To establish a tours and travel company in Nepal, the business must be registered as a legal entity and the business must acquire a special tourism license to be able to operate within the country. Various government agencies which are part of the registration and licensing procedures are the Office of the Company Registrar (OCR), Inland Revenue Department (IRD), Department of Tourism (DoT) within the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) and Department of Industry (DOI).

Tourism is one of the most vital sectors in Nepal, contributing significantly to GDP and employment. The country’s rich cultural heritage, natural beauty, and adventure tourism opportunities make it a top destination for global travelers. Establishing a Tour & Travel company in Nepal requires proper registration, licensing, and compliance with local laws.

Registering a tours and travel company and acquiring a travel/tourism license in Nepal normally takes a period of 4 to 8 weeks to register a company and 2 to 14 days to obtain a tourism license depending on the thoroughness of the documents and the workload of the government. The steps are as follows:

Types of Tour & Travel Agencies

• Travel Agency – Handles air ticketing, visa processing, and general travel services.
• Trekking Agency – Organizes trekking and hiking tours.
• Tour Operator – Offers cultural, heritage, or package tours.
• Expedition Agency – Specializes in mountaineering and high-altitude expeditions.
• Rafting/Adventure Agency – Offers rafting, bungee, paragliding, etc.

Step 1: Select a Business Form

• Choose a business model, which is usually a Private Limited Company, because it is flexible and offers limited liability. Sole Proprietorship or Partnership can also be chosen, although such forms are not typical of tourism-related businesses because of the regulatory restrictions.
• Note: A foreign investor is not allowed to own a travel agency entirely, as per the provisions of Foreign Investment and Technology Transfer Act, 2075 (2019). Foreign investment must be a minimum of NPR 5,000,000 and at least 51 percent of the shares have to be owned by Nepali citizens.

 Step 2: Reserve a Company Name
Verify the company name uniqueness either on OCR web site (www.ocr.gov.np), or at the OCR office in Kathmandu. File a name reservation application online or in paper. The step helps to make sure that the name meets the requirements of the Companies Act and is not taken already.

Step 3: Register the Company at office of company registrar (OCR):

• Get ready and present the necessary documents to the OCR.
• Deposit the registration fee in accordance to the authorized capital of the company.
• After acceptance get a Certificate of Incorporation.

Step 4: Tax registration:

• Acquire Permanent Account Number (PAN) with the Inland Revenue Department (IRD) to comply with tax.
• When the yearly turnover of the company is more than NPR 2,000,000 then register Value Added Tax (VAT).

Step 5: Enroll in Department of Industry (DOI):

• Apply to the DOI by submitting the OCR Certificate of Incorporation and additional documents to get an Industry Registration Certificate.
• Fee: NPR 20,000 to get registered in the Department of Small and Cottage Industries (Gharelu office). 

Step 6: Apply for a Travel/Tourism License:

• File a form with the Department of Tourism (DoT) MoCTCA, together with supporting documents and fee.
• Submit a bank guarantee of NPR 500,000 to be valid within 5 years made payable to the DoT, Bhrikutimandap, Kathmandu.
• The DoT is entitled to visit the premises of the agency to check on the office space and qualification of the staff.
• Get a recommendation letter of the Nepal Association of Tour and Travel Agents (NATTA), in case it is necessary.
• Submit the license fee of NPR 25,000 (in case of travel/tourism license) or NPR 15,000 (in case of Bagmati Province, as applicable).
• Processing time: 2-14 days. Duration of the license is 5 years.

Step 7: Extra Permits (when necessary):

• To conduct trekking or mountaineering, take special permits (e.g. trekking permits) to the DoT or other authorities, which might demand other documents, such as itineraries, safety arrangements, and environment friendliness plans.
• If required, register with the Nepal Tourism Board (NTB) to get other tourism related permits.

Step 8: Local Registration:

• Get yourself registered at the local Municipality or at the Ward Office in order to abide by the local rules and regulations and to get the required permits.

Step 9: Create a Business Bank Account:

• It would be good to open a bank account under the name of the company to carry out transactions, pay employees and receive payments.

 Step 10: Post Registration Activities:

• Make yearly tax returns and hand over audit reports to the IRD.
• License renewal Tourism license renewed every 5 years (renewal fee varies; generally, NPR 25,000).
• Make annual reports to the OCR, and observe labor laws such as registering employees with the Social Security Fund (SSF).
• In the event that renewal of the license is not done within the stipulated time, the license shall be cancelled.

