NGO and INGO Registration Services in Nepal

Are you planning to establish a Non-Governmental Organization (NGO) or an International Non-Governmental Organization (INGO) in Nepal? LawManthan simplifies the registration process while ensuring compliance with Nepalese laws. This comprehensive guide provides all the essential information you need to successfully register your NGO/INGO and make a meaningful impact.

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Why Register an NGO or INGO in Nepal?

Nepal’s vibrant socio-economic landscape provides an excellent platform for NGOs and INGOs to contribute to development initiatives, humanitarian efforts, and community welfare. Registering your organization ensures legal recognition, access to funding, and the ability to operate effectively within Nepalese jurisdictions.

Benefits of Registration:

1. Legal Identity: Gain official recognition to conduct operations within Nepal.
2. Access to Funding: Qualify for national and international grants.
3. Tax Exemptions: Leverage tax benefits for non-profit activities.
4. Enhanced Credibility: Build trust among stakeholders and beneficiaries.

Key Legal Framework for NGO/INGO Registration in Nepal

Nepal’s legal system mandates specific regulations for NGOs and INGOs to ensure accountability and transparency. The primary governing acts include:

1. Social Welfare Act 1992: Governs the establishment and operation of NGOs.
2. Company Act 2006: Applicable for organizations with broader commercial objectives.
3. Foreign Investment and Technology Transfer Act (FITTA) 2019: Guides INGOs receiving foreign investments.

All non-profits must adhere to the guidelines provided by the Social Welfare Council (SWC), the regulatory body overseeing NGOs and INGOs in Nepal.

Step-by-Step Guide to NGO Registration in Nepal

1. Forming a Team and Preparing Necessary Documentation:
   • Assemble at least seven board members, including a President, Vice-President, Secretary, Treasurer, and three or more members, all holding Nepali citizenship.
   • Collect notarized copies of citizenship certificates, passport-sized photographs, and character verification reports issued by Nepal Police for all members.
   • Draft the NGO’s Constitution (Bidhan) detailing its mission, goals, and governance structure.
   • Prepare the Memorandum of Association and Articles of Association.
   • Record minutes of the first meeting that outlines the purpose of establishing the NGO and assigns roles to each member.
   • Secure a rental agreement confirming the location of the NGO’s office, and prepare official stamps with the organization’s logo.
2. Applying for Recommendation Letter from Ward Office:
   • Submit an application to the ward office where the NGO is located, including the minutes of the ad hoc committee meeting, a copy of the Constitution signed by all members, notarized copies of citizenship certificates, the rental agreement, land tax receipt, and the house owner’s notarized citizenship copy.
   • Ensure the President’s signature and official stamp are included on the application.
3. Obtaining Recommendation Letter from District Coordination Committee (DCC):
   • Submit the ward office’s recommendation letter along with notarized documents such as citizenship certificates, the organization’s Constitution, and minutes of the ad hoc committee meeting to the DCC.
   • File an application signed by all committee members to receive a recommendation letter from the DCC.
4. Registration with the District Administration Office (DAO):
   • Submit a complete application package to the DAO, including all recommendation letters, the organization’s Constitution in four copies signed by all members, and additional documents such as the rental agreement and police clearance.
   • The DAO verifies the documents, requests clearance from Nepal Police, and ensures compliance with legal provisions before issuing a registration certificate.
5. Affiliation with Social Welfare Council (SWC):
   • After obtaining the DAO certificate, apply for affiliation with the SWC by submitting the SWC application form, DAO registration certificate, DCC recommendation, and other required documents.
   • This affiliation formalizes the NGO’s operations under the country’s regulatory framework.
6. Obtaining Permanent Account Number (PAN) Certification:
   • Register with the Inland Revenue Department (IRD) to acquire a Permanent Account Number (PAN) required for financial transactions and taxation.
   • Submit an application with documents such as the registration certificate, board meeting minutes, photographs, and identification of the authorized signatory.
   • Once verified, a temporary account number is provided, followed by a permanent PAN registration certificate within three months.

