through Nepali embassies abroad (30 days).

6: What happens if an agency fails to send 100 workers annually?
: This requirement was removed by the Act Amending Certain Nepal Acts, 2082 (July 2025). Previously, non-compliance could result in license revocation.

7: How many manpower agencies are currently licensed in Nepal?
: 972 agencies are licensed as of 2025. Only 15 are authorized to recruit female domestic workers due to additional safeguards.

8: What is the Foreign Employment Welfare Fund contribution per worker?
: NPR 1,500 per worker must be contributed before labor approval. This provides repatriation support, death benefits, and emergency assistance.

9: Can license applications be submitted online?
: Yes, FEIMS Nepal portal (feims.dofe.gov.np) accepts all applications. Physical submission at Tahachal office remains optional.

10: What are the consequences of operating without a manpower license?
: Fines up to NPR 500,000 and imprisonment up to 3 years under Section 43 of Foreign Employment Act 2064. Cases are tried by Foreign Employment Tribunal Nepal.

Compliance Best Practices for Sustainable Operations

Record-Keeping Excellence

Maintain digital and physical copies of all worker documents. Backup data weekly on secure servers. Implement CRM systems integrated with FEIMS Nepal API.

Transparent Fee Structures

Display fee charts prominently in office and website. Provide receipts for all payments. Maintain separate accounts for worker deposits.

Proactive Communication

Send monthly compliance reminders to staff. Conduct quarterly training on regulation updates. Establish direct liaison with DOFE Nepal officials.

Risk Mitigation Strategies

Purchase professional indemnity insurance. Maintain emergency legal retainer. Create worker compensation reserve fund beyond statutory requirements.

Conclusion and Call to Action

Manpower agency compliance in Nepal demands meticulous attention to evolving regulations. The Department of Foreign Employment Nepal has intensified monitoring through digital platforms. Recent Japan license renewal crisis affecting 126 agencies demonstrates regulatory unpredictability.

Agencies must prioritize continuous compliance over minimum requirements. Worker protection mechanisms, though improved, require active agency participation. Legal consultation is strongly recommended for license applications and violation defense.

For expert assistance with manpower agency compliance in Nepal, contact experienced legal professionals specializing in Foreign Employment Act 2064. Professional guidance ensures uninterrupted operations and worker protection compliance.

Contact the best labor lawyer at Nepal lawyer Service PVT LTD. 

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