NGO & INGO Registration in Nepal: 2025 Guide (SWC Rules)

Understanding the Landscape: NGO vs. INGO

In Nepal, the non-profit sector is strictly regulated by the Social Welfare Council (SWC). The process differs significantly depending on whether you are a local group or an international organization.

Feature	Domestic NGO	International NGO (INGO)
Founders	Min. 7 Nepali Citizens	Foreign Entity (2+ years old)
Primary Regulator	CDO Office (DAO) + SWC	Social Welfare Council (SWC)
Min. Investment	None (Community Fund)	USD 200,000 / Year
Key Document	Registration Certificate	General Agreement (GA)

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Part 1: Registering a Domestic NGO

This is for Nepali citizens wanting to start a social organization (Samajik Sanstha).

Step 1: The Team & Constitution

You need 7 Nepali citizens as executive members. Relatives (same family) generally cannot form a board to prevent conflicts of interest. You must draft a Vidhan (Constitution) outlining objectives (Education, Health, Environment, etc.).

Step 2: Local Recommendations

• Ward Office: Get a recommendation letter from the Ward where the office is located.
• Police Report: All 7 members need a Police Clearance Report.

Step 3: District Administration Office (DAO)

Submit the file to the DAO (CDO Office).

• Cost: ~NPR 1,000 - 2,000 (Govt fees).
• Outcome: You get a Certificate of Registration.

Step 4: PAN & SWC Affiliation

• Register for PAN at the Inland Revenue Department.
• Apply for Affiliation with the Social Welfare Council (SWC). Without SWC affiliation, you cannot legally receive foreign funding or run large projects.

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Part 2: Registering an INGO (Foreign Entity)

This is for Save the Children, Oxfam, or new international foundations wanting to work in Nepal.

Pre-Requisites (The “Big 3”)

1. Age: Your organization must be registered in your home country for at least 2 years.
2. Money: You must commit to spending at least USD 200,000 per year (approx NPR 2.6 Crores) in Nepal.
3. Source: Funds must come from outside Nepal.

The General Agreement (GA)

This is your “License to Operate.”

• Duration: Typically 3-5 years.
• Process: Submit application to SWC -> Ministry Approval -> Sign GA.
• Requirement: You cannot execute projects directly. You generally must implement projects through a local partner (Domestic NGO).

The Project Agreement (PA)

Once you have a GA, you need a PA for each specific project.

• Details: Defines where (District/Municipality) you will work and exactly how the budget is spent.
• Administrative Cap: You cannot spend more than 20% of your budget on “Administrative Costs” (Salaries, Rent, HQ expenses). 80% MUST go to program activities.

Common Compliance Pitfalls

• The 80/20 Rule: SWC is strict about the 20% admin cap. Exceeding it delays renewal.
• CPAC Approval: Local projects need approval from the District Coordination Committee (DCC) and often the Local Municipality.
• Visa: INGO Country Directors can get non-tourist visas, but only after the General Agreement is signed.

Conclusion

Whether you are a grassroots group or a global foundation, the path lays through the Social Welfare Council. The bureaucracy is heavy, but it ensures transparency in how “Social Good” dollars are spent in Nepal.

Disclaimer: SWC policies change frequently. This guide is based on 2025 regulations. Consult a legal expert for drafting specific Constitutions or General Agreements.