Hospitality company registration in Nepal involves legal incorporation of businesses engaged in tourism, hotels, restaurants, and related services under the Companies Act 2063 and Tourism Act 2035. This guide explains the complete registration process, required documents, costs, timelines, and legal requirements for establishing a hospitality company in Nepal.
Steps for Hospitality Company Registration in Nepal
- Step 1: Reserve company name at Office of Company Registrar
- Step 2: Prepare Memorandum and Articles of Association
- Step 3: Submit registration application with required documents
- Step 4: Pay registration fees and obtain company certificate
- Step 5: Register for PAN and VAT at Inland Revenue Department
- Step 6: Obtain tourism license from Department of Tourism
What Is Hospitality Company Registration in Nepal?
Hospitality company registration in Nepal refers to the legal process of incorporating a business entity that operates in the tourism and hospitality sector, including hotels, resorts, restaurants, travel agencies, trekking companies, and other tourism-related services. This registration is mandatory under the Companies Act 2063 (2006) and requires compliance with both company law and tourism regulations in Nepal.
The registration process establishes the company as a separate legal entity with rights and obligations distinct from its owners. A registered hospitality company can enter into contracts, own property, sue and be sued in its own name, and conduct business operations legally throughout Nepal. The registration provides legal recognition and protection to the business while ensuring compliance with national laws governing tourism and hospitality services.
Hospitality companies in Nepal must register with the Office of Company Registrar under the Ministry of Industry, Commerce and Supplies, and subsequently obtain necessary licenses from the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation. This dual registration ensures that the company meets both corporate governance standards and tourism industry-specific requirements, including quality standards, safety regulations, and environmental compliance measures.
Where to Register a Hospitality Company in Nepal?
Hospitality company registration in Nepal begins at the Office of Company Registrar (OCR), located in Tripureshwor, Kathmandu. The OCR operates under the Department of Industry and is the primary authority responsible for registering all types of companies in Nepal, including private limited companies, public limited companies, and foreign investment companies engaged in hospitality business. The office maintains the central registry of all companies and issues certificates of incorporation.
After obtaining company registration from the OCR, hospitality businesses must register with the Department of Tourism, situated in Bhrikutimandap, Kathmandu. The Department of Tourism is the regulatory body that issues tourism licenses, classifies hotels and restaurants, and monitors compliance with tourism standards. Depending on the specific nature of hospitality services, additional registrations may be required from the Department of Food Technology and Quality Control for food service establishments.
For tax registration, hospitality companies must visit the Inland Revenue Department office in their respective districts to obtain Permanent Account Number (PAN) and Value Added Tax (VAT) registration. Companies can also utilize online services through the Office of Company Registrar’s website at https://www.ocr.gov.np for preliminary name reservation and document submission. The entire registration process requires coordination between multiple government agencies to ensure full legal compliance for hospitality operations in Nepal.
What Laws Govern Hospitality Company Registration in Nepal?
Hospitality company registration in Nepal is governed by multiple legal frameworks that regulate both corporate structure and tourism operations. The primary legislation includes:
- Companies Act 2063 (2006): Governs incorporation, management, and dissolution of companies
- Companies Regulations 2064 (2007): Provides detailed procedures for company registration
- Tourism Act 2035 (1978): Regulates tourism businesses and licensing requirements
- Tourism Regulations 2038 (1981): Details operational standards for tourism enterprises
- Foreign Investment and Technology Transfer Act 2075 (2019): Governs foreign investment in hospitality sector
- Industrial Enterprises Act 2076 (2020): Provides framework for industrial registration and incentives
- Labor Act 2074 (2017): Regulates employment relationships in hospitality businesses
- Income Tax Act 2058 (2002): Governs taxation of hospitality companies
- Value Added Tax Act 2052 (1996): Regulates VAT obligations for hospitality services
- Hotel, Lodge, Restaurant, Bar and Tourist Guide Regulations 2038 (1981): Sets standards for accommodation and food services
- Environmental Protection Act 2053 (1997): Requires environmental compliance for hospitality projects
- Consumer Protection Act 2075 (2018): Protects consumer rights in hospitality services
How to Register a Hospitality Company in Nepal?
