Introduction to Legal Requirements
In Nepal, NGOs must comply with strict legal criteria to obtain registration and continue their operations lawfully. The primary framework is established under the Association Registration Act, 1977 (2034 B.S.), which governs the formation and functioning of non-governmental, non-profit organizations. NGOs must meet member qualifications, document standards, and reporting requirements. The legal process ensures accountability, proper use of funds, and alignment with national development priorities. Medha Law and Partners Is a leading law firm in Nepal.
Governing Laws for NGO Registration
Several laws govern NGO registration and operation in Nepal:
- Association Registration Act, 1977 – Core legislation for NGO establishment
- Social Welfare Act, 1992 – Outlines NGO roles, coordination, and affiliation
- Income Tax Act, 2058 (2002) – Covers tax registration and exemption for NGOs
- National Directive Act, 2018 (1961) – For administrative compliance
All NGOs must comply with these laws to obtain and maintain legal status.
Who Can Form an NGO in Nepal
Only Nepali citizens are eligible to register an NGO in Nepal. Foreign nationals cannot register NGOs directly but may partner with registered NGOs under specific terms. A minimum of seven founding members is required, and all must be Nepali citizens. They must also share a common objective, as outlined in the NGO constitution.
Minimum Member and Age Criteria
The minimum number of founding members required for NGO registration is seven. Each member must:
- Be at least 18 years old
- Be a Nepali citizen
- Have legal capacity (sound mind, no disqualification by law)
These requirements are in line with Section 4 of the Association Registration Act, 1977.
Identity and Address Proof Needed
Each founding member must provide:
- Citizenship certificate copy
- Passport-size photo
- Permanent and temporary address
- Personal contact details
The organization’s proposed office must also have a valid address. Proof such as a rental agreement or property ownership certificate is typically required.
Specific Document Formats Required
Documents must be submitted in Nepali language and typed in standard formats. The constitution must follow the structure suggested by the DAO. Common formatting requirements include:
- Typed on A4 paper
- Official letterhead for applications
- Clear stamps and signatures
- Proper pagination and indexing
Non-compliant formats may lead to rejection or delay of registration.
Notarization and Certification Rules
Many registration documents must be notarized by a licensed notary public in Nepal. Required notarizations include:
- Copies of citizenship certificates
- Meeting minutes
- Consent letters
If any documents are in a foreign language, a certified Nepali translation must be attached and notarized. Notarization confirms authenticity and legal acceptability.
Authority Responsible for Verification
The District Administration Office (DAO) is the authority responsible for verifying NGO registration documents. Their duties include:
- Verifying identities of founding members
- Checking constitution and bylaws
- Reviewing recommendations from Ward Office
They issue the registration certificate if all legal requirements are fulfilled.
Legal Fees and Service Charges
Legal fees for NGO registration vary depending on district and scope. General costs include:
- DAO processing and registration fee: NPR 2,000 to NPR 5,000
- Notary fees: NPR 500 to NPR 1,500
- Legal consultancy (optional): NPR 5,000 to NPR 15,000
Additional charges may apply for translations, document preparations, and advisory services.
Local Approval or Recommendation Letters
A recommendation letter from the concerned Ward Office is mandatory for name approval and office location verification. This document must:
- Confirm the existence and location of the proposed office
- Approve the organization name
- Be signed and sealed by the Ward Chairperson
It is one of the initial documents required before DAO submission.
Compliance Before and After Registration
Legal compliance must be maintained both before and after registration:
Before registration:
- Constitution must meet legal standards
- Office must be verifiable
- Members must fulfill legal criteria
After registration:
- Annual renewal at DAO
- Submission of audit and progress reports
- Update of executive board changes
- PAN registration and tax compliance
Non-compliance results in penalties or suspension of operations.
Limitations on NGO Activities in Nepal
Nepali NGOs must operate under non-profit objectives only. Legal limitations include:
- Cannot be formed for political or profit-making purposes
- Cannot operate outside their registered objectives
- Cannot receive foreign funding without SWC approval
- Must not breach public law, order, or morality
Violating these limitations may lead to cancellation of registration.
Roles of Legal Advisors and Lawyers
Legal advisors assist in:
- Drafting constitution and internal regulations
- Verifying eligibility and compliance
- Preparing and reviewing documents
- Liaising with DAO and local authorities
While not mandatory, engaging a lawyer ensures accurate legal compliance and reduces the chance of rejection.
Monitoring by District Administration Office
The DAO holds the authority to monitor NGO activities post-registration. Monitoring includes:
- Reviewing annual audit and progress reports
- Conducting inspections when necessary
- Verifying address and operational activities
- Approving changes in executive board
Non-submission of reports may lead to de-registration or investigation.
Penalties for Non-Compliance or Fraud
If an NGO violates legal provisions, the DAO or relevant authority can impose the following penalties:
- Fines for late renewal or non-reporting
- Cancellation of registration certificate
- Legal action under relevant sections of the Criminal Code
- Blacklisting from receiving local or foreign funding
Penalties are enforced based on the Association Registration Act, 1977 and related laws.
FAQs
What law applies to NGO registration?
The Association Registration Act, 1977 governs NGO registration in Nepal.
What documents are legally mandatory?
Constitution, citizenship copies, minutes, application, and Ward recommendation.
Is board member ID proof needed?
Yes, each member must submit a copy of their citizenship certificate.
Can minors form NGOs legally?
No, only individuals aged 18 or above can register NGOs.
Is there a government age limit?
Yes, the legal minimum age to form an NGO is 18 years.
Do bylaws need legal approval?
Yes, the constitution must comply with DAO and legal formats.
Are foreign laws applicable here?
No, only Nepali laws govern NGO registration and operations.
Who checks legal compliance?
The DAO and Social Welfare Council monitor NGO compliance.