Manpower License Process In Nepal 2026

Manpower license in Nepal is issued by the Department of foreign Employment (DOFE) in Nepal located at Tahachal Kathmandu 44600. It works under the Ministry of Labour, Employment and Social Security (MoLESS).
The License Granted by the DOFE Nepal insures smooth operation of recruitment agencies in Nepal assisting people going abroad for employment purpose.

Manpower License in Nepal

What is Manpower License in Nepal ?

A legal permit issued by the Department of Foreign Employment (DoFE) that allows companies to recruit Nepali workers for overseas jobs. It is mandatory for operating a recruitment agency.

Major Requirements

• Minimum NPR 15–20 million.
• NPR 5 million (50 Lakhs).
• NPR 1.5 Crore.
• Physical Office Space with Rental Agreement
• Must hire qualified professionals

Process to Obtain Manpower License in Nepal

1. Step 1: Register with the Office of Company Registrar (OCR) with manpower objectives.
2. Step 2: Obtain PAN/VAT from the Inland Revenue Department.
3. Step 3: Register business at the local Ward Office.
4. Step 4: Deposit the required NPR 50 Lakhs guarantee.
5. Step 5: Deposit the required NPR 1.5 Crore collateral.
6. Step 6: Receive final approval from the Department of Labor/DoFE to begin operations.

Costs & Timeline

• License Fee: NPR 20,000/-
• Timeline: Approximately 15 Days with Guarantee License.

Manpower License Renewal

• The license must be renewed annually.
• Agencies must adhere to strict ethical standards, maintain financial transparency, and protect workers’ rights.

What is a Manpower License in Nepal and How to Obtain it?

A manpower license in Nepal is a legal permit that allows businesses to operate as a manpower agency in Nepal. It authorizes companies to recruit Nepali workers and connect them with overseas job opportunities.

This license is issued under the Foreign Employment Act, 2064 (2007) and the Foreign Employment Rules, 2064 (2008). The manpower license in Nepal ensures fair recruitment, ethical practices, and protection of workers’ rights, making licensed firms reliable manpower recruitment agencies in Nepal.

To obtain this license, businesses must follow a clear, step-by-step manpower license process in Kathmandu, Nepal, which includes government approvals, proper documents, and compliance with legal requirements.

This license is mandatory for any agency involved in recruiting and sending Nepali workers abroad and is a key part of manpower registration in Nepal.

​​This article provides a simple and practical legal guide explaining the requirements, costs, and procedures, including how to apply for a manpower license apply online, based on professional experience in handling manpower licensing cases.

Documents Required for Manpower License in Nepal

The documentation process for obtaining a manpower license in Nepal is detailed and requires careful planning and accurate paperwork to complete the manpower company registration in Kathmandu, Nepal successfully.

1. Application form prescribed by the Department of Foreign Employment (DoFE)
2. Company registration certificate
3. Memorandum and Articles of Association
4. Tax clearance certificate
5. Proof of paid-up capital (minimum NPR 15 million)
6. Bank guarantee (NPR 5 million)
7. Office ownership or rental agreement
8. Citizenship certificates of company directors
9. Police clearance certificates for directors
10. Educational qualifications of directors

Ensuring all documents are accurate and up to date is essential for a smooth application. Any errors, missing details, or incorrect information can cause delays or rejection during the manpower licence check process.

Process of Obtaining Manpower License in Nepal

• Step 1: Registration with Manpower Objectives at OCR
• Step 2: Tax Registration (PAN) at Inland Revenue Department
• Step 3: Local Business Registration at Ward Office
• Step 4: Deposit of NPR 50 Lakhs Bank Guarantee
• Step 5: Deposit of NPR 1.5 Crore Bank Collateral
• Step 6: Operation of Manpower Agency after DoL Approval

Step 1: Registration with Manpower Objectives at OCR

The company must first complete manpower company registration in Nepal by registering with manpower-related objectives at the Office of Company Registrar (OCR). This step follows the Company Act of Nepal and gives the business legal recognition. The company is required to clearly mention manpower and recruitment purposes in its Articles of Association. This registration is a mandatory starting point for the manpower license process in Nepal.

