Registering a Travel, Tours & Trekking Agency in Nepal

QUICK SUMMARY, What This Guide Covers

This guide covers the complete registration process for travel, tours, and trekking agencies in Nepal, including the legal framework (Tourism Act 2035, Travel and Trekking Agency Rules 2062), the 5 agency categories (Travel Agency, Tour Operator, Trekking Agency, Mountain Guide Agency, Rafting Agency), the key fact that tourism is on FITTA’s Negative List (foreigners cannot register directly), minimum paid-up capital (NPR 25 lakhs) and bank guarantee (NPR 5 lakhs) requirements, office space standards, the complete 7-step registration process from OCR to Department of Tourism license, the full document checklist, government fees (NPR 25,000 tourism license fee), 5-year license validity and renewal rules, TAAN membership, the restricted trekking areas permit system, annual compliance obligations, penalties for non-compliance, and 12 FAQs. Researched and verified against 2025 regulations by the Pluto Associates legal team, Kathmandu.

Introduction: Nepal’s Tourism Sector and Why Proper Registration Matters

Nepal’s mountains are among the most sought-after destinations on earth. Mount Everest, Annapurna, Langtang, Mustang, Kanchenjunga, the names alone carry a gravitational pull that brings trekkers, climbers, cultural travellers, and adventure seekers from over 100 countries every year. Tourism contributes approximately 7.9% of Nepal’s GDP and supports over one million jobs directly and indirectly. It is, without exaggeration, one of the most important pillars of Nepal’s economy.

Behind every successful trekking expedition, every cultural tour, every helicopter ride to Everest Base Camp, and every whitewater rafting adventure, there is a registered agency. These agencies are not just commercial entities, they are the legally accountable intermediaries between Nepal’s extraordinary natural and cultural landscape and the travellers who come to experience it. They arrange permits, hire licensed guides, book lodges, coordinate logistics, and ensure that visitors are safe and supported throughout their journey.

Operating a travel, tours, or trekking agency in Nepal without proper registration is not just a legal risk, it is a practical one. Unregistered agencies cannot issue official receipts, cannot apply for restricted area trekking permits on behalf of their clients, cannot be listed on the Nepal Tourism Board or official platforms, and cannot build the institutional credibility that international tour operators and travel companies require before partnering with Nepal-based agencies.

The regulatory landscape: Tourism in Nepal is a highly regulated sector. The primary licensing authority is the Department of Tourism (DoT) under the Ministry of Culture, Tourism and Civil Aviation. The registration process involves multiple government offices, specific capital requirements, physical office standards, qualified staff requirements, and a bank guarantee that demonstrates the agency’s financial credibility. This guide walks through every step of that process in plain language.

“Nepal’s tourism sector gave over one million people their livelihoods last year. Every legitimate agency registered with the Department of Tourism is part of the infrastructure that makes that possible. Registration is not bureaucratic overhead, it is the price of entry into one of the world’s most rewarding industries.”

Legal Framework: Laws Governing Travel, Tours, and Trekking Agencies

The registration and operation of travel, tours, and trekking agencies in Nepal is governed by a layered set of laws. Understanding which law governs which aspect of your agency’s operations prevents costly mistakes later.

⚖️ Primary Regulatory Authority: The Department of Tourism (DoT), located at Bhrikutimandap, Kathmandu, under the Ministry of Culture, Tourism and Civil Aviation, is the competent authority for issuing, renewing, and regulating tourism agency licenses in Nepal. The DoT operates from Sunday to Friday, 10:00 AM to 5:00 PM.

Types of Tourism Agencies: Which License Do You Need?

Before approaching any government office, you must decide which type of tourism agency you want to establish. The Department of Tourism categorizes tourism businesses into several types, each with specific activities, capital requirements, and staffing qualifications. Choosing the wrong type means either under-licensing your agency (leaving you unable to offer certain services) or over-registering (paying more than necessary for services you won’t offer).

📌 Most Common Structure: The most popular agency structure among Nepal’s new tourism entrepreneurs is the combined Travel and Trekking Agency, a single registration that covers both general travel services and trekking operations. This allows an agency to offer a full range of tourism services without registering separately for each activity type.

