Manpower License in Nepal: Complete Guide to Registration & Compliance
If you want to operate a manpower recruitment agency in Nepal, obtaining a manpower license is mandatory. This license, regulated under the Foreign Employment Act, 2064 (2007) and Foreign Employment Rules, 2064 (2008), authorizes businesses to recruit and send Nepali workers abroad legally and ethically.
Our detailed guide will help you understand the requirements, documents, process, costs, and compliance for securing a manpower license in Nepal.
Step-by-Step Process to Obtain Manpower License in Nepal
Step 1: Company Registration with Manpower Objectives at OCR
Register your company with the Office of Company Registrar, including manpower services in its objectives.
Step 2: Obtain PAN and Tax Registration at Inland Revenue Department
Secure a Permanent Account Number (PAN) to comply with Nepalese tax laws.
Step 3: Register Business Locally at Ward Office
Complete your local business registration under the Local Governance Act.
Step 4: Deposit NPR 50 Lakhs Bank Guarantee
Submit the mandatory bank guarantee to Nepal Rastra Bank as required by law.
Step 5: Deposit NPR 1.5 Crore Bank Collateral
Provide the bank collateral as financial security for operational risks.
Step 6: Get Approval from Department of Labor (DoL)
After document verification and site inspection, obtain final approval to start operations.
What is a Manpower License?
A manpower license is a legal permit issued by the Department of Foreign Employment (DoFE) that allows companies to act as recruitment agencies. It ensures that manpower agencies operate transparently, protect workers’ rights, and comply with government regulations for foreign employment.
Requirements for Manpower License in Nepal
To qualify for a manpower license, your agency must meet the following conditions:
Bank Guarantee:
NPR 50 Lakhs deposited with Nepal Rastra Bank
Minimum Paid-Up Capital:
NPR 20 million (for new agencies)
Qualified Staff:
Experienced professionals in HR, finance, legal, and marketing
Bank Collateral:
NPR 1.5 Crore deposit as financial security
Office Space:
Minimum 1000 sq. ft. in a commercial location
Ethical Recruitment Practices:
Commitment to fair and transparent hiring
Legal Compliance:
Adherence to Foreign Employment laws and regulations
Documents Required for Manpower License Application
Prepare the following documents carefully to avoid delays:
- Completed application form (DoFE prescribed)
- Company registration certificate with manpower objectives
- Memorandum and Articles of Association (MOA/AOA)
- Tax clearance and PAN certificate
- Proof of paid-up capital (minimum NPR 15 million)
- Bank guarantee certificate (NPR 5 million)
- Bank collateral deposit proof (NPR 1.5 Crore)
- Office ownership or lease agreement
- Citizenship certificates of all directors
- Police clearance certificates of directors
- Educational certificates of directors
Passport-sized photos of authorized representatives
Costs Involved in Manpower License Registration
Application Fee:
NPR 100
License Fee:
NPR 10,000
Annual Renewal Fee:
NPR 5,000
Bank Guarantee:
NPR 3 million (varies as per bank)
Paid-Up Capital:
Minimum NPR 5 million
Office Setup & Legal Fees:
Vary by service providers and location
Timeline for Manpower License Approval
The overall process may take 2 to 3 months, involving:
Company registration: 1-2 weeks
Document preparation: 2-4 weeks
Application submission: 1 day
Document verification: 2-4 weeks
Site inspection: 1-2 weeks
License issuance: 1-2 weeks
Delays may occur due to incomplete documents or additional government requirements.
Post-License Compliance for Manpower Agencies
Maintain detailed records of all recruited workers
Provide mandatory pre-departure orientations
Follow fair recruitment and advertising practices
Submit annual activity and financial reports to DoFE
Renew license annually to avoid penalties
Cooperate with government audits and inspections