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Manpower company registration in Nepal, including legal requirements, registration process, required documents, costs, and licensing procedures under Department of Foreign Employment regulations.
Quick Steps: How to Register a Manpower Company in Nepal
- Step 1: Fulfill preliminary eligibility requirements
- Step 2: Prepare required documents and capital
- Step 3: Register company at Office of Company Registrar
- Step 4: Apply for manpower license at DOFE
- Step 5: Submit application with bank guarantee
- Step 6: Obtain final license and renew annually
What is Manpower Company Registration in Nepal?
Manpower company registration in Nepal refers to the legal process of establishing a recruitment agency authorized to send Nepali workers abroad for foreign employment. This registration involves incorporating a company under the Companies Act and obtaining a manpower license from the Department of Foreign Employment (DOFE). The manpower registration in Nepal is mandatory for any entity wishing to engage in overseas recruitment activities legally.
A manpower company in Nepal acts as an intermediary between foreign employers and Nepali job seekers. These agencies facilitate the entire recruitment process, including job matching, documentation, visa processing, and pre-departure orientation. The Nepal manpower sector plays a crucial role in the country's economy, as remittances from foreign employment constitute a significant portion of national GDP.
The government strictly regulates manpower license in nepal to protect workers from exploitation and ensure ethical recruitment practices. Only licensed agencies can legally recruit and send workers abroad. Operating without proper manpower company registration is illegal and subject to severe penalties under the Foreign Employment Act, 2064 (2007). The registration process ensures that only financially capable and ethically sound entities operate in this sensitive sector.
Where to Register a Manpower Company in Nepal?
The manpower company registration process in Nepal involves two primary government offices. First, you must register your company at the Office of Company Registrar (OCR), which operates under the Department of Industry. The OCR has offices in Kathmandu and provincial capitals. The main office is located at Tripureshwor, Kathmandu, where most manpower companies complete their initial company registration.
After company incorporation, you must apply for a manpower license at the Department of Foreign Employment (DOFE). The DOFE is the sole authority responsible for issuing manpower licenses in Nepal. The department's office is located at Buddhanagar, Kathmandu. All applications for new licenses, renewals, and license-related matters must be submitted to this office. You can verify the dofe manpower list on their official website.
For verification purposes, applicants can check the status of their application and how to check manpower license in nepal through the DOFE's online portal at https://www.dofe.gov.np. The website provides a manpower licence check facility where anyone can verify whether a company holds a valid license. This transparency helps workers identify legitimate agencies and avoid fraudulent operators in the Nepal manpower sector.
What Laws Govern Manpower Company Registration in Nepal?
The legal framework for manpower company registration and operations in Nepal is comprehensive and strictly enforced. The primary legislation governing this sector ensures worker protection and ethical recruitment practices.
The key laws and regulations include:
- Foreign Employment Act, 2064 (2007): The principal legislation governing foreign employment and manpower agencies
- Foreign Employment Rules, 2064 (2008): Detailed regulations implementing the Foreign Employment Act
- Foreign Employment Policy, 2068 (2012): Policy guidelines for foreign employment promotion and worker protection
- Companies Act, 2063 (2006): Governs company incorporation and registration procedures
- Labor Act, 2074 (2017): Provides general labor rights and employment standards
- Private Firm Registration Act, 2014 (1957): Alternative registration for smaller entities
- Foreign Employment Promotion Board Act, 2064 (2008): Establishes the board overseeing foreign employment matters
- Departmental directives and circulars: Regular updates issued by DOFE regarding licensing requirements
How to Register a Manpower Company in Nepal?
Step 1: Verify Eligibility and Capital Requirements
Before starting the manpower company registration process, ensure you meet all eligibility criteria. The company must have minimum paid-up capital of NPR 5 million for general manpower license. Directors must be Nepali citizens with clean criminal records and no previous involvement in fraudulent recruitment activities.
Step 2: Incorporate Company at Office of Company Registrar
Register your company at the OCR under the Companies Act. Submit memorandum and articles of association, shareholder details, and capital verification documents. The company name must not duplicate existing registered names. Complete the company registration before applying for manpower license.
Step 3: Open Bank Account and Deposit Capital
Open a corporate bank account in the company's name at any licensed commercial bank in Nepal. Deposit the required minimum capital and obtain a bank certificate verifying the deposit. This certificate is mandatory for the manpower license application at DOFE.
Step 4: Prepare Application for Manpower License
Complete the prescribed application form available at DOFE or downloadable from their website. Attach all required documents including company registration certificate, tax clearance, bank guarantee, office lease agreement, and director credentials. Ensure all documents are properly attested and current.
Step 5: Submit Application with Bank Guarantee
Submit the complete application package to DOFE along with a bank guarantee of NPR 2 million. The bank guarantee must be from a recognized commercial bank and remain valid throughout the license period. Pay the prescribed application and license fees.