Foreign Nationals and Tourism Agencies: A Critical Legal Restriction

This section addresses one of the most important, and most frequently misunderstood, aspects of Nepal’s tourism agency registration framework. If you are a foreign national considering registering a travel, tours, or trekking agency in Nepal, read this section carefully before proceeding.

⚠️ Tourism Is on the FITTA Negative List: Travel agencies, tour operators, and trekking agencies are explicitly listed on the Negative List of the Foreign Investment and Technology Transfer Act (FITTA) 2019. This means that foreign nationals and foreign companies CANNOT directly invest in, own, or register a travel, tours, or trekking agency in Nepal. This is not a restriction that can be waived, worked around, or negotiated. It is a statutory prohibition.

4.1 What Foreign Nationals Cannot Do

• Directly register a travel, tours, or trekking agency as a sole owner
• Hold a majority share in a travel or trekking agency
• Form a joint venture with a Nepali partner while holding any ownership share in a tourism agency
• Use a Nepali nominee as a front while retaining beneficial ownership, this constitutes fraud and exposes both parties to criminal liability

4.2 What Foreign Nationals Can Do

• Appoint a distributor or agent: Foreign tour operators and travel companies can market their services in Nepal by executing a formal distributorship or agency agreement with a registered Nepali tourism agency. The Nepali agency acts as the local representative and is responsible for regulatory compliance.
• Employ foreign staff: A Nepali-owned tourism agency can employ qualified foreign nationals in specialist roles (mountain guides, specialist instructors, etc.) subject to work permit and visa requirements.
• Partner with registered Nepali agencies: Foreign tourism companies commonly partner with Nepali agencies through commercial agreements for ground handling, tour packages, and trekking logistics. The Nepali agency handles all government-facing activities, while the foreign partner focuses on marketing and client acquisition abroad.

✅ Foreign Entrepreneurs’ Realistic Option: If you are a foreign national who wants to build a tourism business focused on Nepal, the practical route is to build a strong commercial partnership with a properly registered Nepali agency rather than attempting direct ownership. Many of Nepal’s most successful tourism agencies operate in exactly this model.

Prerequisites: What You Must Have Before You Apply

The Department of Tourism will not accept an agency registration application unless all of the following prerequisites are already in place. These are not suggestions, they are hard requirements that will be verified during the DoT inspection. Attempting to apply before these are ready wastes time and the NPR 25,000 license fee.

⚠️ The Bank Guarantee Is Non-Negotiable: The NPR 5 lakh bank guarantee in favour of the Department of Tourism is not a deposit in your own account, it is a formal guarantee instrument issued by a commercial bank that the DoT can call upon if the agency fails to meet its obligations to clients. Without this guarantee letter, the DoT application will not be processed. Allow 5-10 working days for your commercial bank to prepare this document.

Complete 7-Step Registration Process

The tourism agency registration process in Nepal follows a strict sequential order across multiple government offices. Each step’s output, a certificate, a letter, a receipt, becomes a mandatory input for the next step. Approaching any authority out of sequence will result in rejection and wasted time.

STEP 1 Company Name Reservation and OCR Registration

The journey begins at the Office of the Company Registrar (OCR). Your proposed agency must be incorporated as a Private Limited Company before any subsequent steps can proceed. A sole proprietorship or partnership structure is not eligible for a DoT tourism license, the Private Limited Company structure is the standard and required form.

Name Selection

Choose a company name that clearly reflects the nature of your tourism business. Including words like “Travel,” “Tours,” “Trekking,” “Expeditions,” or “Adventures” in the name not only communicates your business immediately to potential clients but also helps improve online search visibility. Check name availability at camis.ocr.gov.np before preparing documents.

OCR Registration Requirements

The MOA and AOA must clearly state tourism-related business objectives: travel agency services, tour operations, trekking, mountaineering assistance, or whatever combination of activities you intend to conduct. A vague or incorrect business objective in the MOA can cause rejection at the DoT stage.

