This article outlines the types of hotel registration in Nepal, requirements, step-by-step procedures, legal framework, and key information to enter Nepal’s growing tourism and hospitality sector.
Prime Law Associates has experience of registering 5-Star Hotels in Nepal and has further acted as Legal Advisor for registering 20+ Hotels & Hospitality companies in Nepal. Contact through the following details:
Types of Hospitality Registration in Nepal
Resort Registration
Resorts in Nepal are typically located in scenic area. The registration process involves meeting specific infrastructure and service standards set by the Ministry of Tourism. Resorts must provide a minimum number of rooms, dining facilities, and outdoor activity options.
Star Hotel Registration
Star hotels are classified from 1 to 5 stars based on their facilities and services. The star rating system is administered by the Hotel Association Nepal in coordination with the government.
Lodge Registration
Lodges cater to budget travelers and often have simpler facilities compared to hotels. Lodges must still meet minimum room requirements and provide essential services to guests.
International Hotel Franchise Registration
Registering an international hotel franchise involves Foreign Direct Investment approval along with Company Incorporation and approval from the Hotel Association Nepal.
Also Read: Company Registration in Nepal: Company Registration Lawyer
Requirements for Hospitality/Hotel Registration in Nepal
The basic requirements for Hospitality/Hotel Registration in Nepal:
- Minimum investment capital (varies by category)
- Suitable land/property ownership or lease documents
- Building completion certificate
- Environmental impact assessment (for larger projects)
Process of Hospitality/Hotel Registration in Nepal
Step 1: Company Name Reservation & Approval
Step 2: Hospitality Company Registration
Step 3: PAN and Ward Registration
Step 4: Approval from Ministry of Tourism, Culture & Civil Aviation
Step 5: Approval from Nepal Tourism Board
Step 1: Company Name Reservation & Approval
The process begins with reserving a unique company name through the Office of Company Registrar (OCR). Online application is made via the OCR portal. Multiple name options can be provided. The registrar reviews the application and approves a suitable name, typically within 3-5 working days. Once approved, the name is reserved for 30 days, during which the full company registration must be completed.
Step 2: Hospitality Company Registration
After name approval, the full company registration is initiated. This involves:
1. Preparing Memorandum and Articles of Association
2. Submitting shareholder details and citizenship documents
3. Providing details of proposed capital structure
4. Specifying the objectives of the hospitality business
5. Paying the registration fee
The documents are submitted online and physically to the OCR. After review and verification, the company registration certificate is issued.
Step 3: PAN and Ward Registration
Once the company is registered, it must obtain a Permanent Account Number (PAN) from the Inland Revenue Department. This is necessary for tax purposes. The process involves submitting the company registration documents and completing the PAN application form. Simultaneously, the business must register with the local ward office where it will operate. This involves submitting company documents, location details, and paying local taxes. Both PAN and ward registration are prerequisites for further licensing steps.
Step 4: Approval from Ministry of Tourism, Culture & Civil Aviation
The Ministry of Tourism, Culture & Civil Aviation is the primary regulatory body for hospitality businesses. Approval involves
1. Submitting a detailed project proposal
2. Providing proof of land ownership or lease
3. Submitting architectural plans and layouts
4. Environmental impact assessment (for larger projects)
5. Detailing proposed facilities and services
The Ministry reviews the documents and may conduct site inspections. Approval is granted if all requirements are met.
Step 5: Approval from Nepal Tourism Board
The final step is registration with the Nepal Tourism Board (NTB). This involves:
1. Submitting the approval from the Ministry of Tourism
2. Providing details of facilities, room numbers, and rates
3. Submitting staff details and qualifications
4. Paying the NTB registration fee
Hospitality/Hotel Sector Experts in Nepal
Amit Karna
Amit has extensive experience as a Hotel & Hospitality Expert in Nepal registering resorts, lodges, 5-Star Hotels & more.
Sukra Subba
Sukra Subba has 10 Years of experience in the Corporate Sector of Nepal & facilitating company registration at the Firm.
Documents Required for Hospitality/Hotel Registration in Nepal
The required documents for Hospitality and Hotel Registration in Nepal are as follows:
- Company registration certificate
- PAN/VAT registration certificate
- Local Ward Office Registration
- Land ownership documents or long-term lease agreement
- Environmental Impact Assessment report (for larger projects)
- Health and sanitation certificates (for larger projects)
- Proof of investment capital
- Bank guarantee or deposit certificate
The exact requirements varies based on the type and scale of the hospitality business. All documents must be current and certified by relevant authorities.
Legal Framework for Hotel Registration in Nepal
The primary laws governing hospitality registration in Nepal are:
- Tourism Act, 2035 (1978)
- Tourism Policy, 2065 (2008)
- Industrial Enterprises Act, 2076 (2020)
Authorities governing Hospitality Registration in Nepal
The key authorities involved are:
- Ministry of Tourism, Culture & Civil Aviation
- Department of Tourism
- Nepal Tourism Board
- Office of Company Registrar
- Inland Revenue Department
Each authority has specific roles in the registration, licensing, and monitoring of hospitality businesses.
Timeline for Hotel Registration in Nepal
The timeline for complete hotel registration typically ranges from 3 to 6 months, depending on the scale and complexity of the project.
Registration Cost and Fees in Nepal
Registration costs vary based on the type and scale of the hospitality business. Key fees include:
- Company registration fee: Based on authorized capital
- PAN registration: Nominal fee
- Ministry of Tourism registration: Varies by hotel category
- Nepal Tourism Board registration: Based on room numbers
- Local authority fees: Vary by municipality
- Environmental assessment fees: For larger projects
Post-Registration Requirements
After successful registration, hospitality businesses must comply with ongoing requirements:
- Annual renewal of tourism licenses
- Regular health and safety inspections
- Timely tax filings and payments
- Complying with labor laws
FAQs
What determines a hotel’s star rating in Nepal?
Star ratings are based on factors like room size, amenities, service quality, and additional facilities like restaurants, gyms, and spas. The Hotel Association Nepal, in coordination with the Department of Tourism, conducts assessments using standardized criteria.
Can foreigners invest in the hotel industry?
Yes, foreign investment is allowed in Nepal’s hotel industry. However, certain restrictions apply. Foreign investors can own up to 100% in large hotels and resorts, but joint ventures are required for smaller establishments.
How often must hotels renew their registration?
Hotels must renew their tourism license annually with the Department of Tourism. This involves submitting updated documentation, paying renewal fees, and potentially undergoing inspections. Other permits, such as food and beverage licenses, may have different renewal periods, typically ranging from 1 to 3 years.
How to register Lodges & Resorts in Nepal?
Eco-lodges have specific additional requirements focused on environmental sustainability. These include using renewable energy, implementing waste recycling systems, and minimizing environmental impact.
What inspections are required for hotel registration?
Key inspections include:
Building safety and fire compliance
Health and sanitation standards
Kitchen and food safety
Environmental impact assessment
Staff qualifications and training
Facility standards as per the claimed category
Conclusion
Prime Law Associates has a leading practice in Hospitality & Hotel Registration, Approval & Compliance in Nepal.
Disclaimer: This Article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication, solicitation, or inducement of any sort from the firm or any of its members. The firm shall not be liable for consequences arising out of any action undertaken by any person relying on the information provided herein.
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