A practical annual compliance guide for NGOs and INGOs in Nepal covering DAO renewal, audit, tax clearance, SWC reports, project approvals and governance.
छिटो जवाफ
NGO and INGO compliance requires coordinated annual audit, tax, DAO, SWC, project and governance records. Use an entity-specific calendar because requirements vary by district, constitution, tax status, funding and agreement.
Registration is the beginning of an organisation's legal duties. NGOs and INGOs should operate a single compliance calendar covering the regulator, registered constitution, fiscal year, tax, projects, donors, staff, banking and governing-body decisions.
A Nepal NGO ordinarily prepares annual accounts and audit, progress report, tax clearance, committee decision and local recommendation for DAO renewal, while an SWC-affiliated organisation also files the applicable annual report and project information. An INGO must additionally track its General Agreement, every Project Agreement, donor funds, evaluations, staff and visa conditions. Requirements vary by entity, district and agreement.
The Association Registration Act requires the management committee to send annual accounts with the auditor's report to the local authority. Official DAO renewal checklists commonly request: - prescribed renewal application; - committee decision approving renewal; - audited financial statements; - annual progress report; - auditor licence and renewal evidence; - tax-clearance evidence; and - recommendation from the relevant local level.
Confirm deadline, fee, late charge, stamp and supporting copies with the registered DAO. Do not assume another district's checklist applies.
Section 23 of the Social Welfare Act requires an SWC-affiliated social organisation to submit an annual report showing its work with the audit report within six months after the fiscal year ends. SWC affiliation and renewal records should match the DAO certificate, constitution, committee and office details.
Foreign assistance requires the applicable project proposal and approval under the Social Welfare Act. Do not treat affiliation alone as approval for every grant.
Track General Agreement and Project Agreement commencement, expiry, budget, districts, sectors, counterpart organisations, reporting dates, evaluation and amendment approvals. Maintain an agreement register linking each obligation to evidence and an accountable officer.
Material changes in location, activities, funding, duration or partner may require prior consent. Avoid retroactive regularisation as a routine practice.
Use an auditor qualified for the engagement and maintain vouchers, procurement files, payroll, bank reconciliations, asset registers, advances, partner expenditure and donor restrictions. Separate unrestricted, restricted and project funds in the accounting records.
The governing body should review audit findings and document corrective action. A clean audit opinion does not replace compliance with the approved project budget or procurement terms.
Nonprofit status does not eliminate all tax duties. Assess PAN, tax-exemption status, withholding, payroll, consultant payments, rent, imports, VAT and donor-funded procurement under current law. Obtain tax clearance where required and reconcile returns with audited accounts.
Avoid promising donors that every grant or purchase is automatically exempt. Exemption depends on current law, approval and the transaction.
Hold general assembly and committee meetings on time; preserve notices, attendance, agendas, conflicts and signed minutes. Conduct elections or appointments under the registered constitution and update regulators where necessary.
Changes to objectives or merger require the statutory approval process. Changes to name, address, committee, bank mandate or authorised signatories should be recorded with the appropriate authority rather than only in internal minutes.
Before accepting a new grant, verify donor identity, source, restricted purpose, approved banking channel, SWC/project approval, sanctions risk, reporting and asset disposition. Ensure the donor contract does not require unlawful conduct or conflict with the approved Project Agreement.
Use lawful employment or volunteer documentation, payroll controls, workplace policies, safeguarding and complaint mechanisms. Foreign personnel require the applicable recommendation, work authorisation and immigration status. Protect beneficiary and employee data.
Opening a district branch can require a separate DAO process. Current DAO examples ask for committee decision, constitution and certificate copies, local recommendation, local officer citizenship, tax clearance, PAN and SWC affiliation evidence. Verify each district.
Follow the constitution, law, donor restrictions and agreements when closing a project or organisation. Address employee termination, creditors, records, bank accounts, unspent grants, equipment and remaining assets. Do not distribute charitable assets privately.
1. Close accounts and reconcile every project. 2. Complete audit and governing-body review. 3. File tax returns and obtain applicable clearance. 4. Prepare annual narrative and project reports. 5. Renew DAO registration and SWC affiliation as applicable. 6. Review General and Project Agreement deadlines. 7. Update committee, office, branch and bank records. 8. Review employment, visas, assets and donor restrictions.
This guide was reviewed on 21 July 2026. Compliance depends on the registered district, constitution, tax status and SWC agreements; verify the current filing requirements for each organisation.
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समीक्षक: Wakil Nepal Legal Team
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