Documents required for OCR registration:

1. Completed CAMIS portal application form
2. Memorandum of Association (MOA), stating tourism as the primary business objective
3. Articles of Association (AOA)
4. Citizenship certificates of all shareholders/promoters (plus photocopies)
5. Passport-sized photographs of all shareholders/promoters
6. Office lease agreement
7. Digital Signature Certificate (DSC) for authenticated submission
8. OCR registration fee payment receipt

✅ Capital Structure: Register with an authorized capital of at least NPR 25 lakhs (NPR 2,500,000) from the outset. This avoids the need to amend your MOA later when the DoT requires proof of NPR 25 lakh paid-up capital.

ℹ️ Timeline: OCR name reservation: 1-2 working days. Company registration: 7-10 working days from complete submission.

STEP 2 PAN, VAT Registration and Ward Office Permit

Immediately after receiving the OCR Registration Certificate, complete the following three registrations in parallel where possible:

PAN Registration (Inland Revenue Department)

Register for a Permanent Account Number (PAN) at the Inland Revenue Department (ird.gov.np). Tourism agencies are required to register for VAT in addition to PAN, this is mandatory regardless of projected annual turnover, because tourism services are VAT-applicable in Nepal. The VAT rate applicable to tourism services is 13%.

Ward Office Business Operation Permit

Register the agency with the Ward Office (Wada Karyalaya) of the municipality where the office is located. Submit the OCR Registration Certificate, PAN certificate, and office lease agreement. The Ward Office may inspect the premises before issuing the Business Operation Permit. This permit must be renewed annually.

ℹ️ Timeline: PAN and VAT: 3-5 working days. Ward Office permit: 3-7 working days.

STEP 3 Create Company Stamp and Open Corporate Bank Account

Once PAN is obtained, have a company rubber stamp designed and manufactured. The stamp must include:

• The full registered company name
• The company’s OCR registration number
• The company’s PAN number
• The registered office address

Open a corporate bank account at any commercial bank in Nepal. The account will be used for:

• Depositing the NPR 25 lakh minimum paid-up capital (which must be reflected in the company’s bank account certificate)
• Day-to-day agency operations

The bank will require the OCR Registration Certificate, PAN certificate, MOA and AOA, and the Board Resolution authorizing the designated signatories to operate the account.

ℹ️ Bank Guarantee: At this stage, also request your bank to prepare the NPR 5 lakh Bank Guarantee Letter in favour of the Department of Tourism, Bhrikutimandap, Kathmandu, Nepal. This is a separate instrument from the corporate bank account and may take 5-10 working days to prepare.

STEP 4 Industry Registration at the Department of Industry (DoI)

Before approaching the Department of Tourism, tourism agencies must register as an industry at the Department of Industry (DoI) under the Industrial Enterprises Act 2076. This step is often overlooked by first-time applicants, causing rejection at the DoT stage.

Submit to the DoI:

1. OCR Registration Certificate
2. MOA and AOA
3. PAN certificate
4. Citizenship certificates of directors
5. Office lease agreement
6. Application form for industry registration

The DoI reviews the application and issues the Industry Registration Certificate, which confirms that the tourism agency is formally registered as a service industry in Nepal.

ℹ️ Timeline: Industry registration at DoI: 7-10 working days.

STEP 5 Obtain Recommendation from the Provincial Tourism Office

Before the central Department of Tourism processes your license application, you must obtain a recommendation letter from the Provincial Tourism Office of the province where your agency’s head office is located. For agencies in Kathmandu (Bagmati Province), this means the Bagmati Province Tourism Office.

The Provincial Tourism Office reviews the application documents and, if satisfied with the agency’s compliance with basic requirements (company registration, capital, office standards), issues a recommendation letter supporting the license application.

Submit to the Provincial Tourism Office:

1. Application letter requesting recommendation
2. OCR Registration Certificate
3. Industry Registration Certificate from DoI
4. PAN and VAT certificates
5. Ward Office Business Operation Permit
6. Office lease agreement (minimum 5 years)
7. Citizenship certificates of directors
8. Bank certificate confirming paid-up capital of NPR 25 lakhs
9. Staff list with qualifications and certificates

✅ Inspection at this Stage: The Provincial Tourism Office may conduct a physical inspection of your office premises before issuing the recommendation letter. Ensure the office is fully set up, furniture, signage, computer equipment, telephone, and proper branding, before requesting this inspection.

ℹ️ Timeline: Provincial Tourism Office recommendation: 7-14 working days.

