Registering Travel Agency in Nepal

Registering Travel Agency in Nepal

Registering Travel Agency in Nepal must be conducted at the Bagmati Tourism Office and requires Paid-Up Capital of NPR 25 Lakhs. It takes 12-18 Working Days.

It requires tourism approval, company formation, capital, and obtaining licenses from multiple government authorities including the Office of Company Registrar, Department of Small and Cottage Industries, and Bagmati Tourism Office with mandatory inspection procedures.

STEP-BY-STEP TRAVEL COMPANY REGISTRATION IN NEPAL
  • Step 1: Registration of Company at OCR
  • Step 2: Registration at Tax & Ward Office with Bank Account Opening
  • Step 3: Preparing BG of NPR 5 Lakhs  and Paid-Up Capital of 25 Lakhs
  • Step 4: Obtaining Recommendation from Bagmati Tourism Office
  • Step 5: Registration of Industry at DCSI
  • Step 6: Obtaining Final Tourism License after Inspection 

What Is Travel Agency Registration in Nepal?

Travel agency registration in Nepal is the legal process of establishing a tourism business entity authorized to provide travel-related services including tour packages, ticketing, hotel bookings, and travel consultancy services under the Tourism Act and regulations enforced by the Ministry of Culture, Tourism and Civil Aviation.

The registration process involves multiple stages starting with company formation at the Office of Company Registrar, followed by tax registration, capital verification, obtaining recommendations from provincial tourism offices, industry registration, and finally securing the tourism license after physical inspection of the business premises and verification of all compliance requirements.

Travel agencies in Nepal operate under strict regulatory frameworks designed to protect tourists and maintain service quality standards. The government mandates minimum paid-up capital of NPR 25 lakhs and a bank guarantee of NPR 5 lakhs.

Requirements for Obtaining Tourism License

  1. The minimum paid-up capital shall be NPR 25,00,000 (Twenty-Five Lakhs).
  2. A Bank Guarantee of NPR 5,00,000 (Five Lakhs) must be issued.
  3. Approval shall be granted only after successful inspection of the agency.
  4. A duly completed and properly executed application must be submitted.
  5. The physical presence of all directors is mandatory at the Tourism Department.

Where To Register a Travel Agency in Nepal?

Registering travel agency in Nepal involves multiple government offices and departments at federal, provincial, and local levels. The primary registration authority is the Office of Company Registrar for company formation, followed by the Inland Revenue Department for tax registration, and the Department of Small and Cottage Industries for industry classification.

The provincial tourism office, specifically the Bagmati Tourism Office for businesses operating in Bagmati Province, provides essential recommendations after verifying business premises, capital requirements, and compliance with tourism regulations. This recommendation is mandatory before proceeding to the final licensing stage with the same office.

All directors must appear physically at the tourism office during the final licensing stage to complete biometric verification and document authentication. The complete registration process requires coordination between multiple government agencies, making professional assistance valuable.

How To Register a Travel Agency in Nepal?

Process of Registering Travel Agency in Nepal
  • Step 1: Registration of Company at OCR
  • Step 2: Registration at Tax & Ward Office with Bank Account Opening
  • Step 3: Preparing BG of NPR 5 Lakhs  and Paid-Up Capital of 25 Lakhs
  • Step 4: Obtaining Recommendation from Bagmati Tourism Office
  • Step 5: Registration of Industry at DCSI
  • Step 6: Obtaining Final Tourism License after Inspection 

Step 1: Registration of Company at Office of Company Registrar

Register your company as a private limited company at the Office of Company Registrar by submitting the company name reservation application, memorandum of association, articles of association, and director details. The registration process takes approximately three days and establishes the legal entity required for tourism business operations.

Step 2: Registration at Tax and Ward Office with Bank Account Opening

Complete PAN registration at the Inland Revenue Department, obtain ward office business operation certificate from the local municipal office, and open a corporate bank account at a commercial bank. These registrations establish tax compliance, local authorization, and banking facilities necessary for capital verification and financial transactions.

