Tourism License Process in Nepal

What is a Tourism License in Nepal?

A tourism license in Nepal is an official permit issued by the government that allows individuals or companies to operate tourism-related businesses legally. This license is essential for anyone looking to start a venture in Nepal’s thriving tourism sector. It serves as proof that the business meets all necessary legal and safety standards set by the Nepalese authorities.

Tourism licenses cover a wide range of activities, including:

• Hotel and lodging services
• Travel agencies and tour operators
• Trekking and mountaineering companies
• Adventure sports providers
• Transportation services for tourists

Having a valid tourism license is not just a legal requirement; it’s also a mark of credibility that can help businesses attract more customers and build trust within the industry.

Which Authority Issues Tourism Licenses in Nepal?

The primary authority responsible for issuing tourism licenses in Nepal is the Department of Tourism (DoT), which operates under the Ministry of Culture, Tourism and Civil Aviation.

License for Operating Travel, Tours, Adventerous Tourism and other similar businesses is provided Provincial Tourism Office.

What Laws Govern Tourism Licensing in Nepal?

Several laws and regulations govern tourism licensing in Nepal, creating a legal framework that ensures the safety, quality, and sustainability of the tourism industry. The primary legislation includes:

1. Tourism Act, 1978 (with amendments)
2. Tourism Rules, 1979 (with amendments)
3. Travel and Trekking Agency Rules, 2005
4. Hotel, Lodge, Restaurant, Bar and Tourist Guide Rules, 1981

What is the Process for Obtaining a Tourism License?

• Step 1: Register the Company with the Office of the Company Registrar (OCR)
• Step 2: Obtain PAN or VAT Registration, Register with Local Ward Office, and Open a Company Bank Account
• Step 3: Register a Minimum Paid-Up Capital of NPR 25 Lakhs with the OCR
• Step 4: Submit a Bank Guarantee of NPR 5 Lakhs to the Provincial Tourism Office for Recommendation
• Step 5: Register the Company as a Tourism Industry Entity with the Department of Cottage Industries
• Step 6: Complete Final Registration with the Provincial Tourism Office

Step 1: Register the Company with the Office of the Company Registrar (OCR)

You must register your company with the OCR by submitting the company name reservation, the Memorandum of Association (MOA), the Articles of Association (AOA), and other required documents under the Companies Act, 2006.

Step 2: Obtain PAN or VAT Registration, Register with Local Ward Office, and Open a Company Bank Account

You must register your company for a Permanent Account Number (PAN) and Value Added Tax (VAT) with the Inland Revenue Department. You must also register your business with the local ward office and open a corporate bank account in the name of the company.

Step 3: Register a Minimum Paid-Up Capital of NPR 25 Lakhs with the OCR

You must ensure that your company has a minimum paid-up capital of NPR 25 Lakhs, which you must register with the OCR. This is a standard capital requirement for tourism-related companies under relevant FDI and tourism laws.

Step 4: Submit a Bank Guarantee of NPR 5 Lakhs to the Provincial Tourism Office for Recommendation

You must submit a refundable bank guarantee of NPR 5 Lakhs from a recognized commercial bank to the Provincial Tourism Office. Once submitted with your application and company documents, the office will issue a formal recommendation letter.

Step 5: Register the Company as a Tourism Industry Entity with the Department of Cottage Industries

You must register your business as a tourism industry entity by applying to Department of Small and Cottage Industries. You must include the recommendation letter, the bank guarantee, and all other required company registration documents.

Step 6: Complete Final Registration with the Provincial Tourism Office

You must submit the Cottage Industry registration certificate, bank guarantee confirmation, and all compliance documents to the Provincial Tourism Office. Once verified, the office will issue the final tourism license, allowing your business to operate legally in the tourism sector.

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What Documents are Required for Tourism License?

The Required Documents for Tourism License are:

1. Submit a completed application form addressed to the Tourism Office, along with a signed self-declaration letter from the applicant.
2. Provide copies of the Company Registration Certificate, PAN Certificate, Memorandum of Association (MOA), and Articles of Association (AOA) issued by the Office of the Company Registrar and Inland Revenue Department.
3. Submit a certified copy of the Share Register confirming that the company has registered a minimum paid-up capital of NPR 25 Lakhs with the Office of the Company Registrar.
4. Attach copies of the citizenship certificates of all shareholders as proof of identity and ownership.
5. Provide a valid office lease agreement with a minimum term of five years, along with the landlord’s citizenship certificate, house number, location map, and the latest water or electricity bill for address verification.
6. Present the authorized representative’s updated bio-data and two recent passport-size photographs, and ensure their physical presence at the Tourism Department during submission.
7. Submit a bank guarantee slip showing a deposit of NPR 5 Lakhs issued by a recognized commercial bank in the name of the company.
8. Include a certified copy of the board resolution authorizing the company to register as a travel and tourism operator, along with a power of attorney designating the authorized representative.
9. Submit a letter of commitment addressed to the Provincial Tourism Office.

How Long Does the Licensing Process Take?

The Duration of Obtaining the Tourism License is 20-35 Days from the initiation of the Process.

What are the Costs of Obtaining a Tourism License?

The costs associated with obtaining a tourism license in Nepal can be divided into several categories:

1. Application Fees at Tourism Office
2. Registration Fee at the Ward Office
3. Registration Fee at Department of Industries
4. Bank Guarantee or Deposit
5. Legal or Consultant Fees

What are Post-License Requirements for Tourism Businesses?

There are several post-license requirements you must fulfill to maintain your license and operate legally:

Regular Renewals	Compliance with Regulations	Record Keeping	Reporting	Staff Training and Certification
Submit renewal application	Maintain safety standards	Record all financial transactions	Submit monthly reports on tourist arrivals and activities	Ensure staff are trained in first aid
Provide updated financial statements	Follow environmental protection guidelines	Maintain client records	File annual financial reports to the Department of Tourism	Keep certifications in safety procedures
Pay renewal fees as prescribed	Adhere to fair employment practices	Document service provision details		Train staff in activity-specific skills (e.g., trekking, rafting, paragliding)

What Types of Tourism Licenses are Available?

Nepal offers various types of tourism licenses to cater to the diverse range of tourism-related businesses operating in the country. Some of the main categories include:

1. Travel Agency License: For businesses arranging travel itineraries, bookings, and tours for both domestic and international tourists.
2. Trekking Agency License: Specifically for companies organizing trekking and mountaineering expeditions in Nepal’s mountainous regions.
3. Hotel and Lodge License: For accommodation providers, ranging from small guesthouses to luxury resorts.
4. Adventure Tourism License: Covers a range of activities such as rafting, paragliding, bungee jumping, and zip-lining.
5. Casino License