The tourism industry in Nepal is a vital contributor to the national economy. Establishing a legally compliant travel or tour company offers substantial business opportunities. However, the registration and licensing process is regulated by multiple laws and authorities. At Onesphere Law Associates, we assist clients in smoothly navigating this multi-agency registration process, ensuring full compliance with the governing laws.
Governing Laws for Travel and Tour Company Registration in Nepal
The registration and licensing of travel and tour companies in Nepal are governed by the following legal instruments:
| S.N | Governing Law | Key Subject Matter |
|---|---|---|
| 1 | Companies Act, 2006 | Procedures for company incorporation and compliance |
| 2 | Tourism Act, 1978 (2035 B.S.) | Licensing and operational requirements of tour agencies |
| 3 | Travel and Trekking Agency Rules, 2005 | Guidelines on registration, renewal, and classification |
| 4 | Foreign Investment and Technology Transfer Act, 2019 (2075) | Restricts foreign investment in travel agencies |
Authorities Involved in the Registration Process
| S.N | Governing Authority | Role in Registration Process |
|---|---|---|
| 1 | Office of the Company Registrar (OCR) | Registers new companies |
| 2 | Inland Revenue Department (IRD) | Issues PAN and registers for VAT |
| 3 | Local Ward Office | Registers physical office location |
| 4 | Department of Industry (DoI) | Provides industry registration certificate |
| 5 | Department of Tourism (DOT) | Issues travel agency license |
Step-by-Step Registration Process
Step 1: Company Registration at OCR
Register a private limited company (preferred structure) at the Office of the Company Registrar (OCR). Submit:
- Application in prescribed format
- Memorandum and Articles of Association (MOA & AOA)
- Shareholder agreement (if applicable)
- Citizenship certificates or passport (for individuals)
- Company incorporation documents (if a corporate investor)
- Minimum paid-up capital for Private Limited Company: NPR 25,00,000
Step 2: Tax and PAN Registration
Register with the Inland Revenue Department to obtain a Permanent Account Number (PAN). If expected annual turnover exceeds NPR 3 million, register for VAT as well.
Step 3: Ward Office Registration
Submit documents to the local Ward Office where the company is physically based. Prepare:
- Office lease agreement (minimum 5 years)
- Landlord’s citizenship certificate
- Utility bills
- Location map
- Company stamp for formal documents
Step 4: Capital Injection and Bank Setup
Open a company bank account. Inject capital as declared during incorporation. Submit bank deposit proof to OCR to obtain the shareholder registry.
Step 5: Industry Registration at Department of Industry (DoI)
Apply for industry registration using the tourism recommendation. Submit:
- Company documents
- PAN certificate
- Capital injection proof
- Bank guarantee slip
Receive the Industry Registration Certificate, essential for the next step.
Step 6: Apply for Travel Agency License
Submit the application to the Department of Tourism along with:
- Bank Guarantee of NPR 5,00,000 (valid for 5 years)
- Industry Registration Certificate
- Copy of company registration and PAN/VAT certificates
- Proof of minimum capital
- Passport-sized photographs of directors
- Tax clearance and audit reports (if the company is more than 1 year old)
Pay:
- Application Fee: NPR 100
- License Fee: NPR 15,000
License Validity: 5 years
Timeline for Registration
The entire process of registering a travel or tour agency in Nepal generally takes 45 to 60 working days, depending on document readiness and government timelines.
