Nepal’s hospitality sector is booming — and the opportunities have never been more exciting. Whether you dream of opening a luxury hotel in Pokhara, a cozy cafe in Thamel, a fast food joint in Baneshwor, a traditional chiya pasal (tea point) at a busy chowk, a cloud kitchen, a fine dining restaurant, a stylish rooftop bar, a bakery, a resort near a national park, or a homestay in the mountains — Nepal’s growing domestic middle class and millions of international tourists create enormous demand for quality hospitality experiences every single year.

The sector is far broader than most people realise. It spans hotels, lodges, resorts, guesthouses of every category; restaurants, cafes, fast food outlets, dhabas, and roadside eateries; bakeries, pastry shops, and sweet houses; chiya (tea) points and juice bars; cloud kitchens and tiffin services; bars, pubs, dance bars, and nightclubs; game zones and fun parks; adventure tourism bases and trekking lodges; agro tourism farms and eco-lodges; homestays and community tourism ventures; catering companies and event hospitality services; barista training academies and hospitality skill training institutes; spa, wellness centres, and retreat businesses; and even food trucks and mobile catering units. If your business serves food, drink, accommodation, entertainment, or experiences to people — you are in the hospitality sector, and this guide is for you.

Nepal’s hospitality industry is also one of the highest-employment sectors in the country. Every new cafe, restaurant, or hotel creates jobs for cooks, servers, cleaners, receptionists, baristas, managers, and more. Starting legally from day one means you can hire properly, open a business bank account, accept card and QR payments, list on Booking.com or TripAdvisor, apply for business loans, and protect yourself from police raids or municipality closures. There is simply no good reason to operate informally when registration is this straightforward with the right help.

However, different types of hospitality businesses require different combinations of licenses and permits. A star-rated hotel needs a Tourism License from the Department of Tourism. A bar needs an Excise / Antashulka License (अन्तःशुल्क इजाजत) from the Inland Revenue Department (IRD / आन्तरिक राजश्व कार्यालय). A dance bar or nightclub also needs an Entertainment License from the local municipality. Most other hospitality businesses — cafes, restaurants, fast food, bakeries, tea points, game zones, homestays — simply need OCR + Ward/Municipality + PAN to operate fully legally.

At Company Khata Pvt. Ltd., we have helped hundreds of hospitality entrepreneurs in Nepal register their businesses correctly from the very first step. You provide the documents — we handle everything else, from OCR filing to your final operating license.

Why Legally Register Your Hospitality Business in Nepal?

Operating without proper registration in Nepal’s hospitality sector carries serious risks — including police raids, forced closure, and heavy fines. Beyond protection, legal registration unlocks major business opportunities:

• Full legal authority to operate, serve guests, and generate revenue
• Eligibility for Nepal Tourism Board (NTB) promotion and official listing
• Access to corporate bank accounts and digital payment infrastructure
• Protection from police raids, municipality penalties, and forced closure
• Required for hotel star classification (1-star to 5-star) by the Department of Tourism
• Eligibility for business loans, government subsidies, and tourism incentive schemes
• Builds trust and credibility with domestic and international guests
• Enables legal listing on platforms like Booking.com, Airbnb, and TripAdvisor

Business Types & Licenses Required

Different hospitality and tourism businesses require different combinations of licenses and registrations in Nepal. Here is a quick overview for each business type:

License Requirements at a Glance

* Conditional requirement depending on business classification, location, or whether alcohol is served.

Registration Steps Overview

For most hospitality businesses registered as a Private Limited Company in Nepal, the registration journey follows this sequence. Some steps are parallel or conditional depending on your business type:

1. OCR Company Registration — Register your company at the Office of the Company Registrar
2. Ward / Municipality Registration — Obtain your local business operating license
3. PAN Registration — Register for a Permanent Account Number at the Inland Revenue Department
4. Open a Corporate Bank Account — At any A-class commercial bank in Nepal
5. Tourism License — From the Department of Tourism (if star-rated hotels and tourist-focused establishments only)
6. Food License / DFTQC — Only for businesses producing or selling packaged food products
7. Excise License (अन्तःशुल्क / IRD) + Entertainment License — For bars, dance bars, and nightclubs if alcohol or cigarettes served
8. Homestay / Agro Tourism Registration — OCR, Ward, PAN and Municipality license

The first and most important step for most hospitality businesses in Nepal is registering your company at the Office of the Company Registrar (OCR). Most hospitality businesses choose to register as a Private Limited Company (Pvt. Ltd.), as this provides limited liability protection for shareholders and is the most recognized legal structure in Nepal.

Required Documents & Information (कागजात तथा विवरण)

All documents below are mandatory (अनिवार्य):

पूँजी अनुसारको दर्ता दस्तुर (Registration Fee by Capital)

* दस्तुर OCR (कम्पनी रजिष्ट्रार कार्यालय) मा दाखिला गर्नुपर्छ। माथिको दर Government of Nepal, OCR को आधिकारिक दर हो।

After OCR registration, every business in Nepal must register with the local Ward Office where the business is physically located. This gives you a ward registration certificate (व्यवसाय दर्ता), which is your local business operating license and is required by all government authorities, banks, and licensing bodies.

Documents Required for Ward Registration

• OCR Company Registration Certificate (for Pvt. Ltd.) or citizenship certificate (for proprietorship)
• PAN Certificate (if already obtained — otherwise ward registration can come first)
• Premises rent agreement or land ownership document
• Passport-size photograph of the director/proprietor
• Citizenship copy of the director/proprietor

All businesses in Nepal must obtain a Permanent Account Number (PAN) from the Inland Revenue Department (IRD). PAN is your tax identification number and is required for issuing bills, operating a bank account, and obtaining all further licenses.

