Cost of Registering Tour and Trek Business in Nepal

Cost of Registering Tour and Trek Business in Nepal

Establishing a tour and trekking business in Nepal requires a structured approach involving company registration and acquiring a specific operational license. This process entails financial commitments to government bodies and professional service providers. The total cost, often referred to as the Cost of Registering Tour and Trek Business in Nepal, is composed of mandatory government fees based on capital structure and professional charges for handling the complex licensing procedures. Understanding these costs is fundamental for any entrepreneur planning to enter Nepal’s vibrant tourism sector. This article provides a detailed, factual breakdown of the financial requirements, service packages, and procedural steps involved in setting up a legally compliant tour and trekking agency in Nepal.

Government Fees for Tour & Trekking Agency Registration

The initial financial outlay for establishing a tour and trekking agency includes government-mandated fees. These fees are primarily associated with the registration of the business entity with the Office of the Company Registrar (OCR). The fee structure is tiered and directly corresponds to the company’s authorized capital. The government also stipulates a minimum paid-up capital for tour and trekking agencies, which determines the baseline fee an entrepreneur must pay. These statutory fees are a non-negotiable part of the setup process and must be paid to the government to complete the company incorporation stage before proceeding to the licensing phase.

Office of the Company Registrar Fee Structure

The Office of the Company Registrar (OCR) imposes a registration fee calculated on the authorized capital of the company. For businesses with a capital between NPR 5 Lakhs and NPR 25 Lakhs, the fee is NPR 9,500. For capital ranging from NPR 25 Lakhs to NPR 1 Crore, the fee is NPR 16,000. For companies with an authorized capital exceeding NPR 1 Crore, an additional fee of NPR 3,000 is levied for every additional crore of capital. The following table presents this fee structure for clarity.

Authorized Capital Range (NPR)Government Registration Fee (NPR)
5,00,001 – 25,00,0009,500
25,00,001 – 1,00,00,00016,000
For every additional 1,00,00,0003,000

Minimum Paid-Up Capital Requirement

The regulatory authorities in Nepal have set a minimum paid-up capital requirement for businesses intending to operate as tour and trekking agencies. This minimum capital is fixed at NPR 25 Lakhs. This requirement ensures that the business possesses a foundational financial base to operate effectively and responsibly within the tourism industry. Consequently, since the minimum paid-up capital is NPR 25 Lakhs, the minimum government fee payable to the Office of the Company Registrar for registering a tour and trekking company is NPR 9,500. This fee is a standard part of the initial setup cost for any aspiring entrepreneur in this sector.

Axion Partners Professional Service Charges

Axion Partners offers specialized professional services to manage the entire process of tour and trekking agency registration and licensing. Our service charges are structured to provide value and clarity, covering all procedural steps from documentation to final license acquisition. We offer two distinct service packages tailored to the specific needs of our clients. The first package is for new entrepreneurs starting from the beginning, while the second is designed for those who already have a registered company and require assistance only with obtaining the tour and trekking agency license. Our fees are transparent and encompass a wide range of services to ensure a hassle-free experience.

Comprehensive Registration Package from the Beginning

For individuals or groups starting from scratch, our all-inclusive service charge for registering a tour and trekking agency is NPR 75,000/- excluding Government Fees. This comprehensive fee covers the entire process from the initial company registration with the Office of the Company Registrar to the final issuance of the tour and trekking agency license from the Bagmati Tourism Office. This package is ideal for new entrants as it manages all procedural steps, document preparations, and interactions with various government bodies. Our service ensures that clients can establish their tour and trekking business without being burdened by bureaucratic complexities.

Standalone Tour & Trekking Agency License Acquisition Service

For clients who have already completed their company registration and possess a valid company registration certificate, we offer a dedicated service for obtaining the tour and trekking agency license. Our service charge for this specific service is NPR 55,000/-. This package focuses solely on the licensing process, which includes preparing documents for the Bagmati Tourism Office, securing a recommendation letter, registering with the Small Industry Office, and successfully passing the final inspection. This targeted service is perfect for existing businesses looking to expand their operations into the tours and trekking sector.

Detailed Scope of Work for Tour & Trekking Agency Registration

Our service charges are comprehensive and cover a detailed scope of work designed to manage every step of the registration and licensing process. We handle all the intricate procedures and documentation required by various government authorities. Our systematic approach ensures that all requirements are met accurately and on time, leading to a successful outcome. The following list details the specific services included in our tour and trekking agency registration package, providing clients with a clear understanding of the professional support they will receive from Axion Partners.

