How to Register a Travel Agency and Trekking Business in Nepal

By arjunbhattarai | Published: February 5, 2019 | Updated: January 4, 2026

Nepal’s tourism industry is booming. Every year, hundreds of thousands of people come to trek the Himalayas, explore ancient temples, and experience Nepali culture. For entrepreneurs, this presents a real opportunity—but starting a travel or trekking business requires more than just a love of adventure. You need proper licensing, capital, and a clear business plan.

This guide walks you through everything: the legal requirements, the licensing process, how much you’ll actually need to invest, and what it takes to succeed in this industry.

Why Now Is Actually a Good Time

Tourism in Nepal has recovered strongly post-pandemic. International visitor numbers are hitting new highs. Domestic travel is also growing—more Nepali families are taking trips within the country. That means opportunities for both large operators and niche specialists.

The government has also streamlined some processes and reduced red tape. If you navigate this correctly, you can be licensed and operational within 2-3 weeks.

The Legal Reality: You Need a License

Before you take your first customer on a trek, understand this: operating without a license is illegal. You’ll face fines, business shutdowns, and damaged reputation. The good news? Getting licensed is straightforward if you follow the steps.

Your travel or trekking business must be registered as a Private Limited Company (Pvt. Ltd.). This isn’t optional—it’s a requirement. Skip this and you’re not just breaking the law; you’re exposing yourself and your customers to real liability.

What You Need to Register

Here’s the complete checklist. Don’t miss anything—incomplete applications get rejected and delayed.

Company Documents

Memorandum of Association (MOA) and Articles of Association (AOA) for your Pvt. Ltd. company
Company Registration Certificate from the government
Share Certificate showing paid-up capital

Financial & Tax

Tax Registration Certificate (PAN)
Bank Guarantee of 5,00,000 NPR issued by a bank, made payable to the Department of Tourism
Audited financial statements and tax clearance certificates (if your company is older than one year)

Personal Documents

Photocopy of citizenship certificate for every shareholder
Biodata of all shareholders
Two passport-size photos of each shareholder

Industry Registration

Certificate of registration from the Department of Industries (also called Small and Household Industry Department)

Agency Documents

A formal application addressed to the Department of Tourism

That bank guarantee is the biggest requirement. You’re basically giving the government collateral to ensure you operate responsibly and can compensate tourists if something goes wrong. It’s refundable after 5 years, so it’s not money you lose—but you need access to 5 lakhs to secure it.

The Step-by-Step Process

Step 1: Form Your Company (3-5 days)

Register a Private Limited Company at the Company Registrar’s Office
Cost: 9500 NPR in government fees (for paid up capital of 25 lakhs)
Minimum paid-up capital: 25 lakhs

Step 2: Get Tax and Industry Registration (2-3 days)

Apply for PAN (Permanent Account Number) at the Inland Revenue Department
Register at the Department of Industries (Sana Tatha Gharelu Udhyog Bivag)
Cost: 20100 for Gharelu Registration

Step 3: Secure Your Bank Guarantee (1-2 days)

Go to any commercial bank with your company documents
Request a bank guarantee of 5,00,000 NPR
Make it payable to: “Department of Tourism, Bhrikutimandap, Kathmandu”
Cost: typically 1-2% of the guarantee amount annually (5,000-10,000 NPR)

Step 4: Apply for Your License (1 day)

Compile all documents listed above
Go to the Department of Tourism at Bhrikutimandap (or visit their office)
Submit application form with 100 NPR fee
They’ll process it within 7 business days

Step 5: Pay License Fee and Collect (1 day)

Once approved, pay 25,000 NPR for your 5-year license
Collect your official Travel/Trekking Agency License
You’re now legal to operate

Total Timeline: 3-4 weeks if all documents are ready Total Cost: roughly 50,000-60,000 NPR

The Real Investment (Beyond Licensing)

Getting licensed is one thing. Actually running a successful business is another.

