NGO Project Registration and Extension Process Nepal February 03, 2026 - BY Admin

NGO Project Registration and Extension Process Nepal


Introduction 

NGO Project Registration and Extension Process Nepal is the legal and administrative procedure through which a Nepal-registered non-governmental organization registers, approves, and later extends a project for lawful implementation in Nepal. This process ensures regulatory compliance, funding legitimacy, and continued operational authority under Nepal’s social welfare and association laws.


Context & Importance

In Nepal, NGO project registration and extension is not a procedural formality—it is a core compliance requirement that directly affects funding access, banking operations, government coordination, and long-term organizational credibility.

Without proper project approval or timely extension:

  • NGOs may be unable to receive or utilize donor funds

  • Project bank accounts may be frozen or questioned

  • Government monitoring bodies may treat activities as unauthorized

  • Audit objections and donor non-compliance risks increase

From a governance and accountability perspective, project registration and extension link an NGO’s mission to the national development and regulatory framework, ensuring transparency, coordination, and lawful execution of social interventions.


Key Concepts, Frameworks, or Rules

1. NGO Legal Existence vs. Project Legality

  • NGO registration establishes the organization as a legal entity

  • Project registration/approval authorizes specific activities, funding sources, timelines, and geographic scope

An NGO may exist legally but still be non-compliant if it operates projects without approval or beyond the approved duration.

2. Social Welfare Coordination Framework

Nepal’s regulatory structure requires NGOs—especially those receiving foreign or external assistance—to submit project proposals for review, coordination, and permission. The approving authority coordinates with relevant line ministries or agencies to ensure alignment with national priorities.

3. Project Agreement and Change Control

Approved projects are governed by formal agreements that define:

  • Approved objectives and activities

  • Budget ceilings and cost categories

  • Reporting and audit obligations

  • Allowable deviations and amendment thresholds

Extensions and amendments are treated as regulated changes, not informal decisions.


What Is NGO Project Registration and Extension?

NGO project registration and extension is the formal authorization process that allows a registered NGO to implement, continue, or modify a project within Nepal’s legal and regulatory framework.

Purpose and scope include:

  • Legal approval to implement defined project activities

  • Authorization to receive and use project funding

  • Coordination with government bodies and local authorities

  • Monitoring, reporting, and accountability obligations


Requirements / Eligibility / Prerequisites

Organizational Eligibility Checklist

  • NGO legally registered with competent authority

  • Constitution and objectives aligned with social welfare activities

  • Active executive/management committee

  • Regular governance meetings and record-keeping

  • Functional accounting and audit systems

Project Eligibility Checklist

  • Clearly defined objectives and beneficiaries

  • Identified funding source(s)

  • Realistic workplan and implementation schedule

  • Transparent and activity-linked budget

  • Defined project location(s) and coordination plan


Documents, Tools, or Resources Required

Core Documents for Project Registration

  • NGO registration certificate

  • Constitution/statute

  • Executive committee details

  • Project proposal (narrative, logframe, workplan)

  • Detailed project budget

  • Donor commitment or funding agreement

  • Bank and financial compliance documents

Documents Required for Project Extension

  • Formal extension request letter

  • Project progress report against approved targets

  • Audited financial statements

  • Revised workplan and timeline

  • Revised budget (if applicable)

  • Governance approval (board/committee resolution)

Common Mistakes That Cause Delays

  • Requesting extension after project expiry

  • Submitting incomplete or inconsistent progress data

  • Budget revisions without justification

  • Introducing new activities or locations without approval

  • Weak financial reporting or delayed audits


Step-by-Step Process

Step 1: Confirm NGO compliance status

Ensure registration, governance, accounting, and reporting are up to date.

Step 2: Prepare project proposal package

Compile a complete and internally consistent proposal, logframe, and budget.

Step 3: Submit project registration/approval application

File the application with the relevant authority for review and coordination.

Step 4: Respond to review and coordination queries

Provide clarifications or revisions promptly when requested.

Step 5: Execute project agreement

Finalize approval documents and confirm compliance conditions.

Step 6: Implement project with compliance controls

Track activities, expenses, and outputs against approved plans.

Step 7: Prepare extension request before expiry

Submit justification, progress evidence, and revised plans in advance.

Step 8: Obtain extension approval and continue implementation

Only continue activities after extension approval is secured.


Costs, Pricing, or Investment

There is no fixed national fee schedule for NGO project registration or extension. Costs depend on administrative charges, documentation, audits, and compliance expenses.

Indicative Cost Components

Cost CategoryDescription
Registration/renewal feesNGO and administrative filings
Documentation & notarizationLegal copies, resolutions
Audit expensesAnnual or project audits
Banking complianceAccount setup and verification
Administrative processingProject approval formalities

Fees and costs are subject to change and vary by authority and fiscal year.


Timeline / Duration

StageEstimated Time
Project preparation1–3 weeks
Initial review1–2 weeks
Coordination and approval3–6 weeks
Agreement finalization1–3 weeks
Extension processing2–6 weeks

Actual timelines depend heavily on document quality and responsiveness.


Validity, Updates, or Lifecycle

  • Project approvals are valid only for the approved duration

  • Any scope, budget, or timeline change requires formal approval

  • Extensions must be requested before project expiry

  • Projects must be formally closed with final reports and accounts


Ongoing Obligations or Best Practices

  • Maintain accurate financial and activity records

  • Conduct timely audits

  • Submit progress and completion reports as required

  • Keep governance approvals documented

  • Ensure transparency in procurement and staffing

  • Retain project records for audit and inspection


How to Evaluate, Verify, or Choose Correctly

  1. Verify NGO legal and governance status

  2. Ensure project documents are internally consistent

  3. Align budget strictly with activities

  4. Track indicators and evidence from day one

  5. Prepare extension documentation early


Why a Process-Driven Approach Matters

A disciplined, process-driven approach reduces regulatory risk, improves donor confidence, and ensures smoother approvals. NGOs that prioritize documentation quality, governance discipline, and compliance planning experience fewer delays and stronger institutional credibility.


FAQs 

Is project registration mandatory for NGOs in Nepal?

Yes. NGOs must obtain approval for projects, particularly those involving external or foreign assistance, to lawfully implement activities and receive funds.

How early should an NGO apply for project extension?

An extension should be filed well before project expiry, ideally several weeks in advance, to avoid operational gaps or compliance issues.

Can project budgets be changed during implementation?

Yes, but only through approved amendments. Budget changes must be justified, documented, and approved within permissible deviation limits.

What happens if a project expires without extension?

Activities become unauthorized. Continued spending or implementation without extension may lead to regulatory and audit complications.

Are audits required for project extension?

Yes. Audited financial statements are a key requirement for extension and demonstrate accountability and compliance.

Is NGO registration enough to start projects?

No. Registration establishes legal existence, but each project requires separate approval and compliance.


Conclusion

The NGO Project Registration and Extension Process Nepal is a structured compliance lifecycle, not a one-time task. NGOs that approach it strategically—through early planning, strong documentation, disciplined reporting, and timely extensions—operate with greater legal certainty, financial stability, and institutional trust.


Disclaimer

This article is for general informational purposes only. Regulatory practices, fees, and procedural requirements may change. NGOs should assess their specific project structure, funding sources, and operating locations before relying on this guidance.