Step 3: Preparing Bank Guarantee of NPR 5 Lakhs and Paid-Up Capital of 25 Lakhs

Deposit the minimum paid-up capital of NPR 25 lakhs in the company bank account and obtain a bank guarantee of NPR 5 lakhs from a B-class or higher commercial bank. The share registry certificate must be obtained from the company registrar confirming the capital deposit and shareholding structure.

Step 4: Obtaining Recommendation from Bagmati Tourism Office

Submit the application to Bagmati Tourism Office at https://tourismktm.bagamati.gov.np/ along with all required documents including company registration certificate, capital verification documents, bank guarantee, and premises rental agreement. The tourism office conducts preliminary verification and issues a recommendation letter within three days for proceeding to industry registration.

Step 5: Registration of Industry at Department of Small and Cottage Industries

Apply for industry registration at the Department of Small and Cottage Industries (DSCI) with the recommendation letter from Bagmati Tourism Office, company documents, and capital verification certificates. The industry registration classifies the business as a tourism enterprise and takes approximately one day to complete.

Step 6: Obtaining Final Tourism License after Inspection

Submit the final application to the Bagmati Tourism Office with all previous registration documents, industry registration certificate, and completed application forms. The department conducts a physical inspection of the business premises to verify infrastructure, staffing, and operational readiness before issuing the tourism license within two days.

What Documents Are Required for Travel Agency Registration?

What Documents Are Required for Travel Agency Registration?

The List of Required Documents for Registration of Travel or Tours Agency are:

  • National Identity Card, citizenship certificate, and PAN card of all directors and shareholders
  • House rent agreement for business premises with minimum one-year validity period
  • Landlord’s citizenship certificate and property ownership documents proving legal title
  • Company registration certificate issued by the Office of Company Registrar
  • Articles of Association (AOA) and Memorandum of Association (MOA) of the company
  • Company PAN certificate issued by the Inland Revenue Department
  • Completed application form submitted through https://tourismktm.bagamati.gov.np/ portal
  • Share registry certificate confirming paid-up capital of NPR 25 lakhs
  • Biographical data and two recent passport-sized photographs of all directors
  • Bank guarantee slip of NPR 5 lakhs from B-class or higher commercial bank
  • Board resolution authorizing travel agency registration and appointing authorized representatives
  • Letter of commitment signed by all directors pledging compliance with tourism regulations
  • Ward office business operation certificate from local municipal authority

Financial Requirement for Registering Travel & Tours Company

The following table details the mandatory capital and financial requirements:

Requirement TypeAmount RequiredIssuing Authority
Minimum Paid-Up CapitalNPR 25,00,000Office of Company Registrar
Bank GuaranteeNPR 5,00,000B-Class Commercial Bank

How Long Does Travel Agency Registration Take?

Registering travel agency in Nepal typically requires 12 to 18 working days from initial company formation to final tourism license issuance, depending on document preparation efficiency and government office processing times. The registration timeline for each stage is as follows:

  • Company Registration at OCR: Three working days from application submission with complete documentation including name reservation, MOA, AOA, and director details
  • PAN Registration: One working day at the Inland Revenue Department with company registration certificate and required forms
  • Ward Office Registration: One working day at the local municipal office with company documents and premises rental agreement
  • Bank Account Opening: One to three working days depending on the bank’s internal verification procedures and documentation requirements
  • Share Registry Certificate: One working day at the Office of Company Registrar after capital deposit verification
  • Bagmati Tourism Office Recommendation: Three working days after application submission and preliminary document verification
  • Industry Registration at DOSCSI: One working day with recommendation letter and complete documentation package
  • Final Tourism License: Two working days after physical inspection of premises and verification of all compliance requirements

What Are the Costs of Registering a Travel Agency?

