Import Export License Process in Nepal updated

Introduction to Import Export Licensing in Nepal

Import and export licensing in Nepal allows businesses to legally trade goods and services across borders. Every company or entrepreneur engaging in foreign trade must obtain a valid import export license before beginning operations. The process ensures that trade activities comply with national policies, customs regulations, and international trade standards. Obtaining this license grants official authorization for both importing goods into Nepal and exporting Nepali products abroad. It also allows access to customs clearance, banking facilities for trade, and trade documentation such as invoices and bills of lading. Businesses operating without proper registration and licensing face penalties, seizure of goods, and legal restrictions on trade operations. Import Export License Process in Nepal updated.

Legal Requirements for Import Export License

To legally conduct import or export activities in Nepal, the business must meet a series of requirements set by the concerned government authorities. The company must first be registered under the Company Registrar’s Office as a private limited, partnership, or public limited company. It must also register with the Inland Revenue Department to obtain a Permanent Account Number (PAN) and Value Added Tax (VAT) number. Additionally, registration with the Department of Commerce, Supplies, and Consumer Protection is necessary for import export authorization. The business must maintain a valid office address, bank account, and submit documentation proving its trade capabilities. All foreign trade must be conducted through registered channels to ensure full compliance with existing commercial laws and tax policies.

Eligibility Criteria for Import Export Business Owners

Any Nepali citizen or business entity can apply for an import export license if they meet specific eligibility criteria. The business must be formally registered and operate from a legitimate commercial location. Owners or directors must have a clean legal background and must not be blacklisted by any government authority. The company must have adequate financial capacity to conduct trade and maintain a clear source of investment. It should also have professional staff familiar with trade documentation, customs clearance, and foreign exchange procedures. The eligibility extends to firms intending to export agricultural, industrial, or manufactured goods, as well as those importing raw materials, machinery, or consumer products. Import Export License Process in Nepal updated.

Minimum Capital Requirement for License Application

The capital requirement for obtaining an import export license varies depending on the scale and type of business. Generally, the company must maintain a minimum paid-up capital sufficient to demonstrate its operational capacity. For small-scale trading entities, the required capital is comparatively lower, while larger importers and exporters must show higher capital deposits. The purpose of the capital requirement is to ensure financial stability, guarantee business continuity, and cover potential trade liabilities. Businesses should maintain transparent bank records and submit updated financial statements during the license application process. Import Export License Process in Nepal updated.

Required Documents for Import Export License Submission

To apply for an import export license in Nepal, the applicant must prepare and submit several documents, including:

• Application form for import export license

• Company registration certificate

• PAN and VAT registration certificates

• Memorandum and Articles of Association (for companies)

• Citizenship copies of directors or owners

• Updated tax clearance certificate

• Proof of business address and office ownership or lease

• Bank statement or financial proof showing paid-up capital

• Passport-size photos of directors

• Business profile detailing the nature of goods and target markets

• Recommendation letter from the local authority or chamber of commerce

All documents must be clear, valid, and verified to avoid application delays or rejection.

Step-by-Step Import Export License Application Process

The import export license process in Nepal involves the following steps:

1. Company Registration: Register your business at the Office of the Company Registrar.

2. Tax Registration: Obtain PAN and VAT certificates from the Inland Revenue Department.

3. Bank Account Setup: Open a corporate bank account in the business name.

4. Document Preparation: Gather all required documents, including ownership proof and tax records.

5. Submission: File the application with the Department of Commerce, Supplies, and Consumer Protection.

6. Verification: Officials verify all documents and business details.

7. Inspection: Site inspection may be conducted for office verification.

8. Payment of Fees: Pay the prescribed registration and licensing fees.

9. License Issuance: Once approved, the import export license is issued.

Each step must be completed sequentially for a valid and verifiable license.

License Approval Timeline and Processing Duration

The processing duration for obtaining an import export license generally ranges between 10 to 30 working days. The time frame depends on document accuracy, company structure, and verification procedures. Applications with complete and error-free documentation are usually processed faster. Delays occur when businesses fail to provide required financial details or valid office proofs. In some cases, if site inspections or background checks are necessary, processing may extend further. Applicants are advised to regularly follow up with the concerned department after submission to ensure timely approval. Import Export License Process in Nepal updated.

Government Fees and Charges for License

Government fees for import export licensing in Nepal are determined based on the type and scale of business operations. The registration fee at the Department of Commerce, Supplies, and Consumer Protection is charged at a fixed rate, while other minor fees apply for documentation, verification, and service delivery. Additionally, businesses must pay PAN and VAT registration fees, local ward recommendation charges, and renewal fees annually. Payment receipts must be maintained as part of the compliance record. The total cost for completing the entire registration and licensing process may vary depending on document certification and notary services.

