NGO INGO Compliance in Nepal: A New Guide

What is NGO INGO Compliance in Nepal?

NGO INGO compliance in Nepal refers to the adherence of these organizations to the regulatory framework established by the government of Nepal to govern their operations within the country.

What are the Governing Laws regarding NGO/INGO in Nepal?

The Major Governing Laws regarding NGO/INGO Compliance in Nepal are as follows:

Associations Registration Act, 2034 (1977) has been established for the proper regulation, establishment and Management of Associations introduced for Social, Educational or Philanthropic Causes. Seven or More Individuals are required to apply for the Registration of such Association through the Local Authority.

What are Major Aspects of INGO/NGO Compliance?

The Major Aspects of INGO/NGO Compliance are as follows:

NGO/INGO Registration

NGOs and INGOs must register with the Social Welfare Council (SWC) in Nepal to operate legally within the country. The SWC oversees the registration and regulation of NGOs and ensures they meet certain criteria and objectives.

Fiscal Reporting

NGOs and INGOs must comply with financial regulations, including transparent accounting practices. They are required to accurately report their sources of funding, expenditures, and activities to the relevant authorities.

Evaluation and Monitoring

NGOs and INGOs are expected to implement monitoring and evaluation mechanisms to assess the impact and effectiveness of their programs and projects.

Legal and Regulatory Compliance

NGOs and INGOs must comply with all applicable laws and regulations in Nepal, including those related to taxation, employment, land use, and other areas relevant to their operations.

What is the Process of INGO/NGO Compliance in Nepal?

The Process of INGO/NGO Compliance in Nepal are as follows:

Step 1: Legal Due Diligence

Our team conducts thorough legal due diligence to assess the INGO/NGO’s compliance with local laws and regulations in Nepal. We review Registration Documents, Permits and Licenses granted to your Organization and if they are in accordance with Nepalese Law.

Step 2: Financial Management

Then, we partner with other Professionals and Accounting Firms to provide appropriate Guidance and Due Diligence on allocation of funds, compliance with taxation requirements, and the implementation of internal controls.

Step 3: Funding Requirement Compliance

We assist INGOs/NGOs in understanding and adhering to the legal requirements related to funding sources, including compliance with donor agreements, anti-money laundering laws, and regulations governing foreign contributions. We also draft and review proposals and agreements.

Step 4: Anti-Corruption Mechanism

Thereafter, Our firm helps INGOs/NGOs establish and implement robust anti-corruption mechanisms to prevent bribery, fraud, and other corrupt practices.

Step 5: Final Monitoring and Evaluation

We offer ongoing monitoring services to ensure that INGOs/NGOs remain in compliance with regulatory requirements and ethical standards. We conduct final monitoring and evaluation assessments to measure the impact of INGO/NGO activities and ensure that project goals have been achieved.

Our NGO/INGO Compliance Services

Submission of Statement of Accounts

The Management Committee of an association must submit statements of accounts to the Ward Office along with the report of the Auditor. Our corporate legal professionals are adept at drafting the necessary documents for compliance catalogs and timely submission of the statement of accounts to the Local Authority.

Examination of Accounts

The local authority can examine the accounts of an INGO or NGO by appointing an officer. Our competent lawyers work closely with Local Bodies to facilitate the examination process, ensuring swift appraisal of the association’s accounts. We provide expert guidance and support throughout the examination.

Submission of Statements and Documents

Timely submission of required statements and documents is essential for compliance. Our team acts as the official legal advisors for our clients’ organizations. We guarantee prompt submission of all necessary documents as demanded by the Examining Officer within the stipulated deadline.

Due Diligence

Regular due diligence is vital to ensuring the legality and compliance of any association. Lawneeti Associates conducts bi-annual and annual investigations and assessments of NGOs and INGOs in Nepal.

Appeal

In case of a final decision by the Local Authority following examination an appeal can be made in the Court of Nepal within 35 days. Our law firm boasts unparalleled lawyers and advocates proficient in advocacy, filing appeals, and ensuring client satisfaction during court cases and litigation.