Registering travel agency in Nepal involves various government fees, capital requirements, and administrative costs. The following table provides a comprehensive breakdown of all expenses:

Cost CategoryAmount (NPR)Payment RecipientPayment Stage
Company Registration Fee9,500Office of Company RegistrarInitial registration
Ward Office Registration8,000 – 15,000Municipal ward officeAfter company formation
Industry Registration Fee15,000 – 20,000DOSCSIAfter tourism recommendation
Tourism License Fee25,000Bagmati Tourism OfficeFinal licensing stage
PAN RegistrationFreeInland Revenue DepartmentAfter company registration

What Are Post-Registration Requirements for Travel Agencies?

Registering travel agency in Nepal creates ongoing compliance obligations to maintain legal status and operational authorization. Travel agencies must fulfill continuous reporting, renewal, and regulatory requirements to avoid penalties and license suspension.

What to do after Registration of Travel Agency in Nepal
  • Six-Month Filing at Bagmati Tourism Office: Submit operational reports every six months detailing business activities, tourist numbers, revenue statistics, and compliance with tourism standards
  • Annual Financial Audit: Conduct mandatory annual audits by registered chartered accountants and submit audited financial statements to the Inland Revenue Department and tourism authorities
  • Tax Clearance Certificate: Obtain annual tax clearance certificates demonstrating compliance with income tax, value-added tax, and other applicable tax obligations
  • Company Annual Renewal: File annual returns at the Office of Company Registrar with updated director information, shareholding details, and financial statements
  • Tourism License Renewal: Renew tourism license annually at Bagmati Tourism Office with updated bank guarantee, tax clearance, and compliance certificates
  • Bank Guarantee Renewal: Maintain valid bank guarantee of NPR 5 lakhs throughout business operations with annual renewal before expiration

Can Foreigners Open Travel Agency in Nepal?

Foreign nationals are not permitted to open or operate a travel agency in Nepal in their individual capacity. Under the prevailing tourism, company, and foreign investment laws of Nepal, travel and tour agency businesses are classified as restricted sectors reserved for Nepali citizens only.

Foreigners may participate only through limited roles permitted by law, such as technical cooperation or employment with proper approval. Ownership, directorship, and licensing of travel or tour agencies must remain exclusively with Nepali citizens, and any operation conducted otherwise is considered unlawful.

What Types of Travel Agency Licenses Are Available?

Registering travel agency in Nepal offers different license categories based on service scope and operational areas. The following table outlines the types of travel agency licenses:

License TypeService ScopeCapital RequirementSpecial Conditions
Trekking AgencyTrekking packages, mountain expeditions, adventure tourismNPR 25,00,000 paid-up capital, NPR 5,00,000 bank guaranteeRequires trekking guides with government certification
Travel AgencyGeneral tourism services, ticketing, hotel bookings, tour packagesNPR 25,00,000 paid-up capital, NPR 5,00,000 bank guaranteeMust maintain partnerships with airlines and hotels
Tour AgencyComprehensive tour packages, group tours, customized itinerariesNPR 25,00,000 paid-up capital, NPR 5,00,000 bank guaranteeRequires experienced tour managers and guides
Rafting AgencyRiver rafting, water sports, adventure water activitiesNPR 25,00,000 paid-up capital, NPR 5,00,000 bank guaranteeSafety equipment and trained rafting guides mandatory
Mountaineering AgencyHigh-altitude expeditions, peak climbing, mountaineering supportNPR 50,00,000 paid-up capital, NPR 10,00,000 bank guaranteeRequires experienced mountaineering guides and specialized equipment

What Benefits Come with Travel Agency Registration?

Registering travel agency in Nepal provides numerous legal, operational, and business advantages that facilitate growth and establish credibility in the competitive tourism industry. Registered agencies gain access to government support programs and international partnerships.

