Compliance for INGOs and NGOs

Compliance for INGOs and NGOs

We advise on the full range of matters involved in running an international non-governmental organisation (INGO) or a local non-profit in Nepal. Our lawyers work specifically in this space and understand the regulatory relationship these organisations have with the government, which for INGOs in particular is closer and more continuous than most foreign entities expect.

The Legal Framework

NGOs and INGOs sit under different but overlapping regimes. A local NGO is formed under the Association Registration Act, 2034 (1977), registered at the District Administration Office and typically requires at least seven founding members. An INGO does not register as an independent legal entity in the same way. 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.

Before an INGO can begin activity, it must sign two agreements with the SWC: a General Agreement setting the overall framework for its presence, and a Project Agreement covering budget, timeline, objectives and reporting for a specific project. The Project Agreement must follow within three months of the General Agreement, and late submission carries a penalty. Beyond the SWC relationship, these organisations must also navigate the Income Tax Act, the Labour Act, 2074 (2017), immigration rules for foreign staff and, where relevant, local government requirements.

What We Do

• NGO registration: from initial formation through to certification.
• Regulatory filings: ongoing compliance documents owed to the SWC and other government authorities.
• General and Project Agreements: drafting and reviewing the agreements that govern an INGO’s relationship with the SWC.
• Labour law advisory: employment structures, staff contracts and compliance with Nepal’s labour regulations.
• Visa and work permits: applications for foreign experts and staff.
• SWC affiliation: the affiliation process that is a prerequisite for project implementation and funding eligibility.
• Project agreement drafting and review: as an organisation’s work expands or shifts over time.

Working with bodies like the SWC over a long period means keeping up with a continuous compliance calendar rather than a one-time registration. That is where we add the most value: keeping an organisation’s standing intact so its mission work is not interrupted by an administrative lapse.