NGO Registration in Nepal

A non-governmental organization (NGO) is a non-profit group that works independently of the government to support social, environmental, and humanitarian causes. NGOs are also known as civil society organizations and may operate on a local, national, or international level. Their main goal is to promote positive change whether by empowering women, protecting children’s rights, preserving the environment, or addressing poverty and inequality. In Nepal, NGOs must go through a formal registration process. First, they are registered with the District Administration Office (DAO) in the district where they plan to operate. After that, they must complete tax registration with the Inland Revenue Department. Once both steps are completed, they can receive an affiliation certificate from the Social Welfare Council, which officially recognizes their work and allows them to partner with donors and other institutions. While many NGOs in Nepal have made important contributions to development and community welfare, some have also been criticized for promoting divisive issues or failing to maintain transparency. Still, NGOs remain a vital part of Nepalese society, helping to fill gaps in government services and giving a voice to underserved communities.

Note: According to Section 3 of the organization Registration Act, 2034 no person shall establish or operate any organization without registering it with the concerned District Administration Office. Establishing or running an unregistered institution is strictly prohibited under this law.

And also, As stated in Section 15 of the Social Welfare Act, 2049, any social organization that was already affiliated with the former Social Service National Coordination Council (SSNCC) will automatically be considered affiliated with the newly formed Council under the new Act.
But these organizations must update and adjust their constitutions as per the new Act within one year of its implementation.

Legal Process and Rules for Running an NGO in Nepal

To legally operate a non-governmental organization (NGO) in Nepal, you must follow several important legal steps. These rules ensure that NGOs are properly registered, monitored, and held accountable. Here’s how the legal system governs NGOs:

Amendment of Objectives  & Merger process of NGO in Nepal

1. If it becomes necessary to amend the objectives of an institution or to merge it with another institution, the management committee of the concerned institution must draft a proposal and call a special general meeting in accordance with its statute to deliberate on the matter.
2. If the proposal is approved by a two-thirds majority of the members present in the special general meeting, it shall be considered passed.
3. However, the implementation of such a proposal shall require prior approval from the local authority

These steps are important to make sure NGOs are officially recognized, follow government rules, and maintain transparency in their operations.

Necessary documents for Registration of NGO in Nepal

To register a non-governmental organization (NGO) in Nepal, certain structural and legal conditions must be fulfilled. The process begins with the formation of a board of directors consisting of at least seven Nepali citizens. This board should include a president, vice president, secretary, treasurer, and a minimum of three additional members. The registration process typically takes between one to two months to complete, depending on the completeness of documentation and the responsiveness of the relevant authorities.

Documents Required for Registration:

Meeting these foundational requirements ensures a smooth registration process and helps establish legal credibility for the NGO’s operation in Nepal. Proper documentation and compliance with the regulatory framework are essential for gaining approval from the District Administration Office (DAO), the Inland Revenue Department, and ultimately securing affiliation with the Social Welfare Council.

To register an organization, the following documents and steps must be completed:

• Joint Application: Submitted in the prescribed format, signed by the officials and members of the ad-hoc committee, addressed to the District Administration Office, Kathmandu.
• Recommendation Letter: Issued by the local level authority (Municipality/Metropolitan City).
• Ad-hoc Committee Meeting: A meeting attended by at least three times the number of committee members must unanimously decide on:
  • Formation of an ad-hoc committee with at least nine members (4 officials and 5 general members).
  • Selection of the organization’s name and address.
  • Formation of a sub-committee to draft the constitution.
  • Approval of the draft constitution (three sets on Nepali paper) for submission.
  • Authorization of officials to visit the District Administration Office for the registration process.
• Draft Constitution: Three sets of the draft constitution prepared on Nepali paper and submitted to the local authority for approval.
• Citizenship Documents: Self-attested copies of the Nepali citizenship certificates of all officials and members (one copy each).
• Personal Details: Including name, address, contact number, email, signature, and photo of each member of the ad-hoc committee.
• Police Report: Verifying the conduct and background of the officials and members.
• Verification Presence: All officials must be present in person with their original Nepali citizenship certificates for verification.
• Additional Approval (if applicable): If required by law, obtain opinion/feedback and written consent from the concerned Ministry/Department/Body regarding the name and objectives of the organization.
• For Business-related Organizations(if applicable):
  • Copy of the business license or operating permit.
  • Copy of the latest tax clearance certificate.