Step 1: Reserve Company Name
Visit the Office of Company Registrar or use the online portal to submit a name reservation application. The proposed name must be unique, not similar to existing companies, and comply with naming guidelines under Companies Regulations 2064. The OCR verifies availability and approves the name within two working days of application submission.
Step 2: Prepare Incorporation Documents
Draft the Memorandum of Association and Articles of Association defining company objectives, share capital structure, management provisions, and operational rules. These documents must comply with Schedule 1 and Schedule 2 of Companies Act 2063. Engage legal professionals to ensure proper drafting and compliance with mandatory clauses for hospitality business operations.
Step 3: Submit Registration Application
File the company registration application at OCR with all required documents including Memorandum, Articles, shareholder details, director information, and registered office address. The application must be submitted on prescribed forms with notarized documents and citizenship certificates of promoters. Foreign investors must provide additional documentation as per FITTA requirements.
Step 4: Pay Registration Fees
Pay the prescribed registration fees based on authorized capital at the OCR cashier or through designated bank accounts. Fees vary according to capital structure as specified in Companies Regulations 2064. Obtain official payment receipts and submit them with the registration application for processing and verification by the registrar’s office.
Step 5: Obtain Company Certificate
After verification of documents and payment confirmation, the Office of Company Registrar issues the Certificate of Incorporation. This certificate serves as legal proof of company existence and includes company registration number, incorporation date, and registered office address. The certificate must be displayed at the company’s registered office as required by law.
Step 6: Complete Post-Registration Compliance
Register for Permanent Account Number and VAT at Inland Revenue Department within specified timeframes. Apply for tourism license at Department of Tourism with company registration certificate and other required documents. Complete municipal registration, obtain necessary permits, and fulfill all sector-specific licensing requirements before commencing hospitality operations in Nepal.
What Documents Are Required for Hospitality Company Registration?
The following documents are required for hospitality company registration in Nepal:
- Application form for company registration (prescribed format)
- Memorandum of Association (notarized)
- Articles of Association (notarized)
- Citizenship certificates of all promoters/shareholders (notarized copies)
- Passport copies for foreign investors (notarized)
- Passport-size photographs of all directors
- Consent letters from directors accepting their appointment
- Registered office rental agreement or ownership documents
- No Objection Certificate from landlord for registered office
- Company name reservation approval letter
- Bank voucher showing minimum paid-up capital deposit
- Board resolution authorizing company registration
- Power of Attorney if representative files application
- Foreign Investment Approval from Department of Industry (for foreign investment)
- Project report or business plan for hospitality venture
- Environmental Impact Assessment (for large projects)
- Tax clearance certificates of promoters
- Character certificates from local authorities
What Are the Capital Requirements for Hospitality Companies?
Before establishing a hospitality company in Nepal, understanding capital requirements is essential for legal compliance and operational planning.
| Company Type | Minimum Authorized Capital | Minimum Paid-up Capital | Foreign Investment Requirement |
|---|---|---|---|
| Private Limited Company (Nepali) | NPR 100,000 | NPR 25,000 | Not Applicable |
| Private Limited Company (Foreign) | NPR 50,000,000 | NPR 12,500,000 | Minimum USD 50,000 |
| Public Limited Company | NPR 10,000,000 | NPR 2,500,000 | As per FITTA provisions |
| Small Hotel/Restaurant | NPR 500,000 | NPR 125,000 | Not Applicable |
| Star Hotel (3-5 Star) | NPR 100,000,000+ | NPR 25,000,000+ | Varies by classification |
| Travel Agency | NPR 1,000,000 | NPR 250,000 | Minimum USD 50,000 |
| Trekking Company | NPR 2,000,000 | NPR 500,000 | Minimum USD 50,000 |
| Resort Development | NPR 200,000,000+ | NPR 50,000,000+ | Project-specific requirements |
How Long Does Hospitality Company Registration Take in Nepal?
The complete hospitality company registration process in Nepal typically takes 15 to 45 working days depending on complexity and foreign investment involvement.
The Office of Company Registrar processes domestic company registration applications within 5 to 7 working days after submission of complete documents and payment of fees. Name reservation takes 2 working days, while document preparation requires 3 to 5 days depending on legal assistance availability. Companies with foreign investment require additional approval from the Department of Industry, which adds 15 to 20 working days to the process.
