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Nepal has one of the highest NGO densities in South Asia, with over 50,000 registered non-governmental organizations and hundreds of international NGOs operating across the country. Whether you are a group of Nepali citizens wanting to address community challenges or an international organization planning to extend operations into Nepal, understanding the registration process is the essential first step. The legal framework, required documents, government fees, and compliance obligations differ significantly between domestic NGOs and international NGOs (INGOs) -- and getting them wrong can delay your registration by months or expose your organization to penalties.
This comprehensive guide covers both NGO registration under the Association Registration Act 2034 and INGO registration through the Social Welfare Council and Ministry of Foreign Affairs. For organizations that also need to register a company, obtain a PAN card, or handle other legal formalities, our experienced legal team at court marriage in Nepal provides consultations across all areas of Nepali law.
NGO & INGO Registration in Nepal -- Key Facts: Domestic NGOs register at the District Administration Office (DAO) under the Association Registration Act 2034 BS (1977). A minimum of 7 founding members, all Nepali citizens, must sign the memorandum. Registration takes 15-30 days and costs approximately NPR 500-1,000 in government fees. After registration, NGOs must affiliate with the Social Welfare Council (SWC) to receive foreign funding. INGOs follow a separate process: they apply through the SWC and require approval from the Ministry of Foreign Affairs (MoFA), with a general agreement valid for 5 years.
What Is an NGO in Nepal?
A non-governmental organization (NGO) in Nepal is a voluntary, non-profit association formed by Nepali citizens to work in areas such as social welfare, education, health, human rights, environment, and community development. NGOs in Nepal are commonly known as Sanstha (संस्था) in Nepali.
Under Nepali law, NGOs are distinct from companies, cooperatives, and government bodies. They cannot distribute profits to their members and must operate solely for the social objectives stated in their memorandum of association. NGOs differ from other business entities like private limited companies in that they have no shareholders and cannot engage in commercial activities for profit.
Types of Non-Profit Organizations in Nepal
| Type | Governing Law | Registration Authority | Key Feature |
|---|---|---|---|
| NGO (Association) | Association Registration Act 2034 | District Administration Office (DAO) | Formed by Nepali citizens for social objectives |
| INGO | SWC Act 2049 + INGO Directives | Social Welfare Council + MoFA | Foreign-incorporated organization operating in Nepal |
| Trust (Guthi) | Guthi Corporation Act 2033 | Guthi Corporation | Property-based charitable endowments |
| Cooperative | Cooperative Act 2074 | Division Cooperative Office | Member-owned, can distribute surplus |
| Company (Sec. 166) | Companies Act 2063, Section 166 | Office of Company Registrar | Not-for-profit company (rare in practice) |
Legal Framework: Association Registration Act 2034
The primary law governing NGO registration in Nepal is the Association Registration Act 2034 BS (1977 AD) (Sanstha Darta Ain 2034). This Act provides the legal foundation for forming, registering, and operating non-profit associations in Nepal.
| Detail | Information |
|---|---|
| Full Name (Nepali) | संस्था दर्ता ऐन, २०३४ (Sanstha Darta Ain, 2034) |
| Enacted | 2034 BS (1977 AD) |
| Key Amendments | 2046 BS (1989), 2058 BS (2002) |
| Registration Authority | Chief District Officer (CDO) at the District Administration Office |
| Minimum Founders | 7 Nepali citizens (18 years or older) |
| Supporting Legislation | Social Welfare Act 2049, National Directive Act 2018, Income Tax Act 2058 |
Other Relevant Laws
- Social Welfare Act 2049 BS (1992): Establishes the Social Welfare Council and requires NGOs receiving foreign grants to affiliate with SWC
- Income Tax Act 2058 BS (2002): Governs tax obligations and exemptions for non-profit organizations
- Money Laundering Prevention Act 2064: Requires NGOs handling large funds to comply with anti-money laundering provisions
- Privacy Act 2075 BS (2018): Governs data protection obligations when NGOs collect beneficiary information
- Local Government Operation Act 2074: Local governments now coordinate with NGOs operating in their jurisdiction
Step-by-Step NGO Registration Process
Registering an NGO in Nepal involves submitting an application to the District Administration Office (DAO) of the district where the organization will have its head office. Here is the complete process.
