Introduction: Why Legal Registration Matters for Nepal Tourism Business
Travel and tour company registration in Nepal is governed by strict legal frameworks that every entrepreneur must navigate carefully. The tourism sector contributes approximately 8% to Nepal's GDP, making it one of the most regulated industries in the country. Without proper travel agency license Nepal, businesses face severe penalties including closure orders and fines up to NPR 500,000.
This comprehensive tutorial explains every legal requirement, document, fee, and timeline for company registration Nepal tourism sector. Whether you are starting a trekking agency, tour operator, or full-service travel company, this guide ensures complete compliance with current 2025 regulations.
Legal Framework Governing Travel Company Registration Nepal
Primary Legislation
|
Legal Instrument |
Governing Authority |
Key Provisions |
|
Companies Act, 2063 (2006) |
Office of Company Registrar (OCR) |
Company incorporation, capital requirements, shareholder rights |
|
Tourism Act, 1978 |
Department of Tourism (DoT) |
Licensing, operational standards, compliance requirements |
|
Travel and Trekking Agency Rules, 2005 |
Ministry of Culture, Tourism & Civil Aviation |
Specific licensing procedures, renewal terms, penalties |
|
Industrial Enterprises Act, 2076 (2019) |
Department of Industry (DoI) |
Industry classification, registration requirements |
|
Foreign Investment and Technology Transfer Act, 2019 |
Department of Industry |
Foreign ownership restrictions |
Important 2025 Updates
Several regulatory changes have been implemented for Nepal tourism business license requirements:
- Mandatory Insurance Verification: Starting January 2025, all trekking agencies must verify client insurance before permit issuance
- Digital Verification Systems: TAAN and NTB now use digital verification at permit checkpoints
- Upper Mustang Fee Restructuring: Permit fees changed from flat USD 500 to USD 50 per day
- Enhanced Safety Protocols: Guide certification requirements strengthened for high-altitude treks
Step-by-Step Travel and Tour Company Registration Process Nepal
Step 1: Company Registration at Office of Company Registrar (OCR)
The foundation of travel company registration Nepal begins with proper business entity formation. Private limited company structure is strongly recommended over sole proprietorship for credibility and liability protection.
Required Actions:
- Name reservation through OCR portal (NPR 1,000 fee)
- Drafting Memorandum of Association (MoA) with tourism objectives
- Drafting Articles of Association (AoA)
- Submission of shareholder details and citizenship certificates
Capital Requirements:
|
Business Structure |
Minimum Paid-Up Capital |
Bank Guarantee |
|
Private Limited Company |
NPR 25,00,000 |
NPR 5,00,000 |
|
Sole Proprietorship/Firm |
NPR 15,00,000 |
NPR 3,00,000 |
|
Partnership Firm |
NPR 20,00,000 |
NPR 4,00,000 |
Timeline: 7-10 working days
Government Fee: NPR 9,500 - 16,000 (based on capital structure)
Step 2: Tax Registration with Inland Revenue Department (IRD)
Within 30 days of company registration Nepal, tax registrations must be completed. This step is mandatory before applying for tourism licenses.
PAN Registration:
- Permanent Account Number is required for all business transactions
- Application submitted with company registration certificate
- Processing time: 3-5 working days
- Fee: Approximately NPR 1,000
VAT Registration Nepal:
- Mandatory when annual turnover exceeds NPR 3 million
- Voluntary registration recommended at startup for B2B operations
- Standard rate: 13% on travel services
- Hotel bookings: 10% VAT rate
Step 3: Ward Office Registration
Local municipality registration is required for physical office establishment. This step validates your business location for tourism license applications.
Documentation Required:
- Company registration certificate (original + copies)
- PAN certificate
- Office lease agreement (minimum 5-year term mandatory)
- Landlord's citizenship certificate
- Recent utility bills (electricity/water)
- Location map of premises
- Company stamp
Infrastructure Standards:
- Minimum office area: 300 square feet
- Computer with internet connectivity
- Telephone connection
- Visible signage from street
- Fire safety equipment
Timeline: 2-3 working days
Fee: NPR 1,500 - 3,000 (varies by municipality)
Step 4: Capital Injection and Bank Account Setup
Travel agency registration Nepal requires verified capital deposit:
- Open corporate bank account with Class-A commercial bank
- Deposit minimum paid-up capital (NPR 25 lakhs for private limited)
- Obtain bank guarantee of NPR 5 lakhs valid for 5 years
- Secure share registry certificate from OCR
Important: Bank guarantee must be made in favor of Department of Tourism, Bhrikutimandap, Kathmandu.
Step 5: Provincial Tourism Office Recommendation
Before final licensing, recommendation from Provincial Tourism Office is mandatory. This involves physical inspection and verification of:
- Capital adequacy (share registry showing NPR 25+ lakhs)
- Bank guarantee deposit proof
- Office infrastructure compliance
- Director/shareholder physical presence at office
Timeline: 7-15 working days
Step 6: Department of Industry (DoI) Registration
Industry registration certificate categorizes your business under "Service Industry" classification. This is prerequisite for final tourism license.
