Travel Agency Registration in Nepal

What is travel agency registration in Nepal? Travel agency registration in Nepal is the legal process of establishing a tourism business entity authorized to provide travel-related services under the Tourism Act 2035 (1978) and Travel and Trekking Agency Rules 2062 (2005) . This comprehensive procedure involves company incorporation with the Office of Company Registrar (OCR), tax registration with the Inland Revenue Department (IRD), industry registration with the Department of Industry (DOI), obtaining a recommendation letter from the Provincial Tourism Office, and securing a final tourism license from the Department of Tourism or Provincial Tourism Ministry . The process requires NPR 25 lakhs minimum paid-up capital and a NPR 5 lakhs bank guarantee valid for 5 years .

Understanding Nepal's Travel Agency Regulatory Framework

Nepal's tourism industry is one of the strongest pillars of the national economy, contributing approximately 6.7% to GDP in 2024 . To ensure consumer protection, service quality, and financial accountability, the government mandates strict licensing requirements for all travel and tour businesses.

Key Governing Legislation

Critical Restriction: Foreign Investment Prohibition

Travel agencies are explicitly included in Nepal's Negative List for Foreign Investment . Under FITTA 2019, foreign nationals cannot register, invest in, or operate travel agencies, trekking businesses, or mountaineering guide services in Nepal . Only Nepali citizens or entities wholly owned by Nepali citizens are eligible for travel agency registration .

Types of Travel Agencies in Nepal

Step-by-Step Travel Agency Registration Process

Phase 1: Company Incorporation

Step 1: Reserve Company Name

• Access www.ocr.gov.np (Office of Company Registrar portal)
• Submit 2-3 proposed names in English and Nepali
• Avoid restricted terms ("Royal," "National," "Nepal") requiring special clearance
• Approved names must proceed to registration within 90 days

Step 2: Prepare Corporate Documentation

• Memorandum of Association (MOA) with tourism objectives clearly stated
• Articles of Association (AOA) outlining governance structure
• Citizenship certificates of all shareholders and directors
• Recent passport-sized photographs (2 copies each)
• Proof of registered office address (lease agreement or ownership document)

Step 3: Submit Company Registration

• Upload documents to OCR portal within 90 days of name approval
• Minimum paid-up capital: NPR 25 lakhs for private limited companies
• Pay registration fees based on authorized capital:

• Obtain Certificate of Incorporation within 3-5 working days

Phase 2: Tax and Local Registration

Step 4: Obtain Permanent Account Number (PAN)

• Register at Inland Revenue Department (ird.gov.np)
• Submit application with company registration certificate and office address proof
• PAN certificate issued within 1 working day

Step 5: VAT Registration

• Mandatory if annual turnover exceeds NPR 3 million
• Standard VAT rate for travel services: 13%
• Export services (packages sold abroad) are zero-rated

Step 6: Ward Office Registration

• Submit company registration certificate, lease agreement, and PAN certificate to local ward office
• Obtain municipal business operating certificate
• Fees vary by location: NPR 8,000 - 15,000

Step 7: Open Corporate Bank Account

• Open account at commercial bank in company's name
• Deposit NPR 25 lakhs paid-up capital
• Obtain share registry certificate from OCR confirming capital deposit

Phase 3: Capital Verification and Bank Guarantee

Step 8: Arrange Bank Guarantee

• Obtain NPR 5 lakhs bank guarantee from B-class or higher commercial bank
• Guarantee must be:
  • Made payable to "Department of Tourism" or respective Provincial Tourism Office
  • Valid for 5 years matching license validity
  • Refundable after 5 years upon license cancellation or non-renewal
• Bank charges: 1-2% of guarantee amount annually (NPR 5,000-10,000)

Phase 4: Provincial Tourism Office Recommendation

Step 9: Submit Recommendation Application Apply to Provincial Tourism Office (Bagmati Tourism Office for Kathmandu operations at https://tourismktm.bagamati.gov.np/) : Required Documents:

• Duly filled application form with declaration letter
• Company registration certificate (copy)
• PAN certificate (copy)
• MOA and AOA (notarized copies)
• Share registry showing NPR 25 lakhs capital
• Bank guarantee letter of NPR 5 lakhs
• Citizenship copies of all shareholders
• 5-year house rent agreement with landlord's citizenship, house number, location map, and recent utility bill
• Bio-data and 2 passport photos of authorized representative
• Board resolution approving travel company registration
• Power of attorney (if representative is not director)
• Letter of commitment to tourism office

Physical Presence Requirement:

• All board directors must appear personally at the tourism office for document verification and brief interview
• This requirement cannot be waived

Timeline: Recommendation letter issued within 3 working days after verification

Phase 5: Industry Registration

Step 10: Register with Department of Industry (DOI)

