Land Management Department Mandates Operating License for High Value Real Estate Deals
6th August 2026, Kathmandu
The Department of Land Management and Archives has issued a mandatory directive for firms, companies, and institutions engaged in high-value real estate transactions across Nepal.
Operating License Mandated for High Value Real Estate Deals
Corporate entities involved in single property deals exceeding 30 million Nepali Rupees within metropolitan and sub-metropolitan cities must now obtain an official operating license.
This licensing system has been established under Sections 26A and 26B of the Land Revenue Act, 1978. The directive enforces a Government of Nepal notification officially published in the Nepal Gazette on October 13, 2025, which defined all metropolitan and sub-metropolitan areas as the legal jurisdiction for these requirements.
Online Application Process and Timeline
Entities seeking to secure an operating license are required to submit their applications within a 21-day window. The entire initial filing process must be completed digitally through the online application system operated by the Department of Land Management and Archives.
All online applications must strictly follow the format prescribed in Schedule 8 of the Land Revenue Regulations, 2036. Applicants must upload all mandatory supporting documentation and official proof of business eligibility to complete the digital submission process.
Tiered Licensing Fee Structure
The Department of Land Management and Archives has established a two-tiered licensing fee structure based on the maximum monetary value of individual transactions.
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A licensing fee of 500,000 Nepali Rupees applies to firms, companies, or institutions executing single property transactions valued at up to 50 million Nepali Rupees. For entities handling large-scale real estate transactions exceeding 50 million Nepali Rupees in a single deal, the licensing fee is set at 1 million Nepali Rupees.
Reapplication Notice for Pending Applicants
The department has issued specific instructions for real estate firms that previously filed application requests. Companies that submitted online applications under the earlier notice published on November 14, 2025, but did not receive a final license by the end of the fiscal year at Asar-end 2083 BS, must reapply.
These pending applicants are required to submit a brand new online application through the official portal to remain eligible for licensing consideration.
Mandatory Physical Verification and Police Clearance
Following the successful completion of the online submission, applicants must fulfill additional verification steps. Entities are required to print and submit one physical copy of all uploaded documents directly to the Department of Land Management and Archives.
Furthermore, applying entities must obtain and submit an official certificate from the Central Crime Information Bureau of Nepal Police. This document must verify that none of the board members or directors of the firm, company, or institution have any involvement in criminal activities.
Strengthening Oversight in Urban Property Markets
The newly implemented licensing framework aims to transform how major property transactions operate in urban centers across Nepal. The government expects this system to enhance regulatory oversight, curb tax evasion, improve market transparency, and effectively monitor high-value commercial real estate dealings.
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