Table of Contents
How much does it cost to open a travel and tour company in Nepal? The travel and tour company registration cost in Nepal is searched by thousands of entrepreneurs every month. Therefore, this guide has been prepared with every government fee, capital requirement, and hidden charge explained in plain figures.
Tourism is one of Nepal's largest industries. Consequently, licensing is strict. A company must be registered at the Office of the Company Registrar, licensed by the Department of Tourism, and backed by minimum capital and a bank guarantee. Without these, no travel services can legally be sold.
In this tutorial, the complete price structure will be broken down step by step. First, the legal framework will be covered. Then, every fee table will be presented. After that, capital requirements, renewal costs, and foreign investment rules will be explained. Finally, frequently asked questions will be answered.
What Is the Travel and Tour Company Registration Cost in Nepal?
The travel and tour company registration cost in Nepal is the total expense of legally establishing and licensing a tourism business. It includes company registration fees, tourism license fees, minimum paid-up capital, a bank guarantee, tax registration, and professional service charges.
Governing Legal Framework
The process is governed by the Tourism Act, 2035, the Travel and Trekking Agency Rules, 2096, the Companies Act, 2063, and the Foreign Investment and Technology Transfer Act, 2075. The Department of Tourism (DoT) issues the tourism license. Meanwhile, the Office of the Company Registrar (OCR) registers the company itself.
What the Price Actually Covers
The price covers more than paperwork. Financial security for tourists is also required. As a result, a bank guarantee and minimum capital are mandatory components of the total cost.
Government Fees for Travel and Tour Company Registration in Nepal
The government fee structure is multi-layered. Each authority charges separately. The complete breakdown is shown below.
| Fee Item | Amount (NPR) | Payable To |
|---|---|---|
| Name reservation | 600 | OCR |
| Company registration (Pvt Ltd, capital-based) | 1,000 – 16,000+ | OCR |
| Tourism license application fee | 100 | Department of Tourism |
| Tourism license fee | 15,000 | Department of Tourism |
| PAN registration | Free | Inland Revenue Department |
| Ward office business registration | 10,000 – 20,000 | Local Municipality |
| House rent tax (10% of monthly rent × 4–6 months) | Varies | Local Municipality |
| Stamp duty and notarization | 650 – 1,500 | Notary / Revenue Office |
| Gazette publication | 600 | OCR |
| Newspaper publication | 2,000 – 5,000 | Publisher |
Based on the table above, the direct government cost typically ranges from NPR 30,000 to 50,000, excluding capital and the bank guarantee. The ward fee varies by municipality and is revised each fiscal year. Therefore, the local office must be consulted before the budget is finalized.
Minimum Capital and Bank Guarantee Requirements
Capital is the largest component of the travel and tour company registration cost in Nepal. Two financial requirements are legally mandatory.
| Requirement | Private Limited Company | Partnership Firm |
|---|---|---|
| Minimum paid-up capital | NPR 25,00,000 | NPR 5,00,000 |
| Bank guarantee | NPR 5,00,000 | NPR 5,00,000 |
| Guarantee validity | 5 years | 5 years |
The NPR 25 lakh capital must be deposited in the company's bank account. Share certificates and a share register must then be maintained as proof. Meanwhile, the NPR 5 lakh bank guarantee is submitted to the Department of Tourism. It acts as security for tourists and must be renewed annually until the license period ends.
Notably, the bank guarantee is refundable. If the business is closed properly, the guarantee is released. However, it must remain active throughout the license period.
Step-by-Step Registration Process With Costs at Each Stage
The process takes 45 to 60 days in total. Each stage and its associated cost are listed below.
Step 1: Company Registration at OCR
First, the company is registered at the OCR. Name reservation, MOA/AOA drafting, and filing are completed. The fee depends on authorized capital. For a company with NPR 25 lakh capital, the OCR fee is approximately NPR 9,500 to 16,000.
Step 2: PAN, VAT, and Ward Registration
Next, PAN is obtained from the Inland Revenue Department. VAT registration is added when applicable. After that, the business is registered at the local ward office. This stage costs approximately NPR 10,000 to 25,000, including house rent tax.
Step 3: Capital Injection and Share Registry
Then, the NPR 25 lakh paid-up capital is deposited. The share registry is updated at the OCR. Bank charges of NPR 1,000 to 5,000 apply. Proof of capital is essential for the tourism license.
Step 4: Provincial Tourism Office Recommendation
Afterwards, an application is submitted to the Provincial Tourism Office. The bank guarantee, office lease, and capital proof are presented. An inspection of the office premises may be conducted. This stage costs approximately NPR 5,000 to 10,000 in documentation and travel.
Step 5: Tourism License From the Department of Tourism
Finally, the license application is filed with the DoT. The application fee of NPR 100 and license fee of NPR 15,000 are paid. Upon approval, the license valid for 5 years is issued.
Step 6: Optional Industry and Association Memberships
For credibility, registration with the Nepal Tourism Board and membership of NATTA or TAAN are recommended. These are not mandatory for basic licensing. However, trekking operations practically require TAAN membership. Membership fees range from NPR 10,000 to 50,000 annually.
