Overview of Manpower License in Nepal
A Manpower License in Nepal is a mandatory statutory authorization that permits recruitment agencies to lawfully engage in overseas employment facilitation for Nepali citizens. No entity may conduct foreign employment or recruitment-related activities without obtaining this license from the Department of Foreign Employment (DoFE).
The license functions as a regulatory safeguard, ensuring that recruitment agencies comply with ethical recruitment standards, financial accountability, and worker protection mechanisms prescribed under Nepalese law. Any operation undertaken without such authorization constitutes a punishable offense under prevailing legislation.
Statutory and Regulatory Framework
The issuance, regulation, renewal, and cancellation of a Manpower License in Nepal are governed by the following principal laws:
Core Legislation
| Legal Instrument | Year | Scope and Application |
|---|---|---|
| Foreign Employment Act, 2064 (2007) | 2064 | Licensing, obligations, penalties, worker protection |
| Foreign Employment Rules, 2064 (2008) | 2064 | Procedural requirements and implementation guidelines |
| Companies Act, 2063 (2006) | 2063 | Incorporation and corporate governance |
| Labour Act, 2074 (2017) | 2074 | Employment standards and worker rights |
| Local Government Operation Act, 2074 (2017) | 2074 | Local business registration |
Competent Authorities
The manpower licensing regime involves coordination among multiple authorities:
- Department of Foreign Employment (DoFE) – Licensing and supervision
- Ministry of Labour, Employment and Social Security – Policy formulation
- Foreign Employment Board – Welfare and compensation mechanisms
- Nepal Rastra Bank – Monitoring of guarantees and financial compliance
- Office of the Company Registrar (OCR) – Corporate registration and filings
Eligibility and Financial Thresholds
To qualify for a Manpower License, an applicant company must meet strict financial and capital requirements, ensuring solvency and accountability.
Mandatory Financial Commitments
| Requirement | Amount (NPR) | Nature |
|---|---|---|
| Bank Guarantee | 5,00,000 | Refundable |
| Cash / Collateral Deposit | 1,50,00,000 | Refundable |
| Minimum Paid-up Capital | 50,00,000 | Non-refundable |
| License Issuance Fee | 25,000 | Non-refundable |
| Annual Renewal Fee | 15,000 | Non-refundable |
These financial safeguards are intended to protect migrant workers against fraud, exploitation, or agency default. Please note that the amount may differ as they have been changing frequently by the decision of the ministry.
Documentation Requirements
Corporate and Statutory Documents
- Certificate of Company Registration (OCR)
- Memorandum and Articles of Association (with foreign employment objectives)
- PAN / VAT Registration Certificate
- Municipal or Ward-Level Business Registration
- Latest audited financial statements
Personal and Supporting Documents
- Citizenship certificates of shareholders and directors
- Police clearance and character certificates
- Academic and professional credentials of key personnel
- Office lease deed or ownership certificate
- Bank guarantee and deposit confirmation letters
All documents must be duly notarized and, where applicable, attested by the competent authority.
Procedural Steps for Obtaining Manpower License
Phase I: Company Incorporation and Registration
Timeline: 5-10 days
- Incorporate a private limited company under the Companies Act
- Register foreign employment as a principal business objective
- Obtain PAN and complete local business registration
Phase II: Financial Compliance
Timeline: 7 days
- Deposit statutory bank guarantee and collateral
- Verify paid-up capital through a licensed bank
- Obtain financial compliance certificates
Phase III: Application Submission to DoFE
Timeline: 10 days
- Submit prescribed application form
- Pay statutory fees
- File complete documentation set
Phase IV: Verification and Inspection
Timeline: 20-25 days
- Document scrutiny and background verification
- Physical inspection of office infrastructure
- Assessment of operational readiness
Phase V: License Issuance
Timeline: 7 days
Upon satisfaction, DoFE issues the Manpower License valid for one fiscal year, subject to annual renewal.
Recent Regulatory Developments (2024–2025)
Recent policy reforms have strengthened the manpower regulatory regime by introducing:
- Enhanced financial verification standards
- Digital licensing and renewal systems
- Mandatory pre-departure orientation compliance
- Strengthened anti-trafficking safeguards
Compliance Obligations After Licensing
Licensed manpower companies must continuously adhere to:
- Annual license renewal and audits
- Submission of recruitment records
- Transparent fee structures
- Worker grievance handling mechanisms
- Ethical recruitment standards
Penalties for Violations
Non-compliance may attract fines, suspension, cancellation of license, or criminal liability under the Foreign Employment Act.
Validity and Renewal
- License validity: 1 year
- Renewal requires updated tax clearance, audit reports, compliance certificates, and fee payment.
Legal Assistance from Onesphere Law Associates
At Onesphere Law Associates, we provide end-to-end legal services for:
- Manpower company incorporation
- Manpower License application and renewal
- Regulatory compliance and audits
- Representation before DoFE and related authorities
Our team ensures risk-free licensing, strict statutory compliance, and timely approvals.
Conclusion
A Manpower License in Nepal is both a regulatory necessity and a strategic business gateway. While the process involves substantial financial and legal scrutiny, compliant and well-advised applicants can access significant commercial opportunities while contributing to Nepal’s overseas employment ecosystem.
We remain committed to guiding clients through every legal, procedural, and compliance requirement with precision and professionalism.