NGO Registration Process in Nepal

Non-Governmental Organizations (NGOs) play a crucial role in Nepal’s development and social welfare. If you’re considering starting an NGO in Nepal, understanding the registration process is essential. This guide will walk you through the NGO registration process in Nepal, covering everything from legal requirements to post-registration obligations.

What is NGO Registration in Nepal?

NGO registration in Nepal is the official process of establishing a non-profit organization recognized by the Nepali government. This legal step allows organizations to operate within the country, carry out social welfare activities, and collaborate with local and international partners. Registration provides legitimacy to an NGO’s operations and enables it to function within the legal framework of Nepal.

NGOs in Nepal typically focus on areas such as education, healthcare, environmental conservation, human rights, and community development. By registering, these organizations gain the ability to open bank accounts, receive funding, and engage in formal partnerships with government agencies and other stakeholders.

Where to Register an NGO in Nepal?

In Nepal, NGOs are primarily registered with the District Administration Office (DAO) of the district where the organization plans to establish its headquarters. The DAO falls under the Ministry of Home Affairs and is responsible for overseeing local administration, including NGO registration and monitoring.

Key points about NGO registration locations:

• Each of Nepal’s 77 districts has a District Administration Office
• Registration must be done in the district of the NGO’s main office
• Some specialized NGOs may need to register with specific ministries
• International NGOs (INGOs) register with the Social Welfare Council

For most local NGOs, the DAO is the primary registration authority. However, it’s important to note that after registration with the DAO, NGOs must also affiliate with the Social Welfare Council for additional oversight and coordination to complete ngo registration process in nepal.

What Laws Govern NGO Registration in Nepal?

Understanding the legal framework for NGOs in Nepal is crucial for a smooth registration process. Several laws and regulations govern the establishment and operation of NGOs in the country:

Association Registration Act, 2034 (1977)

This is the primary law governing NGO registration in Nepal. It outlines the basic requirements and procedures for establishing an NGO.

Social Welfare Act, 2049 (1992)

This act created the Social Welfare Council, which oversees and coordinates NGO activities in Nepal. It’s particularly relevant for international NGOs.

Local Government Operation Act, 2074 (2017)

This act gives local governments some authority over NGO operations within their jurisdictions.

National Directive Act, 2018

This recent legislation aims to streamline NGO operations and increase transparency in the sector.

Income Tax Act, 2058 (2002)

This act outlines the tax obligations and potential exemptions for non-profit organizations in Nepal.

Understanding these laws helps ensure compliance throughout the registration process and during ongoing operations. It’s advisable to consult with a legal expert familiar with Nepali NGO laws to navigate this complex regulatory environment effectively.

What is the process of NGO Registration in Nepal?

• Step 1: Formation of Founding Committee
• Step 2: Choosing of Name and Structure
• Step 3: Drafting of Constitution and required documents
• Step 4: Submission of Application to District Administration Office
• Step 5: Registration with the Social Welfare Council
• Step 6: Obtaining the Certificate of Registration

The NGO registration process in Nepal involves several steps and interactions with different government bodies. Here’s a detailed breakdown of the process:

1. Form a Founding Committee: Gather at least 7 Nepali citizens to serve as founding members. This group will be responsible for drafting the organization’s constitution and initial planning.
2. Choose a Unique Name: Select a distinctive name for your NGO that reflects its mission and isn’t already in use by another organization.
3. Draft the Constitution: Prepare a comprehensive constitution outlining the NGO’s objectives, organizational structure, and operational procedures. This document is crucial for registration.
4. Prepare Required Documents: Collect all necessary documents, including citizenship certificates of founding members, recommendation letters, and passport-sized photos.
5. Submit Application to DAO: File your registration application with the District Administration Office in your NGO’s primary district of operation. Include all required documents and pay the registration fee.
6. Obtain Registration Certificate: After reviewing your application, the DAO will issue a registration certificate if everything is in order. This typically takes 1-2 weeks.
7. Register with Social Welfare Council: Once registered with the DAO, apply for affiliation with the Social Welfare Council. This step is crucial for NGOs planning to work with international partners or receive foreign funding.