Checklist for Successful License Application

Before submission, applicants should verify the following checklist:

• Business registration completed at Company Registrar’s Office

• PAN and VAT obtained from Inland Revenue Department

• Valid office address and lease agreement available

• Complete set of required documents compiled

• All forms signed by authorized representatives

• Tax clearance certificate up to date

• Bank statement reflecting sufficient capital

• Local recommendation letter secured

• Application fee payment completed

• Copies of all submitted documents preserved

Ensuring this checklist is complete helps avoid unnecessary rejection or delays.

Authorities Responsible for License Issuance

The Department of Commerce, Supplies, and Consumer Protection under the Ministry of Industry, Commerce, and Supplies is the primary authority responsible for issuing import export licenses in Nepal. The Inland Revenue Department handles tax registration, while the Office of the Company Registrar manages company formation and incorporation. Local municipalities provide recommendation letters for office location verification. Banks and customs departments also play roles during trade operations and import clearance. Coordination between these authorities ensures legal authorization and smooth trade operation for the license holder.

Relevant Laws Governing Import Export Businesses

The import export sector in Nepal operates under various laws that regulate trade activities, taxation, customs procedures, and consumer protection. These laws define the framework for registering, licensing, and monitoring trade-related operations. Businesses must comply with all provisions related to documentation, invoicing, product labeling, and foreign currency transactions. The laws also provide measures for penalties, renewal, and dispute resolution related to import export operations. Import Export License Process in Nepal updated.

Compliance and Reporting Requirements for License Holders

Once licensed, businesses must adhere to ongoing compliance obligations. These include maintaining accurate trade records, filing periodic tax returns, renewing licenses before expiry, and reporting significant changes in ownership or operations. License holders must ensure that imported and exported goods align with their declared business scope. Failure to comply with reporting and renewal obligations may result in license suspension or fines. Companies should also retain transaction records for audit and customs verification purposes.

Services Allowed Under Import Export License

A valid import export license allows businesses to perform a range of trade-related activities, such as:

• Importing raw materials, machinery, and consumer goods

• Exporting finished or semi-finished goods to international markets

• Engaging in cross-border distribution and wholesaling

• Participating in international tenders and supply contracts

• Partnering with foreign companies for trade partnerships

The license acts as official authorization for legitimate cross-border transactions and ensures that all trade activities are recognized by financial and customs authorities.

License Renewal and Update Process

The import export license must be renewed periodically to remain valid. Businesses must submit a renewal application before the expiry date, along with updated tax clearance, business operation proof, and renewal fees. Renewal intervals are typically annual or as determined by the authority. During renewal, the department reviews the company’s compliance record, financial transactions, and any amendments to its business scope. Delayed renewal may result in penalties or suspension of the license until rectified.

Common Challenges and How to Overcome Them

Applicants often face challenges during the licensing process, such as incomplete documentation, unclear eligibility, or delays in verification. To overcome these issues, applicants should prepare documents carefully, verify details before submission, and consult professionals familiar with the process. Maintaining a clear communication line with government offices and tracking application status can also reduce delays. Additionally, ensuring financial transparency and maintaining proper office infrastructure helps establish credibility and compliance. Medha Law and Partners is a leading law firm in Nepal.

FAQs

How can I get import export license in Nepal?
You can obtain an import export license by registering your business, obtaining PAN and VAT, and applying to the Department of Commerce, Supplies, and Consumer Protection with all required documents and fees.

What documents are required for license application?
Documents include company registration, PAN and VAT, bank statement, citizenship copies, lease agreement, tax clearance, and recommendation letter from the local authority.

How long does the license approval process take?
It usually takes 10 to 30 working days depending on document accuracy and verification speed.

Who issues import export licenses in Nepal?
The Department of Commerce, Supplies, and Consumer Protection issues the import export license in Nepal.

What is the minimum capital requirement?
The minimum capital varies by business size and trade type, but businesses must show sufficient paid-up capital to sustain trade operations.

Can foreigners apply for import export license?
Foreigners may participate through joint ventures or registered companies in compliance with national trade laws.

How often should the license be renewed?
Licenses are generally renewed annually, with renewal fees and updated compliance reports.

What services can be provided under the license?
The license permits import, export, wholesale, and distribution of approved goods and services.

Are taxes required for import export license?
Yes, tax registration and regular tax filing are mandatory for licensed import export businesses.

Can business operate without license legally?
No. Operating without a valid import export license is considered illegal and may result in fines, seizure, or closure.