How to Register a Hotel Resort in Nepal Registering a hotel or resort in Nepal involves multiple government agencies, legal requirements, and compliance procedures. Whether you plan to open a budget guesthouse, a boutique hotel, or a luxury resort, you must follow the registration process defined under Nepal’s tourism and business laws. This guide covers every step, required documents, applicable laws, fees, and government bodies involved in hotel and resort registration in Nepal.
What Laws Govern Hotel and Resort Registration in Nepal?
Hotel and resort registration in Nepal falls under several key legal frameworks. Understanding these laws is the first step before starting any registration process.
- Tourism Act, 2035 (1978) – The primary law regulating tourism businesses, including hotels, resorts, and lodges in Nepal.
- Tourism Regulation, 2038 (1981) – Sets the procedural and operational standards for tourism enterprises.
- Company Act, 2063 (2006) – Governs the registration of companies that operate hotels and resorts.
- Industrial Enterprises Act, 2076 (2020) – Provides the framework for establishing industries, including hospitality businesses.
- Local Government Operation Act, 2074 (2017) – Requires businesses to obtain local-level business operation permits.
- Value Added Tax Act, 2052 (1996) and Income Tax Act, 2058 (2002) – Cover tax registration and compliance for hotel businesses.
All hotels and resorts must obtain a Tourism Business License from the Department of Tourism (DoT) under the Ministry of Culture, Tourism and Civil Aviation. The Nepal Tourism Board (NTB) also plays a role in promoting and monitoring hotel standards.
What Types of Hotels and Resorts Can You Register in Nepal?
Nepal’s Department of Tourism classifies accommodation businesses into several categories. Each category has its own standards, requirements, and classification criteria.
| Type of Accommodation | Classification | Governing Authority |
|---|---|---|
| Star Hotels (1 to 5 Star) | Classified Hotel | Department of Tourism |
| Resort | Classified Resort | Department of Tourism |
| Guest House / Lodge | Unclassified | Department of Tourism |
| Boutique Hotel | Classified / Unclassified | Department of Tourism |
| Eco Lodge | Eco Tourism Category | Department of Tourism |
| Homestay | Homestay Program | Nepal Tourism Board |
You must identify which category your business falls under before beginning the registration process. Star hotels and resorts undergo a formal hotel classification system evaluated by a Classification Committee under the Department of Tourism.
What is the Step-by-Step Process to Register a Hotel or Resort in Nepal?
The hotel and resort registration process in Nepal involves multiple stages across different government agencies. Follow these steps in order.
Step 1: Register Your Business Entity
Before applying for a tourism license, you must legally register your business with the Office of the Company Registrar (OCR) or relevant authority.
- Register as a Private Limited Company or Public Limited Company under the Company Act, 2063 if incorporating a company.
- Alternatively, register as a Sole Proprietorship at the local Ward Office if it is a small-scale accommodation business.
- Submit the Memorandum of Association (MoA) and Articles of Association (AoA) stating hotel/resort operation as the business objective.
- Pay the prescribed registration fee based on authorized capital.
You can access the OCR portal at www.ocr.gov.np for online company registration.
Step 2: Obtain PAN and VAT Registration
After company registration, you must register for tax purposes with the Inland Revenue Department (IRD).
- Obtain a Permanent Account Number (PAN) from the nearest Inland Revenue Office.
- Hotels with an annual turnover exceeding NPR 50 Lakhs must register for VAT under the Value Added Tax Act, 2052.
- Hotels providing food, beverages, and accommodation services are liable for VAT collection and filing.
Visit www.ird.gov.np to complete tax registration online.
Step 3: Obtain Land Use and Construction Permit
If you are constructing a new hotel or resort, you must obtain clearance from the relevant local government authority.
- Obtain a Building Construction Permit from the Municipal Office or Rural Municipality.
- Submit architectural drawings, structural designs, and environmental assessment reports where applicable.
- For hotels in environmentally sensitive areas or near national parks, obtain clearance from the Department of National Parks and Wildlife Conservation.
- Resorts in mountain regions or forest areas may require an Environmental Impact Assessment (EIA) under the Environment Protection Act, 2076 (2019).
Step 4: Apply for a Tourism Business License from the Department of Tourism
This is the most important registration step for hotel and resort businesses. You must apply to the Department of Tourism for a Tourism Enterprise License.
Required Documents for Tourism License Application:
- Company registration certificate from OCR
- PAN/VAT registration certificate
- Memorandum and Articles of Association
- Citizenship certificate of all directors/proprietors
- Land ownership certificate or lease agreement for the hotel premises
- Blueprint or site plan of the hotel/resort
- Building completion certificate from the local authority
- Fire safety clearance certificate from the Department of Fire Brigade
- Environmental clearance (if required)
- Passport-size photographs of directors
- Tax clearance certificate
- Self-declaration form as per DoT requirements
Submit all documents to the Department of Tourism, Bhrikuti Mandap, Kathmandu, or visit www.tourism.gov.np for online submission.
Government Fee for Tourism License:
| Type of Hotel/Resort | License Fee (NPR) |
|---|---|
| 5 Star Hotel | 50,000 |
| 4 Star Hotel | 35,000 |
| 3 Star Hotel | 25,000 |
| 2 Star Hotel | 15,000 |
| 1 Star Hotel | 10,000 |
| Unclassified Hotel/Guest House | 5,000 |
| Resort | 25,000 – 50,000 (varies) |
These fees are subject to revision by the Ministry of Culture, Tourism and Civil Aviation. Confirm the latest fee structure at the Department of Tourism before submitting your application.