Step 6: Obtain License and Complete Post-Registration Requirements
After DOFE verifies your application and conducts office inspection, you will receive the manpower license. The license is valid for one year and must be renewed annually. Display the license prominently at your office and register with the Foreign Employment Promotion Board.
What Documents Are Required for Manpower Company Registration?
The documentation requirements for manpower company registration in Nepal are extensive and must be complete for successful application:
- Company registration certificate from Office of Company Registrar
- Memorandum and articles of association of the company
- Tax registration certificate (PAN) from Inland Revenue Department
- Citizenship certificates of all directors and shareholders
- Character certificates of directors from local authorities
- Educational certificates of directors (minimum SLC/SEE)
- Company bank account details and capital deposit certificate
- Bank guarantee of NPR 2 million from licensed commercial bank
- Office ownership documents or registered lease agreement (minimum 3 years)
- Office layout plan and photographs showing adequate space
- Detailed business plan and operational procedures
- Commitment letter to comply with Foreign Employment Act
- Police clearance certificates for all directors
- Recent passport-size photographs of directors
- Audited financial statements (for renewal applications)
- Previous year's tax clearance certificate
What Are the Types of Manpower Licenses in Nepal?
Before applying for manpower company registration, understanding the different license categories helps determine which type suits your business model. The DOFE issues various license types based on destination countries and recruitment scope.
| License Type | Destination Countries | Minimum Capital (NPR) | Bank Guarantee (NPR) | Validity Period |
|---|---|---|---|---|
| General License | All permitted countries | 5,000,000 | 2,000,000 | 1 year |
| Special License | Gulf countries only | 5,000,000 | 2,000,000 | 1 year |
| Institutional License | Specific institutions abroad | 5,000,000 | 2,000,000 | 1 year |
| Temporary License | Project-based recruitment | 3,000,000 | 1,000,000 | 6 months |
| Renewal License | Existing license holders | As per original | As per original | 1 year |
How Long Does the Manpower Company Registration Process Take?
The complete timeline for manpower company registration in Nepal typically ranges from 45 to 90 days, depending on document completeness and government processing speed.
| Registration Stage | Estimated Duration | Remarks |
|---|---|---|
| Company registration at OCR | 7-15 days | Faster with complete documents |
| Bank account opening and capital deposit | 3-5 days | Immediate with proper documentation |
| Document preparation and attestation | 10-15 days | Varies by document availability |
| DOFE application submission | 1 day | Submit during office hours |
| DOFE document verification | 15-30 days | May require additional documents |
| Office inspection by DOFE | 7-10 days | Scheduled after initial approval |
| License issuance | 3-7 days | After successful inspection |
| Post-registration formalities | 5-7 days | Board registration and display |
What Are the Costs Involved in Manpower Company Registration?
Understanding the financial requirements for manpower company registration helps in proper budget planning. The costs include both mandatory government fees and operational expenses.
| Cost Component | Amount (NPR) | Remarks |
|---|---|---|
| Company registration fee | 5,000 - 15,000 | Varies by capital amount |
| Minimum paid-up capital | 5,000,000 | Must be deposited in bank |
| Bank guarantee | 2,000,000 | Annual renewal required |
| Manpower license application fee | 50,000 | Non-refundable |
| License issuance fee | 100,000 | One-time payment |
| Annual renewal fee | 75,000 | Payable each year |
| Office setup costs | 500,000 - 1,000,000 | Furniture, equipment, signage |
| Legal and consultancy fees | 100,000 - 300,000 | Professional assistance |
| Miscellaneous expenses | 50,000 - 100,000 | Documentation, travel, etc. |
| Total Initial Investment | 8,000,000 - 9,000,000 | Approximate total cost |
What Are the Post-Registration Requirements for Manpower Companies?
After obtaining the manpower license, companies must fulfill several ongoing obligations to maintain their legal status and operational authorization. These requirements ensure continued compliance with Nepal's foreign employment regulations.
Manpower companies must renew their license annually before expiration. The renewal application should be submitted at least 30 days before the current license expires. Failure to renew on time results in penalties and potential license cancellation. The renewal process requires submission of the previous year's audited financial statements, tax clearance certificate, and proof of bank guarantee renewal.
All licensed manpower companies must register with the Foreign Employment Promotion Board and contribute to the Foreign Employment Welfare Fund. Companies must maintain detailed records of all recruited workers, including copies of employment contracts, demand letters, and worker information. These records must be available for inspection by DOFE officials at any time.
Additional ongoing requirements include:
- Display the original license prominently at the office premises
- Maintain minimum office space of 1,500 square feet
- Keep the bank guarantee valid and renewed annually
- Submit quarterly reports to DOFE about recruitment activities
- Maintain separate bank accounts for company operations and worker deposits
- Ensure all staff members have proper training in recruitment procedures
- Comply with government-set service charges and fee structures
- Participate in mandatory training programs organized by DOFE
- Update any changes in company structure, directors, or office location
- Maintain insurance coverage for recruited workers as per regulations
- Submit annual audited financial statements to DOFE
- Pay all applicable taxes and maintain tax compliance
- Respond promptly to worker complaints and DOFE inquiries
What Benefits Does Manpower Company Registration Provide?
