Manpower registration in Nepal is a mandatory legal process for any company intending to recruit and send Nepali workers abroad. This is done by obtaining a manpower license from the Department of Foreign Employment (DoFE) under the Ministry of Labour, Employment and Social Security.
The system ensures ethical recruitment, worker protection, and financial accountability. Without completing manpower registration in Nepal, no entity is legally allowed to operate a recruitment agency or deploy workers overseas.
This guide provides a complete overview of manpower registration in Nepal, including legal framework, requirements, process, cost, and compliance.
Legal Framework
The process is governed by the following laws:
- Foreign Employment Act, 2064 (2007)
- Foreign Employment Rules, 2064 (2008)
- Companies Act, 2063 (2006)
- Labour Act, 2074 (2017)
Key Legal Provisions
- Section 10: Mandatory manpower license
- Section 11: Licensing procedure
- Rule 4 & 6: Documentation and inspection
These laws ensure that only qualified companies can complete manpower registration in Nepal.
What is Manpower Registration in Nepal?
Manpower registration in Nepal refers to the legal authorization that allows a company to:
- Recruit Nepali workers
- Coordinate with foreign employers
- Process employment documentation
- Deploy workers abroad legally
Only licensed companies are allowed to operate manpower agencies in Nepal.
Eligibility Criteria for Manpower License in Nepal
- To apply, the company must:
- Be a Private Limited Company registered in Nepal
- Have minimum paid-up capital (approx. NPR 20 million)
- Be owned by Nepali citizens
- Have no criminal record related to fraud
- Maintain proper office infrastructure
- Provide bank guarantee and collateral
Step-by-Step Registration Process in Nepal
1. Company Registration
Register a Private Limited Company at the Office of Company Registrar (OCR) with manpower objectives.
2. PAN/VAT Registration
Obtain PAN from Inland Revenue Department for tax compliance.
3. Local Business Registration
Register the business at the ward office.
4. Deposit Bank Guarantee
Submit required bank guarantee (approx. NPR 50 Lakhs).
5. Deposit Financial Collateral
Deposit collateral (approx. NPR 1.5 Crore).
6. Application to DoFE
Submit application for manpower agency setup in Nepal.
7. Inspection and Verification
DoFE conducts office inspection and document verification.
8. License Issuance
Upon approval, manpower license is issued.
Documents Required for DoFE licensing in Nepal
- Company Registration Certificate
- Memorandum & Articles of Association
- PAN/VAT Certificate
- Tax Clearance Certificate
- Proof of Paid-up Capital
- Bank Guarantee Certificate
- Office Rental/Ownership Agreement
- Citizenship Certificates of Directors
- Police Clearance Certificates
- Educational Certificates
- Business Plan and Organizational Structure
Accurate documentation is critical to avoid delays in manpower agency setup in Nepal.
Cost of Manpower Registration in Nepal
| Component | Estimated Amounr |
| Application Fee | 20,000-50,000 |
| License Fee | 100,000 |
| Renewal Fee | 5,000 (Annual) |
| Paid-up Capital | ~20,000,000 |
| Bank Guarantee | ~5,000,000 |
| Collateral Deposit | ~15,000,000 |
Timeline for Manpower Registration in Nepal
The process typically takes 15–30 working days, depending on document accuracy and verification.
Authorities Involved
- Department of Foreign Employment (DoFE)
- Ministry of Labour, Employment and Social Security
- Office of Company Registrar (OCR)
- Inland Revenue Department (IRD)
- Nepal Rastra Bank
Office Requirements for Manpower Agency
- Minimum 500–1000 sq. ft. office space
- Commercial location
- Reception and interview area
- Computers and record-keeping system
- Internet and communication setup
- CCTV and safety compliance
Compliance Requirements After Registration
After completing recruitment agency registration in Nepal, agencies must:
- Maintain worker records
- Provide pre-departure orientation
- Follow ethical recruitment practices
- Submit reports to DoFE
- Renew license annually
Penalties for Non-Compliance
Operating without obtaining manpower license in Nepal can result in:
- Heavy fines
- License suspension or cancellation
- Legal action including imprisonment
Benefits of Manpower Registration in Nepal
- Legal authority to operate recruitment business
- Access to international employment markets
- Increased credibility and trust
- Compliance with government regulations
- Protection for workers and employers
Conclusion
Manpower registration in Nepal is a critical legal requirement for any recruitment agency. Although the process involves strict compliance, financial commitments, and documentation, it ensures lawful operation and protection of migrant workers.
Surya Law Firm Nepal offers end-to-end legal support for manpower agency setup in Nepal, guiding clients through every stage of the licensing process with accuracy and compliance.