  • Legal Authorization: Operate tourism business legally with full government recognition and protection under tourism laws and regulations
  • International Partnerships: Establish partnerships with international airlines, hotel chains, and global distribution systems requiring valid tourism licenses
  • Government Tenders: Participate in government tourism projects, contracts, and tenders reserved exclusively for registered tourism enterprises
  • Bank Financing: Access business loans, credit facilities, and financial services from commercial banks with registered company status
  • Tourist Confidence: Build customer trust and credibility through government-verified registration and compliance with tourism standards
  • Industry Association Membership: Join tourism industry associations, chambers of commerce, and professional networks for business development
  • Tax Benefits: Qualify for tourism sector tax incentives, exemptions, and concessions provided under industrial and tourism policies

What Laws Govern Travel Agency Registration in Nepal?

Registering travel agency in Nepal is governed by legal frameworks that regulate tourism business operations, company formation, taxation, and industry standards. Law Firm in Nepal assist with the registration process. The following laws and regulations apply to travel agency registration and operations:

  • Tourism Act, 2035 (1978) – Primary legislation governing tourism businesses, licensing requirements, operational standards, and penalties for non-compliance with tourism regulations
  • Tourism Regulations, 2038 (1981) – Detailed procedural guidelines for tourism license applications, renewal processes, capital requirements, and operational conditions
  • Company Act, 2063 (2006) – Governs company formation, registration procedures, shareholder rights, director responsibilities, and corporate governance requirements
  • Provincial Tourism Act (Bagmati Province) – Provincial-level regulations governing tourism operations, recommendations, and monitoring within provincial jurisdiction

Frequently Asked Questions

What is the Minimum Capital for Registering Travel Agency in Nepal?

The minimum paid-up capital requirement for registering travel agency in Nepal is NPR 25 lakhs, along with a mandatory bank guarantee of NPR 5 lakhs from a B-class or higher commercial bank to ensure financial stability and consumer protection.

How to Register a Travel and Tour Company in Nepal

Step 1: Register company at OCR
Step 2: Complete tax registration at IRD
Step 3: Submit tourism application at Bagmati Tourism Office
Step 4: Apply for industry registration at DSCI
Step 5: Obtain Final License after Inspection

Can foreign nationals register a travel agency in Nepal?

Foreign nationals cannot register a travel agency in Nepal as tourism business is included in the negative list under the Foreign Investment and Technology Transfer Act, restricting foreign ownership and requiring 100 percent Nepali ownership for tourism enterprises.

How long does the travel agency registration process take?

The complete registration process takes 12 to 18 working days, including company registration (3 days), tax registration (1 day), bank account opening (1-3 days), tourism recommendation (3 days), industry registration (1 day), and final license issuance (2 days).

What documents are needed for travel and tour license?

The Documents required are:
1. Prepare citizenship certificates, PAN cards, and photographs of all directors
2. Obtain company registration certificate, AOA, and MOA from company registrar
3. Secure rental agreement and landlord’s ownership documents
4. Arrange bank guarantee slip and share registry certificate
5. Complete application forms and board resolution

Where do I submit the travel agency registration application?

Step 1: Register company at Office of Company Registrar in Kathmandu
Step 2: Complete tax registration at Inland Revenue Department office
Step 3: Submit tourism application at https://tourismktm.bagamati.gov.np/ for Bagmati Province
Step 4: Apply for industry registration at Department of Small and Cottage Industries Step 5: Submit final application at Department of Tourism for license issuance

What to do after Registration of Travel Company?

Annual compliance includes six-month operational reporting to Bagmati Tourism Office, annual financial audit by chartered accountants, tax clearance certificate renewal, company annual return filing, tourism license renewal, and bank guarantee renewal before expiration dates.

How much does it cost to register a travel agency?

Total costs include NPR 9,500 for company registration, NPR 25 lakhs paid-up capital, NPR 5 lakhs bank guarantee, NPR 8,000-15,000 for ward registration, NPR 15,000-20,000 for industry registration, and NPR 25,000 for tourism license fees.

What types of services can a registered travel agency provide?

1. Domestic and international tour package arrangements
2. Airline ticketing and reservation services
3. Hotel booking and accommodation arrangements
4. Visa assistance and travel documentation support