Introduction
The Department of Food Technology and Quality Control (DFTQC) is the statutory authority responsible for regulating food and animal feed safety in Nepal. DFTQC operates under the Ministry of Agriculture and Livestock Development and exercises regulatory powers granted by the Food Act, 1966 (2023). Any person or entity involved in food or animal feed production, processing, storage, packaging, distribution, or import must obtain a DFTQC license before commencing commercial operations. DFTQC License Requirement in Nepal for Food and Animal Feed Businesses.
The DFTQC licensing requirement applies uniformly to food businesses and animal feed businesses because both directly affect public health, animal health, and food supply safety. Businesses operating without a valid DFTQC license face penalties, seizure of goods, suspension of operations, and cancellation of registrations. Medha Law and Partners advises food and feed businesses on compliance with DFTQC licensing requirements in Nepal. Medha Law and Partners Is a leading law firm in Nepal.
Legal Framework Governing DFTQC Licensing in Nepal
DFTQC licensing is governed primarily by the Food Act, 1966 (2023). Section 3 of the Act prohibits the manufacture, sale, or distribution of substandard or unsafe food and feed products. Section 4 authorizes the Government of Nepal to regulate food and feed industries through licensing, inspection, testing, and enforcement mechanisms.
Additional legal authority arises from:
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Food Rules issued under the Food Act
These laws collectively require food and animal feed businesses to maintain hygiene, labeling accuracy, quality control systems, and environmental safeguards.
Scope of DFTQC Regulatory Authority
DFTQC exercises regulatory control over the entire food and animal feed supply chain. This includes production, processing, storage, transportation, packaging, labeling, import, and distribution activities. DFTQC also enforces quality standards, conducts laboratory testing, and monitors compliance through inspections.
The authority extends to both domestic and imported products. Imported food and animal feed products must comply with Nepalese standards and may require DFTQC clearance at customs. DFTQC’s regulatory oversight ensures uniform safety standards across all market participants.
Businesses Required to Obtain a DFTQC License
A DFTQC license is mandatory for any commercial business engaged in food or animal feed activities. Licensing applies regardless of business size or ownership structure.
Businesses requiring DFTQC licensing include:
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Animal feed manufacturing companies
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Poultry feed and cattle feed producers
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Dairy processing units
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Meat, fish, and poultry processing plants
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Food packaging and bottling companies
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Cold storage and food warehouses
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Importers and distributors of food and feed products
Small-scale operations are not exempt solely due to size if activities involve commercial processing or distribution.
Difference Between Food Business License and Feed Business License
Although both licenses are issued by DFTQC under the Food Act, 1966, regulatory scrutiny differs based on product type. Food business licensing focuses on human consumption safety, hygiene, labeling, and contamination control. Animal feed licensing focuses on nutritional composition, ingredient sourcing, contamination prevention, and animal health impact.
Despite differences in technical standards, both licenses follow the same legal foundation and enforcement mechanisms under DFTQC authority.
Pre-Licensing Legal Requirements
Before applying for a DFTQC license, businesses must complete foundational legal registrations. DFTQC does not process applications from unregistered entities.
Pre-licensing requirements include:
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Company registration under the Company Act, 2006 (2063) or firm registration
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Industrial registration under the Industrial Enterprises Act, 2020
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PAN registration under the Income Tax Act, 2002 (2058)
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Land ownership certificate or registered lease deed
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Local government recommendation letter
Failure to complete these steps results in rejection of the DFTQC application.
DFTQC License Application Process
The DFTQC license application process follows a structured administrative and technical evaluation system. The applicant submits a prescribed application along with required documents to the concerned DFTQC office.
Step-by-Step DFTQC License Application Process
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Submission of prescribed application form
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Verification of legal and technical documents
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Scheduling of physical inspection
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Collection of product samples
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Laboratory testing and analysis
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Issuance of compliance notice if deficiencies exist
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Grant of DFTQC license upon compliance
The process ensures conformity with statutory food and feed safety standards.
Documents Required for DFTQC License
Applicants must submit complete and accurate documentation. Incomplete documentation delays approval.
Required documents include:
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Prescribed DFTQC application form
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Certificate of company or firm registration
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Memorandum and Articles of Association
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PAN registration certificate
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Industrial registration certificate
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Land ownership certificate or lease agreement
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Factory layout and process flow chart
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List of machinery and equipment
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Product formulation and specifications
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Local government recommendation letter
DFTQC may request additional technical documents depending on product type.
DFTQC Inspection and Compliance Verification
After application submission, DFTQC conducts an on-site inspection. Inspectors examine sanitation systems, machinery safety, ventilation, pest control, waste disposal, and worker hygiene.
For animal feed businesses, inspectors assess ingredient sourcing, nutritional formulation, contamination prevention, and storage practices. If deficiencies are identified, DFTQC issues a notice requiring corrective measures within a prescribed timeframe.
Laboratory Testing and Product Standards
DFTQC laboratories test food and animal feed samples for chemical residues, microbial contamination, nutritional accuracy, and compliance with national standards. Products failing laboratory tests are rejected.
Approval is granted only after laboratory confirmation of compliance. DFTQC retains authority to conduct post-licensing testing.
Issuance of DFTQC License
Upon satisfactory inspection and testing, DFTQC issues a license authorizing operations. The license must be displayed at the business premises. The license does not exempt the business from compliance with tax, labor, or environmental laws.
Validity and Renewal of DFTQC License
DFTQC licenses are issued for a fixed validity period and must be renewed before expiry. Renewal requires continued compliance and may involve re-inspection.
Operating with an expired license constitutes a violation under the Food Act, 1966.
Amendment of DFTQC License
License amendment is required for:
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Change in business location
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Addition of new products
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Expansion of production capacity
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Change in ownership structure
Operating without updating the license may result in enforcement action.
Penalties for Non-Compliance
DFTQC may impose penalties under the Food Act, 1966, including:
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Monetary fines
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Seizure and destruction of products
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Suspension of operations
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Cancellation of license
Repeat violations attract stricter enforcement measures.
Role of Legal Advisors in DFTQC Compliance
Legal advisors assist with licensing strategy, document preparation, regulatory coordination, and response to inspection notices. Professional legal support reduces compliance risk and operational disruption.
Medha Law and Partners provides comprehensive advisory services for DFTQC licensing and food law compliance in Nepal.
Frequently Asked Questions (FAQs)
Is a DFTQC license mandatory for animal feed businesses in Nepal?
Yes. Animal feed production and distribution are regulated under the Food Act, 1966. A DFTQC license is mandatory before manufacturing or selling animal feed commercially.
Does a small food business require DFTQC licensing?
Yes. Commercial food processing and distribution require DFTQC licensing regardless of scale if products enter the market.
Can DFTQC cancel a license?
Yes. DFTQC may cancel licenses for false information, repeated violations, or failure to comply with safety standards. DFTQC License Requirement in Nepal for Food and Animal Feed Businesses.