Tourism license application at the Department of Tourism takes approximately 7 to 15 working days after company registration. PAN and VAT registration at the Inland Revenue Department can be completed within 3 to 5 working days. Additional permits such as municipal licenses, food safety certificates, and environmental clearances may require 10 to 30 additional days depending on the specific nature and scale of hospitality operations.
What Are the Costs of Hospitality Company Registration?
Hospitality company registration in Nepal involves various fees payable to different government agencies and professional service providers.
| Fee Type | Amount (NPR) | Remarks |
|---|---|---|
| Name Reservation Fee | 100 | Per name application at OCR |
| Company Registration Fee | 1,000 – 50,000 | Based on authorized capital |
| Stamp Duty | 0.5% of capital | On Memorandum and Articles |
| Tourism License Fee | 5,000 – 500,000 | Varies by business type and classification |
| PAN Registration | Free | At Inland Revenue Department |
| VAT Registration | Free | Mandatory for turnover above threshold |
| Municipal License | 5,000 – 50,000 | Varies by municipality and business size |
| Legal Documentation | 15,000 – 100,000 | Professional fees for document preparation |
| Translation Services | 5,000 – 25,000 | For foreign investor documents |
| Notarization Charges | 500 – 2,000 | Per document set |
| Environmental Assessment | 50,000 – 500,000 | For large hospitality projects |
| Food Safety License | 2,000 – 25,000 | From Department of Food Technology |
What Are Post-Registration Requirements for Hospitality Companies?
After completing hospitality company registration in Nepal, several ongoing compliance obligations must be fulfilled to maintain legal status and operational licenses.
- File annual returns with Office of Company Registrar within specified deadlines
- Submit audited financial statements annually to OCR and tax authorities
- Maintain statutory registers including shareholder register, director register, and meeting minutes
- Conduct annual general meetings and maintain proper corporate governance
- Renew tourism license annually with Department of Tourism
- File income tax returns and pay advance tax installments quarterly
- Submit VAT returns monthly or quarterly as per registration category
- Maintain proper accounting records and books of accounts
- Comply with labor laws including employment contracts, social security contributions, and workplace safety
- Renew municipal licenses and permits annually
- Maintain food safety standards and undergo periodic inspections
- Comply with environmental regulations and obtain necessary clearances
- Display company registration certificate, tourism license, and other permits at business premises
- Update company records for any changes in directors, shareholders, or registered office
- Maintain minimum paid-up capital requirements throughout company existence
- Comply with tourism industry standards and quality benchmarks
- Submit periodic reports to Department of Tourism regarding operations and tourist statistics
What Types of Hospitality Companies Can Be Registered in Nepal?
Hospitality company registration in Nepal encompasses various business categories within the tourism and service sector, each with specific licensing and operational requirements.
| Hospitality Business Type | Description | Minimum Capital (NPR) | License Authority |
|---|---|---|---|
| Star Hotels | Classified hotels (1-5 star) providing accommodation and amenities | 50,000,000+ | Department of Tourism |
| Tourist Standard Hotels | Hotels meeting tourist standards without star classification | 10,000,000 | Department of Tourism |
| Resorts | Leisure properties with accommodation and recreational facilities | 100,000,000+ | Department of Tourism |
| Lodges and Guest Houses | Small-scale accommodation facilities | 500,000 | Department of Tourism |
| Restaurants | Food service establishments with various classifications | 1,000,000 | Department of Tourism |
| Travel Agencies | Tour operators and travel service providers | 1,000,000 | Department of Tourism |
| Trekking Agencies | Companies organizing trekking and mountaineering expeditions | 2,000,000 | Department of Tourism |
| Rafting Companies | White water rafting and adventure sports operators | 2,000,000 | Department of Tourism |
| Airlines | Domestic and international air transport services | 500,000,000+ | Civil Aviation Authority |
| Cable Car Operations | Aerial transport for tourism purposes | 200,000,000+ | Department of Tourism |
| Casino Operations | Gaming and entertainment facilities | 100,000,000+ | Department of Tourism |
| Conference Centers | MICE (Meetings, Incentives, Conferences, Exhibitions) facilities | 50,000,000+ | Department of Tourism |
What Benefits Does Hospitality Company Registration Provide?
Hospitality company registration in Nepal provides numerous legal, operational, and financial advantages that facilitate business growth and sustainability in the competitive tourism sector.
