How to Obtain a Travel and Trekking Agency License in Nepal: A Legal Guide

Nepal remains a premier global destination for adventure tourism. For entrepreneurs looking to tap into this market, navigating the regulatory framework is the first step toward success. At Top Legal Advisers, we specialize in streamlining the registration process for both local and foreign investors.

To operate legally, every agency must be registered with the Office of Company Registrar (OCR) and licensed by the Department of Tourism.

1. What is a Travel & Trekking Agency License?

A Travel & Trekking Agency License is an official authorization issued by the Department of Tourism, Government of Nepal. It permits a business to provide specialized services such as tour packages, trekking expeditions, and international travel bookings. Operating without this license is a violation of the Tourism Act.

2. Eligibility for Registration

• Nepali Citizens: Can register as a sole proprietorship or a private limited company.
• Integrated Model: A single legal entity can hold licenses for both travel and trekking services simultaneously.

3. Step-by-Step Registration Process

The process of setting up a tourism business in Nepal involves multiple government departments.

Step	Action	Authority
1	Name Reservation	Office of Company Registrar (OCR)
2	Company Incorporation	Office of Company Registrar (OCR)
3	Tax Registration	Inland Revenue Department (PAN/VAT)
4	Bank Guarantee	Any "A" Class Commercial Bank
5	Tourism Licensing	Department of Tourism (DoT)

Detailed Breakdown:

1. Name Approval: Reserve a unique name via the OCR Portal. Use keywords like "Travel" or "Adventure" to clearly define your business nature.
2. Document Preparation: Draft the Memorandum of Association (MoA) and Articles of Association (AoA) outlining tourism as the primary objective.
3. VAT Registration: Registration for Value Added Tax (VAT) is mandatory for all trekking and travel agencies in Nepal.
4. The Bank Guarantee: You must deposit or maintain a bank guarantee of NPR 500,000 specifically for the Department of Tourism.

4. Capital & Financial Requirements

To ensure the stability of the tourism sector, the Nepal government enforces minimum capital requirements:

• Minimum Paid-up Capital: NPR 2,500,000 (25 Lakhs).
• Bank Guarantee: NPR 500,000.

5. Essential Documents Checklist

To apply for the license at the Department of Tourism, you will need:

• ✅ Company Registration Certificate (OCR)
• ✅ Certified copies of MoA and AoA
• ✅ PAN/VAT Registration Certificate
• ✅ Proof of Bank Guarantee (NPR 500,000)
• ✅ Citizenship/Passport copies of Directors
• ✅ Office Rent Agreement (Minimum 1-year lease)
• ✅ Work Plan/Business Profile

6. Timeline and Compliance

• Processing Time: Generally 7 to 15 working days if all documentation is accurate.
• Annual Compliance: Agencies must file annual tax returns with the IRD and renew their licenses periodically with the Department of Tourism. Any changes in shareholders or office location must be updated at the OCR within 15 days.

Expert Tip: Since the MoA and AoA govern your entire business operation, ensure they are drafted by legal professionals to avoid future hurdles in license renewal or foreign currency exchange permits.

Need Professional Legal Assistance?

Navigating the Department of Tourism and OCR can be complex for new business owners. Top Legal Advisers provides end-to-end support, from name reservation to final licensing.