Starting a food and beverage business in Nepal requires more than just a great product. One of the most crucial legal steps is obtaining a Food and Beverage License, a process governed by Nepal’s food safety regulations. This license is essential for businesses engaged in food production, packaging, import/export, retail, and service sectors such as restaurants, cafes, catering, and beverage manufacturing.
What is a Food and Beverage License in Nepal?
A Food and Beverage License is a legal authorization issued by the Department of Food Technology and Quality Control (DFTQC) under the Ministry of Agriculture and Livestock Development. It permits a business to legally engage in the production, distribution, or sale of food and beverage products within Nepal.
The purpose of this license is to ensure public health by maintaining food safety and hygiene standards. The license acts as a quality assurance to consumers and enables the government to regulate and monitor food businesses for compliance.
Having this license also helps businesses establish credibility in both domestic and international markets.
Who Needs a Food and Beverage License?
Any individual or entity involved in the following activities needs to obtain a food and beverage license:
- Restaurants and cafes
- Catering companies
- Food manufacturing units
- Beverage production companies
- Packaged food importers and exporters
- Street food vendors
- Bakeries and confectioneries
- Bottled water suppliers
- Home-based kitchens selling commercially
- Organic or health food producers
- Supermarkets or wholesalers dealing in unpackaged items
Even if you sell food only online or on a delivery basis, compliance with licensing laws is mandatory.
Licensing Authorities: DFTQC and Local Governments
The Department of Food Technology and Quality Control (DFTQC) is the central authority that regulates food-related businesses. However, Municipalities and Village Development Committees (VDCs) also have administrative roles, especially for small and local businesses.
Key Responsibilities of DFTQC:
- Issuing and renewing food licenses
- Inspecting food businesses for compliance
- Monitoring food safety and quality
- Approving food labels and packaging
- Conducting product testing and certification
- Banning or recalling non-compliant products
For small-scale producers operating in rural areas, local governments under the Local Government Operation Act, 2074 may issue temporary or local-level licenses.
Step-by-Step Process to Obtain Food and Beverage License in Nepal
Step 1: Register the Business Entity
Before applying for the food license, you must register your business with the Office of the Company Registrar (OCR) for companies or the Department of Cottage and Small Industries (DCSI) for small-scale enterprises.
Types of registration:
- Private Limited Company
- Partnership Firm
- Proprietorship
- Gharelu Tatha Sana Udyog (Home-Based Industry)
Learn how to register a company in Nepal
Step 2: Tax and Ward Registration
After obtaining the business registration certificate:
- Apply for a Permanent Account Number (PAN) from the Inland Revenue Office
- Register at the local Ward Office of your business location
These steps are essential for tax compliance and local administrative approval.
Step 3: Infrastructure Setup
Ensure your business meets the infrastructure requirements set by DFTQC. This includes:
- Hygienic food preparation areas
- Safe water supply
- Sanitary waste disposal system
- Storage facilities
- Adequate lighting and ventilation
- Pest control measures
Create a basic floor plan indicating preparation, cooking, packaging, storage, and waste areas.
Step 4: Application to DFTQC
Submit your application to the DFTQC with all necessary documentation. You can apply in person or through an authorized legal representative. Upon submission, an inspection date will be scheduled.
Step 5: Testing and Inspection
The DFTQC team will:
- Visit your business location
- Inspect your premises and hygiene practices
- Interview staff on safety procedures
- Collect product and water samples
- Conduct microbiological and chemical tests
Step 6: License Approval
If the inspection and testing reports are satisfactory, the DFTQC will issue your food and beverage license. Note: Each product or category requires a separate license.
Digital license issuance is under consideration as part of Nepal’s e-governance initiative.
Documents Required for Food and Beverage License
Prepare the following documents for submission:
- Completed application form
- Citizenship copy of the owner(s)
- Business registration certificate
- PAN certificate
- Tax clearance certificate
- Lease agreement or land ownership proof
- Building permit (if applicable)
- Infrastructure layout plan
- Health certificates of staff
- Food handler training certificates
- List of ingredients and products
- Water quality test report
- Product labels and packaging designs
- Proof of waste disposal arrangement
- Photos of business premises
Additional documents may be requested depending on the type, scale, and location of your business.
