INGO Registration in Nepal
International Non-Governmental Organizations (INGOs) are instrumental in driving development initiatives in Nepal, contributing to sectors such as education, healthcare, disaster relief, and poverty alleviation. However, to operate legally, INGOs must comply with Nepal’s regulatory framework, primarily governed by the Social Welfare Act, 1992, and overseen by the Social Welfare Council (SWC). At Onesphere Law Associates, we specialize in guiding INGOs through the registration process, ensuring adherence to Nepalese laws. This article provides an in-depth guide to INGO registration in Nepal, detailing the process, legal provisions, required documents, criteria, and timelines.
Why INGO Registration is Essential in Nepal
Registering an INGO in Nepal is a legal prerequisite to conduct operations, access funding, and collaborate with local partners. The SWC, established under the Social Welfare Act, 1992, regulates INGO activities to ensure transparency, accountability, and alignment with national development goals. Registration fosters trust with local stakeholders, including government bodies, municipalities, and communities. With expert legal support from Onesphere Law Associates, INGOs can navigate Nepal’s regulatory landscape efficiently and focus on their mission.
Legal Provisions Governing INGOs in Nepal
The legal framework for INGOs in Nepal is primarily outlined in the Social Welfare Act, 1992, and supplemented by guidelines issued by the SWC. Key provisions include:
- Section 4 of the Social Welfare Act, 1992: Establishes the SWC as the regulatory body responsible for coordinating, monitoring, and evaluating INGO and NGO activities. The SWC ensures that INGOs contribute to social welfare without compromising national interests.
- Section 13: Mandates that INGOs register with the SWC before initiating operations. It requires INGOs to submit detailed project proposals and financial plans for approval.
- Section 16: Empowers the SWC to monitor INGO activities, including fund utilization, to prevent misuse and ensure compliance with agreed objectives.
- SWC Guidelines for INGOs: The SWC issues specific directives, such as the Directives on INGO Affiliation and Project Approval, 2014, which outline procedures for registration, project agreements, and partnerships with local NGOs. These guidelines require INGOs to channel funds through SWC-approved local partners.
- Income Tax Act, 2002: INGOs must register with the Inland Revenue Office (IRO) for tax compliance. While INGOs may be eligible for tax exemptions under Section 2(d) for charitable activities, they must maintain transparent financial records.
- Foreign Exchange Regulation Act, 1962: Regulates the inflow of foreign funds, requiring INGOs to provide evidence of funding sources to ensure legitimacy.
These provisions collectively ensure that INGOs operate within Nepal’s legal and financial framework, contributing to sustainable development while maintaining accountability.
Step-by-Step INGO Registration Process
The registration process involves several stages, each requiring meticulous documentation and coordination with the SWC and other authorities. Here’s a detailed overview:
- Filing an Application at the SWC
The process begins with submitting a formal application to the SWC, accompanied by a cover letter, organizational details, and supporting documents. The application must outline the INGO’s objectives and proposed activities in Nepal. - Signing the General Agreement (GA)
Upon preliminary approval, the INGO signs a General Agreement with the SWC. The GA, as per SWC guidelines, specifies the INGO’s scope of work, duration of operations (typically 3-5 years), and compliance obligations. - Obtaining the Registration Certificate
After the GA is signed, the SWC issues a registration certificate, granting the INGO legal status to operate in Nepal. - Tax Registration at the IRO
The INGO’s local office must register with the IRO to comply with tax regulations. This step is critical for financial transparency and eligibility for tax exemptions.
Required Documents for INGO Registration in Nepal
Submitting complete and accurate documents is crucial to avoid delays. Onesphere Law Associates ensures all paperwork meets SWC standards. The required documents include:
- Cover Letter: A formal request for registration addressed to the SWC.
- Citizenship/Passport Copies: Copies of citizenship documents, passports with valid visas, and bio-data of the INGO’s head office directors.
- General Agreement (GA): A signed agreement detailing the INGO’s objectives and commitments.
- Project Agreement (PA): An agreement between the INGO, SWC, and local partner, outlining project plans, methods, and stakeholder involvement.
- Project and Financial Plan: A comprehensive description of working sectors, project goals, timelines, and financial projections.
- Home Country Registration Certificate: Proof of the INGO’s legal status in its home country, along with its by-laws.
- Evidence of Funding Source: Documentation verifying the legitimacy and reliability of the INGO’s funding sources.
Criteria for INGO Registration in Nepal
The SWC imposes stringent criteria to ensure INGOs align with Nepal’s development priorities. Key requirements include:
- Minimum Annual Donation: INGOs must commit to a minimum donation of USD 200,000 per year, as per SWC guidelines.
- Local Partnership: INGOs must collaborate with a local NGO or profit-not-distributing company registered with the SWC.
- SWC Approval for Funding: Local partners must obtain SWC approval to receive funds, ensuring transparency in fund utilization.
- Tax Compliance: The INGO’s local office must register with the IRO, adhering to the Income Tax Act, 2002.
- Financial Credibility: INGOs must provide evidence of reliable funding sources, compliant with the Foreign Exchange Regulation Act, 1962.
- Stakeholder Collaboration: Projects must involve local entities, such as municipalities, ward offices, or District Development Committees, to ensure community engagement.
Timeline for INGO Registration in Nepal
The registration process typically takes 2-3 months, depending on the completeness of documents and the SWC’s review schedule. Delays may occur if documents are incomplete or require additional clarification. Onesphere Law Associates streamlines the process by preparing and reviewing all submissions to meet SWC standards.
Why Choose Onesphere Law Associates?
INGO registration in Nepal requires expertise in the Social Welfare Act, 1992, SWC guidelines, and related laws. Onesphere Law Associates offers:
- Comprehensive document preparation and compliance checks.
- Expert guidance on drafting General and Project Agreements.
- Legal advice on tax registration and financial transparency.
- End-to-end support, from application to certificate issuance.
Our deep knowledge of Nepal’s legal framework ensures your INGO is fully compliant and positioned for success.
Start Your INGO Registration Today
Ready to register your INGO in Nepal? Contact Onesphere Law Associates for professional legal assistance. Our team is committed to helping INGOs achieve their goals while ensuring compliance with Nepal’s laws. Reach out today for a consultation!