Registration of NGO in Nepal: Complete Guide

Introduction to NGO Registration in Nepal

In Nepal, NGOs (Non-Governmental Organizations) are privately operated, non-profit entities functioning independently of the government. To commence their legal operations, these organizations must adhere to specific legal procedures and meet set criteria for registration.

The registration of an NGO in Nepal formally establishes it as an independent corporate entity with perpetual succession, granting it legal authority to enter into contracts, own property, and engage in legal actions.

Legal Framework for NGOs in Nepal

There are three principal laws and regulations governing the registration and functioning of NGOs in Nepal:

1. Association Registration Act 1977
2. Social Welfare Council Act 1992
3. Social Welfare Council Regulations 1992

Authorities Involved

The registration of an NGO in Nepal involves several government bodies, including:

• Local Ward Office
• District Coordination Committee (DCC)
• District Administration Office (DAO)
• Social Welfare Council (SWC)

Requirements for NGO Registration

To establish and register an NGO in Nepal, the following prerequisites must be met:

1. A minimum of seven individuals must be prepared to form the organization, with roles including a President, Vice-President, Treasurer, Secretary, and additional members.
2. A finalized Memorandum of Association and Articles of Association for the NGO.
3. A formal resolution passed by the Board Members to establish the NGO.
4. Certified copies of the citizenship certificates of all Board Members.
5. A signed rental agreement for the premises where the NGO will operate.
6. Passport-sized photos and a character reference from the Nepal Police for each board member.

NGO Registration Process in Nepal

The process for registering an NGO in Nepal consists of several steps:

1. Ward Office Recommendation: The prospective NGO must first obtain certification and a recommendation letter from the local Ward Office where it will be based. This requires notarized documents and minutes from the NGO’s first meeting.
2. Certificate from District Coordination Committee: Following the Ward Office recommendation, a registration certificate must be obtained from the District Coordination Committee.
3. District Administration Office Registration: The NGO then submits an application to the District Administration Office in the district where it will operate. The DAO conducts a comprehensive review, and upon successful completion, issues the registration certificate.
4. Affiliation with Social Welfare Council: As per the Social Welfare Council Act, NGOs involved in social activities must be affiliated with the Social Welfare Council for legal operation in Nepal.
5. Inland Revenue Department Registration: Lastly, since NGOs engage in financial transactions, they are required to register with the Inland Revenue Department and obtain a PAN number.

Additional Information on NGO Registration in Nepal

Time Frame

The complete registration process for an NGO in Nepal usually takes between one to two months, including the necessary recommendations and certifications.

Government Fees

The overall cost for registering an NGO in Nepal can be up to NPR 6,000, which includes fees for the Ward Office recommendation, District Administration Office charges, and Social Welfare Council affiliation.

• The fee for obtaining a recommendation letter from the Ward Office is approximately NPR 2,000.
• The District Administration Office charges around NPR 1,000 for issuing the registration certificate.
• NPR 3,000 is required for affiliation with the Social Welfare Council.

Financial Oversight

NGOs are required to have their financial accounts audited and reviewed by the appointed Auditor. The Local Authorities may also review these accounts as part of their regulatory oversight.

Dissolution of the NGO

In the event that an NGO dissolves due to its inability to perform its designated functions, all assets of the organization are transferred to the Government of Nepal. The government then assumes responsibility for any liabilities associated with the NGO’s assets.

Disclaimer

This article is for educational purposes only and should not be considered legal advice. FinLex Associates holds exclusive rights to this content.