Introduction to Registration Workflow
Establishing a non-profit organization in Nepal involves several administrative and legal steps. The entire process is governed primarily by the Association Registration Act, 2034 B.S. (1977 A.D.). Registration is initiated at the District Administration Office (DAO) where the organization intends to operate. A non-profit must have a clear objective of working for public welfare without distributing profits to its members.
Understanding the Application Flow
The application process starts from preparation of foundational documents to submission at the DAO. It includes name selection, constitution drafting, and formal application submission. Once submitted, the DAO verifies documents and provides a registration certificate upon satisfaction. The registration allows the entity to operate legally as a non-profit in Nepal.
Selecting an Organization Name
The proposed name must not match or resemble an existing organization or suggest any political or commercial intent. According to the Association Registration Act, the name must reflect the organization’s social or charitable purpose. Name approval is done at the DAO during initial submission.
Drafting Constitution and Objectives
The constitution is a foundational legal document that outlines:
- Name, Address, and Objective of the Organization
- Membership Criteria
- Structure of Executive Committee
- Meeting Procedures
- Fund Management and Audit Requirements
- Amendment Procedures
- Dissolution Clauses
It must be signed by all founding members and comply with Section 4 of the Association Registration Act.
Convening the First Founding Meeting
Founders must conduct a formal meeting to adopt the constitution, elect the executive committee, and authorize submission of the application. The meeting minutes (agreed and signed) must be included in the registration documents.
Preparing and Compiling Documents
Documents required include:
- Application Form addressed to the Chief District Officer
- Copies of Citizenship Certificates of all executive members
- 2 copies of the organization’s Constitution
- Minute of the Founding Meeting
- Signed Decision to Register the Organization
- Passport-sized Photos of Members
- Name Approval Document (if separate)
All documents should be verified for completeness and consistency.
Submitting Application to District Office
The complete application must be submitted to the DAO in the respective district. The submission is reviewed by the administrative officer for compliance with the legal requirements. A receipt is issued upon submission.
Verification of Documents and Details
The DAO verifies the submitted details and documents. If necessary, clarification may be requested. The verification process checks for:
- Accuracy and Authenticity of Documents
- Validity of Objectives
- Proper Formation of Executive Committee
Once verified, it proceeds to the next stage.
Receiving Registration Certificate
After successful verification, the DAO issues a Registration Certificate under the Association Registration Act, 2034. This certificate legally allows the organization to function as a non-profit entity in Nepal.
Time Estimates for Each Step
- Name Selection and Constitution Drafting: 2-3 days
- Founding Meeting and Document Compilation: 1-2 days
- Submission and Verification: 7-10 working days
- Certificate Issuance: 2-3 working days after verification
Entire process can take 10-15 working days, depending on DAO efficiency.
Legal Procedures Post-Registration
Post-registration requirements include:
- Maintaining Annual Reports
- Conducting Annual General Meetings (AGMs)
- Submitting Audit Reports to DAO
- Renewal of Registration Annually
These are outlined in the Association Registration Act and DAO guidelines.
Opening Bank Account and PAN
Once registered, the organization must:
- Open a bank account in its name
- Obtain a Permanent Account Number (PAN) from the Inland Revenue Office as required under the Income Tax Act, 2058 B.S.
PAN is necessary for financial transactions and receiving donations or grants.
Registering with SWC if Applicable
If the organization works at a national or international level or receives foreign funding, it must register with the Social Welfare Council (SWC) as per the Social Welfare Act, 2049 B.S. This allows monitoring and eligibility for foreign donations.
Role of Lawyers in Each Step
Lawyers assist in:
- Drafting constitution and legal documents
- Ensuring legal compliance with applicable acts
- Representing before DAO or SWC if needed
- Handling objections or appeals
Legal counsel is recommended, especially when operating across districts or receiving foreign aid.
Complete Timeline and Checklist Overview
Timeline:
- Day 1-3: Drafting Documents
- Day 4-5: Convening Meeting
- Day 6: Document Compilation
- Day 7: Submission to DAO
- Day 8-14: Verification
- Day 15: Certificate Issuance
FAQs
How many steps are in the process?
There are approximately 15 steps, starting from name selection to post-registration compliance.
Where do I start the process from?
Start from the District Administration Office in the district where the organization will operate.
Can I complete it all in one day?
No, the process typically takes 10-15 working days depending on document readiness and DAO efficiency.
Is online registration available yet?
No, currently all registration must be done physically at the respective DAO.
What’s the role of District Office?
The DAO reviews and approves all documents and issues the official registration certificate.
When do I get the certificate?
The certificate is usually issued within 2-3 working days after successful document verification.
Do I need to publish in a newspaper?
No, publication in a newspaper is not required for non-profit registration under the current law.
Is there any interview or inspection?
Generally, no interview is conducted. Inspection may occur if documents are unclear.
Can I change details during process?
Yes, changes can be made before final submission. After that, a formal amendment process is required.
Who must sign the application?
All founding executive members must sign the application and related documents.