Nepal, a nation globally renowned for its Himalayas and rich cultural heritage, relies heavily on the tourism sector. To legally operate and offer services to tourists, any company intending to run a Travel Agency (focusing on tours, ticketing, hotel bookings) or a Trekking Agency (focusing on mountain expeditions, guiding, and trekking logistics) must adhere to a stringent, multi-phased registration and licensing process mandated by the Government of Nepal.
The entire process involves securing approvals from three primary government bodies: the Office of Company Registrar (OCR), the Inland Revenue Office (IRO), and the Tourism Office under Provincial Government.
1. The Regulatory Framework and Key Authorities
Establishing a tourism business in Nepal involves coordinating with specific government agencies:
| Authority | Function | Key Output |
| Office of Company Registrar (OCR) | Registers the company as a legal entity (e.g., Private Limited Company). | Company Registration Certificate |
| Inland Revenue Office (IRO) | Registers the company for tax purposes. | Permanent Account Number (PAN) / VAT Certificate |
| Tourism Office | Grants the mandatory operational license specific to the travel/trekking business. | Travel/Trekking License |
2. Phase 1: Company and Tax Registration (The Foundation)
The initial steps focus on establishing the business as a legal, tax-compliant entity.
Step 1: Company Registration at the OCR
The most common legal structure for a travel/trekking business is a Private Limited Company.
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Name Reservation: The promoters must first reserve a unique company name online through the OCR portal.
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Document Preparation: Key documents like the Memorandum of Association (MOA), Articles of Association (AOA), shareholder details, and a board resolution to start a travel/trekking business must be prepared.
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Registration Submission: These documents are submitted to the OCR. Upon review and payment of the required fees, the company is issued the Company Registration Certificate.
Step 2: PAN/VAT Registration at the IRO
Once the company is registered, it must obtain a Permanent Account Number (PAN), which is mandatory for all transactions. Companies meeting specific turnover thresholds or engaging in certain types of services (like international ticketing) may also need to register for Value Added Tax (VAT). This process is typically handled by the relevant Inland Revenue Office or Tax Service Office.
3. Phase 2: Obtaining the Travel/Trekking Operational License
This is the most crucial step, involving an application to the Tourism Office under the Provincial Government.
To qualify for the operational license, the applicant must meet strict physical, financial, and personnel requirements.
Key Requirements for Tourism License
| Requirement Type | Specifics |
| Minimum Paid-up Capital | A minimum paid-up capital of NRs. 2500,000 is required for Travel and Trekking Agency. The capital should be deposited into the company’s bank account. |
| Bank Guarantee/Deposit | A mandatory cash deposit or bank guarantee must be secured in a commercial bank in favor of the Tourism Office The amount typically varies based on the agency type:
* Travel Agency: NRs. 500,000 * Trekking Agency: NRs. 500,000 * Combined (Travel & Trekking): NRs. 10,00,000 |
| Office Setup | Proof of a properly maintained office space (at least one room) is required. This is verified via a Rent Agreement or Ownership Deed. |
| Document Submission | The application must include copies of all foundational documents: OCR Registration Certificate, MOA/AOA, PAN/VAT Certificate, Tax Clearance Certificate (if applicable), and Bank Guarantee documents. |
Tourism Office Inspection and Issuance
After submission, the Tourims Office conducts a physical inspection of the proposed office premises to verify the setup and facilities. Upon successful inspection and verification of all documents and financial requirements, the Tourism Office issues the official Travel Agency License or Trekking Agency License.
Recommended Memberships
While not always legally mandatory to begin operations, membership in trade associations is highly recommended for credibility, networking, and industry benefits.
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Nepal Association of Tour and Travel Agents (NATTA): Essential for Travel Agencies.
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Trekking Agencies’ Association of Nepal (TAAN): Essential for Trekking Agencies.
These memberships often facilitate dealings with airlines, international partners, and government bodies and enhance the company’s reputation within the tourism industry.
In summary, establishing a travel or trekking agency in Nepal is a rigorous, three-stage process that ensures only financially stable and professionally compliant entities operate in the crucial tourism sector.