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A Non-Governmental Organization (NGO) is a legally formed non-profit entity that functions independently of government to serve social, humanitarian, environmental, or developmental objectives. In Nepal, NGOs play a vital role in addressing community needs, providing humanitarian aid, and promoting sustainable development. Understanding the process of NGO registration in Nepal is essential for individuals and groups seeking to establish charitable organizations and conduct welfare activities within the legal framework. This guide covers the governing laws, registration process, required documents, government fees, Social Welfare Council affiliation, and compliance requirements.
What is an NGO
A Non-Governmental Organization (NGO) is a group that operates independently of any government, typically functioning as a non-profit entity. NGOs, also called civil society organizations, are established at community, national, and international levels to serve social or political goals such as humanitarian causes, environmental protection, education, healthcare, and sustainable development.
In Nepal, NGOs are registered with the District Administration Office (DAO) and can obtain affiliation from the Social Welfare Council (SWC) to receive donations and access tax exemptions. The SWC is a government entity tasked with coordinating and assisting NGOs and INGOs in Nepal.
Legal Framework
NGO registration and operation in Nepal is governed by specific legislation and regulatory guidelines.
| Legislation | Year | Purpose |
|---|---|---|
| Association Registration Act | 2034 (1977) | Primary law governing NGO registration and operation |
| Social Welfare Act | 2049 (1992) | Governs Social Welfare Council and NGO coordination |
| Social Welfare Council Rules | 2049 (1992) | Detailed procedures for SWC affiliation |
| Income Tax Act | 2058 (2002) | Tax exemption provisions for NGOs |
Registering Authority
NGOs undergo registration at the District Administration Office (DAO) situated in the relevant district of establishment. Nepal has DAOs in all 77 districts where NGOs can be registered based on their operational location.
Membership Requirements
The registration of an NGO requires a minimum number of members with specific roles and gender representation requirements.
| Requirement | Details |
|---|---|
| Minimum Members | 7 members holding Nepali citizenship |
| Executive Committee | 1 President, 1 Vice-President, 1 Secretary, 1 Treasurer, 3+ members |
| Gender Representation | Minimum 33% female representation in Executive Committee |
| Citizenship | All members must be Nepali citizens |
| Foreign Nationals | Not allowed as members; can serve as Advisors only |
NGO Registration Process
The NGO registration process in Nepal involves multiple steps through various government authorities.
| Step | Action | Authority |
|---|---|---|
| 1 | Obtain Recommendation Letter | Local Level Ward Office |
| 2 | Obtain Recommendation Letter | District Coordination Committee (DCC) |
| 3 | Obtain Police Clearance Report | Concerned Police Station |
| 4 | Registration Certificate | District Administration Office (DAO) |
| 5 | Affiliation Certificate | Social Welfare Council (SWC) |
| 6 | PAN Registration | Inland Revenue Department (IRD) |
| 7 | Business Registration | Local Level Ward Office |
Step 1: Ward Office Recommendation
Submit an application to the local Ward Office where the NGO will be located. The application must include all necessary documentation for registration. The President's signature and stamp should appear on the application.
Step 2: District Coordination Committee Recommendation
After receiving recommendation from the Ward Office, apply to the District Coordination Committee (DCC) for another recommendation letter with required documents.
Step 3: Police Clearance Report
The DAO will request a police clearance report from Nepal Police for all Executive Committee members. This verifies the character and background of founding members.
Step 4: District Administration Office Registration
File an application with the concerned DAO along with all required documents. The DAO will issue a Certificate of Registration after verifying that all clauses in the NGO constitution comply with prevailing laws.
Step 5: Social Welfare Council Affiliation
Following receipt of the registration certificate from DAO, apply for affiliation with SWC, the country's NGO regulator. This affiliation is required to receive donations from foreign sources.
Step 6: PAN Registration
Obtain a Permanent Account Number (PAN) from the Inland Revenue Department to begin operations and open bank accounts in the NGO's name.
