The registration of hotels and resorts in Nepal is a regulated legal process governed by tourism, company, industry, and local government laws. Anyone intending to operate a hotel, resort, lodge, boutique hotel, or similar hospitality business in Nepal must comply with mandatory registration, licensing, and approval requirements.
This article provides a complete legal guide on how to register a hotel or resort in Nepal, including applicable laws, authorities involved, required documents, and post-registration compliance.
Legal Framework Governing Hotels and Resorts in Nepal
Hotels and resorts in Nepal are regulated under multiple laws and regulatory bodies, including:
- Tourism Act, 2035 (1978)
- Hotel, Lodge, Restaurant, Bar and Tourist Guide Rules
- Companies Act, 2063
- Industrial Enterprises Act
- Local Government Operation Act
- Foreign Investment and Technology Transfer Act, 2019 (FITTA) (for foreign investors)
Operating a hotel or resort without fulfilling these legal requirements may result in penalties, closure orders, or denial of renewal.
Step-by-Step Process for Registration of Hotel and Resort in Nepal
Step 1: Company Registration in Nepal
The first step is to register a legal entity at the Office of the Company Registrar (OCR). Register as a Private Limited Company or Public Company
Obtain:
Company Registration Certificate
PAN Registration
VAT Registration (mandatory for hotels)
Commercial hotels and resorts are generally not recommended to operate as sole proprietorships.
Step 2: Industry Registration
After company registration, the business must be registered as a tourism industry:
- At the Department of Industry or
- At the Provincial Industry Office, depending on capital investment size
This step legally recognizes the hotel or resort as an industrial enterprise.
Step 3: Tourism License from the Department of Tourism
This is the core legal approval for operating a hotel or resort in Nepal.
Hotels and resorts must obtain permission from the Department of Tourism (DoT) before commencing operations.
Documents Required:
- Company registration documents
- Tax certificates
- Land ownership certificate or registered lease agreement
- Approved building map
- Environmental clearance (if applicable)
- Infrastructure details (rooms, toilets, kitchen, parking, safety standards)
- Business plan and service description
Operating without DoT approval is considered illegal under the Tourism Act.
Step 4: Local Government Business Registration
Hotels and resorts must also register at the concerned municipality or rural municipality, which includes:
- Local business registration
- Trade license
- Local tax registration
Local government approval is mandatory for day-to-day operation.
Step 5: Classification of Hotel or Resort
The Department of Tourism classifies hotels and resorts based on infrastructure and services, such as:
- Star hotels (1 to 5 star)
- Tourist standard hotels
- Resorts (Standard, Deluxe and Luxury)
- Boutique hotels
- Eco-resorts
Using terms like “hotel” or “resort” without classification approval may invite regulatory action.
Special Legal Requirements for Resorts in Nepal
Resorts usually face stricter regulatory scrutiny than city hotels.
Additional requirements may include:
- Larger land area
- Environmental Impact Assessment (EIA) or Initial Environmental Examination (IEE)
- Compliance with zoning laws
- Special approvals if located near forests, rivers, highways, or protected areas
Resorts in environmentally sensitive zones require clearance from environmental authorities.
Foreign Investment in Hotels and Resorts in Nepal
Hotels and resorts are among the most attractive sectors for foreign investment in Nepal.
Foreign investors must:
- Obtain approval under FITTA, 2019
- Register with the Department of Industry
- Comply with capital investment thresholds
- Follow repatriation and technology transfer regulations
Foreign-owned hotels must meet the same tourism and local compliance standards as domestic businesses.
Also, Foreign Investors must receive a prior-approval through a Project Report, before filing in for Company Registrations.
Post-Registration Compliance for Hotels and Resorts
After registration, hotels and resorts must comply with ongoing legal obligations, including:
- Annual renewal of tourism license
- Tax compliance (VAT, income tax, withholding tax)
- Labor law compliance (employment contracts, minimum wages)
- Health, safety, and sanitation inspections
- Periodic inspection by the Department of Tourism
- Local government renewals and fees
- Failure to comply may lead to fines, suspension, or cancellation of licenses.
