This article will provide you detail information about the process of NGO registration in Nepal.
A non-governmental organization (NGO) is a legally formed non-profit organization created to hear the voices of those who are marginalized, address their problems, take up humanitarian issues, provide aid or assistance, address developmental aid and sustainable development that usually maintain their non-governmental status.
NGO came into popular use with the establishment of the United Nations Organization (UNO) in 1945 for a consultive role between the UN and the organization.
In Nepal, NGOs are registered with the District Administration Office (DAO) which has offices in 77 districts. We will also need a PAN number from the Inland Revenue Department and a listing on the Social Welfare Council (SWC) NGO list. SWC is a government entity tasked with coordinating and assisting NGOs and INGOs in Nepal, in order to obtain the tax exemptions and other specified facilities accorded by the Government. It is necessary to register under SWC in order to receive a donation.
Registration Process and Documents required for NGO registration in Nepal
The Association Registration Act, 1977 provides a step-by-step process to understand the process of NGO registration in Nepal;
Step 1: Forming a team and obtaining the necessary documentation
- A minimum of seven board of members holding Nepali Citizenship are required: one President, one Vice-President, one Secretary, one Treasurer, three or more members.
- Collect copies of citizenship, passport photos and a character report of all members from Nepal Police of their origin.
- Document the mission and goals of NGO and create bylaws.
- Finalize Memorandum of Association and Article of Association.
- Prepare the minutes of the first meeting with the members, stating the reasons for the establishment of the NGO. Also, state the role of each member in the organization.
- A rental agreement is required to confirm the location of the NGO.
- Prepare rubber stamps with your organization’s logo.
- These points provide a general overview of the steps that must be kept in place for the NGO registration in Nepal.
Step 2: Applying and receiving a recommendation letter from the ward office
- You will need to request for a letter of recommendation from ward office where NGO is located. You must submit an application that includes all necessary documentation for NGO registration in Nepal.
- Documentation involves a copy of minutes of the ad hoc committee meeting regarding approval to register the NGO, a copy of organization’s constitution (bidhan) signed by each member, notarized copies of citizenship certificates of all members, a rent agreement between the NGO and the house owner of the office of NGO, house owner’s land tax receipt, and the house owner’s notarized copy of citizenship.
- The President’s signature and stamp should appear on the application. If you already have a letter pad tailored for your organization, you can use that instead of plain A4 size paper.
Step 3: Obtaining recommendation letter from District Coordination Committee (DCC)
- One must receive a recommendation letter from the District Coordination Committee after receiving a letter of recommendation from ward office.
- Documents must be submitted for an application which includes, application duly signed by all members of the ad hoc committee, a copy of the letter of recommendation from the ward office, notarized copy of citizenship certificates of members of ad hoc committee, a copy of organization’s constitution duly signed by all members of ad hoc committee, a copy of rent agreement between NGO and house owner, and a copy of minutes of the ad hoc committee meeting regarding the approval for registering NGO.
Step 4: Obtaining a certificate of registration from the District Administration Office (DAO)
- Once the recommendation letter from DCC is received, an application must be filed with the concerned DAO, along with documents such as an application signed by all members of ad hoc committee, notarized copies of citizenship certificates of all members, four copies of the organization’s constitution duly signed by all members, letter of recommendation from ward office, District Coordination Committee, a copy of rent agreement between the NGO and the house owner, and a copy of minutes of the ad hoc committee meeting regarding the approval for NGO registration in Nepal.
- The DAO will send a letter to Nepal Police requesting a clearance report after receiving an application with the required papers.
- The DAO will issue a certificate of registration after receiving police report and all clauses mentioned in the constitution of NGO are in accordance with prevailing laws of the country.
Step 5: Social Welfare Council (SWC) Affiliation
- Following receipt of the certificate of registration from DAO, the NGO shall apply for affiliation with the SWC, the country’s NGO regulator.
- You need to fill in the SWC application form and submit it along with the copies of the recommendation letter from the ward office, certificate of registration from DCC, and DAO with other stated documents for NGO registration in Nepal.
Step 6: Obtaining PAN certification from Inland Revenue Department
- Once the NGO is affiliated with the SWC, steps must be taken to obtain a permanent account number (PAN) from the concerned inland revenue office under the Inland Revenue Department (IRD) in order to begin operations.
- Under the Income Tax Act 2058 and Regulation 2059, a PAN number is the ten alphanumeric number. To figure out the funds, a bank account in the name of the NGO is required. Before you visit the office, make sure you have a copy of minutes, which clearly mentions who among the board of members will sign the application form.
- You need to submit an application for PAN provided by IRD with copies of above-mentioned minute, registration certificates, citizenship and two passport sized photos of person who signs the form, as well as sketched map of the location of your main office or head office.
- If the application is found correct and complete, you will be given a temporary account number registration certificate which is valid for three months. Within three months, you will receive ‘Permanent account number (PAN) registration certificate’ and your ‘PAN card’.
Also read: Patent Registration in Nepal
For Answers and Questions
How long does it take for the registration process of an NGO?
The registration process of an NGO takes one to two months to complete after all the procedures are completed.
what is the further procedure after the registration is completed?
Firstly, make copies of all the certificates you have received and keep the originals in a secure location. Then hold your first official board meeting and set out a plan for getting your new project running. Do not forget to record the decision you have made and get it signed by all the members. Lastly, let others know who you are and what you plan to do so that your project can get started.
When and where is the renewal of NGO registration done?
Every fiscal year i.e., Asar/Shrawan, Registration must be renewed at the tax office, ward office and Municipality office, District Administration Office, and Social Welfare Council (every three years).