NGO & INGO Registration in Nepal: Complete 2025 Guide

Last Updated: May 15- 2025

Introduction

Nepal regulates NGOs and INGOs through the Social Welfare Act 2018 and INGO Directives. This guide covers registration processes, compliance requirements, and key differences between local and international organizations.

1. Key Definitions & Legal Framework

TypeDefinitionGoverning Law
NGOLocal non-profit (Nepali board)Social Welfare Act 2018
INGOForeign non-profit (int’l funding)INGO Directives 2019

Regulatory Bodies:

  • Social Welfare Council (SWC) – Main authority

  • Ministry of Home Affairs – Security clearance

  • Nepal Rastra Bank – Foreign fund approval

2. NGO Registration Process

Step 1: Name Approval

  • Submit 3 name options to District Administration Office (DAO)

  • Fee: NPR 1,000 (~$7.50)

Step 2: Draft Governing Documents

  • Memorandum of Association (MOA)

  • Articles of Association (AOA)

  • 5-year work plan & budget

Step 3: SWC Approval

  • Submit to Social Welfare Council with:

    • 7-member Nepali board details

    • NPR 100,000 (~$750) deposit

  • Timeline: 45-60 days

Step 4: Final Registration

  • DAO issues registration certificate

  • PAN/VAT registration required

⏳ Total Time: 3-4 months

3. INGO Registration Process

Step 1: MoU Negotiation

  • Draft Project Agreement with SWC

  • Priority sectors: Education, healthcare, disaster relief

Step 2: Home Ministry Clearance

  • Background checks on:

    • Founding members

    • Source of funds

Step 3: SWC Approval

  • Submit:

    • Parent organization’s documents (apostilled)

    • $50,000 security deposit

  • Timeline: 90-120 days

Step 4: NRB Compliance

  • Open Foreign Currency Account

  • Mandatory annual audit

⏳ Total Time: 6-8 months

4. Document Checklist

NGOINGO
Citizenship copies of all board membersParent organization’s registration certificate
Notarized MOA/AOA3 years of audited financials
District-level recommendation letterHome country tax exemption proof
NPR 100,000 bank deposit slipProject proposal (Nepali + English)

⚠️ All INGO documents require legalization from Nepalese Embassy.

5. Compliance Requirements

RuleNGOINGO
Annual AuditBy CA NepalBy SWC-approved auditor
Fund Utilization80% on programs70% on programs (max 30% admin)
ReportingAnnual report to SWCQuarterly financial reports
RenewalEvery 5 yearsProject-based (max 5 years)

Penalties:

  • Suspension for unapproved fund transfers

  • Blacklisting for political/religious activities

6. Sector Restrictions

✅ Allowed:

  • Poverty alleviation

  • Environmental conservation

  • Women empowerment

❌ Prohibited:

  • Religious conversion

  • Political campaigns

  • Activities threatening national unity

FAQs

1. Can foreigners board members in NGOs?

No, NGOs require 100% Nepali boards. INGOs may have foreign staff.

2. Minimum funding requirement for INGOs?

$500,000 over 5 years for new registrations.

3. Tax exemptions?

✅ NGOs: VAT exemption on imports
✅ INGOs: Tax-free foreign grants (approved projects only)

4. Can NGOs receive foreign funding?

Yes, but requires SWC pre-approval for each transaction.

5. Fast-track registration possible?

For INGOs in post-disaster work – 30-day emergency approval.

Pro Tips for Success

🔹 NGOs: Partner with local governments for faster approvals
🔹 INGOs: Align projects with Nepal’s 15th Five-Year Plan priorities
🔹 Both: Maintain transparent fund trails – SWC conducts random audits

📞 Need help? [Contact SWC-approved consultants] for registration suppo