Common Legal Mistakes in Hotel and Resort Registration
Operating before receiving Department of Tourism approval
Ignoring environmental clearance requirements
Leasing land without proper title verification
Using “hotel” or “resort” in the business name without authorization
Failure to renew tourism licenses annually
These mistakes often result in regulatory disputes and business disruption.
Conclusion
The registration of hotels and resorts in Nepal involves coordination with multiple government authorities and strict legal compliance. Proper registration ensures legal security, investor confidence, and long-term operational stability.
A hotel or resort that is legally compliant is not merely a hospitality business—it is a sustainable tourism enterprise contributing to Nepal’s economy.
Frequently Asked Questions (FAQ): Registration of Hotels and Resorts in Nepal
1. How do I register a hotel in Nepal?
To register a hotel in Nepal, you must first register a company at the Office of the Company Registrar. After that, obtain PAN or VAT registration, register the business as an industry, and finally obtain a tourism license from the Department of Tourism. You also need approval from the local municipality.
2. Which authority registers hotels and resorts in Nepal?
Hotels and resorts in Nepal are licensed by the Department of Tourism. Company registration is done at the Office of the Company Registrar, and business operation permission is taken from the local government.
3. Is Department of Tourism approval compulsory for hotels in Nepal?
Yes. Approval from the Department of Tourism is mandatory. A business cannot legally operate as a hotel or resort in Nepal without a tourism license.
4. Can a foreigner invest in hotels or resorts in Nepal?
Yes. Foreigners are allowed to invest in hotels and resorts in Nepal under the Foreign Investment and Technology Transfer Act, 2019. Approval must be obtained from the Department of Industry before starting operations.
5. What documents are required to register a hotel or resort in Nepal?
Common documents include company registration certificates, Tax registration, land ownership or lease documents, approved building maps, environmental clearance if required, and details of hotel infrastructure such as rooms, kitchen, and sanitation facilities.
6. Is environmental clearance required for resorts in Nepal?
In many cases, yes. Resorts—especially those located near forests, rivers, or protected areas—may require an Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA).
7. What is the difference between registering a hotel and a resort in Nepal?
Both require Department of Tourism approval, but resorts usually need additional environmental clearance, larger land area, and stricter zoning compliance due to their nature and location.
8. Do hotel and resort licenses need renewal in Nepal?
Yes. Tourism licenses must be renewed periodically. Hotels and resorts must also remain compliant with tax, labor, health, and safety regulations.
9. Can I use the word “hotel” or “resort” without registration?
No. Using the term “hotel” or “resort” without proper registration and approval from the Department of Tourism is illegal in Nepal.
10. Is local government permission necessary for hotels and resorts?
Yes. Along with central-level approvals, hotels and resorts must obtain business registration and operating permission from the relevant municipality or rural municipality.
Our firm is widely regarded as one of Nepal’s leading legal practices in corporate and tourism law, with particular strength in hotel and resort registration, licensing, and regulatory compliance. We advise domestic and foreign clients on company incorporation, tourism approvals from the Department of Tourism, foreign investment structuring, environmental clearances, and ongoing statutory compliance. Our work is grounded in practical experience and a deep understanding of how regulatory authorities operate in Nepal. By combining legal precision with procedural clarity, we deliver reliable, compliant, and commercially effective outcomes that clients and stakeholders trust.
Please note that the above mentioned is general information to help the reader understand the related laws in Nepal, and the same should not be construed as a legal opinion. For a detailed opinion or inquiry, please contact:
Mr. Atit Babu Rijal and/or, Mr. Riwaj Sharma Acharya
Partners
atit@ahnlegal.com, riwaj@ahnlegal.com
977-9851243536, 977-9851080791