STEP 6 Submit Tourism License Application to the Department of Tourism

With all documents and the Provincial Tourism Office recommendation in hand, submit the formal tourism agency license application to the Department of Tourism at Bhrikutimandap, Kathmandu. This is the culminating step that produces the official tourism agency license.

Complete document checklist for the DoT application:

1. Prescribed DoT application form (obtained from the DoT office at Bhrikutimandap)
2. Application letter on company letterhead, addressed to the Director General, Department of Tourism
3. OCR Company Registration Certificate (certified copy)
4. MOA and AOA (certified copies)
5. Industry Registration Certificate from the Department of Industry
6. PAN certificate (certified copy)
7. VAT registration certificate (certified copy)
8. Ward Office Business Operation Permit
9. Provincial Tourism Office recommendation letter (original)
10. Office lease agreement (minimum 5 years, original or certified copy)
11. Bank Guarantee Letter of NPR 5,00,000 in favour of the Department of Tourism (original from bank)
12. Bank certificate confirming minimum paid-up capital of NPR 25,00,000 is deposited in the company’s corporate account
13. Citizenship certificates of all directors (certified copies)
14. Passport-sized photographs of all directors (2 each)
15. Photographs of the office premises, exterior signboard, interior layout, reception area
16. List of staff members with their qualifications and relevant certificates
17. Commitment letter / Declaration signed by the company’s directors confirming compliance with all DoT regulations
18. Tourism license fee payment receipt (NPR 25,000, paid at the DoT revenue counter)

For trekking agencies or combined agencies, additionally submit:

• Certificates of qualified trekking guides on staff (NATHM or equivalent certification)
• TAAN membership certificate (if already obtained)
• Evidence of safety equipment for trekking operations

DoT Inspection

Following application submission, the Department of Tourism schedules a physical inspection of the agency’s office premises. DoT inspectors verify:

• That the office is commercial (not residential) and meets the minimum 200 sq. ft. space requirement
• That the office has proper signage displaying the company name and registration number
• That the office has adequate furniture, communication equipment, and operational infrastructure
• That qualified staff are present at the office during inspection hours
• That the company’s tourism-related promotional materials are available

⚠️ Inspection Failure: A failed DoT inspection means the license application is paused until deficiencies are corrected. The NPR 25,000 license fee is generally not refunded. Address all potential deficiencies before the inspection is scheduled.

ℹ️ Timeline: DoT review and inspection: 15-20 working days from complete application submission.

STEP 7 Receive the Tourism License and Begin Operations

Upon successful completion of the DoT inspection and verification of all documents, the Department of Tourism issues the Tourism Agency License. This license is the definitive government authorization to operate a travel, tours, or trekking agency in Nepal.

The license specifies:

• The registered company name and registration number
• The category of tourism agency (Travel Agency, Tour Operator, Trekking Agency, or Combined)
• The license issue date and expiry date (5 years from issue)
• The license number (which must appear on all agency correspondence and marketing materials)

✔ Licensed and Ready! With the DoT Tourism License in hand, your agency is fully authorized to operate legally. You can now accept clients, arrange trekking permits, book hotels and transportation, market your services nationally and internationally, and be listed on the Nepal Tourism Board’s official directories.

ℹ️ Total Timeline: End-to-end from OCR application to DoT license: 45-60 working days for a well-prepared application. Allow 60-80 working days if any government office requests additional information.

Complete Fee Structure

📌 License Renewal Fees: The tourism license renewal fee is NPR 25,000. If renewal is filed after the expiry date but within 3 months, a 25% surcharge applies. Between 3 and 6 months after expiry, a 50% surcharge applies. Beyond 6 months after expiry, the license is automatically cancelled and the agency must re-apply from scratch.

Tourism License Validity and Renewal

8.1 License Duration

Under Rule 7 of the Travel and Trekking Agency Rules 2062, the tourism agency license is valid for 5 (five) years from the date of issuance. This is a significantly longer initial validity than many other business licenses in Nepal, a recognition that tourism is a long-term investment sector.