Step 2: Tax Registration (PAN) at Inland Revenue Department

The company must obtain a Permanent Account Number (PAN) from the Inland Revenue Department to comply with Nepal’s Income Tax Act. PAN is required to handle taxes, carry out financial transactions, and operate legally. This step is mandatory for all businesses and supports proper manpower registration in Kathmandu.

Step 3: Local Business Registration at Ward Office

The company must complete business registration with the local ward office under the Local Governance Act. This confirms the agency’s recognition at the local level and helps obtain further approvals. Local registration is important to legally operate as a manpower agency in Nepal and comply with municipal rules.

Step 4: Deposit of NPR 50 Lakhs Bank Guarantee

The company must deposit a bank guarantee of NPR 50 lakhs as required by the Foreign Employment Act. This guarantee ensures financial responsibility and protects workers in case of liabilities. It must be submitted through a government-recognized bank. This step is a key requirement in the manpower license process in Kathmandu, Nepal and is necessary to operate as a licensed manpower company involved in Nepal manpower.

Step 5: Deposit of NPR 1.5 Crore Bank Collateral

The company must deposit NPR 1.5 crore as Nepal Rastra Bank collateral to meet legal requirements under the Foreign Employment Regulation. This deposit acts as financial security to cover operational and legal risks. It helps ensure the agency can handle liabilities responsibly during the manpower license process in Nepal and is a key condition for completing manpower registration in Nepal as a licensed manpower company .

Step 6: Operation of Manpower Agency after Department of Labor Approval

The company can start operations only after receiving approval from the Department of Labor. This approval confirms that the agency fully complies with the Foreign Employment Act. All required registrations and financial deposits must be completed before approval is granted. After approval, the agency must operate strictly according to legal guidelines as a licensed manpower company, following the manpower license process in Nepal and standards set for manpower agencies in Nepal.

What are the Requirements for Manpower License in Nepal ?

Operating a manpower recruitment agency in Nepal requires meeting several legal, financial, and professional standards. 

The main requirements include:

1. Minimum Paid-up Capital: NPR 20 million for new agencies
2. Bank Guarantee: NPR 50 Lakhs deposited with Nepal Rastra Bank
3. Office Space: Minimum 1000 sq. ft. in a commercial area
4. Professional Staff: Qualified personnel for various roles
5. Infrastructure: Adequate office equipment and facilities
6. Ethical Standards: Commitment to fair recruitment practices
7. Legal Compliance: Adherence to all relevant laws and regulations

These requirements ensure that a manpower agency in Kathmandu, Nepal has the financial strength, professional capacity, and ethical foundation to operate responsibly and protect workers’ interests in the foreign employment sector. They also help regulate and strengthen manpower in Kathmandu, Nepal by allowing only qualified agencies to operate.

How much does it cost to open Manpower in Nepal?

The cost of obtaining a manpower license in Nepal includes various fees and deposits:

1. License Fee: NPR 10,000
2. Renewal Fee: NPR 5,000 (annual)
3. Bank Guarantee: NPR 3 million
4. Paid-up Capital: Minimum NPR 5 million
5. Office Setup Costs: Varies based on location and size
6. Legal and Professional Fees: Varies based on service provider

Applicants should budget for these costs and ensure they have sufficient financial resources before initiating the license application process.

Government Fees for obtaining Manpower License in Nepal

Government fees associated with the manpower license process include:

1. Application Fee
2. License Issuance Fee
3. License Renewal Fee
4. Company Registration Fee
5. PAN Registration Fee

These fees are subject to change, and applicants should verify the current rates with the Department of Foreign Employment before proceeding with their application.

Timeline for Manpower License Application Process

The timeline for obtaining a manpower license in Nepal as overseas pvt ltd which can vary, but typically follows this schedule:

1. Company Registration: 1-2 Working Days
2. Document Preparation: 2-4 Working Days
3. Application Submission: 1 day
4. Document Verification: 2-4 Working Days
5. Site Inspection: 3-4 Working Days
6. License Issuance: 1-2 Days

The entire process can take approximately 15 days, depending on the efficiency of document preparation and the workload of government agencies. Delays can occur if additional information or corrections are required.