  1. Preparing All Required Documents for Bagmati Tourism Office: We meticulously prepare and compile all necessary documents, including the application form, company registration certificate, and other paperwork as specified by the Bagmati Tourism Office.
  2. Applying for Recommendation Letter from the Tourism Office: We handle the entire application process for securing the mandatory recommendation letter from the Tourism Office, which is a prerequisite for the next steps.
  3. Obtaining the Recommendation Letter from the Tourism Office: We follow up with the Tourism Office and ensure the successful collection of the recommendation letter, a critical document for the registration process.
  4. Preparing Documents for Registration at Small Industry Office: We prepare and organize all the required documentation for the registration process at the Small Industry Office, ensuring compliance with their specific criteria.
  5. Completing Registration at Small Industry Office: We manage the entire submission and verification process at the Small Industry Office to secure the necessary registration for your tour and trekking agency.
  6. Advising and Assisting for Office Preparation for Inspection: We provide expert guidance on how to set up your physical office to meet the standards required for the government inspection.
  7. Guiding Throughout the Inspection with Success: Our team provides on-ground support and guidance during the official inspection process to ensure a positive and successful outcome.
  8. Providing Final License from the Bagmati Tourism Office: We handle the final procedures and collect the official tour and trekking agency license from the Bagmati Tourism Office on your behalf.
  9. Legal Advisory of 3 Months Complimentary: Upon successful registration, we offer a 3-month complimentary legal advisory service to assist with initial compliance and operational queries.

Registration Options for Foreign Investors

Nepalese law restricts foreign nationals and companies from directly opening and operating a tour and trekking agency within the country. The tours and trekking business sector is reserved for Nepali citizens to promote local entrepreneurship and control over the tourism industry. This means that a foreign entity cannot hold majority ownership or register a tour and trekking agency solely in its name. This regulatory barrier requires foreign investors interested in Nepal’s trekking and tour market to explore alternative business structures that comply with the national laws and allow for legal operation.

Foreign investors can still participate in Nepal’s tourism industry through two primary business models. The first option is establishing a company with a local nominee director, where a Nepali citizen holds the directorial position and shares on behalf of the foreign investor. The second option is operating through a franchise agreement with an existing, locally registered Nepali tour and trekking agency. For these specific and complex business structures, which require careful legal and financial planning, Axion Partners can provide a custom quotation tailored to the unique requirements of the foreign investor.

Why Choose Axion Partners for Your Tour & Trekking Agency Registration

Choosing Axion Partners as your service provider for tour and trekking agency registration ensures a professional, efficient, and transparent experience. We are committed to delivering value and expertise to our clients, simplifying the intricate process of business registration. Our service model is built on four core guarantees that provide our clients with confidence and peace of mind. We understand the challenges of starting a new business and our role is to remove the procedural burdens, allowing our clients to concentrate on building a successful tour and trekking agency.

With our service, we guarantee Transparent and Affordable Fees with no hidden costs, ensuring you know exactly what you are paying for. We ensure a Quick and Stress-Free Approval Process by managing all bureaucratic interactions efficiently and effectively. Our clients receive Professional Services and Expertise at its Best, backed by a team that specializes in company registration and licensing in Nepal. We are dedicated to providing a seamless journey from application to the final issuance of your tour and trekking agency license.

Read More:

  1. https://lawaxion.com/online-company-registration-vs-traditional-process-for-foreign-investors-in-nepal/
  2. https://lawaxion.com/nrn-online-company-registration-in-nepal/
  3. https://lawaxion.com/private-limited-company-registration-for-nrns-in-nepal/
  4. https://lawaxion.com/foreign-company-registration-in-nepal-fitta-2019/
  5. https://lawaxion.com/10-mistakes-to-avoid-when-incorporating-as-a-foreigner-in-nepal/

1. What is the total minimum cost to register a tour and trekking agency with a license?

The minimum cost includes the full service charge of NPR 75,000. This assumes the minimum paid-up capital of NPR 25 Lakhs.

2. What is the minimum paid-up capital required to start a tour and trekking agency in Nepal?

The regulatory authorities require a minimum paid-up capital of NPR 25 Lakhs to register and operate a tour and trekking business in Nepal. This is a mandatory prerequisite for the licensing process.

3. Can a foreign national own a tour and trekking agency in Nepal?

No, foreign nationals are not allowed to directly own or open a tour and trekking agency in Nepal. They must operate through a local nominee director or a franchise model with a Nepali company.

4. What does the 3-month complimentary legal advisory service cover?

The 3-month complimentary legal advisory covers initial compliance checks, operational queries, and guidance on regulatory requirements after your tour and trekking agency license has been successfully obtained and your business is operational.