TL;DR:
Tourism & Hospitality licensing in Nepal is the statutory permission required to operate hotels, resorts, travel agencies, and related services, issued by the Department of Industry after company registration and tax compliance. Our firm guides clients through incorporation, document preparation, regulator liaison, and timely licence issuance.
What is Tourism & Hospitality Licensing in Nepal?
Tourism & Hospitality licensing in Nepal is the legal authorization that allows a business to provide accommodation, food, travel, and related services. The licence is granted by the Department of Industry once the entity is registered with the Office of Company Registrar, tax‑registered with the Inland Revenue Department, and complies with the Tourism Development Act and related regulations.
Why a lawyer is essential for tourism and hospitality licences
– Regulators such as the Department of Industry (DoI) and the Office of Company Registrar (OCR) often reject applications for missing or inconsistent paperwork.
– Shareholder disputes or foreign‑investment structures must be clarified before a licence can be issued.
– Environmental or land‑use evidence may be required, and a lawyer prepares the necessary responses.
– Misaligned PAN/VAT details with the IRD can block the licence; counsel ensures fiscal filings match corporate records.
How long does the tourism licence approval take in Nepal?
The standard review period is three to six weeks if all documents are complete and the DoI raises no objections; additional environmental or land‑use clearances can extend the timeline to several months.
How to apply for a tourism business licence in Nepal
- Incorporate the entity – Register the company with the Office of Company Registrar under the Company Act 2063. The certificate of incorporation establishes the legal personality needed for any licence.
- Obtain industry registration – Submit the company’s objectives, capital structure, and supporting documents to the Department of Industry. The DoI verifies that the business qualifies as a tourism‑related enterprise.
- Prepare the licence application – Gather the DoI‑specific form, certified land title or lease, environmental impact assessment (if required), and proof of qualified management staff. All documents must be notarized and, where needed, translated into Nepali.
- Complete tax and labour compliance – Register for a Permanent Account Number (PAN) and VAT with the Inland Revenue Department and submit a labour compliance report to the Department of Labour. These filings should be finalised before the licence request.
- Submit the dossier to DoI – Lodge the complete package at the Department of Industry office. The authority may schedule a site visit or request additional assurances before granting the licence.
- Receive the tourism business licence – Upon approval, the DoI issues the licence, which must be displayed at the premises and renewed as prescribed by law.
- Maintain post‑licence obligations – Keep up periodic tax filings, labour audits, and compliance with the Tourism Development Act to avoid suspension.
Our legal support for tourism licences
We conduct a due‑diligence review of corporate structures, shareholder agreements, and land titles to identify gaps that could stall the DoI’s assessment. We draft and file the industry registration and licence application, ensuring all forms meet DoI specifications and that supporting documents are properly notarized and translated. We liaise with regulators, respond to clarification notices, arrange site inspections, and negotiate any amendments to licence conditions, thereby shortening the approval timeline.
Fees, timeline, and cost considerations
– Fees vary by corporate structure, documentation volume, and any foreign‑investment verification required.
– A simple hotel owned by Nepali nationals typically incurs lower costs than a joint‑venture with overseas partners.
– The overall process can take from three weeks to six months; it accelerates when the incorporation certificate, land deed, and tax registrations are ready before submission.
– Delays often stem from incomplete environmental assessments, mismatched signatures on OCR and DoI forms, or pending foreign‑exchange approvals from Nepal Rastra Bank.
Typical pitfalls and compliance risks
- Stating the company purpose as “restaurant business” rather than “tourism and hospitality” leads the DoI to reject the application.
- Missing a certified land title or lease triggers repeated requests from the department.
- Unsigned shareholder resolutions cause the OCR to question the signatory’s authority.
- Operating before PAN/VAT registration invites IRD penalties.
- Exceeding the 49 % foreign ownership limit without board approval violates the Foreign Investment and Technology Transfer Act.
- Missing licence renewal dates results in suspension and possible fines.
What you will receive from our service
- A fully registered company with its Certificate of Incorporation.
- A Department of Industry tourism licence ready for display.
- Complete tax registration (PAN/VAT) and labour compliance filings.
- Shareholder agreements and management contracts drafted for tourism operations.
- A compliance checklist covering ongoing obligations and renewal dates.