Documents Required for PAN Registration

• OCR Company Registration Certificate
• Ward Registration Certificate
• Memorandum and Articles of Association
• Citizenship copies of all directors/shareholders
• Premises rent agreement or land ownership document
• Passport-size photographs of directors

After OCR, ward, and PAN registration are completed, your company can open a corporate current account at any A-class commercial bank in Nepal. A corporate account is essential for all business transactions, receiving payments from guests, and applying for the Department of Tourism license.

Documents Required to Open a Business Bank Account

• OCR Company Registration Certificate
• PAN Certificate
• Ward Registration Certificate
• Memorandum and Articles of Association
• Board resolution authorizing the account opening and designating signatories
• Citizenship copies and passport-size photos of all directors and authorized signatories

Documents Required for Tourism License (Department of Tourism)

• OCR Company Registration Certificate
• PAN Certificate
• Ward Registration Certificate
• Corporate bank account details
• Premises rent agreement or land ownership document
• Site plan / floor plan of the establishment
• Citizenship copies of directors
• Photographs of the premises (interior and exterior)
• Hotel/lodge classification application form (DoT official form)

A DFTQC (Department of Food Technology and Quality Control) Food License is only required if your business manufactures or sells packaged food products. Most cafes, restaurants, and hotels serving freshly prepared food do not need a DFTQC food license — they only need their ward/municipality operating license.

When is a DFTQC Food License Required?

• A hotel manufacturing and selling packaged food items (e.g. branded sauces, jams, pickles)
• A food business producing packaged goods for retail distribution
• A restaurant bottling or packaging its own products for sale

When is a DFTQC Food License NOT Required?

• A cafe or restaurant serving freshly prepared food and beverages to customers
• A hotel kitchen preparing and serving meals to guests
• A homestay serving home-cooked meals to guests

This step covers two separate licenses that are mandatory for establishments serving alcohol, cigarettes, or providing live entertainment. They are issued by two different government bodies and must both be obtained and renewed annually.

अन्तःशुल्क इजाजत दस्तुर — सरकारी दर तालिका

Official annual excise license fees as per the Government of Nepal IRD schedule. The official government document is shown below for reference.

📄 सरकारी दर — अन्तःशुल्क इजाजत दस्तुर (Official Government Rate Schedule)

मदिरा विक्री वितरण तर्फः — होटल, रेष्टुरेण्ट तथा लजहरूको लागि

Key Rules for Excise License in Nepal

• Applicants must be Nepali citizens
• The business must have a permanent, verified address
• Cannot be located within 100 metres of schools
• Cannot be located within 50 metres of religious institutions
• Cannot be located within 25 metres of hospitals
• Alcohol cannot be served to anyone under 18 years of age
• License must be renewed every year at the Inland Revenue Department (IRD / आन्तरिक राजश्व कार्यालय) of your district

Documents Required for Excise License

• OCR Company Registration Certificate
• PAN Certificate
• Ward Registration Certificate
• Premises rent agreement or land ownership document
• Citizenship copies of directors

Homestay Registration in Nepal

Homestays are a unique and growing form of tourism in Nepal, allowing travelers to stay with local families and experience authentic Nepali culture, food, and traditions. The registration process is simple and straightforward:

• OCR Company Registration (Pvt. Ltd. or sole proprietorship)
• PAN Registration at IRD (आन्तरिक राजश्व कार्यालय)
• Ward / Municipality Registration and local business operating license
• The home must meet basic cleanliness, safety, and hospitality standards
• Homestay hosts are encouraged to provide authentic local meals and cultural experiences
• Rooms must have proper ventilation, natural light, and attached or shared bathroom facilities

Agro Tourism Registration in Nepal

Agro tourism is one of Nepal’s fastest-growing niche tourism sectors, combining agricultural experiences with rural tourism. Farm stays, organic farm tours, traditional farming experiences, herb garden visits, and rural cultural immersions all fall under agro tourism. The registration process is straightforward:

• OCR company registration (Pvt. Ltd. or sole proprietorship)
• PAN registration at IRD (आन्तरिक राजश्व कार्यालय)
• Ward / Municipality registration and business operating license
• Open a corporate bank account
• Eco-friendly and sustainable practices are encouraged

Annual Compliance: Stay on Track with Company Khata

Hospitality businesses in Nepal have multiple annual compliance obligations. Missing any deadline can result in fines, license cancellations, or forced closure. Company Khata Pvt. Ltd. proactively reminds you of every deadline so you can focus on your guests and your business.

Annual Tax Filing (IRD)

All registered companies must file their annual income tax return with the Inland Revenue Department by the end of Poush (mid-January) for the preceding fiscal year. Company Khata will prepare and file your tax returns accurately and on time.

Annual Audit

Every registered company must have its accounts audited by a licensed auditor at the end of each fiscal year. The audit report must be submitted to OCR. Company Khata will remind you when your audit is due and connect you with qualified auditors.

Annual Company Renewal (OCR)

Your company registration must be renewed annually at OCR. Failure to renew on time attracts penalties. Company Khata Pvt. Ltd. will notify you before your renewal deadline — every year, without fail.

Annual License Renewals

All operating licenses must be renewed annually, including your Tourism License (DoT, if applicable), Excise License (IRO Excise Section), and Entertainment License (Municipality). Each has its own renewal deadline and fee. Company Khata tracks and reminds you of each one.

How to Get Started with Company Khata

Getting your hospitality business legally registered in Nepal is straightforward when you have the right partner. Here is how the process works with Company Khata:

Frequently Asked Questions