Total Travel and Tour Company Registration Cost in Nepal
When all components are combined, the realistic budget is summarized below.
| Cost Category | Estimated Amount (NPR) |
|---|---|
| Government registration and license fees | 30,000 – 50,000 |
| Professional and legal service fees | 30,000 – 80,000 |
| Office setup (basic) | 50,000 – 3,00,000 |
| Website and branding | 25,000 – 1,50,000 |
| Minimum paid-up capital (deposit, recoverable) | 25,00,000 |
| Bank guarantee (security, refundable) | 5,00,000 |
| Practical cash budget (excluding capital and guarantee) | NPR 1,50,000 – 8,00,000 |
| Total financial arrangement required | NPR 30,00,000 – 35,00,000+ |
As shown above, the actual spending on registration and setup is modest. However, the financial capacity requirement is significant because of the mandatory capital and guarantee.
Renewal Cost of Travel and Tour License in Nepal
The tourism license is valid for five years. Renewal must be applied for before expiry. The renewal fee is NPR 25,000.
Late renewal attracts penalties under Rule 7 of the Travel and Trekking Agency Rules, 2096. The penalty structure is shown below.
| Renewal Timing | Fee Payable |
|---|---|
| Before expiry | NPR 25,000 |
| Within 3 months after expiry | NPR 25,000 + 25% penalty |
| 3 to 6 months after expiry | NPR 25,000 + 50% penalty |
| After 6 months | License automatically canceled |
Additionally, annual compliance costs include ward renewal, tax filings, audit fees, and guarantee renewal. Therefore, recurring costs of NPR 50,000 to 150,000 per year should be budgeted.
Can Foreigners Register a Travel and Tour Company in Nepal?
No. Standard travel, tour, and trekking agencies are placed on the negative list of FITTA 2075. As a result, 100% Nepali ownership is required for a tourism license. Foreign investors cannot hold shares in a licensed Nepali travel agency.
However, foreign participation is possible in adjacent sectors. Hotels, resorts, airlines, and adventure infrastructure are open to foreign investment. Therefore, foreign entrepreneurs usually partner with Nepali nationals in permitted structures or invest in hotel and aviation ventures instead.
Common Mistakes That Increase Registration Cost
Money is often wasted through avoidable errors. First, rejected name reservations require repeat fees. Second, incomplete MOA/AOA drafting causes OCR comments and delays. Third, the bank guarantee is sometimes issued from an unapproved bank format, forcing reissuance.
Furthermore, the office lease is often shorter than required. A minimum five-year lease with proper documentation is expected by tourism authorities. Finally, late license renewal multiplies the cost through penalties. Consequently, a compliance calendar should be maintained from day one.
Why Choose Attorney Nepal Pvt Ltd?
The travel and tour company registration cost in Nepal rises quickly when applications are returned or capital proof is rejected. At Attorney Nepal Pvt Ltd, fixed-price packages are offered. Company registration, capital structuring, guarantee documentation, provincial recommendation, and the DoT license are all handled end to end. A written cost estimate is provided before work begins.
Call to action: Contact Attorney Nepal Pvt Ltd today for a free quotation. Your licensed travel company can be operational within 45 to 60 days at a fully predictable price.
References
For verification of every figure, the following official and authority sources are linked directly:
- Department of Tourism, Nepal — tourism license authority and fee schedule
- Office of the Company Registrar, Nepal — company registration and capital registry
- Ministry of Culture, Tourism and Civil Aviation — tourism policy and regulation
- Nepal Tourism Board — official tourism promotion body
- Nepal Association of Tour and Travel Agents (NATTA) — industry association
- Trekking Agencies' Association of Nepal (TAAN) — trekking industry body
- Inland Revenue Department, Nepal — PAN and VAT registration
- World Travel and Tourism Council — global tourism industry data
Disclaimer
This article is provided for general informational purposes only. Government fees, capital requirements, and tourism regulations in Nepal are revised periodically through budget announcements and gazette notifications. Therefore, the latest official schedule must be verified, and a licensed legal professional should be consulted before any travel and tour company registration in Nepal is initiated. No liability is accepted for actions taken based solely on this content.
Frequently Asked Questions
The direct government and professional cost is approximately NPR 60,000 to 130,000. However, NPR 25 lakh paid-up capital and a NPR 5 lakh bank guarantee are additionally mandatory.
The Department of Tourism charges NPR 100 as an application fee and NPR 15,000 as the license fee. Renewal every five years costs NPR 25,000.
A private limited travel company requires NPR 25,00,000 paid-up capital. A partnership firm requires NPR 5,00,000.
Yes. It is a security deposit, not a fee. It is released when the business is formally closed and all obligations are settled.
The license is valid for five years under the Travel and Trekking Agency Rules, 2096. Renewal must be applied for before expiry.
No. Travel and trekking agencies are on the FITTA negative list. Therefore, only Nepali citizens can hold shares in a licensed agency.
Typically 45 to 60 days. Delays occur when documents, capital proof, or the office lease do not meet requirements.
Corporate income tax at 25%, VAT at 13% on services, and applicable local taxes apply. Monthly VAT and annual income tax returns must be filed.
TAAN membership is not a legal prerequisite for the DoT license. However, it is practically required for trekking operations and TIMS card issuance.
The Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation issues the license, based on the recommendation of the Provincial Tourism Office.
This article is for general informational purposes only and does not constitute legal advice. For advice on your specific situation, please contact Attorney Nepal directly.
