Introduction

Nepal has a vibrant non-profit sector working in areas such as education, health, environment, human rights, and community development. Whether you are a local group aiming to create social impact or an international organization planning to operate in Nepal, understanding the legal framework for NGO and INGO registration is essential.

In Nepal, NGOs (Non-Governmental Organizations) are typically registered as associations, while INGOs (International Non-Governmental Organizations) must go through additional approval and agreement processes with the Government of Nepal.

This guide explains the step-by-step registration process, legal requirements, compliance obligations, and reporting duties for NGOs and INGOs in Nepal.

Legal Framework Governing NGOs and INGOs

NGOs and INGOs in Nepal are primarily governed by:

• Association Registration Act, 1977 (Nepal)

• Social Welfare Act, 1992 (Nepal)

• Social Welfare Council (Nepal) (SWC) regulations

While NGOs are registered at the District Administration Office (DAO), INGOs must coordinate with the Social Welfare Council and relevant ministries.

Difference Between NGO and INGO in Nepal

How to Register an NGO in Nepal (Step-by-Step)

Step 1: Form a Founding Committee

You need at least 7 members to form an NGO. These members act as founders and executive committee members.

Step 2: Prepare Required Documents

Key documents include:

• Application letter

• NGO statute (constitution)

• Citizenship copies of founders

• Meeting minutes (decision to register NGO)

• Office address verification

Step 3: Register at District Administration Office (DAO)

Submit the documents to the DAO of your district. The DAO will:

• Review your application

• Verify documents

• Approve registration

Once approved, you receive a Registration Certificate.

Step 4: Register with Social Welfare Council (Nepal)

After DAO registration, NGOs must affiliate with the SWC to:

• Receive funding legally

• Operate development projects

• Gain recognition

Step 5: PAN Registration

Obtain a Permanent Account Number (PAN) from the Inland Revenue Department for financial and tax purposes.

How to Register an INGO in Nepal

INGO registration is more complex and involves multiple approvals.

Step 1: Proposal Submission

Submit a project proposal to the Social Welfare Council (Nepal) outlining:

• Objectives

• Target sectors

• Budget and funding sources

Step 2: Government Approval

The proposal is reviewed by:

• Social Welfare Council

• Line Ministry (depending on sector)

• Ministry of Finance / Home Affairs (if required)

Step 3: General Agreement (GA) and Project Agreement (PA)

INGOs must sign:

• General Agreement (GA): Overall permission to operate

• Project Agreement (PA): Approval for specific projects

Step 4: Registration and Operation

After approval, the INGO can:

• Open office in Nepal

• Hire staff

• Implement projects

Compliance Requirements for NGOs and INGOs

1. Annual Renewal

NGOs must renew registration annually at the DAO by submitting:

• Progress report

• Financial statements

• Audit report

2. Financial Audit

All NGOs and INGOs must conduct annual audits by a registered auditor.

3. Reporting to Social Welfare Council

Organizations must submit:

• Annual progress reports

• Project reports

• Financial disclosures

4. Tax Compliance

Even non-profits must:

• Maintain PAN

• File tax returns (if applicable)

• Comply with tax regulations

5. Project Approval (For INGOs)

INGOs must obtain approval for each project before implementation.

Key Legal Obligations

NGOs and INGOs must:

• Operate within approved objectives

• Avoid political activities

• Maintain transparency in funding

• Use funds only for declared purposes

Non-compliance may result in suspension or cancellation.

Common Challenges in Registration

• Delays in approval process

• Incomplete documentation

• Lack of clarity in objectives

• Compliance burden for INGOs

• Coordination with multiple government bodies

Practical Tips for Smooth Registration

• Draft a clear and detailed statute

• Ensure all documents are properly verified

• Maintain transparency in funding sources

• Seek legal or professional assistance if needed

• Plan compliance requirements from the beginning

Advantages of Registering an NGO/INGO

• Legal recognition

• Ability to receive funding

• Eligibility for government collaboration

• Public trust and credibility

Conclusion

Registering an NGO or INGO in Nepal is a structured process governed by the Association Registration Act, 1977 (Nepal) and the Social Welfare Act, 1992 (Nepal). While NGO registration is relatively straightforward, INGO registration involves multiple layers of approval and compliance.

Understanding the legal process, preparing the right documents, and maintaining proper reporting standards are crucial for successful operation.

With proper planning and compliance, NGOs and INGOs can play a powerful role in Nepal’s social and economic development.

FAQs

1. How many members are required to register an NGO in Nepal?

At least 7 members are required under the Association Registration Act, 1977 (Nepal).

2. Is Social Welfare Council registration mandatory?

Yes, NGOs must affiliate with the Social Welfare Council (Nepal) to operate and receive funding.

3. Can INGOs directly operate in Nepal?

No, they must obtain approval and sign agreements with the government and the Social Welfare Council (Nepal).

4. Do NGOs need to submit annual reports?

Yes, annual reporting and audit submission are mandatory for compliance.