Step-by-Step Process to Register a hospital or Polyclinic in Nepal
Opening a hospital, polyclinic, or small clinic in Nepal requires meeting legal, infrastructure, and health-sector regulatory standards. All facilities must comply with the Company Act, Public Health Act, Health Institution Operation Standards (HIOS), and obtain licensing from the Ministry of Health and Population (MoHP) or Provincial Health Directorate. This document provides a merged, simplified master guide for 2025.
What is a Hospital or Polyclinic License?
A hospital or polyclinic license is an official permit issued by the Quality Standards and Regulation Division (QSRD) under the Department of Health Services (DoHS), Ministry of Health and Population. It legally authorizes a health facility to provide inpatient and/or outpatient medical services in Nepal.
Legal Requirements
Both polyclinics and hospitals must comply with:
- Health Institution Operation Standards, 2077
- Health Services Act, 2053
- National Building Code
- Environmental and Waste Management Guidelines
- Company Act, 2063
- Labor Act, 2074
- Foreign Investment and Technology Transfer Act, 2075(if foreign investment)
- Nepal National Building Code (NBC)
Key Regulatory authorities:
- Ministry of Health & Population (MoHP)
- Department of Health Services (DoHS)
- Quality Standards & Regulation Division (QSRD), Teku
- Provincial Health Directorates
- District Health Office
- Department of Drug Administration (DDA)
- Inland Revenue Department (IRD)
- Local Municipalities
Types of Health Facilities
Type of Facility | Scope of Services | Licensing Body |
Small Clinic | General OPD, dental, allied health, specialty OPD | District Health Office |
Polyclinic | Multiple OPDs, diagnostics, minor procedures | QSRD / Provincial Directorate |
Hospital | Inpatient, outpatient, emergency, surgery | DoHS / QSRD |
Step 1: Register the Legal Entity
Before applying for a health license, your institution must be legally registered:
- Private Limited Company or Public Company via Office of Company Registrar (OCR)
- NGO or Trust via District Administration Office
- Obtain PAN certificate from the Inland Revenue Office
Step 2: Finalize Location and Infrastructure
Ensure your facility meets these basic requirements:
- Accessible building with patient-friendly entry/exit
- Separate departments for different services
- Adequate ventilation, lighting, waiting area, and parking
- At least 1 toilet per 10 patients (as per standard)
- Emergency evacuation plan
- Compliance with Nepal National Building Code (NBC)
Step 3: Prepare the Required Documents
Submit the following to the Quality Standards and Regulation Division (QSRD), Teku, Kathmandu:
- Institutional Documents
- Application letter addressed to Director General, DoHS
- MOA and AOA (for companies) or Constitution (for NGOs)
- PAN certificate
- Citizenship copies of promoters
- Land ownership certificate or lease agreement
- Building completion certificate or layout approval
- Operational Setup
- Master plan and floor-wise layout of the health facility
- List of departments and services to be provided
- Equipment list (e.g., ECG, X-Ray, beds, sterilizers, etc.)
- Staff list with qualifications and license copies (doctors, nurses, lab techs)
- Agreement with a licensed waste disposal company
- Fire safety and sanitation plan
- Environmental Management Plan (EMP) if required
Step 4: Submit the Application to DoHS/QSRD
- Visit QSRD office in Teku, Kathmandu
- Submit all documents physically or through authorized representative
- Pay the application and inspection fee (Rs. 5,000 – Rs. 15,000, depending on size)
“You’ll receive a submission receipt and tentative date for inspection.”
Step 5: On-Site Inspection
An inspection team from DoHS or your District Health Office will visit the site to:
- Verify building and layout
- Check sanitation, lighting, ventilation
- Review equipment and department readiness
- Interview medical and administrative staff
- Suggest any corrections or improvements
Step 6: Obtain the License
If your facility meets all requirements, you will receive a:
- Health Institution Operation License
- Valid for 1 year, renewable annually
- Lists the services you’re authorized to provide
“You must display this license publicly at your facility.”
