Legal Framework for NGO and INGO Registration in Nepal
The registration of Non-Governmental Organizations (NGOs) and International Non-Governmental Organizations (INGOs) in Nepal operates under distinct legal frameworks. NGOs register under the Association Registration Act, 2034 (1977), while INGOs must comply with the Social Welfare Act, 2049 (1992) and its regulations. The Chief District Officer (CDO) handles NGO registrations at the district level, whereas the Social Welfare Council manages INGO registrations and renewals at the national level.
Types of Organizations Requiring Registration
Non-Governmental Organizations (NGOs)
NGOs in Nepal are domestic organizations formed by Nepali citizens to work on social, educational, cultural, or developmental activities. These organizations must register with the District Administration Office (DAO) in the district where their head office is located. The Association Registration Act, 2034 governs their formation, registration, and operation throughout Nepal.
International Non-Governmental Organizations (INGOs)
INGOs are foreign organizations that wish to operate in Nepal for social welfare purposes. These organizations must obtain affiliation from the Social Welfare Council before commencing any activities. The Social Welfare Act, 2049 and Social Welfare Regulations, 2049 provide the legal basis for INGO operations in Nepal.
NGO Registration Process in Nepal
Step 1: Prepare Required Documents
The applicant organization must compile all necessary documents before approaching the District Administration Office. The documents must be properly formatted and contain accurate information about the organization’s objectives and founding members.
Step 2: Submit Application to District Administration Office
The organization submits the application along with all required documents to the Chief District Officer of the district where the organization’s head office will be located. The application must be submitted on the prescribed format provided by the DAO.
Step 3: Document Verification
The District Administration Office reviews the submitted documents to ensure compliance with the Association Registration Act, 2034. Officials verify that the organization’s objectives align with legal requirements and that all founding members meet eligibility criteria.
Step 4: Registration Certificate Issuance
Upon satisfactory verification, the Chief District Officer issues a registration certificate to the organization. The certificate contains the organization’s registration number, name, and date of registration, which serves as legal proof of the NGO’s existence.
Required Documents for NGO Registration
Document TypeDescriptionApplication FormCompleted application form addressed to the Chief District Officer on prescribed formatOrganization ConstitutionDetailed constitution containing objectives, membership rules, and operational proceduresCitizenship CertificatesPhotocopies of citizenship certificates of all founding members (minimum 7 members required)Meeting MinutesMinutes of the founding meeting where members agreed to establish the organizationPassport PhotosRecent passport-size photographs of all founding membersOffice ProofDocuments proving the organization has a physical office address in the districtRegistration FeePayment receipt of prescribed registration fee as per government regulations
INGO Registration Process in Nepal
Step 1: Establish Legal Entity in Home Country
The international organization must be legally registered in its home country before applying for affiliation in Nepal. The organization needs to provide certified documents proving its legal status and operational history in the country of origin.
Step 2: Submit Project Proposal
The INGO must prepare a comprehensive project proposal outlining its intended activities in Nepal. The proposal should detail the project’s objectives, target areas, beneficiaries, budget, and expected outcomes aligned with Nepal’s development priorities.
Step 3: Apply to Social Welfare Council
The organization submits the application for General Agreement to the Social Welfare Council along with all required documents. The Social Welfare Council reviews applications based on the Social Welfare Act, 2049 and its regulations.
Step 4: Obtain General Agreement
After approval, the Social Welfare Council issues a General Agreement certificate valid for five years. This agreement allows the INGO to operate in Nepal and implement development projects within the approved sectors and geographical areas.
Step 5: Sign Project Agreement
For each specific project, the INGO must sign a Project Agreement with the Social Welfare Council. The Project Agreement specifies the project duration, budget, activities, and reporting requirements as per Social Welfare Regulations, 2049.
Step 6: Register with Relevant Ministries
Depending on the sector of work, INGOs may need to register with concerned line ministries. The organization must obtain necessary approvals from sector-specific ministries before implementing projects in their respective domains.
Required Documents for INGO Registration
- The organization must submit a certified copy of its registration certificate from the home country, authenticated by the Nepalese embassy or consulate in that country.
- A detailed project proposal must be submitted outlining the organization’s planned activities, target beneficiaries, geographical coverage, and expected outcomes in Nepal.
- The organization needs to provide its constitution or bylaws, properly translated into Nepali or English, showing its legal structure and governance mechanisms.
- Audited financial statements from the past three years must be submitted to demonstrate the organization’s financial stability and accountability.
