Are you ready to start your own travel agency in Nepal but unsure about the legal process? This guide breaks down the steps to legally register your travel agency in Nepal in 2024. With Nepal's growing tourism industry, the potential for success is massive—especially in adventure tourism, cultural tours, and international travel services.

Nepal's travel industry is thriving, thanks to a steady increase in both domestic and international travelers. The government’s support for the tourism sector, combined with the rising demand for services like trekking, cultural tours, and outbound travel packages, makes now the perfect time to dive into the travel business.

In this guide, we’ll walk you through everything you need to know about registering a travel agency in Nepal, from selecting your business structure to securing the required licenses.

Why Start a Travel Agency in Nepal in 2024?

Nepal’s tourism industry has been rapidly expanding, driven by both domestic and international markets. As more travelers visit Nepal for its scenic landscapes, trekking adventures, and cultural experiences, the demand for travel services has never been higher.

Key reasons to start a travel agency in Nepal:

• Booming Adventure Tourism: Nepal is a top destination for trekking, mountaineering, and other outdoor activities.
• Growing Outbound Tourism: Many Nepalis are now traveling abroad, and there is increasing demand for international travel services, including visa assistance, flights, and accommodations.
• Government Support: The Nepalese government has introduced policies and initiatives to boost the tourism sector, offering various incentives for entrepreneurs.
• Diverse Service Opportunities: From adventure tours to cultural excursions and luxury trips, travel agencies can cater to a broad audience.

Starting a travel agency in Nepal today means tapping into a booming market with endless potential for growth.

How to Register a Travel Agency in Nepal: Step-by-Step Process

Starting your own travel agency in Nepal involves several legal steps. Here's a detailed process to help you navigate everything smoothly:

Step 1: Choose Your Business Structure

Before you can register your travel agency, you need to decide on a business structure. The common structures include:

• Sole Proprietorship
• Partnership Firm
• Private Limited Company
• Public Limited Company

Most travel agencies in Nepal are set up as Private Limited Companies due to the protection and flexibility it offers.

Step 2: Company Name Reservation

Once you decide on your business structure, you’ll need to reserve a name for your travel agency. For companies, check the availability of the name on the Office of the Company Registrar (OCR) website. After confirmation, submit an online application for name reservation. After this, prepare the Memorandum of Association (MOA) and Articles of Association (AOA), and submit them along with other documents to the OCR.

If you’re setting up a firm, you will have to complete the registration process at the Department of Commerce.

Step 3: Create a Company Stamp

After the company registration, get an official stamp made for your travel agency. This stamp will be used to authenticate documents such as contracts and agreements.

Step 4: Register with Local Ward Office

Register your office with your local ward office. You’ll need to submit documents like the company registration certificate, lease agreement for your office space, and a copy of the MOA and AOA. The fees vary depending on your ward and office location.

Step 5: Tax Registration (PAN and VAT)

Your travel agency must be registered with the Inland Revenue Department (IRD) to obtain a Permanent Account Number (PAN). If your annual revenue exceeds NPR 2 million, you must also register for Value Added Tax (VAT).

The PAN and VAT registrations are essential for tax compliance and business operations.

Step 6: Obtain a Recommendation Letter from the Tourism Office

Before you can move forward with industry registration, you’ll need to secure a recommendation letter from the Provincial Tourism Office. This step ensures that your travel agency complies with all tourism regulations.

Requirements for a Recommendation Letter:

• Physical Presence of Members of Board of Directors: All directors must be physically present for the verification process.
• Minimum Capital Requirements:
  • Firms: NPR 15 lakhs
  • Private Limited Companies: NPR 25 lakhs
  • Public Limited Companies: As per Nepal’s Company Act i.e. minimum Rs. 1 crore.
• Bank Guarantee: Submit a bank guarantee of NPR 5 lakhs issued in the name of Tourism Office, valid for 5 years.

Step 7: Register with the Department of Industry (DOI)

Using the recommendation letter from the Tourism Office, register your travel agency with the Department of Industry (DOI). You’ll receive an Industry Registration Certificate, a crucial document for getting final approval from the Provincial Tourism Board.

Step 8: Apply for a Travel Agency License

Finally, apply for a travel agency license with the Provincial Tourism Ministry. For instance, in Bagmati Province, you’ll need to submit your Industry Registration Certificate, along with a fee of NPR 15,000 for the license. If everything is in order, you’ll receive a 5-year travel agency license.

Make sure to renew your license on time—failure to do so within six months results in the cancellation of your license. The renewal fee is NPR 25,000.

Key Documents Required for Travel Agency Registration in Nepal

Here’s a checklist of documents you’ll need:

1. Application form for agency registration
2. Company registration certificate (notarized)
3. MOA and AOA (notarized)
4. PAN and VAT registration certificates (notarized)
5. Bank guarantee of NPR 5 lakhs
6. Directors’ citizenship documents (notarized)
7. Photographs and CVs of all directors and shareholders
8. Lease agreement for office space
9. Tax clearance certificate (if the company is over a year old)

Ongoing Compliance: Tax and License Renewals

Once your travel agency is operational, it’s important to stay compliant with tax regulations that includes VAT filing, eTDS filing and annual filing. Then, there are other periodic compliances. Make sure you file annual tax returns, submit audit reports, and renew your licenses on time.

How Khatapana Can Help You

Navigating the legal and regulatory landscape to register your travel agency can be complicated. Khatapana simplifies this process by offering expert assistance with:

• Company registration
• Legal compliance
• Financial management

With Khatapana, you can focus on building your travel agency while we handle all the paperwork and regulatory requirements.

Starting a travel agency in Nepal in 2024 presents a lucrative opportunity. By following the correct legal steps and ensuring compliance with tax and licensing requirements, you can establish a successful business. With the support of Khatapana, you can focus on growing your travel agency while we take care of the administrative tasks.

Ready to start your travel agency in Nepal? Visit Khatapana today to learn more!