Trekking agencies belong to a category that looks simple from the outside and is not. The sector is open and well established, and Nepal has spent decades welcoming visitors who want to walk its mountains. At the same time, tourism is one of the areas the law reserves most carefully, because the work involves safety, foreign visitors and the country’s most treasured landscapes.
This guide explains what registration actually involves, who may own a trekking agency, and where the common assumptions do not hold.
Quick answer
This guide covers the complete registration process for travel, tours, and trekking agencies in Nepal, including the legal framework (Tourism Act 2035, Travel and Trekking Agency Rules 2062), the 5 agency categories (Travel Agency, Tour Operator, Trekking Agency, Mountain Guide Agency, Rafting Agency), the key fact that tourism is on FITTA’s Negative List (foreigners cannot register directly), minimum paid-up capital (NPR 25 lakhs) and bank guarantee (NPR 5 lakhs) requirements, office space standards, the complete 7-step registration process from OCR to Department of Tourism license, the full document checklist, government fees (NPR 25,000 tourism license fee), 5-year license validity and renewal rules, TAAN membership, the restricted trekking areas permit system, annual compliance obligations, penalties for non-compliance, and 12 FAQs. Researched and verified against 2025 regulations by the Pluto Associates legal team, Kathmandu.
Introduction: Nepal’s Tourism Sector and Why Proper Registration Matters
Nepal’s mountains are among the most sought-after destinations on earth. Mount Everest, Annapurna, Langtang, Mustang, Kanchenjunga, the names alone carry a gravitational pull that brings trekkers, climbers, cultural travellers, and adventure seekers from over 100 countries every year. Tourism contributes approximately 7.9% of Nepal’s GDP and supports over one million jobs directly and indirectly. It is, without exaggeration, one of the most important pillars of Nepal’s economy.
Behind every successful trekking expedition, every cultural tour, every helicopter ride to Everest Base Camp, and every whitewater rafting adventure, there is a registered agency. These agencies are not just commercial entities, they are the legally accountable intermediaries between Nepal’s extraordinary natural and cultural landscape and the travellers who come to experience it. They arrange permits, hire licensed guides, book lodges, coordinate logistics, and ensure that visitors are safe and supported throughout their journey.
Operating a travel, tours, or trekking agency in Nepal without proper registration is not just a legal risk, it is a practical one. Unregistered agencies cannot issue official receipts, cannot apply for restricted area trekking permits on behalf of their clients, cannot be listed on the Nepal Tourism Board or official platforms, and cannot build the institutional credibility that international tour operators and travel companies require before partnering with Nepal-based agencies.
The regulatory landscape: Tourism in Nepal is a highly regulated sector. The primary licensing authority is the Department of Tourism (DoT) under the Ministry of Culture, Tourism and Civil Aviation. The registration process involves multiple government offices, specific capital requirements, physical office standards, qualified staff requirements, and a bank guarantee that demonstrates the agency’s financial credibility. This guide walks through every step of that process in plain language.
Legal Framework: Laws Governing Travel, Tours, and Trekking Agencies
The registration and operation of travel, tours, and trekking agencies in Nepal is governed by a layered set of laws. Understanding which law governs which aspect of your agency’s operations prevents costly mistakes later.
Law | Year | Relevance to Agency Registration |
|---|---|---|
Tourism Act (Paryatan Ain) | 2035 (1978) | Primary legislation governing all tourism-related activities in Nepal. Establishes the Department of Tourism as the licensing and regulatory authority. Defines permitted tourism activities and the legal obligations of registered agencies. |
Travel and Trekking Agency Rules (Pravas tatha Bhramanpath Sanstha Niyamawali) | 2062 (2005) | The most operationally important law for agency registration. Sets out the detailed rules for license application, required documents, minimum capital, bank guarantee, office requirements, license duration (5 years), renewal procedures, and penalties for violations. |
Tourism Act Amendment | 2053 (1997) | Updated provisions relating to tour guides, safety standards, and the regulatory framework for adventure tourism. |
Companies Act (Kampani Ain) | 2063 (2006) | Governs the company registration process at the OCR. All tourism businesses must first be incorporated as a Private Limited Company before approaching the Department of Tourism. |
Industrial Enterprises Act (IEA) | 2076 (2020) | Requires tourism businesses to register as an industry at the Department of Industry (DoI). This is a mandatory step between OCR registration and DoT licensing. |
Foreign Investment and Technology Transfer Act (FITTA) | 2019 (2076 BS) | Critically: Tourism agencies (travel, tours, trekking) are listed on the FITTA Negative List. This means foreign nationals CANNOT directly own or register a travel, tours, or trekking agency in Nepal. This is a hard prohibition, not a procedural requirement. |
Labour Act | 2074 (2017) | Governs employment of guides, staff, and all workers engaged by the agency. Mandatory compliance from the first hire. |
Income Tax Act | 2058 (2002) | PAN registration and annual tax compliance. VAT registration is mandatory for tourism agencies. |
National Parks and Conservation Areas Act | 2029 (1973) | Governs trekking permits for national parks and conservation areas where many popular trekking routes pass through. |
⚖️ Primary Regulatory Authority: The Department of Tourism (DoT), located at Bhrikutimandap, Kathmandu, under the Ministry of Culture, Tourism and Civil Aviation, is the competent authority for issuing, renewing, and regulating tourism agency licenses in Nepal. The DoT operates from Sunday to Friday, 10:00 AM to 5:00 PM.