Step 1: Choose a Name and Verify Availability
Select a unique name for your NGO. The name must not be identical or confusingly similar to any existing registered organization. You can check name availability informally at the DAO before submitting your application. The name should reflect the organization's objectives and must not contain words that suggest government affiliation.
Step 2: Draft the Memorandum of Association and Bylaws
The memorandum (bidhan) is the most important document. It must include the organization's name, address, objectives, membership provisions, governance structure, meeting procedures, financial management rules, and dissolution provisions. The bylaws (niyamawali) provide operational details.
Key provisions that must be included in the memorandum:
- Name and registered address of the organization
- Objectives and scope of activities
- Membership criteria, categories, fees, and termination procedures
- Executive committee composition, election process, and terms
- General assembly meeting rules (at least once per year)
- Financial management and audit provisions
- Amendment procedures for the memorandum itself
- Dissolution procedure and asset distribution upon dissolution
Step 3: Gather Founding Members and Signatures
You need at least 7 founding members, all of whom must be Nepali citizens aged 18 or above. All founding members must sign the memorandum of association and the application form. Each member must provide a copy of their Nepali citizenship certificate.
Step 4: Submit Application to the DAO
Submit the complete application package to the District Administration Office. The CDO reviews the application and may request amendments to the memorandum if it does not comply with the Act.
Step 5: Receive Registration Certificate
If the CDO is satisfied that the application meets all requirements, they issue a registration certificate. The typical processing time is 15-30 days. Once registered, the NGO is a legal entity that can open bank accounts, enter contracts, own property, and employ staff.
Documents Required for NGO Registration
| Document | Details | Copies |
|---|---|---|
| Application form | Prescribed form addressed to CDO, signed by all 7+ founding members | 2 |
| Memorandum of Association | Bidhan with all mandatory provisions, signed by all founders | 3 |
| Bylaws (Niyamawali) | Operational rules complementing the memorandum | 3 |
| Citizenship certificates | Certified copy of Nepali citizenship of all founding members | 1 each |
| Passport-size photos | Recent photographs of all founding members | 2 each |
| Minutes of founding meeting | Record of the meeting where members agreed to form the NGO | 1 |
| Government fee receipt | Payment of registration fee (approximately NPR 500-1,000) | 1 |
NGO Registration Fee and Timeline
Government fees for NGO registration are modest compared to company registration. The exact amount varies slightly by district.
| Fee Component | Amount (NPR) |
|---|---|
| Registration fee at DAO | NPR 500 - 1,000 |
| SWC affiliation fee (if applicable) | NPR 1,000 - 2,000 |
| PAN registration at IRD | Free |
| Legal drafting (memorandum + bylaws) | NPR 10,000 - 50,000 (lawyer fees vary) |
Timeline: The entire process from application to certificate typically takes 15-30 working days at the DAO. SWC affiliation adds another 15-30 days. Total time from start to full operational readiness is approximately 1-3 months.
Social Welfare Council (SWC) Affiliation
After registration at the DAO, NGOs that wish to receive foreign grants, donations, or technical assistance must affiliate with the Social Welfare Council (SWC). This is a mandatory requirement under the Social Welfare Act 2049.
Why SWC Affiliation Matters
- Required to receive any foreign funding (grants, donations, technical assistance)
- Required to partner with INGOs operating in Nepal
- Enables the NGO to access government coordination mechanisms
- Provides legitimacy and credibility with donors and international organizations
SWC Affiliation Process
- Submit an application to SWC with the NGO registration certificate, memorandum, audited financial statements (if the NGO has been operating), and a description of proposed programs
- SWC reviews the application and may conduct a verification visit
- If approved, SWC issues an affiliation letter
- The NGO must then register each foreign-funded project separately with SWC and obtain project approval before receiving funds
Need help with NGO registration or SWC affiliation? Contact our legal team for a free consultation.