READ MORE: DoFE Case Filing Process in Nepal

Checklist for Manpower License in Nepal

• Company registration certificate
• PAN certificate
• Tax clearance certificate
• Memorandum and Articles of Association
• Bank guarantee certificate
• Proof of paid-up capital
• Office ownership/rental agreement
• Directors’ citizenship certificates
• Directors’ police clearance certificates
• Directors’ educational certificates
• Completed application form
• Passport-sized photographs of directors

Regulatory Authorities Governing Manpower Agencies Nepal

Several government bodies oversee manpower agencies in Nepal:

1. Department of Foreign Employment (DoFE): Primary regulatory authority
2. Ministry of Labour, Employment and Social Security: Oversees labor-related policies
3. Foreign Employment Board: Promotes safe migration and worker welfare
4. Nepal Rastra Bank: Monitors financial transactions and remittances
5. Office of Company Registrar: Handles company registration and compliance

Manpower agencies must maintain strong coordination with concerned authorities and strictly follow their rules and guidelines to operate legally and successfully as a manpower agency in Nepal.

Legal Services for Manpower License Assistance

Axion Partners, according to Licensed Manpower Agencies, are one of the best Manpower License service providers in Nepal. Advocate Bhaskar Prasad Pokhrel with nearly 25 Years of Experience in this Sector leads the Recruitment Practice Area of the Firm.

1. Document preparation and review
2. Application submission assistance
3. Liaison with government agencies
4. Compliance advisory services
5. License renewal assistance
6. Legal representation in disputes

Engaging a reputable law firm in Nepal like Axion Partners can greatly simplify the licensing procedure and ensure full legal compliance throughout the manpower license process in Nepal.

Requirements for Manpower Agencies Nepal

Once licensed, manpower agencies must adhere to specific operating requirements:

1. Maintain detailed records of recruited workers
2. Provide pre-departure orientation to workers
3. Ensure fair and transparent recruitment practices
4. Comply with advertising regulations for job vacancies
5. Maintain proper financial records and submit annual reports
6. Renew the license annually
7. Cooperate with government inspections and audits

Failure to meet these requirements can result in penalties, license suspension, or revocation.

Compliance Requirements for Manpower License in Nepal

Manpower agencies in Nepal must comply with various legal and ethical standards:

1. Adhere to the Foreign Employment Act and Rules
2. Follow fair recruitment practices as per ILO guidelines
3. Maintain transparency in financial transactions
4. Protect workers’ rights and ensure their safety
5. Comply with anti-trafficking laws
6. Adhere to labor laws of destination countries
7. Maintain proper documentation and reporting

Regular internal audits and compliance checks are essential to ensure adherence to these requirements.

Registration Process for Manpower License in Nepal

The registration process for a manpower license involves these steps:

1. Prepare all required documents
2. Submit the application to the DoFE
3. Pay the prescribed fees
4. Undergo document verification
5. Participate in site inspection
6. Attend interviews with DoFE officials (if required)
7. Receive the license upon approval

Applicants should be ready to respond to follow-up questions or provide additional clarifications during the manpower licence check process in Nepal.

Renewal Process for Manpower License in Nepal

Manpower licenses in Nepal must be renewed every year to continue operating legally. The renewal process under the manpower license process in Nepal generally includes the following steps:

1. Submit renewal application to DoFE
2. Pay renewal fee (NPR 5,000)
3. Provide updated company documents
4. Submit annual report of agency activities
5. Undergo compliance review
6. Receive renewed license

Timely renewal is very important to avoid business disruption, penalties, or suspension of operations. Regular renewal also helps confirm that the agency remains a licensed manpower company and continues to meet the standards required for Nepal manpower.

Professional Requirements for Manpower Agency Operation

Manpower agencies must hire qualified professionals to ensure smooth and lawful operations as part of manpower registration in Nepal. The key professional requirements include:

1. General Manager: Experienced in HR or foreign employment
2. Finance Manager: Qualified in accounting and financial management
3. Legal Advisor: Licensed lawyer with expertise in labor laws
4. Marketing Manager: Experienced in international recruitment
5. Administrative Staff: Trained in office management and documentation

These professionals must have the required education and practical experience to operate responsibly as a manpower agency in Nepal and meet the standards expected from registered manpower agencies in Nepal.

Conclusion by Axion Partners

This guide explains the manpower license process in Nepal, including registration, documents, costs, timelines, compliance, and renewal. From manpower company registration in Nepal to DoFE approval, Axion Partners helps businesses complete manpower registration in Nepal smoothly and operate as a legally compliant licensed manpower company supporting manpower in Nepal.