Types of Tourism Agencies: Which License Do You Need?
Before approaching any government office, you must decide which type of tourism agency you want to establish. The Department of Tourism categorizes tourism businesses into several types, each with specific activities, capital requirements, and staffing qualifications. Choosing the wrong type means either under-licensing your agency (leaving you unable to offer certain services) or over-registering (paying more than necessary for services you won’t offer).
Agency Type | Primary Activities | Min. Capital | Key Additional Requirement |
|---|---|---|---|
Travel Agency | Air ticketing, hotel reservations, ground transportation, visa assistance, foreign exchange (if licensed) | NPR 25 Lakhs (2,500,000) | IATA accreditation strongly recommended for international ticketing |
Tour Operator | Comprehensive tour packages (accommodation + transport + guided tours), domestic and inbound tourism | NPR 25 Lakhs (2,500,000) | Qualified tour guides; vehicle coordination; package pricing compliance |
Trekking Agency | Trekking expeditions across Nepal’s trail networks, trekking permit facilitation, porter and guide management | NPR 25 Lakhs (2,500,000) | TAAN membership recommended; licensed trekking guides mandatory; restricted area permits for certain routes |
Mountain Guide Agency | High-altitude mountaineering expeditions, peak climbing arrangements | Higher, as specified by DoT | Certified mountain guides (NMA licensed); equipment standards; expedition permits from Ministry of Tourism |
Rafting and Kayak Agency | River rafting and kayaking expeditions on Nepal’s rivers | Higher, as specified by DoT | Rafting permits from DoT; certified river guides; safety equipment standards |
Combined Agency (Travel + Trekking) | Both travel agency and trekking services under one registration | NPR 25 Lakhs (2,500,000) | Satisfying requirements of both categories simultaneously |
Foreign Nationals and Tourism Agencies: A Critical Legal Restriction
This section addresses one of the most important, and most frequently misunderstood, aspects of Nepal’s tourism agency registration framework. If you are a foreign national considering registering a travel, tours, or trekking agency in Nepal, read this section carefully before proceeding.
⚠️ Tourism Is on the FITTA Negative List: Travel agencies, tour operators, and trekking agencies are explicitly listed on the Negative List of the Foreign Investment and Technology Transfer Act (FITTA) 2019. This means that foreign nationals and foreign companies CANNOT directly invest in, own, or register a travel, tours, or trekking agency in Nepal. This is not a restriction that can be waived, worked around, or negotiated. It is a statutory prohibition.
4.1 What Foreign Nationals Cannot Do
- Directly register a travel, tours, or trekking agency as a sole owner
- Hold a majority share in a travel or trekking agency
- Form a joint venture with a Nepali partner while holding any ownership share in a tourism agency
- Use a Nepali nominee as a front while retaining beneficial ownership, this constitutes fraud and exposes both parties to criminal liability
4.2 What Foreign Nationals Can Do
- Appoint a distributor or agent: Foreign tour operators and travel companies can market their services in Nepal by executing a formal distributorship or agency agreement with a registered Nepali tourism agency. The Nepali agency acts as the local representative and is responsible for regulatory compliance.
- Employ foreign staff: A Nepali-owned tourism agency can employ qualified foreign nationals in specialist roles (mountain guides, specialist instructors, etc.) subject to work permit and visa requirements.
- Partner with registered Nepali agencies: Foreign tourism companies commonly partner with Nepali agencies through commercial agreements for ground handling, tour packages, and trekking logistics. The Nepali agency handles all government-facing activities, while the foreign partner focuses on marketing and client acquisition abroad.
✅ Foreign Entrepreneurs’ Realistic Option: If you are a foreign national who wants to build a tourism business focused on Nepal, the practical route is to build a strong commercial partnership with a properly registered Nepali agency rather than attempting direct ownership. Many of Nepal’s most successful tourism agencies operate in exactly this model.
Prerequisites: What You Must Have Before You Apply
The Department of Tourism will not accept an agency registration application unless all of the following prerequisites are already in place. These are not suggestions, they are hard requirements that will be verified during the DoT inspection. Attempting to apply before these are ready wastes time and the NPR 25,000 license fee.