Required Documents:
- Provincial tourism office recommendation letter
- Company registration certificate
- PAN certificate
- Capital injection proof
- Bank guarantee slip
Timeline: 5-7 working days
Step 7: Final Travel Agency License from Department of Tourism
The culmination of travel and tour company registration in Nepal is obtaining the official tourism license.
Application Submission Includes:
- Completed DoT application form (Form A)
- DoI registration certificate
- Provincial tourism recommendation letter
- Original bank guarantee letter (NPR 5 lakhs)
- Office inspection report by DoT officials
- Tax clearance certificate (if company >1 year)
- Audit report (if applicable)
- Staff training certificates (for trekking operations)
License Categories and Fees:
|
License Type |
Permitted Activities |
License Fee |
Validity |
|
Travel Agency |
Tour packages, ticketing, hotel booking |
NPR 25,000 |
5 years |
|
Trekking Agency |
Organized treks, mountaineering |
NPR 25,000 |
5 years |
|
Combined License |
All tourism activities |
NPR 35,000 |
5 years |
Timeline: 10-15 working days (including inspection)
Complete Document Checklist for Travel Company Registration Nepal
Phase 1: Company Registration Documents
- [ ] Application form (Form D-1 from OCR)
- [ ] Memorandum of Association (MoA) with tourism objectives
- [ ] Articles of Association (AoA)
- [ ] Citizenship certificates of all shareholders/directors
- [ ] Passport-sized photographs (2 copies each)
- [ ] Proof of registered office address
- [ ] Shareholder agreement (if applicable)
Phase 2: Tax and Local Registration
- [ ] PAN registration certificate
- [ ] VAT registration certificate (if applicable)
- [ ] Ward office registration certificate
- [ ] Office lease agreement (5-year minimum)
- [ ] Landlord citizenship copy
- [ ] Utility bills
- [ ] Location map
Phase 3: Tourism License Documents
- [ ] Company registration certificate (notarized)
- [ ] PAN/VAT certificates (notarized)
- [ ] Share registry showing NPR 25+ lakhs capital
- [ ] Bank guarantee letter (NPR 5 lakhs, 5-year validity)
- [ ] Provincial tourism office recommendation
- [ ] DoI registration certificate
- [ ] Bio-data of authorized representative
- [ ] Passport photos of directors (2 each)
- [ ] Board resolution for travel business
- [ ] Letter of commitment to Tourism Office
- [ ] Tax clearance (if company >1 year old)
Cost Breakdown: Travel Agency Registration Fees Nepal 2025
Government Fees
|
Purpose |
Amount (NPR) |
Notes |
|
Company name reservation |
1,000 |
One-time |
|
OCR registration fee |
9,500 - 16,000 |
Based on capital |
|
PAN registration |
1,000 |
Fixed |
|
Ward office registration |
1,500 - 3,000 |
Municipal rates vary |
|
DoI registration |
5,000 |
Fixed |
|
DoT application fee |
100 |
Fixed |
|
DoT license fee |
25,000 |
One-time (5 years) |
|
Total Government Fees |
43,100 - 51,100 |
Minimum estimates |
Professional and Operational Costs
|
Category |
Amount (NPR) |
Notes |
|
Legal documentation |
30,000 - 50,000 |
Lawyer fees |
|
Notarization charges |
5,000 - 10,000 |
Per document |
|
Office setup |
100,000 - 200,000 |
Furniture, equipment |
|
Bank guarantee |
500,000 |
Refundable after 5 years |
|
Working capital |
2,500,000 |
Minimum paid-up |
|
Professional consultancy |
20,000 - 40,000 |
Optional |
|
Total Initial Investment |
3,200,000 - 3,500,000 |
Excluding capital |
Timeline Summary: How Long Does Registration Take?