Required Documents
The following documents are required for NGO registration in Nepal:
| S.N. | Document |
|---|---|
| 1 | Copy of minutes of ad-hoc committee meeting approving NGO establishment |
| 2 | Certified copy of citizenship certificates of all board members |
| 3 | Passport-sized photographs of all members |
| 4 | Character report from Nepal Police of all members |
| 5 | Proposed Organization's Constitution (Bidhan) signed by all members |
| 6 | Documents stating organizational goals, mission, and bylaws |
| 7 | Rent agreement with house owner for NGO office location |
| 8 | Copy of citizenship certificate of house owner |
| 9 | Receipt of 3 months rent paid in advance |
| 10 | Land tax receipt of the rented premises |
Government Fees
The approximate governmental fee for NGO registration is NPR 6,000, which may vary depending on the district and local level.
| Authority | Fee (NPR) |
|---|---|
| Ward Office | ~2,000 (varies by local level) |
| District Coordination Committee | N/A |
| District Administration Office | ~1,000 (varies by district) |
| Social Welfare Council | 3,000 |
| Inland Revenue Department | N/A |
| Total Approximate Fee | ~6,000 |
Timeline
The NGO registration process typically takes 1 to 2 months after completing all necessary steps and submitting required documents. Delays may occur if additional clarifications are required by authorities.
Social Welfare Council Affiliation
Affiliation with the Social Welfare Council is essential for NGOs planning to receive donations from foreign sources or seeking tax exemptions.
| Aspect | Details |
|---|---|
| Mandatory Status | Required only if receiving donations from foreign sources |
| Benefits | Tax exemptions, ability to receive foreign donations |
| Renewal | Every 3 years |
| Administrative Expense Limit | Cannot exceed 20% of total project cost |
Tax Exemptions
NGOs are entitled to tax exemption on income tax for operational income if they obtain a certificate as a tax-exempted entity pursuant to the Income Tax Act 2058. This requires applying to the Inland Revenue Department with appropriate documentation demonstrating the NGO's non-profit status and activities.
NGO Renewal Process
NGOs in Nepal must renew their registration annually. The renewal process involves multiple authorities.
Annual Renewal Requirements
- Inland Revenue Department: File annual tax return and obtain tax clearance certificate
- Ward Office: Submit annual progress report and obtain recommendation letter
- District Administration Office: Submit renewal application with documents, pay renewal fee (NPR 500), obtain renewed registration certificate
SWC Renewal (Every 3 Years)
- Apply for renewal of SWC affiliation
- Submit progress reports and audited financial statements
- Pay renewal fee
NGO vs. Company Not Distributing Profits
Nepali individuals have two options for establishing non-profit organizations. Understanding the differences helps in choosing the appropriate structure.
| Aspect | NGO | Company Not Distributing Profits |
|---|---|---|
| Governing Law | Association Registration Act 2034 | Companies Act 2063 |
| Registering Authority | District Administration Office (DAO) | Office of Company Registrar (OCR) |
| Minimum Members | 7 members | 5 promoters |
| Gender Requirement | 33% female representation required | No specific requirement |
| Foreign Members | Not allowed (can be Advisors) | Not allowed |
| Registration Fee | ~NPR 6,000 | NPR 15,000 |
| Renewal | Annual renewal required | Annual compliance (no renewal) |
| Timeline | 1-2 months | 10-15 days |
| Profit Distribution | Prohibited | Prohibited |
| Administrative Expenses | Max 20% of project cost | Max 25% (if not SWC registered) |
Recommendation: Choose NGO for purely charitable activities with community focus. Choose Company Not Distributing Profits for social enterprises requiring more operational flexibility and simpler compliance procedures.
Post-Registration Compliance
After registration, NGOs must fulfill ongoing compliance requirements to maintain their legal status.
- Hold Annual General Meeting as per constitution
- Conduct periodic election of Board of Directors
- Submit audited annual financial reports to local office
- File annual tax returns with Inland Revenue Department
- Maintain administrative expenses within 20% of project cost
- Renew registration annually at relevant authorities
- Renew SWC affiliation every 3 years (if applicable)
Important: After registration, keep copies of all certificates and store originals securely. Hold your first official board meeting, set out a plan for operations, record decisions, and get them signed by all members.
Need Legal Assistance?