Step-by-Step Guide to INGO Registration in Nepal

1. Submission of Application to Social Welfare Council (SWC):
   • The INGO begins the registration process by submitting an application to the SWC, detailing the organization’s objectives, background, proposed areas of work, and financial commitments.
   • Essential documents include the organization’s registration certificate from its home country, bylaws/constitution, and other supporting documents. The SWC conducts an initial review to ensure the proposed activities align with Nepal’s development priorities.
2. Submission of General Agreement and Proposed Programs:
   • Once the initial application is approved, the INGO must provide a draft General Agreement outlining its operational framework, including proposed activities and financial commitments.
   • The SWC reviews the agreement in consultation with relevant government ministries, and revisions or additional details may be requested. Proposed programs may need to be presented to an SWC committee for approval.
3. Negotiation of Final Terms of the Agreement:
   • The SWC and the INGO negotiate the final terms of the General Agreement. This process involves multiple discussions to finalize commitments such as annual financial contributions, focus areas, and priority sectors.
   • Once agreed upon, both parties sign the General Agreement, providing the INGO with the legal basis for its operations in Nepal.
4. Registration with Relevant Government Ministries:
   • Post General Agreement, the INGO must register with ministries overseeing its specific areas of work (e.g., Ministry of Health for health-related projects). This step ensures proper coordination with government bodies.
   • The INGO must appoint a Country Director, whose details must be approved by the SWC and relevant ministries.
5. Setting Up Office and Operations:
   • The INGO establishes its office and begins operations by obtaining necessary permits, such as visas for expatriate staff. Partnering with local NGOs is a mandatory step for project implementation.
   • Within three months of signing the General Agreement, the INGO is required to submit detailed project proposals for SWC approval. These proposals form the basis for individual Project Agreements, which define specific project plans.

Applicable Government Fees and Charges

The estimated cost for NGO or INGO registration in Nepal is around NPR 6,000, though this amount can differ based on the district and local administrative rules. Below is a breakdown of the fees payable to various government bodies:

Compliance & Requirements for INGOs in Nepal

INGOs operating in Nepal must follow a set of strict compliance guidelines to remain in good standing and continue their operations. Key requirements include:

Financial Transparency

• INGOs are required to submit audited financial statements annually to the SWC and other relevant authorities.
• Clear records must demonstrate that funds are being used as outlined in project agreements.

Activity Progress Reports

• Regular updates on project activities, progress, and challenges must be sent to the SWC and associated ministries.

Collaborative Local Engagement

• INGOs must partner with local NGOs for project implementation. They are encouraged to build the capacity of these local partners and eventually shift project management responsibilities to them.

Hiring Policies

• INGOs should prioritize employing Nepali nationals. Expatriate roles are limited to specialized positions where local expertise is unavailable.

Visa and Work Permit Requirements

• All foreign staff members must secure proper visas and work permits, typically coordinated through the SWC.

Tax Responsibilities

• While income tax exemptions apply, INGOs must adhere to other applicable tax regulations, such as withholding taxes on staff salaries.

Adherence to Project Agreements

• All activities must align with approved Project Agreements, and any significant deviations or changes require prior approval from the SWC.

Coordination with Local Authorities

• INGOs should collaborate with local governmental bodies and participate in district-level coordination meetings to harmonize efforts.

Alignment with National Development Goals

• INGO activities should support Nepal’s national priorities and development strategies as outlined in government plans.

Ethical Standards

• INGOs must comply with the Basic Operating Guidelines (BOGs) set by Nepal’s donor community, emphasizing integrity, neutrality, and transparency.

Compliance Requirements for NGOs and INGOs

Compliance is a critical component for maintaining registration. Organizations must:

• Submit annual reports and financial statements to the SWC.
• Adhere to guidelines on fund utilization and transparency.
• Renew registration annually with updated documents.

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Challenges in NGO/INGO Registration and How LawManthan Helps

Common Challenges:

1. Complex legal procedures.
2. Delays in approval due to incomplete documentation.
3. Difficulty in aligning with Nepalese regulatory standards.

How LawManthan Simplifies the Process:

• Expert legal consultation tailored to your organizational needs.
• Assistance in preparing and submitting documents.
• Guidance on compliance and operational frameworks.

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Related Services to Enhance Your Operations

LawManthan provides a wide range of legal services to support your organization’s growth and compliance:

• NGO/INGO Compliance Management
• Law Reform and Policy Development
• Company Registration in Nepal
• Trademark Filing and Registration
• Corporate Tax Compliance

Visit our all services page for more information.

Why Choose LawManthan?

At LawManthan, we combine legal expertise with a deep understanding of Nepal’s regulatory environment to provide:

• Tailored Solutions: Personalized legal advice for NGOs and INGOs.
• Transparent Processes: Clear guidance at every stage of registration and compliance.
• Experienced Professionals: A team of dedicated lawyers specializing in non-profit law.

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For any additional inquiries or to begin your registration journey, contact LawManthan today. Our experts are ready to guide you through every step, from documentation to compliance, ensuring a smooth and hassle-free process. Let us help you overcome challenges and focus on achieving your organizational goals in Nepal.

FAQs on NGO/INGO Registration in Nepal

Q: How long does it take to register an NGO or INGO in Nepal?

The process typically takes 1-3 months, depending on the completeness of the application and approval timelines.

Q: Can an INGO operate without local partners in Nepal?

Most INGOs collaborate with local partners to ensure effective implementation and compliance with SWC guidelines.

Q: What happens if an NGO/INGO fails to renew its registration?

Failure to renew may result in suspension of operations or legal penalties.