Duration of Licensing Process
The typical timeline for receiving your license is 2 to 8 weeks, depending on:
- Completeness of your application
- DFTQC’s inspection schedule
- Complexity of business operations
- Testing and product verification
Estimated Time Breakdown:
- Document review: 7-10 days
- Inspection and testing: 2-3 weeks
- Final decision: 1-2 weeks
- License issuance: 5-7 days
You can expedite the process by ensuring all documents and infrastructure are ready before applying.
Post-License Requirements
To stay compliant after obtaining your license, you must:
- Renew license annually
- Allow periodic inspections by DFTQC
- Update staff training certificates
- Maintain cleanliness and food safety
- Keep proper records and logs
- Test new products before sale
- Inform DFTQC of changes in ownership or business scope
- Update product labels if formulation changes
- Keep batch-wise manufacturing records
- Participate in food safety awareness programs
Non-compliance can result in:
- Suspension or cancellation of license
- Seizure of products
- Imposition of fines
- Legal prosecution under the Food Act
Types of Food and Beverage Licenses in Nepal
- Restaurant License – For dine-in establishments
- Food Manufacturing License – For packaged or processed food
- Beverage Production License – For juices, sodas, and alcoholic drinks
- Bakery License – For confectioneries and baked items
- Catering License – For event-based food services
- Street Food Vendor License – For carts and stalls
- Import/Export Food License – For food trading across borders
- Dairy Processing License – For milk, yogurt, and dairy items
- Organic Food License – For organically certified items
- Bottled Water License – For filtered and mineral water production
Legal Framework Governing Food Licensing
Nepal’s food licensing is governed by the following legislation:
- Food Act, 2023 (1966) – Core law governing food safety and hygiene
- Food Rules, 2027 (1970) – Rules for implementation of the Act
- Food Regulation Directives, 2075 (2018) – Operational and technical standards
- Consumer Protection Act, 2075 (2018) – Covers consumer rights and quality standards
- Local Government Operation Act, 2074 (2017) – Empowers local bodies to regulate food vendors
- Nepal Standards Act, 2037 – Relates to standards for packaged goods
- Environment Protection Act, 2076 – Regulates waste disposal and pollution
These laws ensure that consumers are protected, and producers are held accountable.
Compliance Checklist for Food Businesses
- Business registration completed
- PAN and tax registration obtained
- Local ward registration completed
- Infrastructure compliant with DFTQC standards
- Staff health and hygiene training completed
- Product testing and labeling completed
- Waste disposal mechanism arranged
- Water source tested
- Application submitted to DFTQC
- License received and displayed
FAQs
1. Do I need a license to start a small food business from home?
Yes. All commercial food production requires registration and licensing—even home-based units.
2. Can one license cover multiple products?
No. Each product or distinct food category needs separate approval and documentation.
3. Is the food license valid permanently?
No. It must be renewed annually to stay valid.
4. Can foreigners apply for a food license in Nepal?
Yes, through a registered company. Foreigners must adhere to FDI and company laws.
5. What happens if I operate without a license?
You risk business closure, product seizure, penalties, and legal prosecution.
6. What if I change the product formulation?
You must update the DFTQC and apply for product re-testing and label modification.
7. Can I sell my products in supermarkets with this license?
Yes. A valid DFTQC license allows access to formal retail chains.
8. How do I renew my license?
Apply 30 days before expiry with updated documents and fee. Delays may attract fines.
Need Legal Help?
Navigating the food and beverage licensing process in Nepal can be complex. At Onesphere Law Associates, we specialize in:
- Business and company registration
- Food and beverage licensing
- Trademark registration
- Import/export legalities
Contact us today for a free initial consultation and ensure your business starts on a strong legal foundation.
Email: info@onespherelaw.com
Phone/WhatsApp: +977-9820999688 Visit our Website