Our legal team provides comprehensive NGO registration and compliance services including document preparation, registration assistance, SWC affiliation, and ongoing compliance support throughout Nepal. Contact us for professional consultation.
Frequently Asked Questions
| Law | Year | Purpose |
|---|---|---|
| Association Registration Act | 2034 (1977) | Primary NGO registration law |
| Social Welfare Act | 2049 (1992) | SWC governance and coordination |
| Social Welfare Council Rules | 2049 (1992) | SWC affiliation procedures |
| Income Tax Act | 2058 (2002) | Tax exemption provisions |
Membership requirements:
- Minimum 7 members holding Nepali citizenship
- Executive Committee: 1 President, 1 Vice-President, 1 Secretary, 1 Treasurer, 3+ members
- Minimum 33% female representation in Executive Committee
- Foreign nationals not allowed as members (can be Advisors)
| Step | Action | Authority |
|---|---|---|
| 1 | Recommendation letter | Ward Office |
| 2 | Recommendation letter | District Coordination Committee |
| 3 | Police clearance | Nepal Police |
| 4 | Registration certificate | District Administration Office |
| 5 | Affiliation certificate | Social Welfare Council |
| 6 | PAN registration | Inland Revenue Department |
Required documents:
- Minutes of ad-hoc committee meeting
- Certified citizenship certificates of all members
- Passport-sized photographs
- Police character reports
- Organization's Constitution (Bidhan)
- Organizational goals and mission document
- Rent agreement for office
- House owner's citizenship copy
- 3 months advance rent receipt
| Authority | Fee (NPR) |
|---|---|
| Ward Office | ~2,000 |
| District Administration Office | ~1,000 |
| Social Welfare Council | 3,000 |
| Total | ~6,000 |
Fees may vary depending on district and local level.
The registration process typically takes 1 to 2 months after completing all necessary steps. Timeline may vary based on:
- Document completeness
- Authority workload
- Additional clarifications required
SWC affiliation requirements:
- Not mandatory for all NGOs
- Required if receiving donations from foreign sources
- Required to access tax exemptions and government facilities
- Must be renewed every 3 years
- Administrative expenses limited to 20% of project cost
Yes, NGOs are entitled to tax exemption on operational income if they:
- Obtain certificate as tax-exempted entity from IRD
- Comply with Income Tax Act 2058 requirements
- Maintain non-profit status
- Submit required documentation
Annual renewal requirements:
| Authority | Requirement |
|---|---|
| IRD | File tax return, obtain tax clearance |
| Ward Office | Submit progress report, get recommendation |
| DAO | Submit application, pay NPR 500 fee |
| SWC | Renew every 3 years with reports |
| Aspect | NGO | Company Not Distributing Profits |
|---|---|---|
| Registering Authority | DAO | OCR |
| Minimum Members | 7 | 5 |
| Registration Fee | ~NPR 6,000 | NPR 15,000 |
| Timeline | 1-2 months | 10-15 days |
| Renewal | Annual | Annual compliance only |
No, foreign nationals cannot become members of NGOs in Nepal. However:
- They can serve as Advisors
- They can fund NGOs through proper channels
- They can establish INGOs to conduct welfare activities
- Foreign funding requires SWC approval
Ongoing compliance:
- Hold Annual General Meeting
- Conduct periodic board elections
- Submit audited financial reports
- File annual tax returns
- Maintain administrative expenses within 20%
- Renew registration annually
- Renew SWC affiliation every 3 years
NGOs are registered at the District Administration Office (DAO) of the relevant district. Nepal has DAOs in all 77 districts. The NGO must register in the district where:
- Its head office is located
- It plans to conduct primary operations
Upon dissolution of an NGO:
- All liabilities must be adjusted first
- Remaining property is transferred to the Government of Nepal
- Cannot be distributed among members
- Follows procedures in the organization's constitution
Choose NGO if:
- Focus is purely charitable activities
- Community-based operations preferred
- Tax exemptions are priority
- Can manage complex renewal process
Choose Company Not Distributing Profits if:
- Need operational flexibility
- Want simpler compliance procedures
- Planning social enterprise activities
- Prefer faster registration process
