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INGO Registration in Nepal : INGO Law in Nepal


This article explains detail regarding the process of establishment of International non- governmental organization (INGOs) in Nepal.


1. Governing Laws of INGOs in Nepal

The primary law governing the registration of INGOs in Nepal are as mentioned:
a. Social Welfare Act, 2049(1992) and
b. Social Welfare Council Rules, 2049 (1992).
Beside these laws, there are other guidelines adopted by social welfare council to regulate organizations.


2. Regulating body for INGOs in Nepal

Social Welfare Council  is the main regulating body for governing INGOs in Nepal.


3. Operation of INGOs in Nepal

INGO is not authorized to directly undertake project implementation. Rather, the execution of projects is to be carried out in collaboration with nonprofit organizations as mentioned:
a) Non-Governmental Organization,
b) Company not distributing profits or
c) Any legally registered entity that has been established with the fundamental objective of non-profit distribution.


4. Establishment process of INGOs in Nepal

The steps for the establishment of INGOs in Nepal are as follows;

INGO Registration in Nepal


5. Key agreements necessary for operating INGOs

The main agreements needed for the operation of INGOs include:
i. General Agreement and
ii. Project Agreement.


6. General Agreement

The agreement between INGO and SWC that establishes the foundation for INGO operations, known as the General Agreement, in Nepal. It provides the main basis for the operation of INGO in Nepal. This agreement is time-limited and includes key details like sector where INGO will work, area of implanting the project, amount of the project funds that will be provided, proposal submission dates, progress reports, and regulatory compliance for SWC submission.


7. Document required for the execution of the General Agreement

To enter into the General Agreement, you need to submit an application along with the following documents:

SN.Documents Required
1.Certificate of Registration from home country, proving legal establishment.
2.Approved By-laws (Constitution)
3.Financial Commitment (minimum of USD 200,000 annually).
4.Concept paper or project proposal.
5.Draft of the General Agreement in the specified format.
6.Letter of Authorization for handling agreement-related matters.
7.Copy of Citizenship, Passport with valid Visa, and Bio-data of the designated Country Director of the INGO.
8.Covering Letter.
9.Proof of Reliable Funding Sources (to verify a minimum of USD 200,000 in funding).
10.If the INGO's charter documents are not in English, notarized translated versions in English are required.


8. Project Agreement

A Project Agreement (PA) is a tripartite between an INGO, SWC, and local partners for Nepal-based project execution.
a. It specifies the supported activity areas where the INGO aids the local NGO.
b. Outlines the annual funding committed by the INGO for project implementation.
c. Designates the specific regions in Nepal for project execution.
d. Defines roles and responsibilities for each party within the agreement.


9. Time limitation for INGO to submit an application of Project Agreement

Yes, The Project Agreement application must be submitted within 3 months of signing the General Agreement before the SWC:
a. If this deadline is missed, the SWC grants an additional 3 months, but a fine is imposed if the submission is delayed further.
b. If the Project Agreement is established within the extended three-month period following the initial three months provided by the Council, it can result in both the nullification of the General Agreement and the potential revocation of work permits and visas for the INGOs representatives.


10. Minimum limit of Project Agreements that can be done under a single General Agreement

INGOs have the flexibility to establish multiple Project Agreements under a single General Agreement (GA).


11. Time period for registration of INGOs in Nepal

Registration of INGOs in Nepal must be done within the 3(three) months after the council receive application from INGOs.


12. Government fees

Service Charge by SWC for entering Project Agreement: USD 1,000/-.


13. Operation of Local Office of INGOs

In terms of the local office established by INGOs, local office operates as an integrated entity within the INGO, but it does not have independent legal status or distinct corporate identity under foreign jurisdiction laws.
Additionally, the local office is required to complete registration before tax authority and secure a Permanent Account Number (PAN) to fulfill local regulatory and taxation obligations effectively.


14. Minimum Capital contribution for INGOs

INGOs are mandated to contribute a minimum of USD 200,000 annually inside Nepal. It is important to note that the funding source for INGOs must originate from external sources outside of Nepal.


15. Consequence of not adhering to the General and Project Agreements

Failing to comply with these agreements can lead to:
i) Blacklisting of the INGO.
ii) A penalty of USD 1,000 for an INGO entering into a project agreement after missing the initial deadline.
iii) A penalty of USD 2,000 for an INGO entering into the General/Project Agreements after initially failing to fulfill their obligations.


16. Filing and reporting requirement of INGO

The INGO needs to:
i) Provide an audit report to the Council within six months after the fiscal year ends, along with a comprehensive overview of their work and activities.
ii) Report its activities every six months.
iii) Submit an annual report detailing administrative and program expenses.


Date of Publication: 18 August 2023


Related Article Link:
Please click the article published at our law firm website, which are related to the above article topic:
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