Required Documents Summary
Documents for OCR:
- Company registration application form
- MOA and AOA
- Shareholder agreement (if any)
- Citizenship/passport of shareholders
- Corporate documents (if a corporate investor)
- Board resolution for investment (for companies)
Documents for Tourism License:
- Company Registration Certificate (notarized)
- PAN/VAT Certificate (notarized)
- Proof of paid-up capital
- Bank Guarantee of NPR 5 Lakhs
- Tax clearance & audit report (for companies older than 1 year)
- Passport-size photos of directors
- Industry Registration Certificate
- Lease documents and commitment letter
Government Fees Breakdown
| S.N | Purpose | Approximate Cost (NPR) |
|---|---|---|
| 1 | Company Registration at OCR | Based on authorized capital |
| 2 | Business Registration at Ward Office | 10,000 – 20,000 |
| 3 | House Rent Tax | 10% of monthly rent (4–6 months) |
| 4 | Industry Registration Fee | Based on capital |
| 5 | DOT Application Fee | 100 |
| 6 | DOT License Fee | 15,000 |
| 7 | Bank Guarantee | 5,00,000 (refundable after 5 years) |
License Renewal Requirements
Under Rule 7 of the Travel and Trekking Agency Rules, 2005:
- License validity: 5 years
- Renewal fee: NPR 25,000
- Late renewal penalties:
- After 3 months: +25% fee
- After 6 months: +50% fee
- Beyond 6 months: License is automatically canceled
Renewals require:
- Updated audit and tax clearance reports
- Proof of compliance with licensing requirements
Restrictions on Foreign Investment
Travel and tour companies are on the Negative List of the Foreign Investment and Technology Transfer Act, 2019, which means:
- Foreign nationals cannot own or operate a travel or tour agency in Nepal.
- Foreigners cannot partner with Nepali citizens to open such businesses.
- The only lawful alternative: Enter the market via a distributorship or agency agreement with a local, licensed travel operator.
Why Choose Onesphere Law Associates?
With deep expertise in company registration, industry licensing, and tourism law in Nepal, Onesphere Law Associates provides reliable, end-to-end legal solutions for:
- Company formation for travel and tours businesses
- Regulatory compliance with the Department of Tourism
- Renewal, tax filing, and audit support
- Contract drafting for agency and distributorship agreements
FAQs
What is the process for registering a travel and tour company in Nepal?
The process involves six major steps: company registration with the Office of the Company Registrar (OCR), obtaining PAN and VAT from the Inland Revenue Department (IRD), ward office registration, injecting capital and getting shareholder registry, industry registration with the Department of Industry (DoI), and acquiring a travel agency license from the Department of Tourism (DOT).
What is the minimum capital requirement for opening a travel agency in Nepal?
For a private limited company, the minimum paid-up capital is NPR 25,00,000.
How long does it take to register a travel and tour agency in Nepal?
It typically takes between 45 to 60 days to complete the full registration and licensing process.
Can foreign nationals open a travel or tour company in Nepal?
No. Travel and tour companies are included in the negative list under the Foreign Investment and Technology Transfer Act, 2019. Foreigners are not allowed to invest or operate travel agencies in Nepal.
Is it mandatory to obtain an industry registration certificate for a travel company in Nepal?
Yes. After incorporating the company, industry registration with the Department of Industry is required before applying for a travel agency license from the Department of Tourism.
What is the validity period of a travel agency license in Nepal?
The travel agency license is valid for five years and must be renewed before expiration to avoid penalties.
What is the government fee for obtaining a travel agency license in Nepal?
The application fee is NPR 100, and the license fee is NPR 15,000, payable to the Department of Tourism.
What documents are needed for travel agency license in Nepal?
Key documents include notarized copies of company registration, PAN/VAT certificates, proof of paid-up capital, bank guarantee of NPR 5 lakhs, and personal documents of shareholders/directors, among others.
What are the penalties for late renewal of a travel agency license in Nepal?
If renewed:
- Within 3 months: NPR 25,000 (no additional fee)
- After 3 months: 25% extra fee
- After 6 months: 50% extra fee
Failure to renew beyond 6 months results in automatic cancellation of the license.
Can I sell international tour packages through a travel agency in Nepal?
Yes, as long as the agency is legally licensed and complies with the Department of Tourism’s regulations. However, foreign investors may only sell via local agents and distributors.