Registration of INGOs in Nepal is governed by a structured legal framework that requires international non-governmental organizations to comply with specific rules before operating within the country. Nepal hosts hundreds of INGOs working in sectors such as health, education, disaster relief, environment, and human rights. Understanding the INGO registration process in Nepal is essential for any foreign organization that wishes to work legally in Nepal.
What is an INGO in Nepal?
An International Non-Governmental Organization (INGO) is a non-profit, voluntary organization established outside Nepal that operates programs and projects within the country. INGOs in Nepal work in partnership with the Government of Nepal, local NGOs, and communities to implement development and humanitarian programs.
INGOs are distinct from local NGOs, which are registered under Nepali law by Nepali nationals. INGOs bring foreign funding, technical expertise, and global networks. The Social Welfare Council (SWC) is the primary government body responsible for the registration, renewal, and monitoring of INGOs in Nepal.
What is the Legal Framework for INGO Registration in Nepal?
The registration of INGOs in Nepal falls under several laws and policies:
- Social Welfare Act, 2049 (1992): This is the primary legislation governing INGOs in Nepal. Section 3 of the Act mandates that any foreign organization wishing to work in Nepal must affiliate with the Social Welfare Council.
- Social Welfare Council Regulations, 2049 (1992): These regulations detail the procedures, conditions, and requirements for INGO affiliation with SWC.
- Foreign Aid Policy, 2014 (2071 BS): This policy outlines how foreign aid, including INGO funds, must be channeled and utilized in Nepal.
- Association Registration Act, 2034 (1977): Applies to the local counterpart NGOs that partner with INGOs.
- Income Tax Act, 2058 (2002): Governs the tax obligations of INGOs operating in Nepal.
- Nepal’s Foreign Investment and Technology Transfer Act, 2075 (2019): Provides the broader investment and foreign entity framework.
All INGOs must affiliate with the Social Welfare Council before commencing any activities. Operating without SWC affiliation is a violation of the Social Welfare Act.
Which Authority Registers INGOs in Nepal?
The Social Welfare Council (SWC) under the Ministry of Women, Children and Senior Citizens is the sole authority that affiliates and regulates INGOs in Nepal. The SWC was established under the Social Welfare Act, 2049 (1992) and functions as the central coordinating body for all development and welfare organizations.
You can visit the official SWC website at: https://www.swc.org.np
In addition to SWC, the Ministry of Finance and the Ministry of Foreign Affairs also play roles in monitoring foreign aid flows and INGO activities.
What Are the Types of INGO Registration/Affiliation in Nepal?
INGOs in Nepal can operate under different categories of affiliation with the SWC:
| Category | Description | Duration |
|---|---|---|
| Program Agreement | INGO implements a specific program in partnership with a local NGO or government body | 1–5 years (renewable) |
| Project Agreement | INGO implements a time-bound project with defined outputs | Project duration |
| Memorandum of Understanding (MOU) | Formal agreement between INGO and SWC outlining operational scope | Specified period |
| Technical Assistance Agreement | INGO provides technical expertise to a government ministry | Duration of assistance |
All agreements require SWC approval before implementation.
What is the Step-by-Step Process for INGO Registration in Nepal?
The registration of INGOs in Nepal follows a defined procedural path. Below are the steps:
Step 1: Submission of Initial Application
The INGO submits a formal application to the Social Welfare Council along with all required documents. The application must clearly state the organization’s objectives, proposed programs, areas of operation, and financial details.
Step 2: Scrutiny by SWC
The SWC secretariat reviews the submitted documents. They verify the legal status of the organization in its home country, check whether the proposed programs align with Nepal’s development priorities, and assess the financial capacity of the INGO.
Step 3: Recommendation from Concerned Ministry
For many INGOs, the SWC also seeks a recommendation letter from the relevant government ministry. For example, an INGO working in health must get a recommendation from the Ministry of Health and Population.
Step 4: Board Decision
The SWC Board meets and decides on the affiliation application. The Board may approve, reject, or request additional information.
Step 5: Signing of Agreement
Once approved, the INGO and SWC sign a formal Program Agreement or MOU. This agreement specifies the working areas, budget, reporting obligations, and duration of operation.
Step 6: Registration at Ministry of Home Affairs
After SWC affiliation, INGOs must also register with the Ministry of Home Affairs (MoHA) under the Social Welfare Act for permission to work in Nepal. Visit: https://www.moha.gov.np
Step 7: Opening of Bank Account
The INGO must open a bank account in a Nepali commercial bank through which all foreign funds must be channeled as per the Foreign Aid Policy of Nepal and Nepal Rastra Bank regulations.
Step 8: Tax Registration
The INGO must register with the Inland Revenue Department and obtain a Permanent Account Number (PAN) for tax compliance purposes. Visit: https://www.ird.gov.np
What Documents Are Required for INGO Registration in Nepal?