- Legal Recognition: Registered companies gain separate legal entity status with rights to own property, enter contracts, and conduct business operations throughout Nepal
- Limited Liability Protection: Shareholders’ personal assets are protected from company debts and liabilities, limiting risk exposure to invested capital only
- Access to Financing: Registered companies can obtain bank loans, credit facilities, and attract investment from institutional and individual investors
- Tax Incentives: Hospitality businesses qualify for various tax exemptions, deductions, and incentives under Industrial Enterprises Act and Income Tax Act
- Foreign Investment: Registration enables foreign investment participation and profit repatriation as per Foreign Investment and Technology Transfer Act provisions
- Tourism License Eligibility: Only registered companies can obtain tourism licenses required for legal operation of hospitality businesses in Nepal
- Brand Protection: Company name registration provides exclusive rights to business name and prevents unauthorized use by competitors
- Credibility Enhancement: Registration increases business credibility with customers, suppliers, partners, and financial institutions
- Government Contracts: Registered companies can participate in government tenders and tourism development projects
- Export Opportunities: Registration facilitates international business relationships and tourism service exports
- Perpetual Succession: Company continues to exist regardless of changes in ownership or management
- Employee Benefits: Registered companies can provide formal employment, social security benefits, and career development opportunities
- Dispute Resolution: Legal entity status enables companies to sue and be sued, protecting business interests through legal channels
FAQs
What is the minimum capital for hospitality company registration?
For Nepali investors, minimum authorized capital is NPR 100,000 with paid-up capital of NPR 25,000. Foreign investors must maintain minimum authorized capital of NPR 50,000,000 with paid-up capital of NPR 12,500,000 as per Foreign Investment and Technology Transfer Act 2075.
How long does company registration take?
Domestic company registration takes 5-7 working days at Office of Company Registrar. Foreign investment companies require 20-30 working days including Department of Industry approval. Tourism license processing adds 7-15 additional working days to complete registration process.
Where to register hospitality company?
Step 1: Office of Company Registrar, Tripureshwor, Kathmandu for company incorporation.
Step 2: Department of Tourism, Bhrikutimandap for tourism license.
Step 3: Inland Revenue Department for tax registration.
Step 4: Municipal office for local business license.
Can foreigners register hospitality companies?
Yes, foreigners can register hospitality companies in Nepal under Foreign Investment and Technology Transfer Act 2075. Minimum investment of USD 50,000 required. Foreign equity participation allowed up to 100% in most hospitality sectors except restricted areas requiring government approval.
What documents are needed?
Citizenship certificates of promoters
Memorandum and Articles of Association
Registered office documents
Director consent letters
Bank deposit voucher
Foreign investment approval (if applicable)
Passport copies for foreign investors
Business plan
Why register as a company?
Registration provides legal entity status, limited liability protection, tax benefits, access to financing, tourism license eligibility, brand protection, credibility enhancement, and enables formal business operations. Unregistered hospitality businesses face legal penalties and cannot obtain necessary operational licenses.
How much does registration cost?
Company registration fees range from NPR 1,000 to NPR 50,000 based on capital. Tourism license costs NPR 5,000 to NPR 500,000 depending on business type. Additional costs include stamp duty (0.5% of capital), legal fees (NPR 15,000-100,000), and various permits.
What taxes apply to hospitality companies?
Hospitality companies pay corporate income tax at 25% rate, Value Added Tax at 13% on services, withholding tax on payments, and municipal taxes. Tax incentives available include income tax exemptions for new tourism ventures, accelerated depreciation, and reduced rates for specific regions.
About Our Services
Our law firm stands as Nepal’s premier legal service provider for hospitality company registration and tourism business establishment. With extensive experience in corporate law, foreign investment regulations, and tourism sector compliance, we offer comprehensive legal solutions for domestic and international investors. Our expert team handles complete registration procedures including company incorporation, tourism licensing, tax registration, and ongoing compliance management. We provide end-to-end services from initial consultation and document preparation to post-registration support and legal advisory. As the leading hospitality law specialists in Nepal, we ensure efficient, compliant, and cost-effective company registration with personalized attention to each client’s unique business requirements. Contact us for professional assistance in establishing your hospitality business in Nepal.