Process of Obtaining Travel Agency License in Nepal

This article will guide you through the process of obtaining a travel agency license in Bagmati Province, Nepal as per the law of Bagmati province Nepal.

1. Governing Laws

The Following laws govern travel agencies in Nepal:

1. Province Tourism Act,2078
2. Tourism Act, 2035
3. Companies Act, 2063
4. Travel and Trekking Agency Rules,2062

2. CONCERNED AUTHORITY TO OBTAIN TRAVEL AGENCY LICENSE

The following authorities are responsible for regulating entities intends to obtain the travel agency License:

a) Tourism Office;

b) Office of Company Registrar (OCR);

c) Inland Revenue Office (IRD); and

d) Industry and Commerce Office.

3 PROCESS OF OBTAINING TRAVEL AGENCY LICENSE

In Nepal, a travel agency license can be acquired through a Limited Liability Company or a Firm.

a) Procedure for obtaining a travel agency license through a Limited Liability Company.

Step 1: Registration of the Company at OCR

Step 2: Registration of Business at the concerned local government

Step 3: TAX (PAN/VAT) registration at IRD.

Step 4: Opening of Bank Account and inject the capital amount by the investor

Step 5: Obtain Share registry Certificate from OCR

Step 6: Recommendation letter from Tourism office.

Step7: Industry registration at the Industry and commerce office (previously small and cottage industry office).

Step 8: Obtaining travel Agency License from Tourism office.

b) Procedure for obtaining a travel agency license through a Firm.

Step 1: Submission of the application to the Industry and Commerce Office

Step 2: Obtain Recommendation letter from Tourism office

Step 3: Industry registration at the Industry and commerce office (previously small and cottage industry office.

Step 4: Registration of Business at the concerned local government

Step 5: TAX (PAN/VAT) registration at IRD

Step 6: Opening of Bank Account and inject the capital amount by the investor

Step 7: Obtaining travel Agency License from Tourism office

4. MINIMUM CAPITAL REQUIREMENT FOR COMPANY AND FIRM

Minimum Capital required to obtain the Travel Agency License for the Company and the Firm are as follows:

5. GOVERNMENT FEE

a) Required government fee for travel agency license:

6. VALIDITY OF LICENSE

The travel agency license shall remain valid for a period of 5 (five) years.

7. REQUIRED DOCUMENTS

Followings are the required documents to obtain the Travel Agency License.

• Application form for registration,
• (Kabuliyatnama) or Deed of Undertaking,
• Notarized Copy of Company Incorporation Certificate, Memorandum of Associations and Article of Associations,
• Notarized copy of the PAN/VAT registration certificate,
• Notarized Share Certificate (Share lagat) amounting minimum capital required,
• Notarized copy of citizenship copies of shareholders and the directors,
• Personal details (Bio Data) of all director-shareholders along with 2 photographs each,
• Verification letter signed before tourism office stating shareholder/directors have not been convicted of any criminal offense involving moral turpitude, have no outstanding government revenue or court fines, and are not blacklisted by any public authority,
• A bank guarantee of NPR 5,00,000/- (Five lakh) issued for 5 (five) years by at least a Class B bank approved by Nepal Rastra Bank, in the name of the Tourism Office, Kathmandu,
• Board resolution and Power of Attorney,
• Latest Audit Report and Latest tax clearance certificate,
• A commitment letter stating that the company/firm, while in the process of obtaining a license after registration, has not conducted any travel or trekking-related transactions to date, and if found to have done so, agrees to pay fines as per prevailing laws.
• A house rental agreement in the name of the agency valid for 5 years,
• Notarized landlord’s citizenship certificate,
• Receipts for paid water/electricity bills.

8. TIMELINE

The process typically takes between 1 to 2 months, depending on the completeness of the submitted document and the internal processing time of the Tourism Office.