INGO Registration in Nepal: GA, PA & SWC Approval

Introduction

International Non-Governmental Organizations (INGOs) operating in Nepal must obtain registration and approval from multiple government authorities. The Association Registration Act 1977, Social Welfare Act 1992, and various directives govern INGO operations. Organizations must secure General Agreement (GA) from the Ministry of Finance, Project Agreement (PA) from the Social Welfare Council (SWC), and maintain compliance with immigration regulations. The registration process involves coordination between the District Administration Office, Social Welfare Council, and relevant line ministries. Foreign nationals serving as directors or employees require appropriate visa categories and work permits to legally operate within Nepal.

Legal Framework for INGO Registration in Nepal

The legal framework governing INGO operations in Nepal comprises multiple statutes and regulations. The Association Registration Act 1977 provides the foundation for organizational registration. The Social Welfare Act 1992 establishes the Social Welfare Council as the regulatory body for INGOs. The Foreign Exchange Regulation Act 1962 governs financial transactions and fund transfers. The Immigration Act 1992 and Immigration Regulations 1994 regulate foreign national entry and residence. The Income Tax Act 2002 addresses tax exemptions for registered INGOs. The Foreign Employment Act 2007 applies to employment of foreign nationals. These legal instruments collectively create the regulatory environment for INGO operations in Nepal.

Types of INGO Agreements Required

INGOs must obtain three primary agreements to operate legally in Nepal. The General Agreement (GA) represents the framework agreement between the INGO and the Government of Nepal. The Ministry of Finance issues GA after reviewing the organization’s objectives, financial capacity, and proposed activities. The Project Agreement (PA) authorizes specific projects and programs under the GA framework. The Social Welfare Council approves PA after evaluating project proposals, budgets, and implementation plans. The Memorandum of Understanding (MOU) may be required with relevant line ministries depending on the sector of operation. Each agreement type serves distinct regulatory purposes and requires separate application procedures.

General Agreement (GA) Requirements

The General Agreement establishes the legal basis for INGO operations in Nepal. Organizations must demonstrate registration in their home country with valid legal status. The GA application requires submission of organizational bylaws, board composition, and governance structure. Financial statements for the previous three years must demonstrate organizational sustainability. The proposed program areas must align with Nepal’s development priorities and national plans. The organization must commit to maintaining a country office with qualified staff. The GA typically remains valid for five years subject to compliance with reporting requirements. Organizations must submit annual progress reports and audited financial statements to maintain GA validity.

Project Agreement (PA) Requirements

The Project Agreement authorizes specific projects within the GA framework. Organizations must submit detailed project proposals including objectives, activities, and expected outcomes. The budget must clearly itemize all expenditure categories with justification. The project duration typically ranges from one to five years. The implementing partners and beneficiary communities must be clearly identified. The project must demonstrate alignment with national development priorities and local needs. The Social Welfare Council evaluates proposals based on technical feasibility and financial reasonableness. Organizations must obtain PA approval before commencing project implementation or fund transfers.

Social Welfare Council (SWC) Approval Process

The Social Welfare Council serves as the primary regulatory authority for INGOs in Nepal. Organizations must register with SWC after obtaining GA from the Ministry of Finance. The SWC registration requires submission of organizational documents, GA copy, and registration certificate. The Council maintains a database of all registered INGOs and their activities. Organizations must submit quarterly progress reports detailing activities, expenditures, and achievements. Annual audited financial statements must be submitted within six months of fiscal year end. The SWC conducts periodic monitoring visits to project sites. Non-compliance with reporting requirements may result in suspension of PA or GA.

INGO Registration Process Steps

Submit application for General Agreement to the Ministry of Finance with required documents.
Obtain GA approval letter from the Ministry of Finance after review and verification.
Register the organization with the District Administration Office under the Association Registration Act.
Apply for affiliation with the Social Welfare Council with GA and registration certificate.
Submit project proposal to SWC for Project Agreement approval.
Obtain PA approval letter from SWC after technical and financial evaluation.
Sign tripartite agreement between INGO, SWC, and relevant line ministry if required.
Open bank account in Nepal with GA and PA approval letters.
Apply for tax exemption certificate from the Inland Revenue Department.
Register foreign staff with the Department of Immigration for visa and work permits.

Documents Required for INGO Registration

Certificate of incorporation or registration from the home country with official translation.
Organizational bylaws or constitution duly authenticated by relevant authorities.
Board resolution authorizing establishment of operations in Nepal.
List of board members with biographical information and contact details.
Audited financial statements for the previous three consecutive years.
Organizational profile detailing history, mission, vision, and global operations.
Project proposal with detailed budget, timeline, and implementation strategy.
Memorandum of Understanding with local implementing partners if applicable.
Passport copies of foreign directors and key personnel.
Authorization letter for local representative with power of attorney.
Bank reference letter from the home country demonstrating financial capacity.
Tax clearance certificate from the home country or relevant jurisdiction.