Prerequisite | Specific Requirement | Where Verified |
|---|---|---|
Company registration | Private Limited Company registered at the OCR with tourism-related business objectives in the MOA | OCR Certificate |
Minimum paid-up capital | NPR 25,00,000 (NPR 25 lakhs) paid-up share capital deposited in the company’s corporate bank account | Bank certificate + share registry |
Bank guarantee | NPR 5,00,000 (NPR 5 lakhs) bank guarantee issued in favour of the Department of Tourism, Bhrikutimandap, Kathmandu, Nepal by a licensed commercial bank | Bank guarantee letter, mandatory document |
Physical office | Commercial office space (not residential). Minimum 200 sq. ft. with proper signage, furniture, communication facilities, and a separate toilet/washroom | DoT physical inspection |
Office lease agreement | Minimum 5-year lease agreement for the office premises | Lease document submitted with application |
PAN and VAT registration | PAN certificate from IRD. VAT registration mandatory for tourism agencies | PAN + VAT certificates |
Qualified staff | At least one key staff member with a tourism-related degree, diploma, or recognized certification. For trekking agencies: at least one licensed and certified trekking guide on staff | Staff CVs + certificates submitted |
Ward office registration | Business operation permit from the local ward office | Ward permit certificate |
Industry registration | Registration at the Department of Industry (DoI) as an industry under the IEA 2076 | Industry registration certificate |
⚠️ The Bank Guarantee Is Non-Negotiable: The NPR 5 lakh bank guarantee in favour of the Department of Tourism is not a deposit in your own account, it is a formal guarantee instrument issued by a commercial bank that the DoT can call upon if the agency fails to meet its obligations to clients. Without this guarantee letter, the DoT application will not be processed. Allow 5-10 working days for your commercial bank to prepare this document.
Website: www.plutoassociates.com Email: [email protected] Location: Kathmandu, Nepal
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Tourism registration laws, fees, and procedures are subject to change. Readers should consult a qualified legal professional for advice specific to their circumstances. © 2025 Pluto Associates. All rights reserved.
A worked example
Two entrepreneurs want to run trekking operations. One assumes a foreign investor can simply open an agency and takes a lease and hired guides before checking ownership rules. The other confirms first whether the activity is open to foreign ownership, and then structures the business accordingly.
The first discovers mid-way that the ownership position does not permit what it planned, and the investment is restructured at a cost. The second proceeds without a surprise. The difference was a single question asked at the beginning rather than months later, and it is the question this guide is written to help you answer.
Pluto Associates advises clients on business registration and licensing in Nepal. If you would like a clear view of how this applies to your own situation, contact our team for a consultation, message us on WhatsApp, or call +977 9802356987. We will tell you what is possible, what it costs, and how long it takes.
Frequently asked questions
Can a foreigner own a trekking agency in Nepal? No. Travel, tour and trekking agencies sit on the FITTA 2019 Negative List as a hard statutory prohibition, so foreign nationals cannot own shares directly or through a joint venture. The lawful route for foreign tour operators is a distributorship agreement with a registered Nepali agency.
How much capital is required to register a trekking agency? NPR 25 lakhs of paid-up capital, which is 2,500,000 rupees, plus a bank guarantee of NPR 5 lakhs to demonstrate financial credibility to the Department of Tourism.
Can one company offer both travel services and trekking? Yes. The combined Travel and Trekking Agency registration covers both under a single licence, as long as the requirements of both categories are satisfied simultaneously. It is the most common structure chosen by new tourism entrepreneurs.
Which government office issues the tourism agency licence? The Department of Tourism at Bhrikutimandap, Kathmandu, operating under the Ministry of Culture, Tourism and Civil Aviation, issues, renews and regulates all tourism agency licences.
How long is a tourism agency licence valid? Five years under the Travel and Trekking Agency Rules 2062, after which the licence must be renewed with the Department of Tourism.
Is TAAN membership mandatory for a trekking agency? TAAN membership is recommended rather than a statutory condition of licensing. Licensed trekking guides, by contrast, are mandatory under the rules.
Do I have to register my company as an industry as well? Yes. The Industrial Enterprises Act 2020 requires tourism businesses to register their industry at the Department of Industry, and that step sits between OCR company registration and the Department of Tourism licence.
What permits does my agency need for restricted trekking areas? Agencies apply for restricted area permits on behalf of clients, and routes inside national parks and conservation areas require permits under the National Parks and Conservation Areas Act 2029. An unregistered agency cannot apply for these permits at all.
Is VAT registration compulsory for a tourism agency? Yes. The Income Tax Act 2058 requires PAN registration and annual tax compliance, and VAT registration is mandatory for tourism agencies from the outset.
If you would like to see how this applies to your own plans, Pluto Associates is a law firm in Kathmandu and we are happy to help. Send us a message on WhatsApp at +977 9802356987, call +977 9802356987, or send a note through the contact page, and we will reply with clear next steps.