Throughout this process, maintain open communication with the relevant authorities and be prepared to provide additional information or make adjustments to your application as needed. Patience and attention to detail are keys required for registration.

Read More:
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What Documents are Required for NGO Registration in Nepal?

• Draft of the organization’s Constitution (Bidhan).
• Meeting minutes approving the NGO’s establishment by the ad-hoc committee.
• Certified copies of citizenship certificates for all board members.
• Passport-sized photos and character reports from Nepal Police for all members.
• Rent agreement between the NGO and the office landlord.

Proper documentation is crucial for a smooth NGO registration process in Nepal. Here’s a comprehensive list of the documents you’ll need to prepare:

1. Application Form: Obtained from the District Administration Office, filled out completely and accurately.
2. NGO Constitution: A detailed document outlining the organization’s objectives, structure, and operational procedures.
3. Citizenship Certificates: Copies of citizenship certificates for all founding members (minimum 7 people).
4. Passport-sized Photos: Recent photographs of all founding members.
5. Police Clearance: Certificates for all founding members, proving no criminal record.
6. Property Ownership or Rent Agreement: Proof of the NGO’s official address.
7. Recommendation Letters: From local government bodies or relevant authorities supporting the NGO’s establishment.
8. Meeting Minutes: Documentation of the founding members’ decision to establish the NGO.
9. Commitment Letters: From founding members agreeing to abide by NGO regulations.
10. Initial Work Plan: A brief outline of the NGO’s planned activities for the first year.

Ensure all documents are current, properly signed, and notarized where required. Having a well-organized document file will significantly expedite the registration process.

How Long Does NGO Registration Take in Nepal?

The duration of the NGO registration process in Nepal can vary depending on several factors. While the official timeline suggests a relatively quick process, real-world experiences often differ. Here’s what you need to know:

Official Timeline

According to government guidelines, the NGO registration process should typically take about 1-2 weeks once all required documents are submitted to the District Administration Office.

Factors Affecting Duration

Several factors can influence the registration timeline:

• Completeness and accuracy of submitted documents
• Workload of the District Administration Office
• Complexity of the proposed NGO’s activities
• Any required background checks or additional verifications
• Seasonal factors (such as major holidays or fiscal year-end)

Realistic Expectations

In practice, the entire process, from initial planning to receiving the registration certificate, often takes 1-3 months. This longer timeline accounts for:

• Time needed to form the founding committee
• Drafting and finalizing the NGO’s constitution
• Collecting all required documents
• Potential revisions or additional information requests

Expediting the Process

To help speed up the registration:

• Ensure all documents are complete and accurate before submission
• Follow up regularly but respectfully with the DAO
• Be promptly responsive to any requests for additional information

Remember, patience is key. While it’s natural to want to start operations quickly, a thorough registration process helps ensure ngo registration process in nepal.

What are the Costs of NGO Registration?

Understanding the financial aspects of NGO registration in Nepal is crucial for proper budgeting and planning. While the direct costs of registration are relatively modest, there are several expenses to consider:

Official Registration Fees

• Initial Registration Fee: NPR 1,000 to 5,000 (varies by district)
• Social Welfare Council Affiliation Fee: NPR 5,000

Additional Costs

1. Document Preparation: Costs for notarization, photocopying, and photographs
2. Legal Consultation: Fees for lawyers or consultants to assist with constitution drafting
3. Travel Expenses: Costs incurred for visits to government offices
4. Bank Account Opening: Minimum deposit required to open an NGO bank account

Annual Renewal Fees

• District Administration Office Renewal: NPR 500 to 1,000 annually
• Social Welfare Council Renewal: NPR 2,500 annually

Hidden Costs

Be prepared for potential unofficial expenses or “facilitation fees” that may arise during the process. While not legally required, these can sometimes be part of the practical reality of registration in Nepal.

Overall, budget for NPR 20,000 to 50,000 for the entire registration process, including both official fees and associated costs. This range allows for variations in district fees and potential consulting expenses.

What are Post-Registration Requirements for NGO in Nepal?

