INGOS and NGOs ( Non Profit Organizations) Law

Bhandari Law and Partners, a leading law firm in Nepal, advises on the full range of matters involved in operating an International Non-Governmental Organization (INGO) or a nonprofit (NGO) in Nepal. Nonprofit work here isn't a side specialty we handle occasionally — it's an area where the regulatory relationship with government runs continuously, from initial registration through years of project implementation, and our lawyers work in this space regularly enough to know where that relationship tends to get complicated.

 

The Legal Framework

Local NGOs and foreign INGOs sit under distinct, though related, legal regimes in Nepal. A domestic NGO forms under the Association Registration Act, 2034 (1977), registered with the District Administration Office and generally requiring a minimum of seven founding members. An INGO works differently — it doesn't register as an independent legal entity in Nepal the way a local NGO does, but instead operates through a formal relationship with the Social Welfare Council (SWC), established under the Social Welfare Act, 2049 (1992) specifically to coordinate between foreign-funded organizations and the Government of Nepal.

 

That relationship has two distinct layers of agreement. The General Agreement sets the overarching legal framework for an INGO's presence in Nepal, and the Project Agreement covers the specifics of each individual project — budget, duration, objectives, and reporting obligations. The Project Agreement is expected to be submitted within three months of signing the General Agreement, and while the SWC can extend that window, a delay carries a penalty. Beyond the SWC itself, NGOs and INGOs also have to navigate the Income Tax Act, the Labour Act, 2074 (2017) for their staff, immigration law for foreign personnel, and local government requirements that vary by municipality.

 

What We Do

NGO registration

We handle the registration of NGOs in Nepal from formation through certification.

 

Regulatory compliance filings

We prepare and submit the ongoing legal compliance documents NGOs and INGOs owe to the Social Welfare Council and other government authorities, keeping an organization's standing current.

 

General and Project Agreements

We draft and review the General Agreement and Project Agreements that define an INGO's relationship with the SWC.

 

Labor law advisory

We advise on the labor law matters specific to INGOs and NGOs — employment structures, staff contracts, and compliance with Nepal's labor regulations.

 

Visa and work permit processing

We handle visa and work permit applications for INGO experts and foreign staff working in Nepal.

 

SWC affiliation

We assist with the affiliation process for NGOs and INGOs before the Social Welfare Council — a prerequisite for implementing projects and accessing funding.

 

Project agreement drafting and review

We draft and review project-related agreements as an organization's work and funding commitments evolve.

 

Exit strategy and project closure

We advise on exit strategies and the legal process for winding down and closing projects in Nepal — a step that carries its own compliance obligations and is often underestimated until an organization is actually trying to leave.

 

Our Approach

Operating as an INGO or NGO in Nepal means managing an ongoing compliance relationship with government, not a one-time registration. That's where we add the most value — keeping an organization's legal standing intact so that administrative requirements never interrupt the actual mission work the organization exists to do.