INGO Registration in Nepal
International non-governmental organizations (INGOs) follow a completely different registration process from domestic NGOs. An INGO is a foreign-incorporated non-profit organization that seeks to operate programs in Nepal. Examples include organizations headquartered in the US, UK, Europe, or other countries that want to implement development, humanitarian, or advocacy programs in Nepal.
Legal Framework for INGOs
INGO operations in Nepal are governed by:
- Social Welfare Act 2049 BS (1992): Primary legislation governing SWC oversight of INGOs
- INGO Mobilization and Management Directives: Issued by SWC, these directives specify the application process, reporting requirements, and operational guidelines
- Foreign Exchange (Regulation) Act 2019: Governs the transfer of foreign currency into Nepal by INGOs
- Foreign Investment and Technology Transfer Act 2075: While primarily for commercial investment, some provisions affect INGO operations involving technology transfer
Step-by-Step INGO Registration Process
| Step | Action | Authority | Timeline |
|---|---|---|---|
| 1 | Submit application to SWC with organization documents, proposed programs, and budget | Social Welfare Council | Initial review: 30 days |
| 2 | SWC forwards recommendation to Ministry of Foreign Affairs (MoFA) | SWC → MoFA | 15-30 days |
| 3 | MoFA reviews and grants approval for INGO operations | Ministry of Foreign Affairs | 30-60 days |
| 4 | Sign General Agreement (GA) with SWC | SWC | 15 days after MoFA approval |
| 5 | Sign Project Agreement (PA) for each specific program | SWC + relevant line ministry | 30 days per project |
| 6 | Register with Inland Revenue for PAN and tax compliance | Inland Revenue Department | 7-15 days |
Total timeline: The complete INGO registration process from initial application to operational readiness typically takes 3-6 months, depending on the complexity of proposed programs and government processing times.
Documents Required for INGO Registration
- Certificate of incorporation from the home country (notarized and apostilled)
- Organization's constitution, charter, or articles of association
- Board resolution authorizing operations in Nepal and appointing a country representative
- Detailed proposal of intended programs in Nepal (objectives, budget, duration, target areas)
- Proof of financial capacity (audited financial statements for the last 3 years)
- CV and credentials of the proposed country representative
- Recommendation letter from the home country's embassy in Nepal (for some countries)
- Anti-terrorism financing compliance declaration
General Agreement vs. Project Agreement
INGOs in Nepal operate under two types of agreements with the government:
| Agreement | General Agreement (GA) | Project Agreement (PA) |
|---|---|---|
| Purpose | Authorizes the INGO to operate in Nepal | Approves a specific program or project |
| Validity | 5 years (renewable) | 1-5 years (project-specific) |
| Signed with | SWC | SWC + relevant line ministry |
| Scope | Overall organizational mandate and geographic areas | Specific activities, budget, beneficiaries, and indicators |
| Renewal | Apply 6 months before expiry | Apply 3 months before project end |
NGO vs. INGO: Key Differences
| Feature | NGO (Domestic) | INGO (International) |
|---|---|---|
| Incorporation | Formed and registered in Nepal | Incorporated abroad, operates in Nepal |
| Founders | Minimum 7 Nepali citizens | Foreign organization (any nationality) |
| Registration authority | District Administration Office (DAO) | SWC + Ministry of Foreign Affairs |
| Governing law | Association Registration Act 2034 | Social Welfare Act 2049 + INGO Directives |
| SWC affiliation | Required only for foreign funding | Mandatory for all operations |
| Registration timeline | 15-30 days | 3-6 months |
| Government fee | NPR 500-1,000 | NPR 5,000-10,000+ (varies) |
| Staff | Nepali staff; foreign experts need work permits | Can hire foreign staff with work permits |
| Tax status | Tax-exempt on grants (with IRD approval) | Tax-exempt on approved project funds |
| Annual reporting | DAO + SWC (if affiliated) | SWC + MoFA + line ministry |
Tax Obligations for NGOs and INGOs
Non-profit status does not automatically mean tax-free status in Nepal. Both NGOs and INGOs have specific tax obligations under the Income Tax Act 2058.