|
Step |
Working Days |
Cumulative Days |
|
Company registration OCR |
7-10 |
10 |
|
PAN/VAT registration |
3-5 |
15 |
|
Ward office registration |
2-3 |
18 |
|
Bank account & capital injection |
5-7 |
25 |
|
Provincial tourism recommendation |
7-15 |
40 |
|
DoI registration |
5-7 |
47 |
|
Final tourism license |
10-15 |
60 |
Total Timeline: 45-60 working days (approximately 2.5-3 months calendar time)
License Renewal and Compliance Requirements
Renewal Terms (Rule 7, Travel and Trekking Agency Rules, 2005)
- License validity: 5 years from issuance
- Standard renewal fee: NPR 25,000
- Renewal deadline: Before expiration date
Late Renewal Penalties
|
Delay Period |
Additional Fee |
Consequence |
|
Within expiry date |
NPR 25,000 only |
Standard renewal |
|
After 3 months |
+25% penalty |
NPR 31,250 total |
|
After 6 months |
+50% penalty |
NPR 37,500 total |
|
Beyond 6 months |
License automatically canceled |
Must reapply as new |
Annual Compliance Calendar
|
Month |
Requirement |
Authority |
|
Shrawan (July-Aug) |
Annual return filing |
OCR |
|
Ashoj (Sept-Oct) |
License renewal (if applicable) |
DoT |
|
Poush (Dec-Jan) |
Tax audit submission |
IRD |
|
Chaitra (Mar-Apr) |
Industry report filing |
DoI |
Critical Legal Restrictions: Foreign Investment Limitations
Travel and tour companies are listed on the Negative List under Foreign Investment and Technology Transfer Act, 2019. This means:
- Foreign nationals cannot own or operate travel agencies in Nepal
- Foreigners cannot partner with Nepali citizens through equity sharing
- Only lawful alternative: Distributorship or agency agreement with licensed local operator
- 100% Nepali ownership is mandatory for all travel company registrations
Post-Registration Operational Requirements
Mandatory Record Maintenance
- Shareholder registers: Permanent retention
- Financial records: 7 years minimum
- Tax documents: 7 years minimum
- Employment records: 3 years minimum
- License copies: Current and expired
Staff Certification Requirements (Trekking Agencies)
- Guide certification from Nepal Academy of Tourism and Hotel Management
- First aid training for minimum 2 staff members
- Emergency evacuation plan documentation
- Equipment safety certificates
Insurance Obligations (2025 Update)
- Professional liability insurance mandatory
- Client insurance verification required before trekking permits
- Minimum evacuation coverage: USD 15,000
- Annual insurance cost: NPR 30,000 - 50,000
Frequently Asked Questions (FAQs)
What is the minimum capital required for travel company registration Nepal?
NPR 25 lakhs (2.5 million) paid-up capital is mandatory for private limited companies. This amount must be deposited in a corporate bank account and verified through OCR share registry.
How long does travel and tour company registration in Nepal take?
The complete process requires 45-60 working days from name reservation to final license issuance. Delays occur if documentation is incomplete or capital verification requires additional time.
Can foreigners register travel agency in Nepal?
No. Foreign nationals are prohibited from owning, operating, or partnering in travel agencies under the Foreign Investment and Technology Transfer Act, 2019. Only Nepali citizens or 100% Nepali-owned entities are eligible.
What documents are needed for tourism license renewal?
Renewal requires updated audit reports, tax clearance certificates, proof of continued compliance, and standard renewal fee of NPR 25,000. Late renewals incur penalties of 25-50% additional fees.
Is industry registration mandatory before tourism license?
Yes. Department of Industry (DoI) registration is prerequisite for final tourism license application. This categorizes the business as "Service Industry" and validates operational legitimacy.
What is the bank guarantee requirement for Nepal travel agency?
NPR 5 lakhs bank guarantee from Class-A commercial bank is mandatory. It must be valid for 5 years and made in favor of Department of Tourism. This amount is refundable after license expiration or cancellation.
How much are the total government fees for travel agency registration?
Government fees total approximately NPR 43,100 - 51,100 including company registration (NPR 9,500-16,000), PAN (NPR 1,000), ward office (NPR 1,500-3,000), DoI registration (NPR 5,000), and tourism license fee (NPR 25,100).
What happens if travel agency operates without license?
Operating without valid travel agency license Nepal results in fines up to NPR 500,000, immediate business closure orders, criminal prosecution, and blacklisting from future registrations.
Can travel agency license be transferred to new owners?
No. Tourism licenses are non-transferable under Section 8 of Tourism Act. If business ownership changes, new owners must complete fresh registration process. However, company shares can be transferred while maintaining same legal entity.
What are the office requirements for tourism license?
Minimum 300 square feet office space with computer, internet, telephone, visible signage, and fire safety equipment is mandatory. Virtual offices or co-working spaces are not accepted. Physical inspection is conducted by DoT officials.
Professional Assistance for Travel Company Registration
Nepal Lawyer Services Pvt. Ltd. provides comprehensive legal support for travel and tour company registration in Nepal. Our services include:
- Complete documentation preparation and review
- OCR, IRD, DoI, and DoT application processing
- Capital injection guidance and bank guarantee coordination
- Provincial tourism office liaison
- License renewal and compliance management
- Legal representation for regulatory matters
Contact Nepal Lawyer Services Pvt. Ltd. for expert guidance through every step of Nepal tourism business registration. Our legal team ensures 100% compliance with current regulations while minimizing processing time and avoiding costly delays.
Disclaimer: This guide is provided for informational purposes only and does not constitute legal advice. Regulations are subject to change. Consult qualified legal professionals for specific guidance related to your business circumstances.