The following documents are mandatory for the INGO registration and affiliation process in Nepal:
- Application letter addressed to the Chairperson of the Social Welfare Council
- Registration certificate of the INGO from its home country (duly notarized and apostilled)
- Constitution or Bylaws of the INGO (translated into Nepali if required)
- Audited financial statements for the last three years
- Annual report of the INGO from the home country
- Board resolution authorizing the application in Nepal
- Details of the proposed program/project including budget, timeline, and target areas
- CV and credentials of the Country Director or Chief Representative
- Recommendation letter from the concerned line ministry in Nepal
- Agreement draft between the INGO and local partner (if applicable)
- Tax exemption certificate or non-profit status proof from the home country
- Letter of intent specifying why Nepal has been selected for operations
- No Objection Letter (NOC) from the Nepal Embassy in the INGO’s home country (in some cases)
What Are the Fees for INGO Registration in Nepal?
The SWC charges an affiliation fee at the time of registration and renewal. The fee structure is as follows:
| Fee Type | Amount (NPR) |
|---|---|
| Initial Affiliation Fee | NPR 50,000 to NPR 1,00,000 (varies by budget size) |
| Annual Renewal Fee | NPR 25,000 to NPR 75,000 |
| Program Agreement Processing Fee | NPR 10,000 to NPR 25,000 |
| Project Agreement Fee | Based on project budget |
Note: These fees are subject to change by SWC notification. INGOs should confirm current fees directly with the SWC office.
How Long Does INGO Registration in Nepal Take?
The processing time for INGO registration and affiliation in Nepal typically ranges from 3 to 6 months depending on the completeness of documents, complexity of the proposed program, and the responsiveness of concerned ministries. Incomplete applications may face delays. INGOs that submit all required documents and obtain ministry recommendations in advance tend to experience faster processing.
What Are the Reporting and Compliance Requirements for INGOs in Nepal?
Once registered, INGOs in Nepal must comply with several ongoing obligations:
- Submit trimestral (four-monthly) progress reports to the SWC
- Submit annual audited financial reports to both SWC and the Inland Revenue Department
- All foreign funds must be transferred through Nepal Rastra Bank-approved channels
- INGOs must comply with Labor Act, 2074 (2017) for Nepali staff employment
- INGOs must obtain work permits for foreign staff through the Department of Immigration
- INGOs must obtain project approval from district-level authorities where they operate
- INGOs must participate in periodic monitoring visits by SWC officials
- INGOs must not engage in political activities as per Section 14 of the Social Welfare Act
What is the Renewal Process for INGO Affiliation in Nepal?
INGO affiliation with SWC requires periodic renewal. The renewal process includes:
- Submission of a renewal application at least 90 days before expiry
- Submission of progress and impact reports of completed programs
- Audited financial statements for the previous period
- Updated program proposal for the renewal period
- Payment of renewal fees
- Fresh recommendation from the concerned ministry (if required)
The SWC reviews the INGO’s track record and compliance history before approving renewal. Poor performers or non-compliant INGOs may face non-renewal or suspension.
Can an INGO be Suspended or Deregistered in Nepal?
Yes. Under Section 16 of the Social Welfare Act, 2049, the SWC has the authority to suspend or cancel the affiliation of any INGO that:
- Violates the terms of the program agreement
- Engages in activities outside the approved scope
- Fails to submit required reports
- Misuses funds or engages in corrupt practices
- Undertakes political activities
- Operates in restricted areas without government permission
The SWC may issue a show-cause notice before final cancellation, giving the INGO an opportunity to respond.
FAQs
1. Which authority handles INGO registration in Nepal?
The Social Welfare Council (SWC) under the Ministry of Women, Children and Senior Citizens handles INGO affiliation and registration in Nepal. All INGOs must affiliate with SWC under the Social Welfare Act, 2049 before beginning operations.
2. How long is the INGO affiliation valid in Nepal?
INGO affiliation is typically granted for a period matching the program agreement, usually 1 to 5 years. INGOs must apply for renewal before the expiry date to continue operations legally in Nepal.
3. Can an INGO work in Nepal without SWC affiliation?
No. Under the Social Welfare Act, 2049, all INGOs must affiliate with the Social Welfare Council. Operating without affiliation is a legal violation and may result in deportation of foreign staff and closure of operations.
4. Is there a tax exemption for INGOs in Nepal?
INGOs may apply for tax exemption under the Income Tax Act, 2058. The Inland Revenue Department grants exemption based on the nature of activities and compliance with applicable laws and SWC affiliation status.
5. Do INGOs need to partner with a local NGO in Nepal?
Many INGOs operate through a local NGO partner registered under the Association Registration Act. SWC often requires a program agreement with a local partner, though some INGOs may work directly with government bodies.
6. What happens if an INGO fails to renew its affiliation in Nepal?
Failure to renew INGO affiliation results in the lapse of legal permission to operate. The INGO must stop all activities, and its foreign staff may face immigration consequences. A fresh affiliation application may be required after lapse.
Conclusion
The registration of INGOs in Nepal is a multi-step process regulated primarily by the Social Welfare Act, 2049 and administered by the Social Welfare Council. INGOs must follow all legal requirements, submit complete documentation, and maintain ongoing compliance to operate effectively in Nepal. Proper understanding of the INGO registration process in Nepal ensures smooth implementation of development programs while maintaining legal standing with the Government of Nepal.
