What is Manpower License and How to Obtain it?
A manpower license in Nepal is a legal permit required for businesses to operate as recruitment agencies, connecting Nepali workers with job opportunities abroad. Governed by the Foreign Employment Act, 2064 (2007) and Foreign Employment Rules, 2064 (2008), it ensures ethical practices and safeguards workers’ rights.
To get this license, businesses must go through a step-by-step process involving government approvals, proper documentation, and compliance with strict legal standards. This license is essential for any agency looking to recruit and send Nepali workers overseas.
This Article provides a detailed lawyers guide with experience regarding the requirements, costs, and process to obtain a manpower license in Nepal.
Documents Required for Manpower License in Nepal
The documentation process for obtaining a manpower license in Nepal is comprehensive and requires meticulous preparation. Applicants must submit the following documents:
- Application form prescribed by the Department of Foreign Employment (DoFE)
- Company registration certificate
- Memorandum and Articles of Association
- Tax clearance certificate
- Proof of paid-up capital (minimum NPR 15 million)
- Bank guarantee (NPR 5 million)
- Office ownership or rental agreement
- Citizenship certificates of company directors
- Police clearance certificates for directors
- Educational qualifications of directors
Ensuring all documents are accurate and up-to-date is crucial for a smooth application process. Any discrepancies or missing information can lead to delays or rejection of the license application.
Process for 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 registers with manpower objectives at the Office of Company Registrar (OCR). This complies with the Company Act of Nepal and establishes legal recognition. The company must specify manpower-related purposes in its Articles of Association. This step is mandatory to start the process of obtaining a manpower license.
Step 2: Tax Registration (PAN) at Inland Revenue Department
The company secures a Permanent Account Number (PAN) from the Inland Revenue Department. This registration ensures compliance with Nepal’s Income Tax Act. PAN is essential for managing tax obligations and conducting financial transactions. Every registered business in Nepal must have a PAN to operate legally and maintain financial transparency.
Step 3: Local Business Registration at Ward Office
The company completes business registration with the local ward office under the Local Governance Act. This ensures the agency is acknowledged at the local government level. Local registration is critical for securing approvals. It establishes the company’s legal presence within the community and complies with municipal regulations.
Step 4: Deposit of NPR 50 Lakhs Bank Guarantee
The company deposits a bank guarantee of NPR 50 lakhs as required by law. This is mandatory under the Foreign Employment Act to ensure financial accountability. The bank guarantee provides security for potential liabilities. It must be submitted to a designated bank recognized by the government.
Step 5: Deposit of NPR 1.5 Crore Bank Collateral
The company deposits NPR 1.5 crore as bank collateral to meet legal requirements. This deposit is required under the Foreign Employment Regulation to cover operational risks. The collateral acts as financial security for the agency. It ensures the agency’s ability to address any legal or financial liabilities.
Step 6: Operation of Manpower Agency after Department of Labor Approval
The company starts operations after receiving approval from the Department of Labor. This approval confirms compliance with the Foreign Employment Act. All mandatory deposits and registrations must be completed before approval. The agency’s operational activities must align with the Department of Labor’s guidelines and legal requirements.
Essential Requirements for Manpower Agency Operation
Operating a manpower agency in Nepal requires meeting several essential criteria:
- Minimum Paid-up Capital: NPR 5 million for new agencies
- Bank Guarantee: NPR 3 million deposited with a commercial bank
- Office Space: Minimum 1000 sq. ft. in a commercial area
- Professional Staff: Qualified personnel for various roles
- Infrastructure: Adequate office equipment and facilities
- Ethical Standards: Commitment to fair recruitment practices
- Legal Compliance: Adherence to all relevant laws and regulations
These requirements ensure that manpower agencies have the financial stability and professional capacity to operate responsibly in the foreign employment sector.
How much does it cost to Register Manpower in Nepal?
The cost of obtaining a manpower license in Nepal includes various fees and deposits:
- License Fee: NPR 10,000
- Renewal Fee: NPR 5,000 (annual)
- Bank Guarantee: NPR 3 million
- Paid-up Capital: Minimum NPR 5 million
- Office Setup Costs: Varies based on location and size
- 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:
- Application Fee: NPR 100
- License Issuance Fee: NPR 10,000
- License Renewal Fee: NPR 5,000 (annual)
- Company Registration Fee: Varies based on company structure
- PAN Registration Fee: NPR 500
- Document Verification Fees: Varies based on document type
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 can vary, but typically follows this schedule:
- Company Registration: 1-2 weeks
- Document Preparation: 2-4 weeks
- Application Submission: 1 day
- Document Verification: 2-4 weeks
- Site Inspection: 1-2 weeks
- License Issuance: 1-2 weeks
The entire process can take approximately 2-3 months, depending on the efficiency of document preparation and the workload of government agencies. Delays can occur if additional information or corrections are required.
Checklist for Manpower License Process 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:
- Department of Foreign Employment (DoFE): Primary regulatory authority
- Ministry of Labour, Employment and Social Security: Oversees labor-related policies
- Foreign Employment Board: Promotes safe migration and worker welfare
- Nepal Rastra Bank: Monitors financial transactions and remittances
- Office of Company Registrar: Handles company registration and compliance
Manpower agencies must maintain good relationships with these authorities and comply with their regulations to operate successfully in Nepal.