Step-by-Step Procedure to Register an NGO in Nepal

Registering a non-governmental organization (NGO) in Nepal involves a structured legal process governed by national laws and local administrative practices. The process is designed to ensure that NGOs operate transparently, serve the public interest, and comply with the country’s legal framework. The registration involves coordination with several government bodies, including local ward offices, the District Administration Office (DAO), the Social Welfare Council (SWC), and the Inland Revenue Department. NGOs must also ensure their constitution (Bidhan) aligns with national laws and submit proper documentation at each step. Below is a step-by-step breakdown of the full registration process:

Step-by-Step Procedure to Register an NGO in Nepal

1. Apply for a Recommendation Letter from the Local Ward Office
   • The first step is to request a recommendation letter from the ward office where the NGO’s main office is located.
   • You must submit an application along with the draft constitution, identity documents, and other required paperwork.
2. Submit Application to the District Coordination Committee (DCC)
   • Submit your NGO registration application to the DCC along with the recommendation letter from the ward office.
   • This step verifies your NGO’s purpose and documentation at the district level.
3. Register with the District Administration Office (DAO)
   • Submit your final application to the DAO with all required documents.
   • The DAO will forward a request to the Nepal Police for a character clearance report on board members.
   • Once the DAO confirms the constitution is in line with legal requirements and receives the police report, a Certificate of Registration will be issued.
4. Obtain Affiliation from the Social Welfare Council (SWC)
   • After receiving the DAO registration certificate, the NGO must apply for affiliation with the SWC.
   • The SWC acts as the central authority that regulates and coordinates all NGOs in Nepal.
5. Register with the Inland Revenue Department for PAN
   • The NGO must register for taxation and obtain a Permanent Account Number (PAN) from the Inland Revenue Department.
   • All board members are required to provide biometric data during this stage.
6. Final Registration at the Local Ward Office
   • Once all previous steps are complete, the NGO must return to the ward office for its final local registration, ensuring its presence is formally recorded at the community level.

This multi-step procedure helps ensure that NGOs in Nepal operate legally, are accountable to the public, and are recognized by the relevant government authorities. Following these steps carefully and submitting accurate documentation at each stage will help avoid delays and complications in the registration process.

Government Charges Applicable for NGO Registration in Nepal

While registering an NGO in Nepal, applicants should be aware of the standard government fees associated with the process. Although the exact amount may vary slightly depending on the district or local ward office, the average government registration cost is around NPR 6,000. This fee covers the administrative charges involved at different stages of the registration process.

The charges typically include:

• Processing fees at the District Administration Office (DAO)
• Documentation and verification charges at the local ward office
• Service fees for issuing the recommendation letter and registration certificate
• PAN registration fees at the Inland Revenue Department (if applicable)

Since the exact fee structure can differ based on local government policies, it is advisable to consult the respective local and district offices for up-to-date information before beginning the registration process.

Government Directives

According to Section 11 of the Organization Registration Act, ( sansatha darta ain 2034 ):The Government of Nepal may issue necessary directives to any registered organization as deemed appropriate. It shall be the legal duty of the concerned organization to fully comply with such directives.

This provision ensures that non-governmental organizations (NGOs) operate within the framework of national interest and public accountability. Failure to adhere to these government-issued directives may result in legal consequences under the prevailing law.