Step 5: Apply for Hotel Classification (For Star Hotels and Resorts)
If you wish to classify your hotel or resort under the star rating system, you must separately apply for classification.
- Submit a classification application to the Hotel Classification Committee under the Department of Tourism.
- The committee conducts a physical inspection of the hotel premises, evaluates facilities, room standards, services, safety measures, and amenities.
- Classification is granted based on compliance with the Tourism Regulation, 2038 and international hospitality standards.
- The classification certificate is valid for a specific period and requires periodic renewal and re-evaluation.
Step 6: Obtain Ward-Level Business Operating Permit
Every hotel and resort must also obtain a Business Operating Permit from the local Ward Office or Municipality where the hotel is located.
- Submit the company registration certificate, tourism license, and tax registration documents.
- Pay the prescribed annual ward-level business fee.
- Some municipalities also require a separate sanitation clearance and health inspection certificate from the local health office.
Step 7: Additional Licenses and Clearances
Depending on the services your hotel or resort offers, you may need additional licenses.
- Liquor License: Obtained from the Department of Revenue Investigation or relevant district authority to serve alcohol.
- Food Registration Certificate: Required from the Department of Food Technology and Quality Control (DFTQC) under the Food Act, 2023 (1966).
- Music and Entertainment License: Required if the hotel operates a bar, live music venue, or entertainment facility.
- Foreign Exchange License: Hotels dealing with foreign currency must obtain approval from Nepal Rastra Bank.
- Labor Compliance: Register workers with the Department of Labour and comply with the Labour Act, 2074 (2017) and Social Security Act, 2074 (2017).
Who Can Register a Hotel or Resort in Nepal?
Both Nepali citizens and foreign investors can register hotels and resorts in Nepal under specific conditions.
- Nepali citizens can register hotel businesses freely under existing laws.
- Foreign nationals can invest in the hotel and tourism sector under the Foreign Investment and Technology Transfer Act, 2075 (2019) with prior approval from the Investment Board Nepal (IBN) or Department of Industry (DoI).
- Foreign Direct Investment (FDI) in the hotel and resort sector is generally permitted, but foreign investors must comply with the minimum investment threshold set by the government.
- Joint ventures between Nepali and foreign investors are common in the luxury hotel and resort sector.
How Long Does the Hotel Registration Process Take in Nepal?
The total time required to complete all registration steps for a hotel or resort in Nepal depends on the type and scale of the project.
- Company registration at OCR – 3 to 7 working days
- PAN/VAT registration – 1 to 3 working days
- Local government permits – 15 to 30 working days
- Tourism license from DoT – 15 to 30 working days after document verification
- Hotel classification – 30 to 60 working days including physical inspection
- Additional licenses – Variable (7 to 45 working days per license)
On average, completing the entire hotel or resort registration process in Nepal takes 2 to 6 months, depending on document completeness, location, and project scale.
What Are Common Reasons for Rejection of Hotel Registration in Nepal?
Applications for hotel registration get rejected or delayed due to specific reasons. Knowing these in advance helps avoid complications.
- Incomplete or incorrect documents submitted to the Department of Tourism
- Mismatch in business name or ownership details across different registration documents
- Non-compliance with building construction standards or lack of a building completion certificate
- Absence of required environmental clearance for hotels in protected or sensitive zones
- Outstanding tax dues or absence of a valid PAN/VAT registration
- Failure to meet minimum facility standards for the requested star classification
Conclusion
Registering a hotel or resort in Nepal requires completing steps across multiple government agencies including the Office of the Company Registrar, Inland Revenue Department, Department of Tourism, and local municipalities. You must comply with the Tourism Act, 2035, Tourism Regulation, 2038, Company Act, 2063, and several other applicable laws. Completing each registration step accurately and in sequence reduces delays and legal complications.
Always consult a legal advisor or tourism business consultant familiar with Nepal’s hospitality sector regulations before beginning the registration process. For official information, visit the Department of Tourism at www.tourism.gov.np and the Nepal Tourism Board at www.ntb.gov.np.
FAQs
1. Is it mandatory to register a hotel in Nepal even for small guesthouses?
Yes. Any business offering paid accommodation in Nepal must register with the Department of Tourism and obtain a tourism business license under the Tourism Act, 2035, regardless of size.
2. Can a foreign national fully own a hotel in Nepal?
Foreign nationals can invest in Nepal’s hotel sector under the Foreign Investment and Technology Transfer Act, 2075, but full ownership restrictions apply. Joint ventures with Nepali partners are common and recommended.
3. What is the difference between a hotel license and a hotel classification certificate?
A hotel license is a mandatory legal permit to operate a hotel business. A classification certificate is an optional rating (1 to 5 stars) awarded after physical inspection by the Hotel Classification Committee under the Department of Tourism.
4. Does a resort require a separate tourism license from a hotel?
Yes. A resort requires its own tourism business license from the Department of Tourism. The fee and documentation requirements may differ slightly based on the type and location of the resort.
5. Is an Environmental Impact Assessment required for all hotels in Nepal?
Not for all hotels. An EIA is required for hotels and resorts located in environmentally sensitive zones, near national parks, or above a certain investment and construction scale under the Environment Protection Act, 2076.
6. How often must a hotel renew its tourism license in Nepal?
Tourism business licenses in Nepal require annual renewal with the Department of Tourism. You must submit a tax clearance certificate and pay the renewal fee within the prescribed period each fiscal year.