• Submit tourism office recommendation letter, company documents, and capital verification
• Register as "Service Industry" under tourism classification
• Obtain Industry Registration Certificate within 1 working day

Phase 6: Final Tourism License

Step 11: Submit Final License Application Apply to Provincial Tourism Office or Department of Tourism with:

• Industry registration certificate
• Company registration documents
• PAN/VAT certificates
• Bank guarantee of NPR 5 lakhs
• Proof of paid-up capital
• Passport-size photographs of directors
• Tax clearance certificate (if company 1 year old)
• Audit report (if applicable)

Step 12: Undergo Physical Inspection

• Tourism officials conduct physical inspection of business premises
• Verification includes: office infrastructure, signage, communication facilities, staffing, and operational readiness

Step 13: Obtain Tourism License

• Upon successful inspection, license issued within 2 working days
• License fee: NPR 25,000 (provincial) or NPR 15,000 (federal)
• Validity: 5 years from issuance date

Complete Registration Timeline

Cost Breakdown for Travel Agency Registration

Post-Registration Compliance Requirements

Common Mistakes to Avoid

Frequently Asked Questions (FAQs)

Q1: What is travel agency registration in Nepal? Travel agency registration is the legal process of establishing a tourism business involving company incorporation at OCR, tax registration, industry registration, Provincial Tourism Office recommendation, and final tourism license issuance .

Q2: Can foreigners register a travel agency in Nepal? No. Travel agencies are on Nepal's FDI Negative List. Only Nepali citizens or 100% Nepali-owned entities can register travel agencies .

Q3: What is the minimum capital required for travel agency registration? The minimum paid-up capital is NPR 25 lakhs for private limited companies, plus a NPR 5 lakhs bank guarantee valid for 5 years .

Q4: How long does travel agency registration take? The complete process typically requires 12-18 working days under optimal conditions, though 20-45 days is more realistic accounting for document preparation and scheduling .

Q5: What documents are required for tourism license? Core documents include: company registration certificate, PAN/VAT certificates, MOA/AOA, share registry showing NPR 25 lakhs capital, bank guarantee letter, 5-year office lease, citizenship certificates of shareholders, board resolution, and director photographs .

Q6: Where do I apply for travel agency license? For Bagmati Province operations, apply at Bagmati Tourism Office (https://tourismktm.bagamati.gov.np/). Other provinces have respective Provincial Tourism Offices .

Q7: Is the bank guarantee refundable? Yes, the NPR 5 lakhs bank guarantee is refundable after 5 years upon license cancellation or non-renewal, provided no pending claims exist against the agency .

Q8: What are the penalties for operating without a license? Operating without a tourism license can result in fines up to 25% of annual turnover, business shutdown, and legal action under the Tourism Act .

Q9: Can one company operate multiple tourism services? Yes, with a Combined License (NPR 40 lakhs capital) allowing all tourism activities including tours, trekking, and expeditions .

Q10: How often must tourism licenses be renewed? Tourism licenses are valid for 5 years and must be renewed before expiry with updated compliance documents and renewal fees .

Conclusion: Building Compliant Travel Operations in Nepal

Understanding travel agency registration in Nepal requires mastery of the multi-departmental process spanning company incorporation, capital verification, bank guarantee arrangements, and tourism-specific licensing. The strict NPR 25 lakhs capital requirement and NPR 5 lakhs bank guarantee demonstrate the government's commitment to ensuring financially stable and accountable tourism operators. Success depends on meticulous document preparation, adherence to the sequential registration process, and maintaining ongoing compliance with renewal and reporting obligations. With Nepal's tourism sector continuing to grow post-pandemic, properly registered travel agencies position themselves for sustainable operations and access to government tourism promotion programs. For comprehensive travel agency registration services, contact CorporateNp – your trusted partner for navigating Nepal's tourism licensing landscape with expertise in OCR incorporation, Provincial Tourism Office coordination, and ongoing compliance management.

Disclaimer: This guide is provided for informational purposes only and does not constitute legal advice. Tourism regulations and licensing requirements may change. Consult qualified legal professionals and verify current requirements with the Department of Tourism, Provincial Tourism Offices, and other official government sources before making investment decisions.   Service Provider: CorporateNp specializes in travel agency registration, tourism license acquisition, Provincial Tourism Office coordination, and ongoing compliance management for Nepali tourism entrepreneurs. References:

• Tourism Act 2035 (1978)
• Travel and Trekking Agency Rules 2062 (2005)
• Companies Act 2063 (2006)
• Industrial Enterprises Act 2076 (2020)
• Foreign Investment and Technology Transfer Act 2075 (2019)
• Department of Tourism, Government of Nepal
• Bagmati Tourism Office
• Office of Company Registrar (OCR)