Tourism Company Registration Process in Nepal

Tourism company registration in Nepal involves a structured process governed by specific laws and regulations. The tourism industry, a vital sector of Nepal’s economy, is regulated by the Tourism Act 2035 (1978) and its subsequent amendments. The Department of Tourism, under the Ministry of Culture, Tourism and Civil Aviation, oversees the registration and operation of tourism companies. Prospective entrepreneurs must comply with legal requirements, submit necessary documents, and follow prescribed procedures to establish a tourism business in Nepal. The registration process ensures that tourism companies meet quality standards, contribute to the national economy, and operate within the legal framework.

What are the Legal Requirements to Register Tourism Company?

Starting a tourism business in Nepal requires adherence to several legal requirements. The primary legislation governing tourism businesses is the Tourism Act 2035 (1978). Under this Act, companies must obtain a license from the Department of Tourism. The Company Act 2063 (2006) outlines the general requirements for company formation. Tourism businesses must register with the Office of the Company Registrar and obtain a Permanent Account Number (PAN) from the Inland Revenue Department. Additionally, the Industrial Enterprises Act 2076 (2020) may apply to certain tourism ventures. Compliance with labor laws, including the Labor Act 2074 (2017), is mandatory for businesses employing staff. Foreign investors must adhere to the Foreign Investment and Technology Transfer Act 2075 (2019) if applicable.

What are the Types of Tourism Companies that can be registered?

Nepal recognizes various types of tourism companies, each catering to different aspects of the industry. These include:

• Travel agencies
• Trekking agencies
• Tour operators
• Hotels and resorts
• Homestays
• Adventure tourism companies
• Eco-tourism ventures
• Cultural tourism enterprises
• Transportation services for tourists
• Tourism training institutes

Each category may have specific registration requirements and operational guidelines set by the Department of Tourism. The Tourism Act 2035 (1978) and its regulations provide the framework for classifying and regulating these different types of tourism businesses. Companies may need to obtain additional permits or licenses depending on their specific activities within the tourism sector.

What documents are required to Register a Tourism Company?

The registration of a tourism company in Nepal requires the submission of several essential documents. These include:

• Company registration application form
• Memorandum of Association and Articles of Association
• Citizenship certificates of promoters/directors
• Passport-sized photographs of promoters/directors
• PAN registration certificate
• Tax clearance certificate (for existing businesses)
• Lease agreement or ownership document of office premises
• Bank statement showing minimum capital deposit
• Business plan or feasibility study
• Professional certificates or licenses (if applicable)
• Foreign investment approval (for foreign-owned companies)
• Environmental Impact Assessment (for certain projects)
• Recommendation letter from relevant local authority
• Proof of insurance coverage (as required by specific regulations)

These documents must be submitted to the Department of Tourism along with the prescribed application forms. The exact requirements may vary depending on the type and scale of the tourism business being registered.

What is the Process of Registering a Tourism Company?

The process of registering a tourism company in Nepal involves several steps:

1. Choose a unique company name and check its availability
2. Prepare Memorandum and Articles of Association
3. Open a bank account and deposit the required capital
4. Submit registration application to the Office of Company Registrar
5. Obtain PAN from the Inland Revenue Department
6. Apply for tourism license at the Department of Tourism
7. Submit all required documents and pay necessary fees
8. Undergo inspection by tourism officials (if required)
9. Receive tourism license upon approval
10. Register with local authorities and obtain necessary permits
11. Comply with post-registration requirements and annual renewals

Each step may involve specific sub-processes and documentation requirements. It’s advisable to consult with legal professionals or the Department of Tourism for detailed guidance on each stage of the registration process.

What is the Time frame for Tourism Company Registration Approval?

The timeframe for tourism company registration approval in Nepal can vary depending on several factors. Generally, the process takes between 4 to 8 weeks from the initial application to the final approval. The Company Registrar typically processes company registration within 1-2 weeks. Obtaining a PAN from the Inland Revenue Department usually takes 3-5 working days. The tourism license application at the Department of Tourism may take 2-4 weeks for processing and approval. This timeline can be affected by the completeness of submitted documents, the workload of relevant government departments, and any additional inspections or verifications required. Complex projects or those requiring environmental assessments may take longer. Applicants should factor in potential delays and start the process well in advance of their planned business commencement date.

What are the costs and fees involved in Tourism Company Registration?

The registration process for a tourism company in Nepal involves various costs and fees. These include:

• Company registration fee (varies based on authorized capital)
• PAN registration fee
• Tourism license application fee
• Document certification and notarization costs
• Legal and professional service fees (if using consultants)
• Bank charges for capital deposit
• Local authority registration fees
• Environmental assessment costs (if applicable)
• Insurance premiums
• Office setup and equipment costs

The exact amounts can vary based on the type and scale of the tourism business. It’s important to budget for both direct government fees and associated costs. Companies should also consider ongoing expenses such as annual renewal fees and compliance costs in their financial planning.

