Introduction to Manpower License Procedure Nepal

The manpower license procedure in Nepal refers to the step-by-step legal process required to obtain authorization from the Department of Foreign Employment (DoFE) to operate a foreign employment recruitment agency. The procedure is governed by the Foreign Employment Act, 2064 (2007) and Foreign Employment Rules, 2064 (2008). Any company intending to send Nepali workers abroad must complete this procedure before starting operations. The process ensures that only financially capable, legally compliant, and ethically responsible companies are allowed to operate in the foreign employment sector.

What Is Manpower License Procedure Legal Meaning Nepal

The manpower license procedure is the official administrative process through which a private limited company obtains permission to operate as a recruitment agency. Under Section 10 of the Foreign Employment Act, no company can engage in foreign employment services without a valid license. The procedure includes company registration, financial verification, document submission, inspection, and final approval by DoFE. It establishes legal accountability and ensures compliance with Nepal’s foreign employment laws.

Where to Start Manpower License Procedure Nepal

The procedure begins at the Office of Company Registrar (OCR), where the company is registered as a private limited company. After incorporation, the process continues at the Inland Revenue Department (IRD) for PAN/VAT registration. The final stage is handled by the Department of Foreign Employment (DoFE), which issues the manpower license. Nepal Rastra Bank may also be involved for bank guarantees and financial verification. Each authority plays a specific role in the procedure.

How Manpower License Procedure Works Step by Step Nepal

The manpower license procedure involves the following steps:

• Register private limited company at OCR
• Draft Memorandum and Articles of Association
• Obtain PAN and VAT registration from IRD
• Open corporate bank account
• Deposit required paid-up capital
• Arrange bank guarantee and financial security
• Set up office infrastructure
• Submit application to DoFE
• Undergo inspection and verification
• Receive manpower license approval

Each step must be completed in sequence and in compliance with legal requirements.

What Are Eligibility Criteria for Manpower License Nepal

To qualify for a manpower license, the company must meet these criteria:

• Registered as a private limited company
• Minimum paid-up capital requirement fulfilled
• Clean legal record of promoters
• Proper office infrastructure
• Valid financial guarantee and deposit
• Compliance with Foreign Employment Act

These criteria ensure that only capable and trustworthy companies enter the recruitment industry.

What Documents Required for Manpower License Procedure Nepal

Required documents include:

• Company Registration Certificate
• Memorandum and Articles of Association
• PAN and VAT registration certificate
• Tax clearance certificate
• Bank guarantee certificate
• Proof of paid-up capital
• Citizenship copies of directors
• Police clearance certificates
• Office lease agreement
• Business plan and company profile

All documents must be accurate and verified before submission to DoFE.

What Are Financial Requirements Manpower License Nepal

Financial requirements include:

• Minimum paid-up capital (commonly NPR 20 million)
• Bank guarantee (approximately NPR 20 lakh or more)
• Security deposit as prescribed by law
• Transparent financial records

These requirements ensure financial stability and protect migrant workers.

What Is Inspection Process Manpower License Nepal

DoFE conducts an inspection before issuing the license. The inspection includes:

• Verification of office infrastructure
• Review of financial documents
• Assessment of staff and management
• Compliance check with legal requirements

Approval is granted only after successful inspection and verification.

Time Required for Manpower License Procedure Nepal

The procedure typically takes 30 to 60 working days:

• Company registration: 3–7 days
• PAN/VAT registration: 1–3 days
• DoFE approval: 30–60 days

Delays may occur due to incomplete documents or inspection issues.

Cost and Government Fees for Manpower License Nepal

The cost includes:

• Application fee: approx. NPR 25,000–50,000
• License fee: approx. NPR 100,000
• Bank guarantee: approx. NPR 20,00,000
• Office setup costs
• Legal and consultancy fees

Total cost depends on scale and compliance requirements.

What Laws Govern Manpower License Procedure Nepal

The procedure is governed by:

• Foreign Employment Act, 2064 (2007)
• Foreign Employment Rules, 2064 (2008)
• Companies Act, 2063 (2006)
• Labour Act, 2074 (2017)

These laws regulate licensing, recruitment, and worker protection.

Which Authorities Regulate Manpower License Nepal

Key authorities include:

• Department of Foreign Employment (DoFE)
• Ministry of Labour, Employment and Social Security
• Office of Company Registrar (OCR)
• Inland Revenue Department (IRD)
• Nepal Rastra Bank

These institutions ensure compliance at each stage of the procedure.

What Happens After Manpower License Approval Nepal

After approval:

• Company can legally recruit workers abroad
• Labour approvals can be obtained for job orders
• Recruitment operations can begin
• Compliance obligations must be followed

The license must be maintained and renewed periodically.

What Are Compliance Requirements After License Nepal

After obtaining the license, companies must:

• Renew license on time
• Maintain financial guarantees
• Submit tax returns
• Follow ethical recruitment rules
• Maintain proper records

Non-compliance may lead to suspension or cancellation.

Checklist for Manpower License Procedure Nepal

• Register company at OCR
• Obtain PAN/VAT registration
• Arrange capital and bank guarantee
• Prepare documents
• Submit application to DoFE
• Complete inspection
• Obtain license approval
• Maintain compliance

FAQs

What is manpower license procedure Nepal?

It is the step-by-step legal process of obtaining permission from DoFE to operate a manpower or recruitment agency in Nepal.

How to get manpower license Nepal?

You must register a company, obtain PAN/VAT, arrange financial requirements, submit documents, and apply to DoFE for approval.

How long manpower license takes Nepal?

The process usually takes 30 to 60 working days depending on documentation and inspection results.

What documents needed manpower license Nepal?

Documents include company registration, PAN/VAT, bank guarantee, tax clearance, MOA/AOA, and office lease agreement.

What is cost manpower license Nepal?

Costs include license fees, bank guarantee, office setup, and legal expenses, often requiring multi-million rupee investment.

Who issues manpower license Nepal?

The Department of Foreign Employment (DoFE) under the Ministry of Labour issues manpower licenses.

Is inspection required manpower license Nepal?

Yes, DoFE conducts office and document inspection before granting approval.

Can foreigners apply manpower license Nepal?

Yes, but only through approved foreign investment channels with government permission.

What happens without license Nepal manpower?

Operating without a license is illegal and may result in fines, closure, and legal action.

Is renewal required manpower license Nepal?

Yes, manpower licenses must be renewed periodically to remain valid.