Alcohol License Nepal: Bar, Restaurant & Hotel Permit Guide

24 Feb

Obtaining an Alcohol License Nepal is mandatory before liquor can be legally sold or served in Nepal. Heavy penalties are imposed for non-compliance. Therefore, a proper legal process must be followed under excise laws and local government regulations.

In Nepal, alcohol sales are regulated under the Excise Act 2058 (2002) and Excise Regulation 2059 (2003). Additionally, local governments exercise authority under the Local Government Operation Act 2074. As a result, both federal and local approvals are required.

This complete guide explains the legal framework, application procedure, renewal rules, government fees, and compliance risks relating to Alcohol License Nepal.

What Is Alcohol License Nepal?

An Alcohol License Nepal is a government-issued permit allowing businesses to sell, distribute, or serve alcoholic beverages legally.

It is required for:

Bars
Restaurants
Hotels
Resorts
Nightclubs
Liquor retail shops

Without this permit, alcohol service is considered illegal under Section 3 of the Excise Act 2058.

Legal Framework Governing Alcohol License Nepal

The regulatory structure for Alcohol License Nepal is governed by the following laws:

Law / Regulation	Purpose
Excise Act 2058 (2002)	Governs production, sale, and distribution of alcohol
Excise Regulation 2059	Provides procedural licensing rules
Local Government Operation Act 2074	Empowers municipalities to regulate business permits
Income Tax Act 2058	Applies to alcohol-related revenue compliance

Under Section 4 of the Excise Act 2058, alcohol cannot be manufactured, stored, transported, or sold without a valid license.

Additionally, municipalities may impose separate local approval requirements.

Types of Alcohol License Nepal

Different categories of Alcohol License Nepal are issued depending on the business model.

Bar License

Issued for establishments primarily serving alcohol.

Restaurant Liquor Permit

Granted to restaurants serving alcohol alongside food.

Hotel Liquor License

Approved for star hotels and tourist-standard hotels.

Retail Liquor Shop License

Issued for packaged liquor sales only.

Where Is Alcohol License Nepal Issued?

An Alcohol License Nepal is issued by:

Inland Revenue Office (Excise Section)
Department of Customs (in specific cases)
Local Municipality or Metropolitan Office

Applications must be submitted to the Excise Office having jurisdiction over the business location.

Required Documents for Alcohol License Nepal

The following documents are generally required:

Document	Mandatory
Company Registration Certificate	Yes
PAN/VAT Registration	Yes
Tax Clearance Certificate	Yes
Ward Recommendation Letter	Yes
Lease Agreement or Ownership Proof	Yes
Police Clearance	Often Required
Business Map/Layout Plan	Yes

Failure to provide complete documentation may result in rejection.

Application Process for Alcohol License Nepal

The procedure for obtaining an Alcohol License Nepal is structured and regulated.

Step 1: Business Registration

Company or firm registration must be completed first.

Step 2: Tax Registration

PAN and VAT registration must be secured.

Step 3: Local Ward Recommendation

A recommendation letter must be obtained from the local ward office.

Step 4: Excise Office Application

Application must be filed with required documents and prescribed fees.

Step 5: Inspection

Premises inspection is conducted by authorities.

Step 6: License Issuance

If approved, the license is issued for one fiscal year.

Government Fees for Alcohol License Nepal

Fees vary depending on location and business type.

Business Type	Approx. Annual Fee (NPR)
Small Restaurant	50,000 – 150,000
Bar	150,000 – 300,000
Hotel (Tourist Standard)	200,000 – 500,000
Retail Liquor Shop	100,000 – 250,000

Fees are determined by local government decisions and excise classification.

Renewal of Alcohol License Nepal

An Alcohol License Nepal must be renewed annually before the end of Ashad (Nepali fiscal year).

Late renewal penalties may include:

25% fine for first delay period
50% fine for extended delay
License cancellation for prolonged default

Tax clearance is mandatory for renewal approval.

Penalties for Operating Without Alcohol License Nepal

Operating without a valid Alcohol License Nepal may result in:

Business closure
Confiscation of stock
Monetary fines
Criminal liability under the Excise Act

In serious violations, imprisonment provisions may apply under Section 17 of the Excise Act.

What Is the Processing Time for Alcohol License Nepal?

Typically, 15–30 working days are required.

However, delays may occur if:

Documents are incomplete
Inspection fails
Tax dues remain pending

Where Is Alcohol Sale Restricted in Nepal?

Alcohol sale is restricted:

Near schools and religious sites
During national mourning periods
On designated dry days
During election silence periods

Local governments publish annual dry-day notices.

Frequently Asked Questions

What is the validity period of an alcohol license in Nepal?

An Alcohol License Nepal is valid for one fiscal year and must be renewed annually.

Where is the excise office located in Kathmandu?

The Inland Revenue Office (Excise Section) located in Tripureshwor handles Kathmandu applications.

What is the penalty for selling alcohol without license?

Fines, confiscation, and possible imprisonment may be imposed under the Excise Act 2058.

Can a home-based business obtain an alcohol license?

Generally, no. Commercial zoning compliance is required.