INGOs and NGOs (Non-Profit Organizations) Law

INGOs and NGOs (Non-Profit Organizations) Law

Operating an international non-governmental organisation (INGO) or a local non-profit (NGO) in Nepal means managing a continuous regulatory relationship with government, from initial registration through years of project implementation. We work in this space regularly and know where that relationship tends to get complicated.

The Legal Framework

Local NGOs and foreign INGOs sit under distinct but related regimes. A domestic NGO forms under the Association Registration Act, 2034 (1977), registers with the District Administration Office and generally requires at least seven founding members. An INGO does not register as an independent legal entity. Instead it operates through a formal relationship with the Social Welfare Council (SWC), established under the Social Welfare Act, 2049 (1992) to coordinate between foreign-funded organisations and the Government of Nepal.

That relationship has two layers. The General Agreement sets the overarching framework for an INGO’s presence in Nepal, and the Project Agreement covers each individual project’s budget, duration, objectives and reporting. The Project Agreement is expected within three months of the General Agreement, and delay carries a penalty. Beyond the SWC, organisations must also navigate the Income Tax Act, the Labour Act, 2074 (2017), immigration law for foreign personnel and local government requirements that vary by municipality.

What We Do

• NGO registration from formation through certification.
• Regulatory compliance filings owed to the SWC and other government authorities.
• General and Project Agreements: drafting and reviewing the agreements that define an INGO’s relationship with the SWC.
• Labour law advisory: employment structures, staff contracts and compliance with Nepal’s labour regulations.
• Visa and work permit processing for INGO experts and foreign staff.
• SWC affiliation, a prerequisite for implementing projects and accessing funding.
• Project agreement drafting and review as work and funding commitments evolve.
• Exit strategy and project closure: the legal process for winding down projects in Nepal, which carries its own compliance obligations and is often underestimated.

Our Approach

Our role is to keep an organisation’s legal standing intact so administrative requirements never interrupt the mission work the organisation exists to do.