Legal Requirements for Establishing a Non-Profit Organization in Nepal

Legal Requirements for Establishing a Non-Profit Organization in Nepal are the rules and procedures that govern the formation and operation of non-governmental organizations (NGOs) in Nepal. NGOs are voluntary associations of individuals or groups that are not affiliated with the government or any political party, and that work for social, cultural, educational, religious, charitable or other public purposes. NGOs can be registered at the district level under the Associations Registration Act, 1977, which is the main law that regulates NGOs in Nepal.

To register an NGO in Nepal, one needs to follow these steps:

•  Form a team of at least seven board members holding Nepali citizenship and obtain the necessary documentation, such as citizenship certificates, passport photos, character reports, rent agreement, etc.

•  Apply and receive a recommendation letter from the ward office where the NGO office is situated by submitting an application with the required documents.

•  Submit an application for a certificate of registration to the relevant district coordination committee by attaching the required documents, including the recommendation letter from the ward office.

•  Obtain an NGO registration number from the District Administration Office by filling five copies of application forms and submitting them with the required documents, including the certificate of registration from the district coordination committee.

•  Obtain a certificate of affiliation from the Social Welfare Council by submitting an application with the required documents, including the NGO registration number from the District Administration Office.

•  Register for tax with the Internal Revenue Service and obtain a Pan Certificate by submitting an application with the required documents, including the certificate of affiliation from the Social Welfare Council.

The total cost for registration will be about Rs 10,000. The registration process may take up to six months or more depending on various factors.

After registering an NGO in Nepal, one needs to comply with various legal obligations and responsibilities, such as:

•  Renewing the NGO registration annually by paying a fee of Rs 500 to the District Administration Office

•  Submitting annual reports and audited financial statements to the District Administration Office and the Social Welfare Council

•  Obtaining prior approval from the Social Welfare Council for any project or program that involves foreign funding or collaboration

•  Abiding by the code of conduct and ethical standards issued by the Social Welfare Council

•  Following the rules and regulations of other relevant authorities, such as the Ministry of Home Affairs, the Ministry of Finance, etc.