Introduction

Starting a nightclub in Nepal is a lucrative but highly regulated business. From company registration to liquor licenses, this guide covers all legal requirements (2025 updates) for Nepali, Indian, and Chinese investors.

💡 Did You Know? Nightclubs in Nepal must follow Tourism Act, Industrial Enterprises Act, and Local Government laws. Missing even one license can lead to heavy fines or shutdowns.

Legal Framework for Night Clubs in Nepal

Nightclubs in Nepal are regulated under:
✅ Tourism Act, 2035 (1978) – Mandatory for hospitality businesses
✅ Industrial Enterprises Act, 2076 (2020) – Business classification
✅ Local Government Operation Act, 2074 (2017) – Municipal permits
✅ Labour Act, 2074 (2017) – Staff hiring rules
✅ Companies Act, 2063 (2006) – Business registration

📌 Pro Tip: Foreigners (Indians/Chinese) can invest but need a Nepali partner (51% ownership).

Business Structures for Night Clubs in Nepal

Type Pros Cons
Private Ltd. Company Limited liability, professional Higher registration cost
Partnership Firm Less paperwork Unlimited liability
Sole Proprietorship Easy to register Full personal risk

🔹 Best Choice? Most nightclubs register as Private Limited Companies for legal protection.

Step-by-Step Night Club Registration Process

register Night Club

1️⃣ Company Registration (Office of Company Registrar – OCR)

📌 Time: 7-15 days | Cost: NPR 10,000 – 30,000

  • Name approval (Submit 3 options)
  • Submit MOA, AOA, Citizenship copies
  • Define share capital

2️⃣ PAN/VAT Registration (IRD)

📌 Time: 3-7 days | Cost: NPR 2,000 – 5,000

  • Required for taxation & invoicing

3️⃣ Tourism License (Department of Tourism)

📌 Time: 15-30 days | Cost: NPR 50,000 – 100,000

  • Submit business plan, location map, safety compliance

4️⃣ Local Municipality Permit

📌 Time: 15-30 days | Cost: NPR 30,000 – 80,000

  • Fire safety check
  • Noise pollution clearance
  • Public hearing (in some areas)

5️⃣ Liquor License (District Administration Office)

📌 Time: 15-30 days | Cost: NPR 50,000 – 150,000

  • Age restrictions (No alcohol under 21)
  • Operating hours: Typically 6 PM – 12 AM (2 AM on weekends)

Key Compliance Requirements

🚨 Avoid Penalties! Must follow these rules:
✔ Noise limit: Max 65 dB (strictly enforced)
✔ Fire Safety: Emergency exits, extinguishers
✔ Labour Laws: Minimum wage, contracts, SSF
✔ Taxes: Monthly VAT, annual income tax

Challenges & Solutions

Challenge Solution
Zoning restrictions Check municipal laws before leasing
Community protests Hold public meetings, address concerns
Multiple licenses Hire a legal expert for faster approval

 

Cost Breakdown (2025)

License Estimated Cost (NPR)
Company Registration 10,000 – 30,000
PAN/VAT 2,000 – 5,000
Tourism License 50,000 – 100,000
Municipality Permit 30,000 – 80,000
Liquor License 50,000 – 150,000
Total 1.5 – 4 lakh NPR

 

 

 

Conclusion

Starting a nightclub in Nepal requires proper legal steps, licenses, and compliance. Indian & Chinese investors must partner with Nepali citizens.

📞 Need help? Consult Corporatebizlegal for smooth registration!