Government Invites Applications for Real Estate Brokerage Licenses within 30 Days

The Department of Land Management and Archive has announced that companies operating within metropolitan and sub-metropolitan cities must obtain a brokerage license to conduct large-scale real estate transactions.

According to the government’s new directive, firms engaging in real estate transactions exceeding Rs 30 million at a time are now required to secure a license for operation within six metropolitan and eleven sub-metropolitan cities. The Department issued a public notice on Thursday, calling on interested firms, companies, or organizations to apply online within 30 days by submitting the necessary documents.

For licenses allowing transactions of up to Rs 50 million, applicants must pay a fee of Rs 500,000. For licenses covering transactions exceeding Rs 50 million, the fee has been set at Rs 1 million. Applications must follow the format prescribed in the Land Revenue Rules.

This provision was introduced through an amendment to the Land Revenue Act, 1977 to bring real estate dealings, often conducted informally through brokers, into the formal economy. As per the amended Act, the government may designate specific areas and transaction limits through a notice in the Nepal Gazette, requiring licenses for transactions beyond the specified threshold.

The move aligns with recommendations from the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG), both of which have urged Nepal to formalize real estate trading due to its high risk of money laundering.

Ganesh Prasad Bhatta, spokesperson for the Ministry of Land Management, Cooperatives and Poverty Alleviation, stated that licenses are mandatory for real estate transactions exceeding Rs 30 million between individuals and companies or between companies.

“For now, transactions solely between individuals do not require a license,” he clarified. “Initially, we aim to regulate company-based transactions, but individual dealings will also be brought under a formal land market framework.”

Real estate entrepreneurs have welcomed the government’s decision, saying it will help bring structure and transparency to the sector.

Bishnu Prasad Ghimire, president of the Real Estate Entrepreneurs’ Federation, remarked that the licensing system would make real estate dealings more accountable and systematic. “Currently, businesses can operate directly after registering at the Office of Company Registrar without any additional approval,” he said.

Ghimire estimated that there are around 53,000 individuals and entities currently involved in real estate trading in Nepal.

“Most personal transactions remain opaque. This licensing system was introduced following our persistent calls for regulation,” he added. He also emphasized the need for separate regulations for brokers, noting that they often earn large commissions without proper tax oversight.

“The government should regulate brokers’ earnings and ensure taxation on their commissions,” Ghimire said.

Cities Where the Rule Applies

Metropolitan Cities: Kathmandu, Lalitpur, Pokhara, Bharatpur, Birgunj, Biratnagar.

Sub-Metropolitan Cities: Itahari, Dharan, Janakpur, Kalaiya, Jitpur–Simara, Hetauda, Butwal, Ghorahi, Tulsipur, Nepalgunj, and Dhangadhi.

Government Invites Applications for Real Estate Trading Licenses within 30 Days

The Department of Land Management and Archive has announced that companies operating within metropolitan and sub-metropolitan cities must obtain a trading license to conduct large-scale real estate transactions.

According to the government’s new directive, firms engaging in real estate transactions exceeding Rs 30 million at a time are now required to secure a license for operation within six metropolitan and eleven sub-metropolitan cities. The Department issued a public notice on Thursday, calling on interested firms, companies, or organizations to apply online within 30 days by submitting the necessary documents.

For licenses allowing transactions of up to Rs 50 million, applicants must pay a fee of Rs 500,000. For licenses covering transactions exceeding Rs 50 million, the fee has been set at Rs 1 million. Applications must follow the format prescribed in the Land Revenue Rules.

This provision was introduced through an amendment to the Land Revenue Act, 1977 to bring real estate dealings, often conducted informally through brokers, into the formal economy. As per the amended Act, the government may designate specific areas and transaction limits through a notice in the Nepal Gazette, requiring licenses for transactions beyond the specified threshold.

The move aligns with recommendations from the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG), both of which have urged Nepal to formalize real estate trading due to its high risk of money laundering.

Ganesh Prasad Bhatta, spokesperson for the Ministry of Land Management, Cooperatives and Poverty Alleviation, stated that licenses are mandatory for real estate transactions exceeding Rs 30 million between individuals and companies or between companies.

“For now, transactions solely between individuals do not require a license,” he clarified. “Initially, we aim to regulate company-based transactions, but individual dealings will also be brought under a formal land market framework.”

Real estate entrepreneurs have welcomed the government’s decision, saying it will help bring structure and transparency to the sector.

Bishnu Prasad Ghimire, president of the Real Estate Entrepreneurs’ Federation, remarked that the licensing system would make real estate dealings more accountable and systematic. “Currently, businesses can operate directly after registering at the Office of Company Registrar without any additional approval,” he said.

Ghimire estimated that there are around 53,000 individuals and entities currently involved in real estate trading in Nepal.

“Most personal transactions remain opaque. This licensing system was introduced following our persistent calls for regulation,” he added. He also emphasized the need for separate regulations for brokers, noting that they often earn large commissions without proper tax oversight.

“The government should regulate brokers’ earnings and ensure taxation on their commissions,” Ghimire said.

Cities Where the Rule Applies

Metropolitan Cities: Kathmandu, Lalitpur, Pokhara, Bharatpur, Birgunj, Biratnagar.

Sub-Metropolitan Cities: Itahari, Dharan, Janakpur, Kalaiya, Jitpur–Simara, Hetauda, Butwal, Ghorahi, Tulsipur, Nepalgunj, and Dhangadhi.