Registration of Non-Governmental Organizations (NGO) in Nepal

This article provides the details regarding the registration processof NGO (Non- Govermental Organization)  in Nepal.The regulatory framework governing the operations of NGO (Non- Govermental Organization)  in Nepal comprises the following key legislations:

i) The Social Welfare Act 2049 (1992)

ii) The Associations Registration Act 2034 (1977)

iii) Applicable guidelines developed by the Social Welfare Council 

NGOs undergo registration at the District Administration Office (DAO) situated in the concerned district of establishment.

The steps for the registration of NGO in Nepal are as follows;

Note: It is not compulsion to list NGO before Social Welfare Council, listing is only required when NGOs intends to receive foreign grants.

The registration process takes around 1(one) to 2(two) months after completing pre-requisite process.

The following documents are required for registration of NGO:

The registration process of NGO mandates a minimum of 7 individuals holding Nepali citizenship: 1 President, 1 Vice-President, 1 Secretary, 1 Treasurer, and a minimum of 3 additional members.

Within the composition of the Executive Committee, a representation of at least 33% comprising individuals of the female gender is a prerequisite.

To ensure the continued registration of NGO, it is necessary to undergo the annual renewal process, involving the submission of essential documents to the relevant authorities. Annually, this entails the tax office, ward office, and District Administrative Office (DAO); while with the Social Welfare Council, it is required every three years.

NGOs are granted the privilege of income tax exemption for their operational income, contingent upon the acquisition of a tax-exempt certificate in adherence to the provision outlined in the Income Tax Act of 2022.

Both nonprofit organizations, specifically NGOs and Company not distributing profits, have the capacity to be operated by Nepali individuals. Both of these organizational structures are eligible to seek funding, whether from domestic institutions or foreign sources. However, in instances where funding is procured from international sources, it is imperative for both types of organizations to obtain approval from the Social Welfare Council as a mandatory prerequisite.

The differences between NGO and Company not distributing profits on the following sub topic:

Note: The process of registering and renewing an NGO is complex and time-consuming, whereas the procedure for Company not distributing profits is comparatively simpler. Given the available options and taking into account the aspect of flexibility, clients tend to favor the registration of Company not distributing profits.