Liquor License in Nepal 2082/83 (2026): Types & Process

The Inland Revenue Department issues the excise licence for production, import and wholesale, while the local municipality issues the licence for retail shops, bars and restaurants.

The legal age is 18, and selling alcohol to anyone under 18 is prohibited and punishable.

Several statutes work together. The Excise Duty Act 2058 makes an excise licence mandatory for manufacturing, importing, selling or storing excisable goods including alcohol, and the Liquor (Madira) Act 2031 governs liquor specifically. Retail sale is licensed by local government under the Local Government Operation Act 2074, production engages the Industrial Enterprises Act 2076, and product quality is governed by the Food Act framework.

There are licences for distinct activities — a production licence for a distillery or brewery, an import licence, a wholesale or distribution licence, and a retail licence for a shop, bar, restaurant or hotel. Production, import, wholesale and storage are licensed through the excise system at the Inland Revenue Department, while the retail outlet itself is licensed by the local municipality, so one business may need more than one licence.

No. The excise licence covers excisable activities such as manufacturing, importing, wholesaling and storing alcohol, but the right to sell at retail from a shop or bar is a separate licence issued by the local municipality. A retail outlet that stocks excisable goods therefore needs both — the excise side and the municipal retail licence. Assuming the excise licence alone permits retail is one of the most common and costly mistakes.

A production licence is layered. The excise licence to manufacture comes from the Inland Revenue Department under the Excise Duty Act 2058, but a distillery or brewery is also an industrial enterprise, so it needs industry registration under the Industrial Enterprises Act 2076 from the Department of Industry, an environmental clearance, and food-safety approval. These approvals run in parallel and must all be in place before production starts.

The Excise Duty Act 2058 sets licence and renewal fees "as prescribed" — fixed in the excise rules and rate schedule rather than in the Act — and they vary by licence type, product and capacity. Municipal retail-licence fees are set separately by each local government. Because of this, any single figure quoted online may be out of date, so confirm the current excise and municipal fees with the relevant office before applying.

The excise licence is renewed each year, and under the Excise Duty Act 2058 renewal is due within the month of Shrawan following expiry, with the option to renew for up to three fiscal years at once by paying the fees together. Late renewal attracts a fine — broadly half the renewal fee for the first three months and the full fee for the next three — so renewing on time is the cheaper course.

Manufacturing, importing, selling or storing alcohol without the required excise licence is an offence under the Excise Duty Act 2058, and selling at retail without the municipal licence breaches local law, exposing the business to penalties, seizure and closure. Because alcohol is an excisable and regulated good, enforcement is active. The prudent course is to obtain every licence the specific activity requires before trading rather than operate informally.

A foreign investor can be involved in a liquor business through a properly structured and approved investment, but alcohol production and trade are regulated and may carry sector conditions and foreign-investment approval requirements through the Department of Industry and Nepal Rastra Bank. The licensing steps — excise, municipal, industry and clearances — then follow as for any operator. Because the foreign-investment position in this sector is fact-specific, confirm it before committing.

Typical documents include the company or firm registration, PAN/VAT, proof of premises (ownership or lease), citizenship, a site map, and a recommendation or no-objection from the municipality, with production adding the industry registration, environmental clearance, factory layout, fire safety and food approvals. The exact set depends on the licence type and the office, so confirm the current checklist with the excise office or municipality rather than relying on a generic list.

Restrictions such as a minimum distance from schools, temples or hospitals are commonly applied, but they are set by municipal bylaws and vary between municipalities rather than by a single national figure. So while a distance condition may well apply to your outlet, the exact rule depends on the local government where the shop is located. Confirm the distance and any siting conditions with your municipality before selecting premises.

Permitted sale hours, where they apply, are set by local municipal rules rather than a uniform national timetable, so they vary by location. Some municipalities impose hour restrictions on retail liquor sale and on bars; others may not. Because this is a local-government matter and is not fixed nationally, confirm the current sale-hour rules with the municipality that licenses your outlet rather than assuming a particular schedule.

Alcohol advertising is restricted. Advertising of liquor through mass media is banned under the advertising-control framework, and licensed sellers must comply with the restriction. This sits alongside the prohibition on sale to minors and other public-health controls on alcohol. Because the rules on promotion and sponsorship are strict and enforced, a liquor business should treat alcohol advertising as off-limits in mass media and take advice on any promotional activity.

Yes. A bar, restaurant or hotel serving alcohol needs the municipal licence to sell at retail, and depending on how it sources and stores stock it may also engage the excise system. The hospitality licence from the municipality and the excise-side compliance are distinct, so an establishment that both stores excisable stock and serves customers should confirm both are covered. Treat the serving licence and the excise side as separate obligations.

The excise licence, issued by the Inland Revenue Department under the Excise Duty Act 2058, authorises excisable activities — manufacturing, importing, wholesaling and storing alcohol — and is renewed yearly within the month of Shrawan. The municipal licence, issued by the local government under the Local Government Operation Act 2074, authorises the retail outlet itself — the shop, bar or restaurant. They cover different things, so a retail business stocking excisable goods needs both.

Yes. A brewery or distillery is an industrial enterprise that can affect the environment, so it needs an environmental clearance — an Initial Environmental Examination or a fuller Environmental Impact Assessment depending on its scale — alongside its industry registration and excise licence. Food-safety approval also applies because the product is consumed. These clearances are part of setting up production and should be planned early, as they can take time to obtain.

The timeline depends on the licence type and the number of approvals the activity triggers. A retail municipal licence on an already-registered business can be relatively quick, while a production setup needing the excise licence, industry registration, environmental clearance and food approval takes considerably longer because several offices are involved. Preparing the full document set and running approvals in parallel where possible is the main way to shorten the overall timeline.

Before committing to premises or equipment. A lawyer maps which licences your specific activity needs — excise, municipal, industry, environmental and food — registers the business, prepares each application and sequences them so one does not stall waiting on another. Because fees and local conditions are set administratively and vary, a lawyer also confirms current requirements with each office, which is what prevents an expensive stall partway through setting up.