8.2 Renewal Procedure

The license must be renewed before its expiry date. The renewal application must be submitted to the Department of Tourism along with:

• Renewal application form (prescribed format from DoT)
• Original tourism license
• Updated company registration certificate
• Updated PAN and VAT certificates
• Latest tax clearance certificate from IRD
• Updated bank guarantee letter (NPR 5 lakhs, renewed for a further period)
• Updated Ward Office Business Operation Permit
• Renewal fee payment receipt (NPR 25,000)
• Annual compliance report / business activity summary

8.3 Penalty Schedule for Late Renewal

⚠️ Don’t Let It Lapse: An automatically cancelled tourism license means the agency cannot legally operate. Clients who have booked tours or treks with a lapsed agency have grounds for complaints and refund demands. Reinstatement requires a full new application, paying all fees again, and going through the entire inspection process. Set a calendar reminder 6 months before your license expiry date.

Special Requirements for Trekking Agencies

Trekking agencies have additional requirements beyond the standard tourism agency registration. If your agency will organize trekking expeditions, the core activity of the Himalayan tourism sector, these specific requirements apply.

9.1 TAAN Membership

The Trekking Agencies’ Association of Nepal (TAAN) is the primary industry association for trekking agencies. While TAAN membership is not strictly legally mandatory for obtaining a Department of Tourism trekking license, it is effectively essential in practice for two reasons:

• Client trust: International tour operators and travel companies who refer trekking clients to Nepal-based agencies routinely require TAAN membership as a baseline credibility indicator.
• Insurance and industry support: TAAN membership provides access to group insurance arrangements, industry advocacy, training programmes, and the collective purchasing power of Nepal’s trekking industry.

TAAN membership applications are submitted to the TAAN Secretariat at Maligaon, Kathmandu. Membership requires payment of annual membership fees and evidence of DoT registration.

9.2 Licensed Trekking Guides

Trekking agencies must employ or engage licensed, certified trekking guides for all trekking operations. Trekking guide certification is issued by:

• Nepal Academy of Tourism and Hotel Management (NATHM): The primary certification body for tourism professionals in Nepal. NATHM offers trekking guide training programmes and issues certificates recognized by the DoT.
• Trekking Agencies’ Association of Nepal (TAAN): TAAN also runs guide training and certification programmes recognized by the industry.

At least one certified trekking guide must be on staff (not just on casual contract) at the time of the DoT inspection. The guide’s certificate must be submitted with the registration documents.

9.3 Trekking Permits for Restricted Areas

Nepal’s trekking network is divided into free trekking areas (where standard TIMS cards suffice) and restricted area trekking routes (which require special permits). Restricted areas include:

• Upper Mustang
• Upper Dolpo
• Manaslu Conservation Area
• Tsum Valley
• Kanchenjunga Conservation Area (certain zones)
• Humla (Limi Valley and Simikot)
• Nar-Phu Valley
• Dolpa (Upper and Lower)

Clients trekking in restricted areas must obtain special trekking permits through a registered trekking agency from the Department of Immigration. Unregistered agencies cannot apply for restricted area permits on behalf of their clients. This is one of the most commercially significant advantages of proper registration.

9.4 The Trekkers’ Information Management System (TIMS)

All foreign trekkers in Nepal (and Nepali trekkers in certain conservation areas) must carry a TIMS (Trekkers’ Information Management System) card. Registered trekking agencies can issue TIMS cards to their clients through the TAAN/NTB system. Unregistered agencies cannot issue TIMS cards, which is a critical service failure that professional clients will immediately recognize.

9.5 Safety and Insurance Obligations

The DoT and TAAN require that trekking agencies maintain minimum safety standards for their operations:

• Professional liability insurance coverage (minimum NPR 2,000,000 for trekking agencies)
• Insurance coverage for trekking guides and porters engaged on each expedition
• First aid equipment and basic emergency medical protocols
• Communication systems (radio/satellite phone) for remote area treks
• Compliance with DoT-issued safety guidelines for high-altitude and adventure trekking

Post-Registration Compliance: Ongoing Obligations

Getting the license is the beginning. Every registered tourism agency in Nepal must fulfill a set of ongoing compliance obligations throughout its operational life. The DoT conducts random inspections, and the penalties for non-compliance are real.