Startup Costs Beyond License:

Office space (even a small rented room): 20,000-50,000 NPR/month
Website and booking system: 50,000-2,00,000 NPR (one-time)
Initial marketing: 50,000-1,00,000 NPR
Vehicle or transportation arrangements: 0-10,00,000 NPR (depends if you own or rent)
Insurance and contingency fund: 50,000-1,00,000 NPR
Staff (if you start with any): 20,000-50,000 NPR/month each

Realistic Total First-Year Investment: 8-12 lakhs

This sounds like a lot, but consider this: a single trek package selling for 80,000 NPR (which is reasonable for a 10-day Everest Base Camp trek) with 10 participants means 8 lakhs in revenue. You need maybe 3-4 successful treks to turn profitable.

Building a Business That Actually Works

Choose Your Niche

Don’t try to be everything. General travel agencies are commoditized and competitive. Instead, specialize:

Women-only trekking groups
Luxury trekking experiences
Budget backpacker tours
Photography-focused treks
Spiritual/wellness retreats in Nepal
Corporate team-building adventure packages
Family-friendly trekking with expert guides for kids

Specialization makes marketing easier and lets you charge premium prices.

Build Real Relationships with Guides

Your guides make or break your business. Find the best local guides in your target regions (whether that’s Everest, Annapurna, or Pokhara). Offer them consistent work, fair pay, and treat them well. Word spreads among guides, and having a reputation for looking after staff gets you the best people.

Start Small and Profitable

Your first year, don’t aim to do 20 treks. Do 4-5 well-executed treks that customers love. Testimonials and word-of-mouth from happy customers is worth more than flashy marketing.

Get Insurance

This isn’t just legal—it’s essential. Travel insurance, emergency evacuation insurance, and liability insurance protect you and your customers. Yes, it costs money. No, you can’t skip it.

Master the Online Presence

Most customers find travel agencies through Google or Instagram. You need:

A clean, mobile-friendly website with clear pricing
High-quality photos and videos (from actual treks you’ve done)
Instagram account with regular content
Google Business Profile listing
Honest reviews and testimonials visible

Don’t hire someone to build this if you can’t afford it. Do it yourself with free tools (Canva, WordPress, free Instagram). Just make it professional.

Price Competitively but Not Desperately

Research what other operators charge for similar packages. Underpricing to win customers is a trap—it means you won’t have money to operate well, and you’ll attract price-conscious customers who complain endlessly. Instead, offer value: better guides, smaller group sizes, unique itineraries, or premium amenities.

What Often Goes Wrong

Under-capitalization: Entrepreneurs start with just enough for licensing and then struggle to execute even one trek properly. Have at least 3 months of operating costs before you launch.

Poor Guide Relationships: Trying to squeeze guides on pay or treating them poorly destroys your business. Good guides are your competitive advantage.

Weak Marketing: Hoping customers will find you doesn’t work. You must actively market—whether through Facebook ads, Instagram, influencer partnerships, or travel blogs.

Ignoring Safety: One accident, one bad incident, and your business is done. Invest in proper equipment, insurance, first aid training, and guide training. Never cut corners on safety.

Overcomplicated Offerings: 50 different packages confuses customers. Better to do 3-5 packages really well.

Real Talk About Success

Starting a travel business in Nepal is absolutely doable. Thousands have done it. But it’s not passive income—it’s work. You’ll spend evenings responding to customer queries, weekends planning routes, and odd hours managing logistics.

The first year is the hardest. You’ll do more work than you think possible for less money than you hoped. By year two, if you’ve built a good reputation, things get easier. Year three and beyond, you can scale or add new offerings.

The entrepreneurs succeeding in this space share three things: they genuinely love Nepal and hospitality, they’re obsessed with customer experience, and they treat it like a real business (not a hobby).

Your Action Plan

This Month:

Research 5 travel agencies in your target market. What do they offer? How much do they charge? What are customers saying?
Identify your niche. What makes you different?
Create a basic financial projection: How many treks would you need to break even?

Next Month:

Begin forming your Pvt. Ltd. company
Start compiling required documents
Explore office space options
Scout guides and logistics partners

Within 3 Months:

Complete all licensing
Launch a basic website
Plan your first 2-3 test treks
Lock in relationships with key guides

The tourism industry in Nepal isn’t slowing down. The question is: will you be part of it?