NGO Tax Rules
- PAN registration is mandatory: Every NGO must obtain a Permanent Account Number (PAN) from the Inland Revenue Department
- Tax-exempt income: Grants, donations, and membership fees received for approved social objectives are generally exempt from income tax
- Taxable income: Any income from commercial activities (rental income, service charges, consultancy fees) is taxable at standard rates
- TDS obligations: NGOs paying salaries, rent, or professional fees must deduct tax at source and deposit it with IRD
- VAT registration: Not required for grant-funded activities, but may be required if the NGO generates taxable commercial revenue above the threshold
- Annual tax clearance certificate: Required for SWC renewal and to receive new project funding
INGO Tax Rules
- INGOs are exempt from income tax on approved project funds received from abroad
- Expatriate staff salaries are subject to Nepali income tax (withheld by the INGO)
- Import duty exemption is available for project-related goods with government approval
- INGOs must file annual tax returns and obtain tax clearance for agreement renewals
Renewal and Annual Compliance
Both NGOs and INGOs have ongoing compliance obligations that must be met to maintain their legal status.
NGO Annual Requirements
| Obligation | Deadline | Authority |
|---|---|---|
| Renew registration at DAO | Annually (within Shrawan, approximately July-August) | District Administration Office |
| Submit audit report | Within 6 months of fiscal year end | DAO + SWC |
| Hold annual general meeting | Once per year (as per memorandum) | Internal governance |
| File income tax return | Within Poush end (approximately January) | Inland Revenue Department |
| Submit progress report to SWC | Quarterly and annually (if SWC-affiliated) | Social Welfare Council |
| Renew SSF registration for staff | Ongoing with salary payments | Social Security Fund |
INGO Annual Requirements
- Quarterly progress reports to SWC on each active project
- Annual audited financial statements submitted to SWC and MoFA
- Project completion reports within 3 months of project end
- General Agreement renewal application submitted 6 months before expiry
- Work permit renewal for expatriate staff through the Department of Labour
- Annual staff details submission including all Nepali and foreign employees
Governance Requirements
Proper governance is both a legal requirement and a practical necessity for NGOs and INGOs operating in Nepal.
NGO Governance Structure
- General Assembly: The supreme body comprising all members. Must meet at least once a year. Approves the annual plan, budget, and audit report. Elects the executive committee.
- Executive Committee: The management body elected by the general assembly. Typically comprises a chairperson, vice-chairperson, secretary, treasurer, and members. Term is usually 2-4 years as specified in the memorandum.
- Minimum requirements: At least 7 members on the executive committee. At least 33% women representation is strongly encouraged by SWC guidelines (though not always legally mandated).
INGO Governance in Nepal
- Country Representative: Must be appointed by the head office and approved by SWC. Has signing authority for agreements and legal documents in Nepal.
- Advisory Board: Some INGOs establish a local advisory board including Nepali members for strategic guidance.
- Compliance officer: Larger INGOs are expected to designate a person responsible for ensuring compliance with Nepali law.
Common Challenges and Practical Tips
Based on common issues faced by organizations during registration, here are practical tips:
- Name conflicts: Check for similar names across all 77 districts before finalizing. The same name may be registered in another district.
- Memorandum rejections: The most common reason for delays is an incomplete or non-compliant memorandum. Engage a lawyer familiar with the Association Registration Act 2034.
- SWC bottlenecks: SWC processes can be slow. Submit well in advance and follow up regularly.
- Bank account requirements: Banks require the registration certificate, PAN card, and executive committee minutes to open an organizational account.
- Foreign funding compliance: Never receive foreign funds before obtaining SWC approval. Unauthorized receipt of foreign grants is a serious offence.
- Staff compliance: Ensure all employees are covered under Social Security Fund and that TDS is properly deducted from salaries.
NGO Dissolution in Nepal
An NGO in Nepal can be dissolved voluntarily by a resolution of its general assembly (typically requiring a two-thirds majority as specified in the memorandum) or involuntarily by the CDO if the organization violates the law. Upon dissolution, remaining assets must be transferred to another organization with similar objectives -- they cannot be distributed to members. The dissolution must be reported to the DAO, SWC (if affiliated), and the Inland Revenue Department.