Requirements for Local INGO Registration

Local organizations seeking INGO affiliation must meet specific criteria. The organization must be registered under the Association Registration Act 1977 with the District Administration Office. The registration certificate must be current and valid without any suspension history. The organization must have operated for at least two years with documented activities. The board composition must include at least seven members with diverse expertise. The organization must maintain proper financial records with annual audits. The bylaws must include provisions for democratic governance and transparency. Local organizations must demonstrate capacity to implement projects and manage funds. The organization must have a physical office with full-time staff.

Requirements for Foreign INGO Registration

Foreign organizations must fulfill additional requirements for Nepal operations. The organization must be legally registered in the home country for at least three years. The registration certificate must be authenticated by the Nepalese embassy or consulate. The organization must demonstrate international experience in development or humanitarian work. Financial statements must show adequate resources to support proposed Nepal operations. The organization must appoint a country representative with appropriate qualifications. The home country government or relevant authority must provide a recommendation letter. The organization must commit to establishing a country office within six months of GA approval. Foreign organizations must comply with foreign exchange regulations for fund transfers.

Visa Requirements for INGO Directors

Foreign nationals serving as INGO directors require appropriate visa categories. The Non-Tourist Visa under the business category applies to INGO staff and directors. Organizations must submit visa recommendation letters to the Department of Immigration. The recommendation letter must include the individual’s designation, salary, and contract duration. The Ministry of Home Affairs issues visa approval based on SWC recommendation. Initial visa validity typically ranges from six months to one year. Visa extensions require submission of tax clearance and work permit certificates. Directors must maintain valid passports with at least six months remaining validity. Multiple entry provisions allow directors to travel internationally while maintaining Nepal residence.

Work Permit Requirements for Foreign Staff

Foreign nationals employed by INGOs must obtain work permits from the Department of Labor. Organizations must submit work permit applications with employment contracts and qualifications. The labor market test requires demonstration that qualified Nepali nationals are unavailable. Work permits remain valid for the contract duration up to a maximum of five years. Organizations must pay work permit fees based on salary levels and contract duration. The Department of Labor may reject applications if local expertise is available. Work permit holders must register with the Department of Immigration within seven days. Organizations must maintain records of all foreign staff with valid work permits.

INGO Registration Cost Structure

Fee Category	Amount (NPR)	Issuing Authority
Association Registration	1,000 – 5,000	District Administration Office
SWC Affiliation Fee	25,000	Social Welfare Council
Project Agreement Fee	0.5% of project budget	Social Welfare Council
Annual Renewal Fee	10,000	Social Welfare Council
Work Permit Fee	10,000 – 100,000	Department of Labor
Visa Fee	3,000 – 30,000	Department of Immigration
Tax Exemption Processing	No fee	Inland Revenue Department
Document Authentication	Variable	Ministry of Foreign Affairs

Timeline for INGO Registration Process

The complete INGO registration process requires approximately six to twelve months. The General Agreement application review takes three to six months from submission. The District Administration Office processes association registration within two to four weeks. The Social Welfare Council affiliation requires one to two months after GA approval. Project Agreement approval takes two to three months from proposal submission. Work permit processing requires four to six weeks with complete documentation. Visa processing takes two to four weeks after work permit approval. Organizations should plan for additional time for document preparation and authentication. Delays may occur during government holidays or administrative backlogs.

Annual Reporting and Compliance Requirements

Registered INGOs must fulfill ongoing reporting obligations to maintain legal status. Organizations must submit quarterly progress reports to SWC within fifteen days of quarter end. Annual progress reports must detail all activities, achievements, and challenges faced. Audited financial statements must be submitted within six months of fiscal year end. The audit must be conducted by chartered accountants registered with the Institute of Chartered Accountants of Nepal. Organizations must report any changes in board composition or country representative. Fund transfer reports must be submitted for all foreign currency receipts. Non-compliance with reporting requirements may result in penalties or suspension of agreements.

Renewal Process for GA and PA

The General Agreement requires renewal every five years before expiration. Organizations must submit renewal applications six months before GA expiry. The renewal application must include progress reports for the entire GA period. Updated organizational documents and financial statements must accompany the application. The Ministry of Finance evaluates organizational performance before granting renewal. Project Agreements require renewal or new applications for continued operations. Organizations must complete ongoing projects before applying for new PA. The renewal process follows similar procedures as initial applications with updated documentation.

