NGO Renewal Process in Nepal

What is NGO?

A non-governmental organization (NGO) is a special organization that is created to help and voice on behalf of people who might not have a strong voice in society. NGOs work towards helping people in need, equipping people with basic tools to run day-to-day lives, offering primary health care, and sometimes reintegration to make the world better. They don’t usually directly work for the government but in collaboration with local bodies.

NGOs became more well-known when the United Nations (UN) started in 1945. They help the UN by giving advice and working together on important issues.

In Nepal, to run NGOs one needs a permit from the District Administration Office (DAO), which has offices in all 77 districts. They also need a special number from the Inland Revenue Department and must be listed on the Social Welfare Council (SWC) NGO list. The SWC is a part of the government that helps and organizes NGOs and international NGOs in Nepal. Being on this list is important because it helps NGOs get tax benefits and other support from the government. It’s necessary to be on the SWC list if an NGO wants to receive donations

When, Where, and How to Annually Renew an NGO?

Every fiscal year i.e., Asar/Shrawan, all the Non-Governmental Organizations (NGO) must annually renew their registration at

1. Tax Office, Antarik Rajaswa Bibhag (आन्तरिक राजस्व बिभाग)
2. Ward office, Wada Karyalaya (वडा कार्यालय)
3. Municipality office, Nagarpalika Karyalaya (नगरपालिका कार्यालय)
4. District Administration Office, Jilla Prashasan Karyalaya, (जिल्ला प्रशासन कार्यालय)
5. Every 3 years at the Social Welfare Council, Samaj Kalyan Parisadh (समाज कल्याण परिसद)

Since the re-establishment of the multiparty democracy in 1990, the number of NGOs has been rising rapidly and according to the Social Welfare Council there are more than 7,000 NGOs recognized by the Government and more NGOs were registered after the 2015 Earthquake (2072 BS)

It is estimated that more than 15, 000 NGOs in Nepal are working in various sectors and mostly at a grassroots level.

Although NGOs always fall prey to criticism of colluding with the donors to help them meet vested interests to make Nepal foreign aid dependent there is no denying the fact many NGOs have actually contributed to the social development in the country.

In order to register the contribution that NGOs make towards the Nepali society all the NGOs must lawfully present their transparency in terms of work and income flow to the Government of Nepal to sustain and pave the way for the newcomers. NGOs could be a trust, a charity, or a foundation that is subjected to national laws and practices and is not established for profit.

Below is the simplified step-by-step annual renewal guide for NGOs as per the Associations Registration Act, 1977.

1. District Tax Office
   1. Audit your past year’s transactions, make a financial report and submit it to the district Tax office. Pay a nominal fee of
2. Call a “Sadharan Sabha”, an official board meeting in the presence of all the working members and guests 
   • Agree to agendas from the past fiscal year was a successful
   • Agree to the proposals and agenda lists for the upcoming fiscal year.
   • Agree to the Auditing report of last fiscal year.
   • Agree to appoint an Auditor to audit finance status for the upcoming fiscal year.
   • Agree to designate the member’s hierarchy (if a need has arisen).
   • Agree to recruit new members or dismiss the existing members of the NGO (if a need has arisen).
   • Agree to designate a person to carry out the renewal process of the NGO in the upcoming fiscal year.
   • Close and seal the annual Sadharan Sabha with the signing of the agendas by all the members and guests and with the official stamps.

3. A Renewal request application to The Ward Office 
   1. Seal the application with the President’s signature and NGO Stamp.
   2. Attach a copy of the Tax Redemption certificate and receipt of the fee at the Tax office.
   3. Pay a renewal fee of Rs 500.The Ward office writes a Recommendation letter to the respective Municipality office.

4. A Renewal request application to The Municipality Office 
   1. Seal the application with the President’s signature and NGO Stamp.
   2. Attach the original copy of the Ward Office’s recommendation letter and fee receipt.
   3. Attach a copy of the Tax Redemption certificate.
   4. Attach copies of Audit reports.
   5. Attach copies of NGO’s certificates viz PAN registration, District Administration office, and Social Welfare Council.
      (If your NGO already has the Municipality registration number, you do not need these certificates as the Municipality office will already have your necessary documents in file)
   6. Attach a copy of your Sadharan Sabha.
   7. Attach a project plan for the upcoming year.The Municipality office writes a Recommendation letter to the respective District Administration office.

         5. A Renewal request application to The District Administration Office

1. 1. Fill the application form available at the District Administration Office, and seal the application with President’s signature and NGO Stamp. Stick postal stamp of NRs 10.
   2. Attach the original copy of the Municipality Office’s recommendation letter.
   3. Attach a copy of Tax Redemption certificate.
   4. Attach copies of Audit reports.
   5. Attach copies of NGO’s certificates viz PAN registration, District Administration office and Social Welfare Council.
   6. Attach ca opy of your Sadharan Sabha.
   7. Take all the original certificates with you.
   8. Pay the renewal fee at the bank at the District Administration Office vicinity. Make copy of the receipt and attach it to you rest of the document folder.The District Administration office will verify your NGO’s documents and renew the NGO for the upcoming fiscal year.

6. Renewal at Social Welfare Council (Every three years)
   1. Call a “Sadharan Sabha” of all the members and guests.
   2. Agree on Agendas for three years.
   3. Write a Renewal request application to The Social Welfare Council and seal the application with the President’s signature and NGO Stamp.
   4. Attach a photocopy of Sadharan Sabha, District Administration, and Tax certificates.
   5. Attach the original copy of the expired Social Welfare Council Certificate.The Social Welfare Council will verify your NGO’s documents and renew it for the next three years.

Why Renew NGO Annually?

In Nepal, NGOs are mandatorily required to renew their registration annually as part of the regulatory and oversight process. There are several reasons for this practice:

1. Annual renewal ensures that NGOs continue to meet the legal and regulatory requirements set by the government. It provides an opportunity for the authorities to verify that the organization is operating according to its stated mission and is in compliance with all applicable laws and regulations.
2. Regular renewal allows the government to monitor the activities and financial transactions of NGOs. This helps ensure transparency and accountability in the use of funds and resources, especially if the organization receives foreign funding or tax exemptions.
3. NGOs may undergo changes in leadership, objectives, or operational areas over time. Annual renewal provides a mechanism for updating this information, including any changes in board members, key personnel, or contact details.
4. By requiring annual renewal, the government can prevent the misuse of NGO status for fraudulent or illegal activities. It helps in identifying and addressing any organizations that may have deviated from their original mission or engaged in activities inconsistent with their status.
5. The government may use the annual renewal process to ensure that NGOs align with national development priorities and policies. This allows for coordination between the government and NGOs in addressing important social and developmental issues.
6. Renewal can serve as a quality control mechanism. NGOs that consistently meet their obligations and demonstrate effective and ethical operations are more likely to have their registrations renewed.
7. Policy Adjustments: Government policies and regulations can change over time. Annual renewal provides an opportunity to align NGOs with any updated or revised legal requirements.