Compliance for INGOs and NGO

Bhandari Law and Partners advises on the full range of matters that come up in running an International Non-Governmental Organization (INGO) or a nonprofit in Nepal. Our lawyers work specifically in this space and understand the regulatory relationship these organizations have with the government — which, for INGOs in particular, is closer and more continuous than most foreign entities expect going in.

The Legal Framework

NGOs and INGOs in Nepal sit under different, though overlapping, regimes. A local NGO is formed under the Association Registration Act, 2034 (1977), registered at the District Administration Office, and typically requires at least seven founding members. An INGO, by contrast, doesn't register as an independent legal entity the way a local NGO does — it operates through a formal relationship with the Social Welfare Council (SWC), the body established under the Social Welfare Act, 2049 (1992) to coordinate between foreign-funded organizations and the Government of Nepal.

Before an INGO can begin any activity in Nepal, it needs to execute two separate agreements with the SWC: a General Agreement, which sets out the overall framework for its presence in the country, and a Project Agreement, which covers the specifics of a given project — budget, timeline, objectives, and reporting obligations. The Project Agreement has to be submitted within three months of signing the General Agreement, and while the SWC can grant a further extension, it comes with a penalty for the delay. Beyond the SWC relationship, INGOs and NGOs also have to navigate the Income Tax Act, the Labor Act, 2074 (2017), immigration law for foreign staff, and, where relevant, local government requirements — so the compliance picture is broader than the SWC relationship alone.

What We Do

NGO Registration

We assist with the registration of NGOs in Nepal, from initial formation through to certification.

Regulatory Filings

We prepare and submit the ongoing compliance documents NGOs and INGOs owe to the Social Welfare Council and other relevant government authorities, so filings stay current and nothing lapses.

General and Project Agreements

We draft and review the General Agreement and Project Agreements that govern an INGO's relationship with the SWC, and the related project documentation that follows.

Labor Law Advisory

We advise on the labor law questions that come up specifically for INGOs and NGOs — employment structures, staff contracts, and compliance with Nepal's labor regulations.

Visa and Work Permits

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

SWC Affiliation

We assist with the affiliation process for NGOs and INGOs before the Social Welfare Council, which is a prerequisite for project implementation and funding eligibility.

Project Agreement Drafting and Review

We draft and review project-related agreements as an organization's work in Nepal expands or shifts over time.

Working with government bodies like the SWC over an extended period means staying on top of a fairly continuous compliance calendar rather than a one-time registration. That's really where our role tends to add the most value — keeping an organization's standing intact so its actual mission work isn't interrupted by an administrative lapse.

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