- A board resolution authorizing the organization to work in Nepal and designating a country representative must be provided on official letterhead.
- The organization must submit a Memorandum of Understanding or partnership agreement with a local NGO if required by the project nature.
- Curriculum vitae and passport copies of the proposed country representative and key staff members must be included in the application.
- A letter of recommendation from the home country government or a recognized international body supporting the organization’s work must be provided.
- The organization needs to submit a detailed budget breakdown for the proposed project period, including funding sources and expenditure plans.
Fees and Charges for Registration
Organization TypeRegistration FeeRenewal FeeProcessing TimeNGO (District Level)NPR 1,000-5,000NPR 500-2,000 annually7-15 working daysINGO (General Agreement)NPR 50,000NPR 25,000 (every 5 years)60-90 working daysINGO (Project Agreement)NPR 25,000 per projectAs per project duration30-45 working days
Renewal Requirements for NGOs
NGOs registered under the Association Registration Act, 2034 must renew their registration annually with the District Administration Office. The renewal process requires submission of the previous year’s audit report, annual progress report, and updated member list. Organizations must pay the prescribed renewal fee and demonstrate continued compliance with their stated objectives and legal requirements.
Renewal Requirements for INGOs
INGOs must renew their General Agreement every five years with the Social Welfare Council. The renewal application must include comprehensive reports of all completed projects, financial statements, and a proposal for future activities. Organizations must demonstrate their contribution to Nepal’s development priorities and maintain good standing with all regulatory requirements under the Social Welfare Act, 2049.
Compliance and Reporting Obligations
For NGOs
- NGOs must maintain proper books of accounts recording all financial transactions and keep them available for inspection by authorities.
- Organizations must submit annual progress reports to the District Administration Office detailing activities conducted and achievements made during the year.
- NGOs need to conduct annual general meetings with members and maintain minutes of all meetings as required by their constitution.
- Organizations must inform the District Administration Office of any changes in office bearers, office location, or constitutional amendments within 35 days.
- NGOs must obtain prior approval from the Chief District Officer before receiving foreign funding or donations exceeding specified amounts.
For INGOs
- INGOs must submit quarterly progress reports to the Social Welfare Council detailing project implementation status and financial expenditure.
- Organizations need to submit annual audit reports prepared by chartered accountants registered in Nepal within six months of the fiscal year end.
- INGOs must maintain separate bank accounts for each project and conduct all financial transactions through recognized banking channels in Nepal.
- Organizations are required to submit project completion reports within three months of project completion, including financial statements and impact assessments.
- INGOs must inform the Social Welfare Council about any changes in country representatives, project staff, or organizational structure within 15 days.
Sectoral Restrictions and Permissions
The Social Welfare Council categorizes INGO work into specific sectors including education, health, agriculture, environment, human rights, and infrastructure development. Organizations must clearly specify their working sectors in the General Agreement application. INGOs cannot work outside their approved sectors without obtaining prior permission from the Social Welfare Council and relevant line ministries.
Geographical Coverage and Limitations
NGOs can operate throughout Nepal but must register in each district where they establish branch offices. INGOs must specify their geographical working areas in the Project Agreement and cannot expand to new districts without Social Welfare Council approval. Organizations working in border areas or sensitive regions may require additional security clearances from the Ministry of Home Affairs.
Tax Exemptions and Benefits
Benefit TypeNGO EligibilityINGO EligibilityIncome Tax ExemptionAvailable under Income Tax Act, 2058Available for approved projectsVAT ExemptionOn specified goods and servicesOn project-related importsCustoms Duty WaiverWith prior approvalOn equipment and materials for projectsVehicle ImportNot generally availableOne vehicle per project with approval
Common Reasons for Registration Rejection
The District Administration Office or Social Welfare Council may reject registration applications if the organization’s objectives conflict with national interests or public policy. Applications with incomplete documentation, insufficient founding members, or unclear funding sources face rejection. Organizations proposing activities that duplicate existing government programs or lack clear implementation strategies may not receive approval under applicable regulations.
Amendment of Registration Documents
NGOs must obtain approval from the District Administration Office before amending their constitution or changing organizational objectives. The amendment process requires submission of a formal application, amended constitution, and minutes of the general meeting where members approved the changes. INGOs need Social Welfare Council approval for any modifications to their General Agreement terms, working sectors, or geographical coverage areas.