Legal Services for Manpower License Assistance
Professional legal services can greatly facilitate the manpower license application process. These services typically include:
- Document preparation and review
- Application submission assistance
- Liaison with government agencies
- Compliance advisory services
- License renewal assistance
- Legal representation in disputes
Engaging a reputable law firm like Axion Partners can significantly streamline the licensing process and ensure full compliance with Nepali laws and regulations.
Operating Requirements for Manpower Agencies Nepal
Once licensed, manpower agencies must adhere to specific operating requirements:
- Maintain detailed records of recruited workers
- Provide pre-departure orientation to workers
- Ensure fair and transparent recruitment practices
- Comply with advertising regulations for job vacancies
- Maintain proper financial records and submit annual reports
- Renew the license annually
- Cooperate with government inspections and audits
Failure to meet these requirements can result in penalties, license suspension, or revocation.
Compliance Requirements for Manpower Business Nepal
Manpower agencies in Nepal must comply with various legal and ethical standards:
- Adhere to the Foreign Employment Act and Rules
- Follow fair recruitment practices as per ILO guidelines
- Maintain transparency in financial transactions
- Protect workers’ rights and ensure their safety
- Comply with anti-trafficking laws
- Adhere to labor laws of destination countries
- Maintain proper documentation and reporting
Regular internal audits and compliance checks are essential to ensure adherence to these requirements.
Registration Process for Manpower License Nepal
The registration process for a manpower license involves these steps:
- Prepare all required documents
- Submit the application to the DoFE
- Pay the prescribed fees
- Undergo document verification
- Participate in site inspection
- Attend interviews with DoFE officials (if required)
- Receive the license upon approval
Applicants should be prepared for potential follow-up requests or clarifications during this process.
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Renewal Process for Manpower License Nepal
Manpower licenses in Nepal must be renewed annually. The renewal process includes:
- Submit renewal application to DoFE
- Pay renewal fee (NPR 5,000)
- Provide updated company documents
- Submit annual report of agency activities
- Undergo compliance review
- Receive renewed license
Timely renewal is crucial to avoid interruptions in business operations or penalties for operating with an expired license.
Professional Requirements for Manpower Agency Operation
Manpower agencies must employ qualified professionals to ensure effective operations:
- General Manager: Experienced in HR or foreign employment
- Finance Manager: Qualified in accounting and financial management
- Legal Advisor: Licensed lawyer with expertise in labor laws
- Marketing Manager: Experienced in international recruitment
- Administrative Staff: Trained in office management and documentation
These professionals must have relevant educational qualifications and experience in the foreign employment sector.
How to register a Manpower 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 Department of Labor Approval
How to start a manpower agency in Nepal?
1. Register the company with the Office of Company Registrar.
2. Obtain a PAN/VAT certificate from the Inland Revenue Department.
3. Apply for a manpower license from the Department of Foreign Employment (DOFE).
4. Deposit the required bank guarantee and meet financial requirements.
5. Secure labor approvals and follow compliance regulations.
How can I get a contractor license in Nepal?
1. Register the business with the Office of Company Registrar.
2. Obtain a PAN/VAT certificate from the Inland Revenue Department.
3. Apply for a contractor license at the Ministry of Physical Infrastructure and Transport.
4. Meet experience, financial, and technical requirements.
5. Renew the license periodically as per government regulations.
How to check registered manpower in Nepal?
To verify a registered manpower agency in Nepal, visit the official website of the Department of Foreign Employment (DOFE). There, you can search for the agency’s name in the list of registered manpower companies. This allows you to confirm the agency’s license status and legal authorization for foreign employment recruitment.
Which is the most trusted manpower in Nepal?
Several licensed manpower agencies operate in Nepal, and their trustworthiness depends on factors like government registration, client reviews, and successful placement records. To find the most reliable manpower agency, check the DOFE’s official website for a list of authorized agencies. Additionally, ISO-certified agencies with a strong reputation for ethical recruitment practices are often considered the most trusted in the industry.
Table of Contents
- 1 What is Manpower License and How to Obtain it?
- 2 Documents Required for Manpower License in Nepal
- 3 Process for Obtaining Manpower License in Nepal
- 3.1 Step 1: Registration with Manpower Objectives at OCR
- 3.2 Step 2: Tax Registration (PAN) at Inland Revenue Department
- 3.3 Step 3: Local Business Registration at Ward Office
- 3.4 Step 4: Deposit of NPR 50 Lakhs Bank Guarantee
- 3.5 Step 5: Deposit of NPR 1.5 Crore Bank Collateral
- 3.6 Step 6: Operation of Manpower Agency after Department of Labor Approval
- 4 Essential Requirements for Manpower Agency Operation
- 5 How much does it cost to Register Manpower in Nepal?
- 6 Timeline for Manpower License Application Process
- 7 Checklist for Manpower License Process in Nepal
- 8 Regulatory Authorities Governing Manpower Agencies Nepal
- 9 Legal Services for Manpower License Assistance
- 10 Operating Requirements for Manpower Agencies Nepal
- 11 Compliance Requirements for Manpower Business Nepal
- 12 Registration Process for Manpower License Nepal
- 13 Renewal Process for Manpower License Nepal
- 14 Professional Requirements for Manpower Agency Operation