What is the Government Charges for Tourism Company Licensing in Nepal

Government charges for tourism company licensing in Nepal include several components:

• Tourism license application fee: NPR 5,000 to NPR 50,000 (varies by company type)
• License issuance fee: NPR 10,000 to NPR 100,000 (based on company category)
• Annual renewal fee: Typically 50% of the initial license fee
• Trekking and mountaineering royalties (if applicable)
• Environmental conservation fees (for certain activities)
• Municipality or rural municipality registration fees
• Waste management charges (for hotels and resorts)

These charges are subject to change and may be updated by government notifications. Additional fees may apply for specific tourism activities or services. Companies should verify the current fee structure with the Department of Tourism before proceeding with their application.

Checklist for Tourism Company Registration

A comprehensive checklist for tourism company registration application includes:

• Completed application form for company registration
• Proposed company name (with alternatives)
• Memorandum and Articles of Association
• Citizenship certificates of all promoters/directors
• Passport-sized photographs of promoters/directors
• PAN registration certificate
• Bank statement showing capital deposit
• Office lease agreement or ownership document
• Business plan or feasibility study
• Professional certificates (for specialized services)
• Foreign investment approval (if applicable)
• Environmental clearance (if required)
• Local authority recommendation letter
• Proof of insurance coverage
• Application fees payment receipt
• Tourism license application form
• Any additional documents specific to the type of tourism business

Ensuring all items on this checklist are prepared and submitted correctly can help streamline the registration process and avoid potential delays.

What are the Relevant Laws Governing Tourism Industry in Nepal?

The tourism industry in Nepal is governed by several key laws and regulations:

• Tourism Act 2035 (1978) and its amendments
• Company Act 2063 (2006)
• Foreign Investment and Technology Transfer Act 2075 (2019)
• Industrial Enterprises Act 2076 (2020)
• Labor Act 2074 (2017)
• Environment Protection Act 2076 (2019)
• National Parks and Wildlife Conservation Act 2029 (1973)
• Civil Aviation Act 2015 (1959)
• Hotel Management and Sale of Liquor Act 2023 (1966)
• Travel and Trekking Agency Regulation 2062 (2005)
• Mountaineering Expedition Regulation 2059 (2002)

Read More

• Office of the Company Registrar Approval Process in Nepal
• Office of Controller of Certification Approval Process in Nepal
• NRN Citizenship Process in Nepal

Our Services for Tourism Companies in Nepal

The Department of Tourism in Nepal offers various services to facilitate the registration of tourism companies:

• Provision of application forms and guidelines
• Consultation on registration requirements
• Processing of tourism license applications
• Conducting inspections of tourism facilities
• Issuing and renewing tourism licenses
• Providing information on tourism regulations and policies
• Offering training programs for tourism entrepreneurs
• Facilitating coordination with other government agencies
• Resolving disputes related to tourism businesses
• Maintaining a database of registered tourism companies
• Providing market information and industry statistics
• Assisting in the promotion of tourism services

These services aim to support the growth of the tourism industry while ensuring compliance with national regulations. The Department of Tourism serves as a central point of contact for tourism businesses throughout their registration and operational phases.

Post-Registration Compliance for Tourism Companies

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What types of tourism companies can be registered in Nepal?

Nepal recognizes various types of tourism companies including travel agencies, trekking agencies, tour operators, hotels and resorts, homestays, adventure tourism companies, eco-tourism ventures, cultural tourism enterprises, transportation services for tourists, and tourism training institutes. Each type may have specific registration requirements set by the Department of Tourism.

2. How long does it take to register a tourism company?

The registration process typically takes 4 to 8 weeks from initial application to final approval. This timeline can vary based on the completeness of submitted documents, the type of tourism business, and the current workload of relevant government departments.

3. What are the main costs involved in registration?

Main costs include company registration fees, PAN registration fees, tourism license application and issuance fees, document certification costs, legal service fees, bank charges, and local authority registration fees. The exact amounts vary based on the type and scale of the tourism business.

4. Do I need special licenses for different tourism activities?

Yes, different tourism activities may require specific licenses or permits. For example, trekking agencies need a trekking permit, while adventure tourism companies may need additional safety certifications. The Department of Tourism can provide information on specific requirements for each activity.

5. Can foreigners own tourism companies in Nepal?

Foreigners can own tourism companies in Nepal, but there are restrictions in some sectors. The Foreign Investment and Technology Transfer Act 2075 (2019) outlines the regulations for foreign ownership. Some tourism activities may require a certain percentage of Nepali ownership or partnership.

6. What are the minimum capital requirements for registration?

Minimum capital requirements vary depending on the type of tourism company. For example, travel agencies typically require a minimum paid-up capital of NPR 2,500,000, while trekking agencies may need NPR 1,000,000. These requirements are subject to change and should be verified with the Department of Tourism.

7. Are there any restrictions on marketing tourism services?

While there are no specific restrictions on marketing tourism services, companies must adhere to general advertising laws and regulations. Marketing materials should not make false claims or misrepresent tourism products. Companies must also comply with any guidelines set by the Department of Tourism regarding the promotion of Nepal’s tourism offerings.