10.1 Semi-Annual Reporting to the Provincial Tourism Office

One of the most commonly missed compliance obligations for tourism agencies is the biannual report to the Provincial Tourism Office. Every 6 months, the agency must submit a report covering:

• Number of clients served (domestic and international)
• Countries of origin of international clients
• Revenue generated from tourism activities
• Trekking routes operated and permits obtained
• Staff employed and any changes to staff

These reports feed into Nepal’s national tourism statistics and are used by the DoT and Ministry of Tourism to assess the sector. Failure to submit these reports is noted in the agency’s compliance record and can complicate license renewal.

Penalties for Non-Compliance

⚠️ DoT Random Inspections: The Department of Tourism conducts random, unannounced inspections of registered agencies. Inspectors check: license display, office standards, staff qualifications, records of client transactions, guide certifications, and financial compliance. Maintaining inspection-ready standards at all times is not optional, it is the basis of maintaining your license.

Industry Associations: Why Membership Matters

Nepal’s tourism sector has a rich network of industry associations that play an important role in professional credibility, business development, and collective advocacy. For a new tourism agency, association membership is one of the most effective ways to signal professionalism to international partners and clients.

Frequently Asked Questions

1. Can a foreign national register a travel or trekking agency in Nepal?

No. Travel agencies, tour operators, and trekking agencies are explicitly listed on the Negative List of Nepal’s Foreign Investment and Technology Transfer Act (FITTA) 2019. Foreign nationals cannot directly own, invest in, or register a tourism agency in Nepal. Foreign tourism companies wishing to operate in Nepal must work through a registered Nepali agency under a commercial distributorship or agency agreement.

2. How much capital is needed to register a trekking or travel agency in Nepal?

The minimum paid-up capital required is NPR 25,00,000 (NPR 25 lakhs). This amount must be deposited in the company’s corporate bank account and a bank certificate confirming the deposit must be submitted to the Department of Tourism as part of the license application. Additionally, a bank guarantee of NPR 5,00,000 (NPR 5 lakhs) in favour of the Department of Tourism must be obtained from a licensed commercial bank.

3. How long does the complete registration process take?

The complete process, from OCR company registration through to DoT tourism license issuance, typically takes 45 to 60 working days for a well-prepared application with all documents complete. If any government office requests additional information or documents, or if the DoT inspection reveals deficiencies requiring correction, the timeline can extend to 60 to 80 working days.

4. How long is the tourism agency license valid?

The tourism agency license issued by the Department of Tourism is valid for 5 (five) years from the date of issuance. It must be renewed before expiry by paying a renewal fee of NPR 25,000. Late renewal attracts surcharges (25% if within 3 months of expiry, 50% if between 3 and 6 months after expiry), and the license is automatically cancelled if not renewed within 6 months of expiry.

5. Do I need a physical office to register a travel agency in Nepal?

Yes. The Department of Tourism requires all registered tourism agencies to maintain a physical commercial office space that meets minimum standards. The office must be a commercial premises (not residential), at least 200 square feet in size, with proper signage displaying the company name, adequate furniture and communication facilities, and a separate toilet/washroom. Home-based offices are not permitted. The lease agreement must cover a minimum of 5 years.

6. Is TAAN membership mandatory for trekking agencies?

TAAN (Trekking Agencies’ Association of Nepal) membership is not legally mandatory under the Travel and Trekking Agency Rules 2062 for obtaining a DoT license. However, in practice, it is effectively essential for any serious trekking operation. Most international tour operators who refer clients to Nepal-based trekking agencies require TAAN membership as a baseline credibility requirement. TAAN membership also enables the agency to issue TIMS cards and access group insurance and training programmes.

7. Can one company run both travel and trekking services?

Yes. A single company can register as a Combined Travel and Trekking Agency, covering both general travel services (ticketing, hotel reservations, visa assistance) and trekking operations under one DoT license. This is the most common structure among Nepal’s full-service tourism agencies, as it allows the agency to offer clients a comprehensive range of services without needing separate registrations for each activity type.

8. What are the staff qualification requirements for a tourism agency?

At least one key staff member must hold a tourism-related degree, diploma, or recognized certification from an institution like NATHM (Nepal Academy of Tourism and Hotel Management). For trekking agencies, at least one licensed and certified trekking guide must be on staff at the time of the DoT inspection, and their certification must be submitted with the registration documents. For mountain guide agencies, NMA-certified mountain guides are required.

