Non-governmental organization (NGO) registration in Nepal

Non-governmental organization (NGO) registration in Nepal

Non-governmental organization (NGO) registration in Nepal

A non-governmental organization (NGO) is a non-profit organization that operates its function beyond government influence. NGOs, sometimes known as civil societies, are non-governmental organizations (NGOs) that are organized on a local, national, and international level to serve a social or political aim such as humanitarian issues or the environment.

NGO works on a large scale or very locally to promote social or political change. NGOs are vital to the development of society, the improvement of communities, and the promotion of citizen participation.

NGOs are registered at the District Administration Office (“DAO”) of the relevant district where the NGO is to be established. Further, tax registration must be done at the Inland Revenue Department following the completion of registration at the DAO. After the registration at the DAO, an affiliation certificate can be obtained from the Social Welfare Council.

Some non-governmental organizations (NGOs) are credited with helping to unite the country, safeguard the environment, protect children's rights, and empower women, while others are accused of attempting to divide the country, promote radical racial issues, and so on. 

Governing laws of NGOs in the Nepalese legal system

In Nepal, non-governmental organizations (NGOs) are registered with the District Administration Office (DAO), which has offices in 77 districts. You need a PAN number from the Inland Revenue Department and to register your NGO with the Social Welfare Council (SWC). SWC is a government agency tasked with coordinating and facilitating Nepalese non-governmental organizations (NGOs) and international non-governmental organizations (INGOs).

Make sure you renew the registration every fiscal year by paying a specific amount in the related department.

Registration procedure of NGOs in Nepal

The procedure of registering an NGO in Nepal, like any other, is governed by a set of rules and regulations. A referral letter from the local level ward office is necessary as the initial step and is completed after the final registration at the local ward office. The whole procedure can be enlisted as:

1. Apply for a recommendation letter from the local level ward office: You need to request a letter of recommendation from the ward office where the NGO's office is located. To get a letter from the ward office, you must submit an application with all of the necessary documentation.

2. Submit an application to the relevant district coordination committee for a Certificate of registration

3. Obtain registration number for the NGO from the District administration office, after submission of an application with all documents DAO will send a letter to Nepal Police requesting a clearance report after receiving an application with the required papers. The DAO will issue a certificate of registration based on the police report and the fact that all clauses in the NGO's constitution are in compliance with the country's laws.

4. Obtain affiliation certificate from Social Welfare Council who is the regulator for the NGO in Nepal.

5. Register for tax at the Inland Revenue Department and obtain a PAN certificate. You need to submit specified documents and the board members of the NGO should be presented to give biometric records.

6. And finally register at the local level ward office.

Requirement for registration and time of completion

A minimum of 7 members is required for the registration of the NGO. You need to form a board of directors comprising at least seven Nepali citizens: one president, one vice president, one secretary, one treasurer, and three or more members.

After completing all of the required stages, the registration process takes about 1 to 2 months to complete.

The documents required for registration

The following documents are required for registration:

Copy of resolution by board members resolving to establish the proposed NGO;

Certified copy of citizenship certificate of all board members;

Passport-sized photographs and copies of character report from Nepal Police of all members from the relevant districts;

The proposed draft of memorandum and articles of association of the NGO (Bidhan);

Rent agreement with the lessor of the location of the office of the NGO along with a copy of the citizenship certificate of the house owner; and

Receipt of 3 months’ rent paid in advance as per the agreement with the house owner.

Other important criteria to start an NGO

If the NGO is to be incorporated as a private limited company, it must have at least two directors.

When forming a public limited company, a minimum of three directors is required.

In the case of a private limited business, the maximum number of members is 200.

In the case of a public limited corporation, there is no limit on the number of members.

If you register as a non-profit organization, there is no fee.

The applicable government charges?

The approximate governmental fee for registration is NPR 6,000 depending on the district and local level. The fees to be paid to the relevant governmental authorities are set out below:

     

Renewal of NGO registration

Every year you need to complete the renewal process to maintain the registration of NGO with the required document submission to the respective departments. The tax office, ward office, and DAO annually and in Social Welfare Council every 3 years.

You need to submit documents including:

You need to hire an auditor to prepare an audit report with a tax clearance certificate.

Auditing organization with auditor’s tax clarification certificate needs to be submitted at the tax office.

A copy of the tax clearance certificate, application, and other certificates to the ward office

A photocopy of the tax clearance, a photocopy of the auditor's license, and a copy of the tax certificate Bidhan's photocopy, Nagarpalika photocopy, Minute photocopy, Upcoming Year Planning, Members of the Board of Directors, Application to DAO.

A photocopy of the tax clearance, auditor's license, and a copy of the tax certificate Bidhan's photocopy, Nagarpalika photocopy, Minute photocopy, Members of the Board of Directors, and application to Social Welfare Council in every three years.

 

 

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