An NGO (Non-Governmental Organization) is a non-profit, voluntary group or organization that operates independently of any government. NGOs are typically established to address specific social, cultural, environmental, or humanitarian issues. They are driven by a mission or a set of goals aimed at creating positive change in society, often advocating for rights, providing services, or raising awareness about critical issues. The laws that regulates the establishment and the functioning of NGOs in Nepal are:
- Associations Regulation Act, 2034
- Social Welfare Act, 2049
- Guidelines and Directives adopted by Social Welfare Council
A minimum of 7 Board Members including one Chairman, one vice chairman, one treasurer and one member Secretary and three members are required while registering an NGO in Nepal. The completion of the registration process after the fulfillment of all the requisite steps takes around 1 to 2 months.
Some of the characteristics of an NGOS are as stated below:
- Each Association shall be an autonomous body corporate with perpetual succession.
- The Association shall have a separates seal of its own for all activities of the Association.
- The Association may, like an individual, obtain, use and dispose of movable and immovable property.
- The Association may sue by its own name and may be sued by the same name as an individual.
While registering an NGO the members willing to establish an Association shall have to submit to the Local Authority an application setting out the following details on the Association, accompanied by one copy of the Statute of the Association, and with the prescribed fee:-
(a) Name of the Association,
(b) Objectives,
(c) Name, address and occupation of the members of the Management Committee,
(d) Financial sources,
(e) Address of the office.
Below mentioned are the steps for the registration of an NGO in Nepal.
Step 1: Applying and receiving a recommendation letter from the ward office
Step 2: Obtain a recommendation letter from the District Coordination Committee (DCC).
Step 3: Obtaining a certificate of registration from the District Administration Office (DAO).
Step 4: Register for tax at the Inland Revenue Department and obtain PAN Certificate
Step 5: Obtaining an affiliation certificate from the Social Welfare Council.
Documents Required for the Registration of NGOs
- Copy of resolution by board members resolving to establish the proposed NGO;
- Certified copy of citizenship certificate of all board members;
- Passport-sized photographs and copies of character report from Nepal Police of all members from the relevant districts;
- Proposed draft of memorandum and articles of association of the NGO (Bidhan);
- Rent agreement with the lessor of the location of the office of the NGO along with a copy of the citizenship certificate of the house owner; and
- Receipt of 3 months’ rent paid in advance as per the agreement with the house owner.
The approximate governmental fee for registration of an NGO is NPR 6,000 which may vary depending on the district and local level. The fees to be paid to the relevant governmental authorities are set out below:
- Ward Office: NPR. 2,000 (may vary from one local level to another)
- District Coordination Committee: N/A
- District Administration Office (DAO): NPR. 1,000 (may vary from one district to another)
- Social Welfare Council: NPR. 3,000
- In Land Revenue Department: N/A
To maintain the registration of an NGO, it is essential to complete the annual renewal process by submitting the required documents to the appropriate authorities. This process involves
- Submitting the annual tax return to the tax office.
- Submitting the annual report to the ward office.
- Submitting the annual audit report to the District Administrative Office (DAO).
- Submitting the renewal application to the Social Welfare Council every three years.