Dissolution and Deregistration Process
Organizations wishing to dissolve must follow procedures outlined in the Association Registration Act, 2034 for NGOs or Social Welfare Act, 2049 for INGOs. The dissolution process requires a general meeting resolution, settlement of all liabilities, and proper distribution of remaining assets as per the constitution. Organizations must submit final audit reports and return their registration certificates to the respective authorities.
Penalties for Non-Compliance
Violation TypePenalty AmountAdditional ConsequencesOperating without registrationNPR 5,000-25,000Closure of operationsFailure to submit reportsNPR 10,000-50,000Suspension of activitiesMisuse of fundsNPR 50,000-500,000Criminal prosecution possibleWorking outside approved sectorsNPR 25,000-100,000Cancellation of agreement
Role of Social Welfare Council
The Social Welfare Council serves as the primary regulatory body for INGOs in Nepal under the Social Welfare Act, 2049. The Council reviews and approves INGO applications, monitors project implementation, and ensures compliance with legal requirements. It coordinates between INGOs, government ministries, and local authorities to facilitate effective development work while maintaining regulatory oversight.
Partnership Requirements with Local NGOs
INGOs implementing grassroots projects must partner with registered local NGOs as per Social Welfare Council guidelines. The partnership agreement must clearly define roles, responsibilities, and resource sharing between the international and local organizations. This requirement ensures local capacity building and sustainable development outcomes beyond the INGO’s project period.
Foreign Funding Regulations for NGOs
NGOs receiving foreign funding exceeding NPR 50,000 must obtain prior approval from the Chief District Officer under the Association Registration Act, 2034. Organizations must maintain separate accounts for foreign funds and submit detailed reports on fund utilization. The Foreign Contribution Regulation Act (if applicable) may impose additional requirements on NGOs receiving international donations.
Staff and Volunteer Regulations
INGOs must prioritize hiring Nepali staff and can employ foreign nationals only for positions requiring specialized expertise unavailable locally. Foreign staff members need appropriate work visas and permits from the Department of Immigration. Organizations must comply with Nepal Labor Act, 2074 regarding employment contracts, wages, and working conditions for all staff members.
Frequently Asked Questions
What is the minimum number of members required to register an NGO in Nepal?
An NGO requires a minimum of seven founding members who are Nepali citizens above 18 years of age. All members must provide citizenship certificates and participate in the founding meeting to establish the organization under the Association Registration Act, 2034.
How long does INGO registration take in Nepal?
The INGO registration process typically takes 60 to 90 working days from application submission to General Agreement issuance. The timeline depends on document completeness, Social Welfare Council workload, and coordination with relevant ministries for sector-specific approvals.
Can an NGO registered in one district work in other districts?
Yes, an NGO can work in other districts but must inform the District Administration Office of its registered district. For establishing branch offices in other districts, the organization needs to register those branches with the respective District Administration Offices.
What is the validity period of INGO General Agreement?
The General Agreement issued by the Social Welfare Council is valid for five years from the date of issuance. INGOs must apply for renewal at least three months before expiration, submitting required documents and reports of activities conducted during the agreement period.
Are NGOs required to have audited financial statements?
Yes, NGOs must maintain proper accounts and prepare annual financial statements. While small NGOs may not require chartered accountant audits, organizations receiving foreign funding or grants above specified amounts must submit audited financial statements to the District Administration Office.
Can INGOs directly implement projects without local partners?
INGOs can implement projects directly in some sectors, but the Social Welfare Council encourages partnerships with local NGOs for grassroots projects. Certain project types and geographical areas may require mandatory partnerships with registered local organizations to ensure community participation and sustainability.
What happens if an NGO fails to renew registration annually?
Failure to renew registration makes the NGO’s legal status inactive, preventing it from conducting activities or accessing bank accounts. The District Administration Office may impose penalties, and the organization must complete renewal procedures with applicable fines before resuming operations.
Do INGOs need separate agreements for each project?
Yes, INGOs must sign separate Project Agreements with the Social Welfare Council for each project they implement. The Project Agreement specifies project details, budget, duration, and geographical coverage, even if the organization holds a valid General Agreement.
Can foreign nationals establish NGOs in Nepal?
No, only Nepali citizens can establish and register NGOs under the Association Registration Act, 2034. Foreign nationals wishing to conduct social work in Nepal must either establish INGOs through proper channels or partner with existing registered Nepali NGOs.
What sectors can INGOs work in Nepal?
INGOs can work in sectors including education, health, agriculture, rural development, environment, human rights, women empowerment, child welfare, and infrastructure development. Organizations must specify their working sectors in the General Agreement and obtain approval from relevant line ministries.
