How to Register a Liquor Shop in Nepal

Starting a liquor shop in Nepal can be a profitable business, but it requires proper registration and legal approval from government authorities. In this guide, Company Sewa explains the step-by-step process to register a liquor shop legally in Nepal.

1. Understand the Legal Requirements

In Nepal, selling or distributing alcoholic beverages requires approval from the Department of Industry (DOI) and a Liquor License issued by the District Administration Office (DAO). You must also comply with the Excise Duty Act and Local Government Regulations.

2. Register Your Business Entity

Before applying for a liquor license, you must register your business. You can register your liquor shop as:

• Private Limited Company
• Partnership Firm
• Sole Proprietorship

Required Documents for Company Registration:

• Proposed company name approval from OCR (Office of Company Registrar)
• Memorandum and Articles of Association
• Citizenship copies of shareholders or owners
• Passport-sized photos
• Office address and rent or ownership agreement

Once registered, you’ll receive a Company Registration Certificate and PAN/VAT number from the Inland Revenue Department (IRD).

3. Apply for Liquor License at the District Administration Office (DAO)

After your company is registered, apply for a Liquor License. This license allows you to sell and distribute alcoholic beverages legally.

Documents Required for Liquor License:

• Application form to DAO
• Company Registration Certificate
• PAN/VAT Registration Certificate
• Rent agreement or land ownership proof
• Recommendation letter from the local ward office
• Map of business location
• Details of storage and security arrangements

Once verified, the DAO will issue your liquor license for a specific period (usually renewed annually).

4. Excise Duty and Tax Registration

Liquor businesses are subject to excise duty and VAT. You must register with the Inland Revenue Department for taxation and maintain proper records of purchase and sales.

Ensure you pay regular excise duty to avoid fines or cancellation of your license.

5. Maintain Compliance and Renew License

Liquor shop owners must renew their licenses every year at the DAO. You must also follow the following regulations:

• Do not sell liquor to individuals below 18 years.
• Display price lists and legal notices clearly.
• Avoid selling liquor during restricted hours or in prohibited zones.