Registration and Licensing Fees

Fee Type	Amount (NPR)	Description
Company Name Reservation	100	Fee for reserving a unique company name with the OCR.
Company Registration (OCR)	1,000–43,000	Based on authorized capital (e.g., NPR 1,000 for up to NPR 100,000; NPR 9,500 for NPR 2,500,000).
Industry Registration (DOI)	20,000	Registration with the Department of Small and Cottage Industries.
Travel/Tourism License	25,000	Fee for obtaining a travel or tourism license from the DoT (5-year validity).
Travel License (Bagmati Province)	15,000	Alternative license fee for Bagmati Province, if applicable.
Bank Guarantee	500,000	Refundable guarantee valid for 5 years, issued to the DoT.
License Renewal	25,000	Fee for renewing the travel/tourism license every 5 years (subject to change).
PAN/VAT Registration
Local Municipality Registration	Varies	Fees depend on the local authority and business size.

 

 

Notes:

• Total estimated cost for registration and licensing: NPR 50,000–150,000, depending on company size, structure, and additional services (e.g., legal consultation).
• Professional fees for legal or consultancy services may range from NPR 15,000–50,000.
• Fees are subject to change; verify with the OCR, DoT, or DOI for the latest rates.

Required Documents

Document	Description
Application Form	Completed form for company registration (ANUSUCHI 1 for OCR) and tourism license (DoT-specific format).
Memorandum of Association (MoA)	Two copies outlining the company’s objectives, structure, and operations, compliant with the Companies Act, 2063.
Articles of Association (AoA)	Two copies detailing the company’s internal rules and governance, compliant with the Companies Act, 2063.
Citizenship Certificates	Attested copies of citizenship certificates for all shareholders and directors.
Company Registration Certificate	Issued by the OCR after company registration, required for DoT and DOI applications.
PAN/VAT Certificate	Proof of tax registration with the IRD, mandatory for business operations.
Bank Guarantee	NPR 500,000 guarantee issued in the name of the DoT, valid for 5 years.
Industry Registration Certificate	Obtained from the DOI or Department of Small and Cottage Industries (Gharelu office).
Tax Clearance Certificate	Required for companies older than one year, proving compliance with tax obligations.
Audited Financial Statements	For companies older than one year, showing financial health and compliance.
Proof of Office Space	Lease agreement or ownership documents for the company’s office premises.
Staff Qualification Documents	Proof of qualifications for at least two staff members, preferably with a Diploma/Degree in Travel and Tourism or 3 years of industry experience.
NATTA Recommendation Letter	Recommendation from the Nepal Association of Tour and Travel Agents, if required by the DoT.
Photographs	Two passport-size photos of the owner/directors and postcard-size photos of the office exterior (with signboard) and interior.
Share Certificate	Proof of minimum paid-up capital (NPR 2,500,000 for travel agencies & for trekking agencies). For Proprietorship Firm minimum paid-up capital should be RS. 15,00,000.

Notes:

• Documents must be notarized where required and accompanied by certified translations if not in Nepali or English.
• Foreign applicants must submit documents through a licensed Nepali trademark or travel agent.
• Verify specific requirements with the OCR, DOI, and DoT, as they may vary based on the business type (e.g., travel vs. trekking agency).

Additional Notes

• Minimum Capital Requirements:
  • Travel agencies/Trekking Agencies: NPR 2,500,000 paid-up capital.
  • Proprietorship Firm: NPR 15,00,000 paid-up capital.
• Foreign Ownership: Foreign investors must comply with the Foreign Investment and Technology Transfer Act, 2075 (2019), requiring at least 51% Nepali ownership and a minimum investment of NPR 5,000,000.
• License Validity: The travel/tourism license is valid for 5 years and must be renewed with the DoT. Failure to renew within the stipulated period results in cancellation.
• Trekking-Specific Requirements: Additional permits, safety certifications, and environmental compliance plans may be required for trekking agencies.
• Professional Assistance: Hiring a local legal expert or consultant can streamline the process, with fees ranging from NPR 15,000–50,000.
• Compliance: Maintain financial records, file annual tax returns, and renew licenses/permits on time to avoid penalties or cancellation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.”