Travel and Tours Company Registration in Nepal

Travel and Tours Company Registration in Nepal is a structured legal process governed by multiple laws and regulatory bodies. Any individual or group intending to operate a travel and tours business in Nepal must comply with the requirements set by the Government of Nepal. This article covers the full process of travel and tours company registration in Nepal, including applicable laws, required documents, government fees, regulatory bodies, and step-by-step procedures.

Nepal is one of the most popular tourist destinations in the world. With the Himalayas, adventure tourism, cultural heritage sites, and trekking routes, Nepal attracts hundreds of thousands of tourists every year. Because of this, the travel and tourism sector is one of the most active business sectors in Nepal. Starting a travel and tours company in Nepal requires proper registration and licensing under Nepali law.

What is a Travel and Tours Company in Nepal?

A travel and tours company in Nepal is a business entity that provides travel-related services to domestic and international clients. These services may include:

• Organizing tours and travel packages
• Booking flights, hotels, and transportation
• Arranging trekking and adventure activities
• Providing guide services
• Managing inbound and outbound tourism
• Organizing cultural and heritage tours

Such a company must be registered with the Office of the Company Registrar (OCR) and must obtain a Tourism License from the Department of Tourism (DoT) under the Ministry of Culture, Tourism and Civil Aviation, Nepal.

Legal Framework Governing Travel and Tours Company Registration in Nepal

Travel and tours company registration in Nepal operates under several laws and regulations:

• Company Act, 2006 (2063 BS) – governs the incorporation and registration of companies in Nepal
• Tourism Act, 2035 BS (1978) – the primary law regulating tourism businesses in Nepal
• Tourism Regulations, 2038 BS (1981) – provides detailed rules on tourism licensing
• Industrial Enterprise Act, 2076 BS (2020) – applicable if the company qualifies as an industrial enterprise
• Income Tax Act, 2058 BS (2002) – governs tax obligations
• Foreign Investment and Technology Transfer Act, 2075 BS (2019) – applicable if foreign investors are involved

The Department of Tourism (DoT) under the Government of Nepal is the primary licensing authority for travel and tours companies. You can visit the official site at www.tourism.gov.np for official information.

Types of Travel and Tours Companies in Nepal

Before beginning the registration process, you must determine the type of travel and tours company you want to establish in Nepal.

Type	Description	Minimum Capital
Trekking Agency	Organizes trekking and hiking tours	As per Department of Tourism (DoT) guidelines
Travel Agency	Handles ticketing, hotel bookings, and travel services	As per Department of Tourism (DoT) guidelines
Tour Operator	Designs and operates full tour packages	As per Department of Tourism (DoT) guidelines
Rafting Company	Operates river rafting and water sports	As per Department of Tourism (DoT) guidelines
Expedition Company	Manages mountaineering and expedition tours	As per Department of Tourism (DoT) guidelines

Each type has its own specific licensing requirements under the Tourism Act, 2035 BS and Tourism Regulations, 2038 BS.

Step-by-Step Process for Travel and Tours Company Registration in Nepal

Travel and tours company registration in Nepal involves two major phases: Company Registration at the Office of the Company Registrar and Tourism License from the Department of Tourism.

Phase 1: Company Registration at the Office of the Company Registrar (OCR)

Step 1: Name Reservation

• Submit an application to OCR for company name approval
• The proposed name must not be identical or similar to existing registered companies
• Submit the name reservation form online via www.ocr.gov.np

Step 2: Prepare Memorandum and Articles of Association

• Draft the Memorandum of Association (MoA)
• Draft the Articles of Association (AoA)
• Both documents must clearly state “travel and tours” or related tourism activities as the company’s objective

Step 3: Submit Registration Documents

• Submit the completed application with all required documents to OCR
• Pay the prescribed registration fee based on paid-up capital

Step 4: Obtain Certificate of Incorporation

• OCR issues the Certificate of Incorporation after verifying all documents
• This certificate confirms the legal existence of the company

Phase 2: Tourism License from the Department of Tourism

Step 5: Register with the Department of Tourism (DoT)

• Submit the tourism license application to the Department of Tourism
• The application must include the certificate of incorporation and other required documents

Step 6: Obtain PAN/VAT Registration

• Register the company at the Inland Revenue Department (IRD) for PAN
• Register for VAT if the annual turnover exceeds the prescribed threshold

Step 7: Obtain Tourism License

• The DoT reviews the application
• Upon approval, the DoT issues the Tourism License
• This license must be renewed annually

Step 8: Register with Nepal Tourism Board (NTB)

• Register the company with the Nepal Tourism Board for promotion and official recognition

Documents Required for Travel and Tours Company Registration in Nepal

The documents required for travel and tours company registration in Nepal differ between the two phases.