To maintain legal status, NGOs must meet several ongoing requirements. One of the key requirements is annual renewals. NGOs need to renew their registration with the District Administration Office each year and update their affiliation with the Social Welfare Council annually to stay compliant.

Regarding financial reporting, NGOs are required to submit their annual financial reports to the relevant government bodies. Additionally, they must conduct regular audits by certified auditors to ensure transparency and accountability.

In terms of activity reporting, NGOs must provide annual progress reports detailing their activities and achievements. They are also required to submit project completion reports for any specific initiatives to keep authorities informed of their progress.

NGOs must adhere to tax compliance regulations by filing annual tax returns, even if they are exempt from income tax. Proper financial records must be maintained to ensure readiness for potential audits.

For governance requirements, NGOs must hold regular boardespecially those involving foreign funding. Additionally, NGOs must coordinate with local government bodies for the implementation of these projects to ensure compliance with national regulations.

Finally, staff and volunteer management is essential. NGOs must register their employees with the Social Security Fund to ensure they are covered under the relevant social security provisions. It is also necessary to maintain proper records of volunteers and their activities, ensuring that all work is documented and compliant with local regulations.

How to Register a NGO or NPO in Nepal?

The Latest Process for NPO or NGO Registration in Nepal are as follows:

1. Ward Office Recommendation:
   Obtain a letter with a NPR 2,000 fee. Submit documents like meeting minutes, constitution, citizenship proofs, land tax receipts, and rent/ownership certificates.
2. DCC Recommendation:
   Apply to the District Coordination Committee with no fee. Provide the ward recommendation letter, constitution, and notarized documents.
3. DOA Registration:
   Submit documents to the District Administration Office. Fee: NPR 1,000.
4. SWC Affiliation:
   Register with the Social Welfare Council within 3 months. Fee: NPR 3,000.
5. PAN Registration:
   Register at the Inland Revenue Department with NGO documents and fees.

What Types of NGOs Can Be Registered?

Nepal recognizes various types of NGOs, each serving different purposes and operating under slightly different regulations. Understanding these categories can help you choose the most appropriate structure for your organization:

Local NGOs

• Focus on community-level development
• Typically operate within a specific district or region
• Registered primarily with the District Administration Office

National NGOs

• Work across multiple districts or nationwide
• Often involved in policy advocacy and large-scale projects
• May require additional registrations with central government agencies

International NGOs (INGOs)

• Foreign organizations operating in Nepal
• Register with the Social Welfare Council
• Subject to more stringent regulations and reporting requirements

Specialized NGOs

1. Human Rights Organizations: Focus on civil liberties and social justice
2. Environmental NGOs: Dedicated to conservation and sustainable development
3. Health-focused NGOs: Work on public health initiatives and medical services
4. Educational NGOs: Promote literacy and educational development
5. Women’s Empowerment NGOs: Address gender equality and women’s rights

Professional Associations

• Represent specific professional groups or industries
• May have a mix of advocacy and development roles

Religious Organizations

• Engage in faith-based charitable activities
• Subject to specific regulations regarding religious activities

Each type of NGO has its own set of registration requirements and operational guidelines. Choose the category that best aligns with your organization’s mission and scope of work.

What are the Benefits of NGO Registration?

The benefits of ngo registration process in nepal provides several key benefits that enhance its operations and impact. These include legal recognition, allowing the organization to sign contracts and enter into agreements. Financially, registered NGOs can open bank accounts, access grants, and qualify for tax exemptions.

Operationally, they can collaborate with government bodies, work with international donors, and hire staff. Registration boosts credibility, attracting trust from donors and partners. It also opens networking opportunities, facilitates project implementation, and enables resource mobilization. Additionally, NGOs can engage in policy advocacy and represent community interests in official forums.

Registration provides a solid foundation for NGOs to operate effectively, expand their reach, and maximize their impact in Nepal’s development landscape. It opens doors to resources, partnerships, and opportunities that are crucial for sustainable social change.

REFER TO THE FOLLOWING LINKS

1. https://lawcommission.gov.np/en/?cat=363
2. Social Welfare Council