Dealing with Construction Permits in
Nepal
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
NPR 27,854,524
- City: Kathmandu
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Purchase building permit application from Kathmandu Metropolitan City (KMC)
Agency: Kathmandu Metropolitan City (KMC)
|
1 day
|
NPR 1,000
|
| 2 |
Request and obtain temporary building permit
The 35 days are divided as follows:
- Day 1: BuildCo submits the drawings to the municipality along with a copy of the title certificate.
- Day 2: The municipality forwards the file to the municipality ward office where the land is located.
- Day 4: The ward office checks the field and sends a notice to the site’s neighbors.
- Day 8: Start of the maturation of notice period.
- Day 23: Start of the local inquiry done by the ward office.
- Day 27: The ward office sends the file back to the municipality.
- Day 29: The municipality starts the process of issuing a temporary approval of the drawings. The neighbors must give their consent in order for the project to be approved. This can delay the approval process to around 2 months.
An applicant must submit the following documents along with the building permit application:
- Identity document of the owner (or Company Registration Certificate)
- Certification by a registered architect or engineer
- Cadastral extract
- Proof of land ownership/lease
- Building Plans
- Lot plan
- Proof of tax payment
- Structural plans (not required for buildings with ground coverage area of less than 1,000 feet² and less than 3 stories)
The originals of all documents must be demonstrated when submitting the copies to the Urban Development Department of Kathmandu Metropolitan City.
The building permit fee is calculated as follows:
- built-up area up to 3,000 feet²: 10 rupees per ft²
- built-up area between 3,001 and 5,000 feet²: 15 rupees per ft²
- built-up area 5,001 feet² and above: 20 rupees per ft²
For apartment housing and group housing, the application fee is a flat 25 rupees per ft².
In addition to the building permit fee, the Urban Development Department also charges a Designer Fee of 2,000 rupees. The project designer must be licensed by the Department. The license is called Certificate of Designer and is renewed every year at the Municipality. The annual fee is 3,000 rupees. The Municipality charges an additional 2,000 rupees for each building design.
Agency: Kathmandu Metropolitan City (KMC)
|
35 days
|
NPR 282,000
|
| * 3 |
Receive inspection from respective ward
The ward office visits the site and distributes a notice to neighbors.
Agency: Ward
|
1 day
|
no charge
|
| 4 |
Request permanent building permit
The company applies for the permanent building permit once the construction has reached plinth level.
Agency: Kathmandu Metropolitan City (KMC)
|
1 day
|
no charge
|
| * 5 |
Receive plinth inspection from the Municipality
Before issuance of the construction permit, an on-site inspection is conducted by an official from the municipality or the Town Development Committee to ensure that the construction (up to plinth level) conforms to the approved drawings. The company's engineer or architect has to be present during the inspection.
Agency: Municipality or Town Development Committee
|
1 day
|
no charge
|
| 6 |
Obtain permanent building permit
Agency: Municipality or Town Development Committee
|
30 days
|
no charge
|
| 7 |
Request completion certificate
Agency: Kathmandu Metropolitan City (KMC)
|
1 day
|
no charge
|
| * 8 |
Receive final inspection from the Municipality
Before issuance of the completion certificate, the municipality conducts an on-site inspection to check if the construction conforms to the approved drawings.
An inspector visits the site in 2-3 days after the request for completion certificate and writes a report to the more senior engineer. There will be 4 signatures on the completion certificate: (1) junior engineer, (2) senior engineer, (3) chief engineer of Kathmandu Metropolitan City and (4) departmental engineer. It takes approximately 7 days to get the certificate after the inspection. These signatures are required for any kind of permit.
Agency: Kathmandu Metropolitan City (KMC)
|
1 day
|
no charge
|
| 9 |
Obtain completion certificate
Agency: Kathmandu Metropolitan City (KMC)
|
30 days
|
no charge
|
| 10 |
Request and obtain water and sewage connection
BuildCo submits an application for water and sewerage service to the drinking water and sewerage offices. The drinking and sewerage offices then send their recommendation to the road department to grant permission to dig the road for the connection. The Department of Roads then grants its permission to dig the road. The tap and sewer connection is then carried out.
Agency: Water and Sewage Offices
|
15 days
|
NPR 8,000
|
| * 11 |
Receive inspection from water and sewage offices
Agency: Water and Sewage Offices
|
1 day
|
no charge
|
| * 12 |
Obtain Telecommunications Connection
The company should contact the Nepal Telecommunication Corporation. A deposit of NPR 5,000, plus 13.5% tax, constitutes the connection fee.
Agency: Nepal Telecom
|
120 days
|
NPR 7,000
|
| * 13 |
Receive Telecommunications Inspection
There is a large backlog of requests. BuildCo may get a call from the Nepal Telecommunications after 5 years. Within 7 days of the call, the inspection is done. Within 3 days after inspection, the inspector submits the inspection report. Then the inspector gives receipt invoice to constructor, which pays deposit and expenses
Agency: Nepal Telecom
|
1 day
|
no charge
|
* Takes place simultaneously with another procedure.