Audit & Compliance for NGOs and INGOs in Nepal
The compliance stack of a Nepali NGO
An NGO registered at the District Administration Office must renew annually, affiliate with the Social Welfare Council (SWC) for foreign funding, obtain project approvals for donor-funded work, and file audited financial statements each year. Tax exemption is not automatic — it requires registration with the IRD as a tax-exempt organization and periodic renewal of that status, with annual returns filed even when no tax is due.
Donor requirements sit on top: project-wise audits, budget-versus-actual reporting, procurement documentation, and fund accounting that keeps each grant separate. An audit that satisfies the DAO but fails the donor is half an audit.
What we provide
- Statutory annual audits in the formats DAO and SWC accept
- Project and donor audits — budget-versus-actual, fund utilization, and compliance testing
- SWC affiliation, project approvals, and general agreement renewals for INGO-funded work
- Tax exemption certificate registration and renewal with the IRD
- Fund accounting systems that keep each donor's money traceable
- Payroll, TDS, and SSF compliance for program staff
- Registration of new NGOs and profit-not-distributing companies
Why local presence matters for NGOs
Lumbini Province hosts a dense concentration of development work — health, education, livelihoods, and heritage programs around Lumbini itself. Renewals happen at district offices, project verifications happen in the field, and donors increasingly require auditors who actually visit sites. Based in Rupandehi, we do all three without a flight from Kathmandu.
Frequently asked questions
Is an NGO's income automatically tax-free?
No. An NGO must register with the IRD as a tax-exempt organization and keep that status current; even then, annual returns must be filed, TDS must be withheld on payments, and business-like income can still be taxable. We manage the full position, not just the certificate.
What audits does an NGO need each year?
At minimum, the statutory annual audit filed with the DAO and SWC. Donor-funded projects usually require separate project audits to the donor's template and schedule. We scope both together so nothing is audited twice or missed once.
Can you help a new NGO get registered and SWC-affiliated?
Yes — drafting the statute, DAO registration, SWC affiliation, IRD tax-exemption registration, and the accounting setup donors expect. Starting compliant is far cheaper than becoming compliant later.
Services this industry relies on
Statutory Audit
Annual audit report for your Pvt. Ltd. or Public Ltd. company by experienced auditors — accurate, independent, and accepted by OCR and IRD.
Learn moreRenewals, Customs & Compliance
Annual returns, firm registration renewals, customs agency services, and the recurring compliance work that keeps your business in good standing.
Learn moreAccounting & Bookkeeping
Monthly bookkeeping, ledgers, and financial statements kept clean and current, so your audit and tax filings are never a scramble.
Learn moreAudit due? Registering a company? Let’s sort it this week.