Tax Exemption and Financial Regulations

Registered INGOs qualify for tax exemptions under the Income Tax Act 2002. Organizations must apply for tax exemption certificates from the Inland Revenue Department. The exemption covers income tax on organizational income and customs duties on imported goods. VAT exemption applies to goods and services purchased for project implementation. Organizations must maintain separate accounts for exempt and non-exempt transactions. All fund transfers must comply with Foreign Exchange Regulation Act requirements. The Nepal Rastra Bank must approve all foreign currency transactions. Organizations must convert foreign currency within three days of receipt. Financial transactions must be conducted through authorized banking channels only.

Monitoring and Evaluation by Authorities

The Social Welfare Council conducts regular monitoring of INGO activities and compliance. Field monitoring visits assess project implementation quality and beneficiary satisfaction. Financial monitoring reviews expenditure patterns and budget utilization rates. The Council may request additional information or clarification on reported activities. Line ministries conduct sector-specific monitoring in coordination with SWC. The Office of the Auditor General may conduct special audits of INGO finances. Non-compliance findings may result in corrective action requirements or penalties. Organizations must respond to monitoring findings within specified timeframes.

Common Challenges in INGO Registration

Organizations frequently encounter delays in document authentication and verification processes. Language barriers require professional translation of all foreign language documents. Coordination between multiple government agencies creates procedural complexities. Changes in government policies or personnel may affect application processing timelines. Incomplete applications result in rejection and resubmission requirements. Understanding local context and development priorities requires significant research and consultation. Maintaining compliance with multiple reporting requirements demands dedicated administrative capacity. Organizations must adapt to evolving regulatory frameworks and procedural changes.

Why Choose Axion Partners for INGO Registration

Axion Partners stands as the premier service provider for INGO registration in Nepal. Our team possesses comprehensive knowledge of all legal requirements and procedural nuances. We maintain established relationships with all relevant government authorities and regulatory bodies. Our services include complete document preparation, translation, and authentication support. We provide end-to-end assistance from initial consultation through final registration approval. Our expertise covers GA applications, PA proposals, SWC affiliation, and visa processing. We ensure compliance with all reporting requirements and renewal procedures. Our track record demonstrates consistent success in securing timely approvals for diverse organizations. We offer transparent pricing with no hidden costs or unexpected fees. Our multilingual team facilitates effective communication with government officials and stakeholders.

Frequently Asked Questions

What is the difference between GA and PA in Nepal?

The General Agreement establishes the overall framework for INGO operations in Nepal, while the Project Agreement authorizes specific projects. GA is issued by the Ministry of Finance for five years, whereas PA is approved by the Social Welfare Council for individual project durations.

How long does INGO registration take in Nepal?

The complete INGO registration process typically requires six to twelve months from initial application to final approval. The timeline depends on document completeness, government processing capacity, and coordination between multiple authorities. Organizations should plan accordingly and submit applications well in advance.

Can INGOs operate without SWC approval?

No, INGOs cannot legally operate in Nepal without Social Welfare Council approval. The Social Welfare Act 1992 mandates SWC affiliation for all international organizations. Operating without proper registration may result in legal penalties, fund transfer restrictions, and deportation of foreign staff.

What visa category applies to INGO staff?

INGO staff require Non-Tourist Visa under the business category. The Department of Immigration issues these visas based on recommendations from the Social Welfare Council and the Ministry of Home Affairs. Work permits from the Department of Labor are also mandatory for foreign employees.

How much does INGO registration cost in Nepal?

INGO registration costs vary based on project budget and organizational size. Basic registration fees range from NPR 36,000 to NPR 50,000, excluding Project Agreement fees calculated at 0.5% of project budget. Additional costs include work permits, visas, and professional service fees.

What documents need authentication for INGO registration?

All foreign documents require authentication by the Nepalese embassy or consulate in the home country. Required documents include incorporation certificates, organizational bylaws, financial statements, and board resolutions. Documents in foreign languages must be professionally translated into Nepali or English.

Can local NGOs receive foreign funding without INGO status?

Local NGOs can receive foreign funding through registered INGOs or with direct SWC approval. Organizations must obtain Project Agreement approval for each funded project. Direct foreign funding requires compliance with foreign exchange regulations and SWC reporting requirements.

What happens if INGO registration expires?

Expired registration results in immediate suspension of all project activities and fund transfers. Organizations must cease operations until renewal approval is obtained. Continued operation with expired registration may result in legal penalties, deportation of foreign staff, and permanent ban from Nepal.

Are INGOs required to hire local staff?

Yes, INGOs must prioritize hiring qualified Nepali nationals for all positions. Foreign staff are permitted only when demonstrated local expertise is unavailable. The work permit application requires justification for hiring foreign nationals over local candidates.

How often must INGOs report to authorities?

INGOs must submit quarterly progress reports to the Social Welfare Council within fifteen days of each quarter end. Annual audited financial statements are due within six months of fiscal year end. Additional reports may be required for specific projects or upon authority request.