License Renewal Process
- Valid for 1 year, renewable each year
- Submit renewal application with updated staff list, tax clearance, and inspection if required
- Renewal fee: Rs. 1,000 – 5,000
Penalties for Non-Compliance
Operating without a license or failure to renew may result in:
- Fines up to Rs. 100,000
- Suspension or closure of institution
- Legal action as per the Health Services Act
Fees and Estimated Costs
- Government Fees
Particular | Fee Range (NPR) |
Company Registration | 1,000 – 15,000 |
PAN Registration | Free |
Health License Application | 5,000 – 15,000 |
Health License Renewal | 1,000 – 5,000 |
Municipality Infrastructure Approval | 5,000 – 25,000 |
Environmental Clearance (IEE/EIA) | 15,000 – 50,000 |
- Estimated Setup Costs
Facility Type | Setup Cost Range (NPR) |
General Clinic | 6 – 15 lakhs |
Specialized Clinic | 12 – 30 lakhs |
Dental Clinic | 17 – 42 lakhs |
Small Polyclinic | 25 – 60 lakhs |
Medium Hospital (15–30 beds) | 2 – 5 crores |
Large Hospital (50+ beds) | 5 – 20 crores |
- Consultant and Legal Fees
Service | Cost (NPR) |
Legal drafting (MOA/AOA, applications) | 20,000 – 50,000 |
License processing (QSRD/DHO) | 20,000 – 80,000 |
Environmental clearance support | 15,000 – 40,000 |
Licensing Requirements by Facility Type
- Small Clinic
- One or more consultation rooms with privacy.
- Separate patient waiting area.
- Basic diagnostic equipment (stethoscope, BP apparatus, thermometer, etc.).
- Sterilization equipment for minor procedures.
- Registered healthcare practitioner with valid council registration.
2. Polyclinic
- Multiple OPD rooms for different specialties.
- Diagnostic services such as laboratory and imaging (as applicable).
- Waste management and infection control systems.
- Multiple council-registered specialists.
- · Appropriate equipment for all listed services.
3. Hospital
- Inpatient wards with adequate beds as per hospital category.
- Emergency services, ICU, and operation theatres (as applicable).
- Pharmacy license from the Department of Drug Administration (DDA).
- Biomedical waste management in compliance with national standards.
· Full structural compliance with the Nepal National Building Code (NBC).
Registration Timeline
Stage | Typical Time Required |
Company Registration | 3 – 7 days |
PAN Registration | 1 – 2 days |
Municipal Approvals | 3 – 10 days |
Health License (QSRD/DHO) | 2 – 6 weeks |
Environmental Clearance (if required) | 1 – 3 weeks |
Total Duration | Approximately 30 – 60 days |
Penalties for Non-Compliance
- Fines up to NPR 100,000.
- Temporary suspension or closure of the institution.
- Permanent cancellation of license in serious violations.
- Legal proceedings under the Public Health Act and related laws.
Frequently Asked Questions (FAQs)
Is PAN mandatory for hospitals, polyclinics, and clinics?
Yes. PAN registration is mandatory for all health facilities to operate legally, pay taxes, and issue invoices.
Can non-practitioners own a clinic or hospital?
Yes, non-practitioners can own health facilities, but a qualified and council-registered healthcare professional must be appointed as the clinical leader or medical director.
Is environmental clearance necessary?
Environmental clearance (IEE/EIA) is generally required for medium to large-scale facilities, or where significant waste and pollution are expected. Smaller facilities may require only a basic waste management plan.
How long is the health institution license valid?
The Health Institution Operation License is typically valid for one year and must be renewed annually.
Can foreigners invest in hospitals in Nepal?
Yes. Foreign investors can establish hospitals under the Foreign Investment and Technology Transfer Act, 2075, with approvals from the Department of Industry and the relevant health authorities.
DISCLAIMER:
“The information provided in this blog is for general informational purposes only. While we strive to keep the content accurate and up to date, procedures, requirements, and government regulations may change over time.”