9. What is a TIMS card and why does it matter?

A TIMS (Trekkers’ Information Management System) card is a mandatory identification document for foreign trekkers in Nepal (and Nepali trekkers in certain conservation areas). Registered trekking agencies can issue TIMS cards to their clients through the TAAN/NTB system. Unregistered agencies cannot issue TIMS cards, which is a critical service failure that professional international clients will immediately recognize. TIMS cards provide trekker safety tracking and contribute to the management of Nepal’s trekking infrastructure.

10. What happens if I operate a tourism agency without a DoT license?

Operating a travel, tours, or trekking agency without a valid Department of Tourism license is illegal and attracts fines ranging from NPR 50,000 to NPR 5,00,000, as well as forced closure of operations. Unregistered agencies also cannot issue official receipts to clients, cannot apply for restricted area trekking permits, cannot issue TIMS cards, and cannot be listed on Nepal Tourism Board directories, making it effectively impossible to build a credible, sustainable tourism business.

11. How are VAT and taxes handled for a tourism agency?

VAT registration is mandatory for all tourism agencies in Nepal, regardless of projected annual turnover. The applicable VAT rate on tourism services is 13%. Monthly VAT returns must be filed by the 25th of the following month. The agency must also file an annual corporate income tax return (at the standard 25% rate) within 3 months of the fiscal year end. TDS must be deducted and remitted monthly on staff salaries and applicable vendor payments. Engaging a qualified chartered accountant for tax management from the beginning is strongly recommended.

12. Can I register a rafting or adventure sports agency under the same framework?

Rafting and kayak agencies follow a similar registration process to travel and trekking agencies, OCR registration, DoI industry registration, and DoT licensing. However, additional specific requirements apply: rafting permits from the Department of Tourism for each river and season of operation, certified river guides, mandatory safety equipment standards, and compliance with DoT’s adventure tourism safety guidelines. Mountain guide agencies for high-altitude climbing expeditions additionally require NMA guide certifications and expedition permits from the Ministry of Tourism.

Conclusion: Build on a Solid Foundation

Nepal’s tourism industry is one of the country’s greatest economic assets and one of its most dynamic entrepreneurial opportunities. The demand is real, the growth trajectory is clear, and the business rewards for a well-run, properly registered tourism agency are substantial.

The registration process, seven steps across multiple government offices, a significant capital commitment, physical office standards, qualified staff, and a bank guarantee, is deliberately structured to ensure that agencies entering this sector have the financial stability and professional credibility to actually serve their clients well. The barriers are real, but they are proportionate to the responsibility that tourism agencies carry: the safety, satisfaction, and experience of every client they take into Nepal’s mountains, valleys, and cultural sites.

The most common mistakes that delay or derail registration are the most avoidable: insufficient capital preparation, office premises that don’t meet DoT standards, missing or expired documents, and failure to complete the industry registration step at the Department of Industry before approaching the DoT. Address these in advance, and the process is straightforward.

At Pluto Associates, we provide legal and registration support for tourism entrepreneurs at every stage, from company incorporation and MOA drafting through DoT licensing and ongoing compliance management. Whether you are setting up Nepal’s next great trekking agency or an established international tour operator seeking a Nepali partner structure, we can help.

“Every great trek, every cultural tour, every Himalayan expedition that changes someone’s life begins with a properly registered agency that had the commitment to do it right. The registration process is not the obstacle. It is the foundation.”

About Pluto Associates

Pluto Associates is a professional services firm based in Kathmandu, Nepal, providing legal consultation, company registration, IT support, and business advisory services to individuals, startups, and corporations. Our legal team specialises in tourism business registration, company law, immigration, and compliance across Nepal.

Website: www.plutoassociates.com Email: [email protected] Location: Kathmandu, Nepal

Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Tourism registration laws, fees, and procedures are subject to change. Readers should consult a qualified legal professional for advice specific to their circumstances. © 2025 Pluto Associates. All rights reserved.

Pluto Associates advises clients on business registration and licensing in Nepal. If you would like a clear view of how this applies to your own situation, contact our team for a consultation, message us on WhatsApp, or call +977 9802356987. We will tell you what is possible, what it costs, and how long it takes.