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Step-by-Step Guide to Tour & Travel Company Licensing in Nepal

Why Start a Travel Agency in Nepal?

Tourism is one of the largest contributors to Nepal’s economy, creating opportunities in trekking, mountaineering, rafting, paragliding, and cultural tours. A licensed tour company allows you to provide services like ticketing, visa processing, trekking packages, and international travel bookings legally.

In Nepal, a tour and travel business can be registered in two ways – either as a Private Limited Company through the Office of Company Registrar (OCR) or directly with the Department of Cottage and Small Industries (Gharelu Office) and then apply for a travel license with the Valley Tourism Office. Whichever route you choose, obtaining a valid travel/tourism license in Nepal is mandatory. Running a travel agency without a license can result in heavy penalties of up to 25% of annual turnover, making compliance crucial for long-term business growth and credibility.

Types of Tour & Travel Agencies in Nepal

– Travel Agency – Air ticketing, visa assistance, travel booking.
– Trekking Agency – Hiking and trekking services.
– Tour Operator – Heritage, cultural, and package tours.
– Expedition Agency – High-altitude mountaineering expeditions.
– Adventure/Rafting Agency – Rafting, bungee, paragliding, and more.

Licensing Process for Tour & Travel Agencies in Nepal

Step 1: Choose a Business Structure
Step 2: Reserve a Company Name
Step 3: Register the Company
Step 4: Tax Registration
Step 5: Register with Department of Industry (DOI)
Step 6: Apply for Tourism License
Step 7: Obtain Special Permits (If Required)
Step 8: Local Government Registration
Step 9: Open a Business Bank Account
Step 10: Post-Registration Compliance

Estimated Taxes for Travel Agency Registration in Nepal

– Company Registration (OCR) – NPR 1,000–43,000 (Depends on capital)
– Industry Registration (DOI) – NPR 20,000 (Depends on Capital)
– Tourism License – NPR 25,000 (DoT)
– Bank Guarantee – NPR 500,000 (refundable, 5 years)

Required Documents for Tour & Travel License in Nepal

– Application forms
– Memorandum & Articles of Association (MoA/AoA)
– Citizenship copies of shareholders & directors
– Company registration certificate
– PAN/VAT certificate
– Bank guarantee of NPR 500,000
– Industry registration certificate
– Tax clearance certificate [if applicable]
– Audited financial statements [if applicable]
– Proof of office space
– Staff qualification documents
– Local Government Registration
– Photographs of office & directors

Frequently Asked Questions (FAQ)

  1. How long does it take to register a travel agency in Nepal?
    It usually takes 1–2 weeks to register the company and 2–14 days to obtain a tourism license.

    2. What is the minimum capital required for a travel agency in Nepal?
    At least NPR 2,500,000 paid-up capital (or NPR 1,500,000 for proprietorship).

    3. Can foreign investors open a travel agency in Nepal?
    Yes, but they must invest at least NPR 5,000,000 and partner with Nepali citizens holding 51% ownership.

    4. What is the validity of a travel/tourism license in Nepal?
    The license is valid for 5 years and must be renewed.

    5. What documents are required for a trekking agency license?
    MoA, AoA, company registration certificate, PAN, office proof, staff qualification certificates, bank guarantee, industry registration certificate.

    6. Do I need a separate license for trekking and expedition services?
    Yes. Trekking and expedition companies require special permits.

    7. What happens if I don’t renew my travel license on time?
    Your license will be cancelled if not renewed within the stipulated period.

 

 

Disclaimer: The information provided on this website is for general informational purposes only. While we strive to keep the content accurate and up to date, rules, fees, and government regulations may change over time. Readers are advised to verify the latest requirements with the relevant government authorities or consult a professional before making business decisions.

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