If you dream of starting your own travel and tour company and exploring the beautiful landscapes of Nepal with eager travelers, obtaining a travel and tour license is the first step towards turning that dream into reality. In this comprehensive guide, we will walk you through the entire process of registering your company and obtaining the necessary license to operate a travel agency or a trekking agency from the Department of Tourism. Let’s dive in and explore each step in detail.
STEP 1: Register a Company at OCR
To begin your entrepreneurial journey in the travel industry, you first need to register your company at the Office of Company Registrar (OCR). This step involves a government fee of Rs. 9,500. Additionally, you must show a minimum paid-up capital of Rs. 25,00,000, which serves as an indication of your commitment to the business. The registration process at OCR typically takes around 5 days, after which you will have a legally recognized entity to operate your travel and tour business.
STEP 2: Register at Tax Office
Next, you will need to register your company with the Inland Revenue Department (IRD). Though the exact fee is not specified, a visit to the tax office for biometric verification is required. This step is vital for complying with tax regulations and ensuring that your travel business is operating within the legal framework. The registration at the tax office usually takes approximately 1 day.
STEP 3: Register Your Company at Ward Office
Once your company is registered with the tax authorities, proceed to register it at the local ward office. The fee for this registration is approximately Rs. 15,000, but it may vary depending on the specific ward office you are dealing with. This local registration is essential to obtain approval from the local government for operating your travel and tour business. The registration process at the ward office typically takes around 1 day.
STEP 4: Open a Bank Account
To facilitate smooth financial transactions and credibility with clients, you must open a dedicated bank account for your travel and tour company. The bank will require a minimum deposit ranging from Rs. 2,000 to Rs. 10,000 to open a current account. Additionally, you need to provide a bank guarantee of Rs. 5,00,000. NIMB Bank in Thamel can assist you in preparing the bank guarantee with a margin. Opening a bank account usually takes around 1 day.
STEP 5: Register at Department of Small and Cottage Industries (Gharelu)
In this step, you need to gather all the required documents and the bank guarantee obtained in the previous step and submit them to the Department of Tourism (DOT). DOT will then issue a letter to the Department of Small and Cottage Industries. You must take this letter and the supporting documents to the Gharelu office for registration. The fee for this step is Rs. 20,000, and the registration process typically takes around 1 day.
STEP 6: Register at Department of Tourism and Obtain License
The final step in obtaining your travel and tour license is to register with the Department of Tourism. This is the key step that grants you the legal authorization to operate your travel business in Nepal. To complete this registration, you will need to pay a fee of Rs. 25,000. The Department of Tourism will process your application, and it usually takes around 14 days to receive your license.
It is important to note that the information provided in this guide is based on data updated on June 06, 2023. As government regulations may change over time, it is advisable to verify the latest fees and requirements with the respective authorities for accurate and up-to-date information.
Please note that Travel/Tour and Trekking licenses are separate and separate fees are applicable for each licenses.
FAQs related to trekking/ tour & travel company registration and licensing
1. Can I start a travel and tour company as a foreign national in Nepal?
Yes, foreign nationals can establish and own a travel and tour company in Nepal. However, you may need to comply with specific regulations and obtain additional permits or authorizations.
2. Are there any ongoing annual fees for maintaining the travel and tour license?
Yes, you will need to pay annual renewal fees to maintain your travel and tour license. The renewal fee amount may vary, so it’s significant to stay informed about the latest regulations.
3. Can I apply for the Department of Tourism license online?
As of June 2023, the application for the Department of Tourism license is not available online. You will need to physically submit your application to the respective office.
4. Is it mandatory to have prior experience in the travel industry to obtain the license?
No, prior experience in the travel industry is not mandatory to obtain the license. However, having relevant experience and knowledge in the travel sector can be advantageous for the success of your business.
5. Can I operate a travel and tour business without a license?
No, operating a travel and tour business without a valid license is illegal and can lead to penalties and legal consequences. It is essential to obtain the necessary license before commencing operations.
6. Can I apply for the Department of Tourism license before registering the company at OCR?
No, you need to complete the company registration at OCR first before applying for the Department of Tourism license. The license requires you to have a registered company.
7. Is it possible to apply for multiple licenses for different travel-related businesses under one company?
Yes, it is possible to apply for multiple licenses for different travel-related businesses under one company. This can be beneficial if you plan to diversify your services.
8. Are there any additional permits required for organizing trekking or mountaineering tours?
Yes, in addition to the travel and tour license, you may need special permits for organizing trekking or mountaineering tours in specific regions of Nepal. Make sure to check with the relevant authorities.
9. How long does it take to obtain the Department of Tourism license?
The processing time for obtaining the Department of Tourism license can vary, but it typically takes a few weeks to a couple of months, depending on the application process and workload of the authorities.
10. Can I start a travel and tour company as a sole proprietor?
Yes, you can start a travel and tour company as a sole proprietor. However, keep in mind that a sole proprietorship may have limitations concerning liability and growth potential.
11. Are Travel/Tour and Trekking licenses the same?
No, Travel/Tour and Trekking licenses are separate licenses, and they are not the same. Each license pertains to different aspects of the tourism industry in Nepal.
12. Can I obtain both the Travel/Tour and Trekking licenses simultaneously?
Yes, it is possible to obtain both the Travel/Tour and Trekking licenses, but they require separate applications and fees for each license.
13. What is the difference between a Travel/Tour license and a Trekking license?
A Travel/Tour license allows you to operate a company that organizes travel and tour services in various destinations, while a Trekking license specifically authorizes you to conduct trekking activities in specific regions of Nepal.
14. Are the fees for the Travel/Tour and Trekking licenses the same?
No, the fees for the Travel/Tour and Trekking licenses are separate. Each license has its own applicable fee, and they must be paid individually during the registration process.
15. Can I apply for the Travel/Tour and Trekking licenses simultaneously?
Yes, you can apply for both licenses simultaneously, but you will need to submit separate applications and fulfill the specific requirements for each license.
16. Are there any additional requirements for obtaining a Trekking license?
Yes, obtaining a Trekking license may have additional requirements, such as providing trekking itineraries, safety measures, and compliance with environmental guidelines, depending on the trekking regions you intend to operate in.
17. Can I upgrade my Travel/Tour license to include trekking activities later?
Yes, if you have already obtained a Travel/Tour license and wish to add trekking activities to your services, you can apply for a separate Trekking license and comply with the specific regulations for trekking operations.
18. Are the procedures for obtaining the Travel/Tour and Trekking licenses the same?
While both licenses involve similar registration processes, they have different requirements and documentation. It’s essential to follow the specific procedures for each license to ensure a successful application.
19. Are the Travel/Tour and Trekking licenses valid indefinitely?
No, both licenses have a validity period, and they need to be renewed at specified intervals. It’s crucial to keep the licenses up-to-date and renew them on time to continue operating legally.