Documents for Company Registration at OCR:

• Duly filled application form for company registration
• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Citizenship certificates of all promoters/shareholders
• Passport-sized photographs of all promoters
• Proof of registered office address (rental agreement or ownership documents)
• Name reservation approval letter

Documents for Tourism License at Department of Tourism:

• Certificate of Incorporation from OCR
• MoA and AoA of the company
• PAN certificate
• Citizenship copies of all directors
• Rental agreement or ownership document of office premises
• Tax clearance certificate (for renewal)
• Proof of minimum capital deposit (bank statement)
• Tourism experience certificate (if applicable)
• Membership certificate from relevant trade associations (e.g., TAAN, NTA)

Government Fees for Travel and Tours Company Registration in Nepal

The government fees for travel and tours company registration in Nepal vary depending on the type of company and its paid-up capital.

Fee Type	Amount (Approximate)	Payable To
Company Registration Fee	NPR 9,000 – NPR 1,00,000+ (depending on capital)	Office of Company Registrar
Tourism License Fee	NPR 10,000 – NPR 50,000+ (depending on type)	Department of Tourism
PAN Registration	Free	Inland Revenue Department
Annual Renewal Fee (Tourism License)	NPR 5,000 – NPR 25,000	Department of Tourism

Note: These fees are subject to change as per the GoN’s annual budget and gazette notifications.

Minimum Capital Requirement for Travel and Tours Company Registration

Under the Tourism Regulations, 2038 BS, travel and tours companies are required to have a minimum paid-up capital. The specific amount varies by type:

• Travel Agency – Minimum paid-up capital as prescribed by DoT regulations
• Trekking Agency – Minimum paid-up capital as prescribed
• Tour Operator – Higher capital requirement due to broader operational scope
• Expedition Company – Specific capital and insurance requirements apply

You must verify the current minimum capital requirement directly from the Department of Tourism as these figures are periodically updated.

Foreign Investment in Travel and Tours Company in Nepal

Foreign nationals can invest in travel and tours companies in Nepal under the Foreign Investment and Technology Transfer Act, 2075 BS (2019). However, foreign investment in certain tourism sectors may be restricted or require prior approval from the Investment Board Nepal (IBN) or the Department of Industry.

Key points:

• Foreign investors must obtain approval from the relevant authority before investing
• The company must comply with repatriation rules under the Foreign Exchange Regulation Act
• Joint ventures between Nepali and foreign investors are permitted in the tourism sector
• The minimum foreign investment threshold as per current law applies

Role of Trade Associations in Travel and Tours Business in Nepal

While membership in trade associations is not always mandatory by law, it is often a practical requirement. The major associations include:

• TAAN (Trekking Agencies Association of Nepal) – www.taan.org.np
• NTA (Nepal Tourism Association) – Umbrella body for tourism trade associations
• PATA Nepal Chapter – Pacific Asia Travel Association
• IATA Accreditation – Required for international airline ticketing

Members of these associations receive support in marketing, representation, and industry-level advocacy.

Annual Compliance and Renewal Requirements

A registered travel and tours company in Nepal must comply with several annual requirements to remain operational:

• Renew the Tourism License annually from the Department of Tourism before the expiry date
• File annual tax returns with the Inland Revenue Department
• Submit annual returns to the Office of the Company Registrar
• Maintain proper accounts and audit reports as required under the Company Act, 2006
• Renew trade association memberships if applicable
• Obtain tax clearance certificate for license renewal

Failure to renew the tourism license on time may result in penalties, suspension, or cancellation of the license under the Tourism Act, 2035 BS.

Common Reasons for Rejection of Tourism License Application

Applications for tourism license registration in Nepal may be rejected for the following reasons:

• Incomplete documentation submitted to the Department of Tourism
• Company name conflicts with existing tourism businesses
• Office premises not meeting the minimum standard required by DoT
• Insufficient paid-up capital as per the Tourism Regulations
• Promoters having criminal records or disqualifications under applicable law
• Non-compliance with the MoA objectives

Conclusion

Travel and tours company registration in Nepal is a multi-step process involving the Office of the Company Registrar, the Department of Tourism, and the Inland Revenue Department. The process is governed by the Company Act, 2006, the Tourism Act, 2035 BS, and the Tourism Regulations, 2038 BS. Ensuring full compliance with all legal requirements from the initial registration to annual renewals is essential for running a lawful and sustainable travel and tours business in Nepal.

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