Conclusion
Registering an NGO or INGO in Nepal is a structured legal process that requires careful preparation of documents, compliance with multiple government agencies, and ongoing reporting obligations. For domestic NGOs, the process is relatively straightforward through the District Administration Office under the Association Registration Act 2034. For INGOs, the process is more complex, involving the Social Welfare Council and Ministry of Foreign Affairs, but Nepal remains open to international organizations contributing to its development goals.
Whether you are setting up a grassroots community organization or bringing an international program to Nepal, getting the legal foundation right from the start saves time, money, and complications down the road. For professional legal assistance with NGO registration, INGO approval, company registration, or any other legal matter in Nepal, contact our experienced team for a free consultation.
Contact us today for expert help with your NGO or INGO registration in Nepal.
Frequently Asked Questions
You need a minimum of 7 founding members to register an NGO in Nepal. All members must be Nepali citizens aged 18 or above. Each member must provide a citizenship certificate copy and sign the memorandum of association submitted to the District Administration Office.
Government fees for NGO registration at the DAO are approximately NPR 500-1,000. SWC affiliation costs NPR 1,000-2,000 additionally. Professional legal fees for drafting the memorandum and handling the process vary depending on the complexity of your organization's objectives.
NGO registration at the District Administration Office takes 15-30 working days. SWC affiliation adds another 15-30 days. The total process from application to full operational readiness, including PAN registration, is approximately 1-3 months.
No, foreigners cannot register a domestic NGO in Nepal. The Association Registration Act 2034 requires all founding members to be Nepali citizens. Foreign organizations must register as INGOs through the Social Welfare Council and Ministry of Foreign Affairs instead.
An NGO is formed and registered in Nepal by Nepali citizens under the Association Registration Act 2034. An INGO is a foreign-incorporated organization that registers through SWC and MoFA to operate in Nepal. INGOs face stricter oversight, longer registration timelines, and different reporting requirements.
SWC affiliation is mandatory only for NGOs that receive foreign funding (grants, donations, or technical assistance from abroad). NGOs operating solely with domestic funding and membership fees are not legally required to affiliate with the Social Welfare Council.
An INGO registers by applying to the Social Welfare Council (SWC), which forwards its recommendation to the Ministry of Foreign Affairs (MoFA) for approval. After MoFA approval, the INGO signs a General Agreement with SWC and Project Agreements for each program. The process takes 3-6 months.
A General Agreement (GA) is the primary legal document authorizing an INGO to operate in Nepal. It is signed between the INGO and the Social Welfare Council after MoFA approval. The GA is valid for 5 years and defines the organization's mandate and geographic areas of operation.
NGOs are generally exempt from income tax on grants, donations, and membership fees used for approved social objectives. However, income from commercial activities such as rental income or consultancy fees is taxable. All NGOs must obtain a PAN card and file annual tax returns.
You need an application form signed by all founders, the memorandum of association, bylaws, citizenship certificates of all founding members, passport-size photos, minutes of the founding meeting, and the government fee receipt. All documents are submitted to the District Administration Office.
Yes, but only after obtaining SWC affiliation and getting each foreign-funded project approved by the Social Welfare Council. Receiving foreign funds without SWC approval is illegal and can result in penalties, including cancellation of the NGO's registration.
NGOs must renew their registration annually at the District Administration Office, typically within the month of Shrawan (July-August). Renewal requires submitting an audit report, progress report, and updated details of the executive committee.
The Social Welfare Council (SWC) is the primary government body overseeing INGOs in Nepal. It reviews INGO applications, signs General and Project Agreements, monitors program implementation, receives quarterly and annual reports, and coordinates between INGOs and government line ministries.
NGOs can undertake limited income-generating activities that support their social objectives, but they cannot distribute profits to members. Any commercial income is subject to income tax. The primary purpose must remain non-profit as stated in the memorandum of association.
An NGO that fails to renew its registration at the DAO loses its legal status. It cannot open bank accounts, sign contracts, receive funding, or operate programs. The CDO can also cancel the registration if the NGO violates its memorandum or engages in activities contrary to law.
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