Running a bar, restaurant, club, or retail liquor shop in Nepal isn’t just about stocking booze and vibes the law here is strict, and if you slip, the fines hit hard. Nepal regulates alcohol sales mainly through the Liquor Licence and Control Act 2019, paired with older frameworks like the Alcohol Drinks Control Act 2010 and local municipal rules.

This guide lays down everything you need: license types, documents, fees, renewal rules, penalties, and the exact steps to legally sell alcohol in Nepal.

1. Overview of Alcohol Laws in Nepal

Alcohol sale and distribution in Nepal is regulated to:

• Control unlicensed production & sale

• Prevent underage drinking

• Maintain quality & taxation compliance

• Control public health risks

The government handles licensing through:

• District Administration Office (DAO)

• Local Municipality/Rural Municipality

• Nepal Police (inspection & enforcement)

• Excise Department (tax compliance)

2. Types of Liquor Licenses in Nepal

Nepal generally issues these types of liquor licenses:

a) Retail Liquor Licence

For shops selling sealed bottles (wine, vodka, beer, whiskey, etc.)

b) Bar / Lounge Liquor Licence

For restaurants, cafés, lounges, and tourist-class establishments serving alcohol on-site.

c) Wholesale Liquor Licence

For distributors selling to retailers and restaurants.

d) Manufacturing Licence

For breweries, distilleries, wineries.

e) Special Event/Temporary Permit

For events, weddings, concerts, and festivals.

3. Requirements to Get a Liquor License in Nepal

Mandatory Documents (General)

• Citizenship certificate of owner

• Company/firm registration certificate

• PAN/VAT registration

• Rental agreement or land ownership paper

• Police report / character verification

• Layout plan & location map of business

• Tax clearance certificate

• Recommendation letter from ward/municipality

• Fire safety & sanitation approval (for bars/restaurants)

Additional for Bars/Restaurants

• Tourism license (if tourist-standard)

• Food safety & hygiene certification

Eligibility

• Must be above 18 years old

• Must not have criminal record

• Premises must not be close to schools, hospitals or restricted zones (varies by municipality)

4. Step-by-Step Process to Get a Liquor License in Nepal

Step 1: Register Your Business

• Company Registration (OCR)

• PAN registration

• VAT (optional but recommended)

Step 2: Apply at Ward/Municipality

You must get:

• Recommendation letter

• Local Approval for Operating Liquor Sales

Step 3: Submit Application to District Administration Office (DAO)

DAO is the main licensing authority for alcohol sales.

Step 4: Police Verification

Local police check:

• Location suitability

• Criminal background

• Public safety

Step 5: Pay License Fees

Fees vary by:

• District

• License type

• Business scale

(Usually ranges between Rs. 5,000 – Rs. 50,000 depending on category)

Step 6: Final Approval & License Issuance

DAO issues the liquor license with:

• Validity: 1 year

• Renewal: Annually, before fiscal year end

5. Renewal of Liquor License in Nepal

Renew your license yearly at the same office (DAO/Municipality).

Failure to renew = fines + temporary closure.

6. Penalties for Violating Alcohol Licensing Law

Violations under Liquor Licence & Control Act include:

• Selling without license

• Selling to minors (<18 years)

• Selling adulterated or smuggled alcohol

• Operating outside permitted hours

• Selling alcohol in restricted zones

Penalties include:

• Fines (Rs. 5,000 – Rs. 50,000)

• Immediate closure of premises

• Seizure of stock

• Criminal charges for repeated violations