On 2080 Chaitra 30 (April 12, 2024), the Land Revenue Act was amended for the 12th time, and on 2082 Bhadra 12 (August 28, 2025), the Land Revenue Rules were amended for the 8th time. These changes officially introduced the requirement of obtaining a Real Estate License in Nepal for anyone involved in land and property transactions. With this, Nepal has entered the implementation phase of its real estate licensing system, making it compulsory for businesses and professionals to be licensed before conducting property transactions.
If you want to start a real estate business in Nepal, it is essential to understand the legal requirements for obtaining a license. This article explains the rules in simple terms, providing helpful background so that any businessperson-whether new or experienced-can confidently navigate the process.
Why a Real Estate License in Nepal Matters
Nepal’s property market is booming, with more people interested in buying, selling, and investing in land and housing each year. To make sure these transactions are safe and transparent, the government has put strict rules in place. Licensing helps protect buyers and sellers, bringing trust and professionalism to the real estate industry.
Who Needs a Real Estate License in Nepal?
Anyone planning to deal with the real estate business must get an official Real Estate License in Nepal from the government. Unlicensed activities are not only risky but can result in legal trouble.
Why Is a License Required?
A license ensures only authorized and qualified people handle property transactions, reducing the risk of scams, legal mistakes, or disputes. It helps the government keep track of activities in the land market and prevents fraud.
Transactions covered by regulations
The legal provision cover assisting any person in the purchase or sale of a house or land, whether for remuneration or not. This also includes providing consultation to a person involved in buying or selling such property or rendering any related professional services. However, the law relating to real estate licenses does not apply to transactions involving the purchase and sale mutually agreed upon between natural persons.
Documents and Information Required to Apply for a Real Estate License in Nepal
To start a property business, you first need to apply for a Real Estate License in Nepal, along with the required documents, including:
- Copy of the company or firm’s registration certificate with objective of land and property business,
- In case of a company, a copy of the company’s Memorandum of Association (MOA),
- Copy of Share Lagat,
- Copy of the permanent account number (PAN) registration certificate,
- Copy of the tax clearance certificate,
- Detailed business plan of the company or firm,
- Copy of the decision of the board of directors of the company or firm for obtaining a license for real estate business,
- Company or firm’s website, email, and contact person’s contact number.
Individuals seeking a license must submit an application along with the required documents and fees to the specified authority (local, provincial, or federal as designated). The authority may grant or reject the license based on eligibility and requirements.
How to Register a Real Estate Company and Get a License in Nepal (from scratch)
Step 1 : Register a new company in the Office of the Company Registrar
Step 2 : Obtain Permanent Account Number (PAN) from Inland Revenue Department
Step 3 : Register the company in local level (Ward Office)
Step 4 : Obtain the License for Real Estate Transaction by submitting below documents :
- Application Form: Fill out an official form as per the Land Revenue Regulation. A Sample of the application form is at the bottom of this article.
- Supporting Documents: Submit documents like business registration, PAN certificate, tax clearance, articles of association, and proof of board approval for your company.
- Business Plan: Provide details such as your business’s operating area and the maximum value of deals you’ll handle.
- Fees and Deposits: Pay the license fees (NPR 5 lakhs for doing transaction not exceeding NPR 5 crore per single transaction and NPR 10 lakhs for doing transaction without any limit).
Keeping Your License Valid (Renewal)
The duration of license will be five years .Your license must be renewed regularly. Renewal fees are NPR 400,000 for deals up to NPR 5 crore and NPR 800,000 for bigger deals. If not renewed on time (within 35 days before expiry of the license), you’ll face extra penalties, like a late fee of NPR 50,000 in addition to standard charges.
Cancellation of License
The license can be cancelled if :
- False details are provided in the application
- The license is found to have been obtained fraudulently or is misused.
- The license holder violates any provision of the rules, fail to follow directions or does not renew license timely
Penalties for Real Estate Business Without a License in Nepal
Conducting a house/land transaction without a license can result in a penalty if transaction amount is disclosed, the penalty shall be equivalent to the amount of the transaction; and if the transaction amount is not disclosed, a fine of up to twenty-five lakh rupees shall be imposed (for individual and organizations), six months imprisonment or both
If a license holder carries out a transaction relating to house and land in contravention of this Act, the Rules framed under this Act, or the conditions prescribed while granting the license, the licensing authority may impose a penalty equivalent to the amount of the transaction, where the transaction amount is disclosed, and a fine of up to ten lakh rupees, where the transaction amount is not disclosed.
Modernizing with Technology
All licensed businesses must use the government’s geo-information system for transactions. This system ensures trades are accurate, quick, and recorded. If you don’t run the system yourself, you can use a service center managed by another licensed operator. A Real Estate License holder is eligible to operate a Land Service Center (Bhu-Sewa Kendra) after fulfilling prescribed qualifications and other requirements. The Land Service Center can provide several services to the public.
The Land Service Center is eligible to provide the following services:
- Submission of applications and forms online.
- Submission and verification of applications at the office, collection of necessary documents and dispatch (including digital/physical copy).
- Entry into the land information system, printing of forms/applications, and providing to related individuals.
- Providing necessary information related to land administration to service recipients.
- Offering other services as prescribed and notified by the Ministry, from time to time
Duties of a Real Estate License Holder in Nepal
- Real estate transactions must be conducted exclusively through the Land Information System by either operating a Land Service Center or utilizing a Land Service Center operated by another licensed individual.
- When conducting real estate transactions, no false information, maps, values, or ownership details may be presented.
- The license must be clearly displayed at the office or business location.
- All records related to real estate transactions must be maintained, and a report must be submitted to the concerned department within three months after the end of each financial year.
- During inspections or supervision, the license holder or authorized person must provide any requested information to the inspecting or supervising officer.
Why Compliance Matters ?
- Protects Your Business: Proper licensing shields your business from legal and financial risks.
- Builds Trust: Licensed agents are more credible in the eyes of customers and partners.
- Ensures Smooth Transactions: Using official systems minimizes disputes and errors.
Conclusion
Getting a Real Estate License in Nepal is not just a legal requirement but also an investment in building credibility and trust in the property market.
In summary: To run a real estate business in Nepal, secure a license by applying with all necessary papers, paying the right fees, and using the government’s system for deals. Renew regularly to keep your business running smoothly.
Sample Application form for Real Estate License
About the Author
Nabina Poudel is a law student with a keen interest in corporate law. She enjoys researching and writing on legal developments that impact businesses and society.