Obtaining proper manpower company registration in Nepal offers numerous advantages for business operations and credibility in the competitive recruitment sector.
Legal Authorization and Protection: Licensed companies can legally recruit and send workers abroad without fear of prosecution. The license provides legal protection and establishes the company as a legitimate operator in the Nepal manpower industry. This authorization is essential for entering into agreements with foreign employers and government agencies.
Access to Demand Letters: Only licensed manpower companies can receive official demand letters from foreign employers through proper channels. The DOFE verifies and approves these demand letters, ensuring their authenticity. This access is crucial for legitimate recruitment operations and protects both the company and workers from fraudulent job offers.
Business Credibility and Trust: Being listed in the official dofe manpower list significantly enhances company credibility. Workers and their families can verify the company's legitimacy through the manpower licence check system. This transparency builds trust and attracts more job seekers to your agency.
Additional benefits include:
- Ability to advertise recruitment services publicly and through media
- Eligibility to participate in government-organized job fairs and recruitment events
- Access to government support programs and foreign employment initiatives
- Protection under Foreign Employment Act provisions
- Opportunity to establish direct relationships with foreign employers
- Eligibility for government subsidies and support programs
- Enhanced reputation in the competitive manpower market
- Ability to expand operations to multiple destination countries
- Legal recourse in case of disputes with workers or foreign employers
- Networking opportunities with other licensed agencies and stakeholders
- Access to government training programs for staff development
- Potential for business growth and expansion in the sector
FAQs
What is the minimum capital required for manpower company registration?
The minimum paid-up capital required for manpower company registration in Nepal is NPR 5 million. This amount must be deposited in a company bank account and verified through a bank certificate before applying for the manpower license at DOFE.
How can I check if a manpower company is licensed?
Visit the official DOFE website at www.dofe.gov.np and use the manpower licence check facility. Enter the company name or license number to verify its validity. You can also visit the DOFE office in Buddhanagar, Kathmandu, to check the official dofe manpower list displayed there.
How long is a manpower license valid?
A manpower license in Nepal is valid for one year from the date of issuance. License holders must renew their license annually before expiration by submitting a renewal application with required documents and fees to the Department of Foreign Employment at least 30 days before expiry.
Can foreign nationals own a manpower company in Nepal?
No, foreign nationals cannot directly own or operate a manpower company in Nepal. According to the Foreign Employment Act, only Nepali citizens can be directors and shareholders of licensed manpower companies. All directors must hold valid Nepali citizenship certificates and meet other eligibility criteria.
What happens if I operate without a manpower license?
Operating a manpower company without proper license is illegal under the Foreign Employment Act. Penalties include imprisonment up to 10 years, fines up to NPR 1 million, or both. The company will be blacklisted, and directors may face criminal prosecution and permanent ban from the industry.
How much does manpower company registration cost in total?
The total initial investment for manpower company registration ranges from NPR 8 million to 9 million. This includes minimum capital of NPR 5 million, bank guarantee of NPR 2 million, government fees of approximately NPR 150,000, and operational setup costs of NPR 500,000 to 1 million.
Where is the DOFE office located in Kathmandu?
The Department of Foreign Employment (DOFE) main office is located at Buddhanagar, Kathmandu, Nepal. This is the sole authority for issuing manpower licenses. All applications for new licenses, renewals, and license-related inquiries must be submitted to this office during official working hours.
What documents are needed for manpower license renewal?
Step 1: Previous year's audited financial statements
Step 2: Tax clearance certificate from Inland Revenue Department
Step 3: Renewed bank guarantee certificate
Step 4: Original license and company registration certificate
Step 5: Quarterly reports submitted to DOFE during the year
Why Choose Our Firm for Manpower Company Registration Services?
Our firm stands as Nepal's leading legal service provider for manpower company registration and licensing matters. With extensive experience in foreign employment law and deep understanding of DOFE procedures, we have successfully assisted hundreds of clients in obtaining manpower licenses efficiently. Our team of expert legal professionals provides comprehensive support throughout the entire registration process, from initial consultation to final license acquisition.
We offer end-to-end services including company incorporation, document preparation, DOFE application processing, and post-registration compliance support. Our established relationships with government offices ensure faster processing and minimal delays. We handle all legal complexities, allowing you to focus on building your recruitment business. Our transparent pricing, professional approach, and proven track record make us the No.1 choice for manpower company registration in Nepal.
Our services include complete documentation support, legal consultation, application submission, follow-up with authorities, office setup guidance, and ongoing compliance assistance. We ensure your application meets all legal requirements and maximizes approval chances. Contact us today for expert assistance in establishing your manpower company in Nepal and joining the legitimate Nepal manpower sector with full legal authorization and protection.