NGO Registration Renewal Process in Nepal

NGOs in Nepal are required to renew their registration regularly to remain compliant with government regulations. This renewal process must be completed annually at the Tax Office, Ward Office, and District Administration Office (DAO). Additionally, NGOs must renew their affiliation with the Social Welfare Council (SWC) every three years. Timely renewal ensures that the NGO continues to operate legally and maintains good standing with regulatory bodies.

The renewal process involves submitting several important documents related to the NGO’s financial status and organizational structure. These documents help verify that the NGO is following legal requirements, maintaining transparency, and properly managing its operations.

Key documents required for the renewal include:

• Audit report prepared by a certified auditor, which reviews the NGO’s financial activities
• Tax clearance certificate confirming that all taxes are paid
• Auditor’s valid license as proof of professional accreditation
• Application forms and renewal requests submitted to the respective offices
• Copies of previous registration certificates and organizational constitutions (Bidhan)
• Minutes from recent board meetings and an updated list of board members
• Plans or reports detailing the NGO’s activities and goals for the upcoming year

For the annual renewal, these documents must be submitted to the Tax Office, Ward Office, and DAO. Meanwhile, the Social Welfare Council requires a renewal submission every three years, including similar documents to verify compliance and continued operation.

Regular renewal not only fulfills legal requirements but also helps NGOs maintain accountability and eligibility for funding, partnerships, and other

Ongoing Compliance Obligations for NGOs in Nepal

Once your NGO is officially registered, the work doesn’t end there. To maintain your legal status and operate effectively, it is essential to follow ongoing compliance requirements set by government authorities. Continuous monitoring and adherence to these regulations help ensure transparency, accountability, and trustworthiness.

Key compliance responsibilities include:

• Annual Reporting: NGOs must prepare and submit yearly financial statements and activity reports to the Social Welfare Council (SWC) and the Inland Revenue Department. These reports provide insight into your organization’s operations and financial health.
• Regular Board Meetings: Holding periodic board meetings and properly documenting minutes are mandatory. This practice demonstrates good governance and transparent decision-making processes.
• Stay Informed on Legal Updates: The rules governing NGOs can change frequently. It is important to keep in contact with legal experts or regularly review updates from regulatory bodies to ensure ongoing compliance with the latest laws and regulations.

By consistently fulfilling these obligations, NGOs can maintain their credibility and continue to make a positive impact within Nepal.

Legal Consequences for Violating Laws

According to Section 12 of the organization  Registration Act, 2034  the following penalties may be imposed by the local authority in cases of non-compliance:

1. Unregistered Operation or Establishment:
   If any person establishes an institution without registration as required under Section 3, or operates an unregistered institution in violation of Section 7, the local authority may impose a fine of up to NPR 2,000 on each member of the management committee.
2. Failure to Submit Financial Reports:
   If the management committee fails to submit financial statements as required under Section 9, a fine of up to NPR 500 may be levied on each responsible member.
   However, if a member can provide satisfactory evidence that they made efforts to prevent such a violation, they shall not be held liable.
3. Failure to Cooperate with Audit Inquiry:
   If an official, member, or employee of the institution refuses to provide the requested documents, information, or answers during an audit under Sub-section (3) of Section 10, the local authority may fine the individual up to NPR 500.
4. Unauthorized Objective Amendment or Violation of Government Directives:
   If the institution changes its objectives or merges with another organization without prior approval of the local authority as required under Section 8, or carries out activities contrary to its registered objectives, or fails to comply with government directives issued under Section 11, the local authority may suspend or cancel the registration of the institution.

Dissolution of an Organization and Its Legal Consequences

According to Section 14 of the Organization Registration Act, 2034, if an organization becomes defunct either due to its inability to operate in accordance with its constitution or for any other reason the entire property of such an organization shall vest in the Government of Nepal.

Furthermore, in such cases, the Government of Nepal shall assume the liabilities of the dissolved organization only to the extent that its assets permit. This ensures that no liabilities beyond the value of the organization’s property are borne by the government.

Sample of Application Form