Mandatory Approval Needed for Companies Engaging in Real Estate Transactions Above Rs. 3 crores
October 15, 2025 | Investopaper
In a bid to tighten oversight on the real estate market, the government has introduced mandatory prior approval for companies engaging in real estate transactions exceeding Rs. 3 crores in a single deal within metropolitan and sub-metropolitan municipalities. The regulation, published in the Nepal Gazette on Monday, targets corporate-driven land and property trades to curb potential irregularities and promote transparency.
The new requirement affects 16 urban hubs, including Kathmandu Metropolitan City, Lalitpur, Biratnagar, Birgunj, Bharatpur, Pokhara, Dharan, Ithari, Janakpur Dham, Jitpur Simara, Kalaiya, Hetauda, Butwal, Ghorahi, Tulsipur, Nepalgunj, and Dhangadhi sub-metropolitan cities
Under the amended provisions of Section 26 of the Land Revenue Act, any company—whether dealing with individuals or other firms—must secure a license from the Director General of the Department of Land Management before finalizing such high-value purchases or sales. Notably, the rule applies regardless of the land’s size, focusing solely on the transaction amount.
The approval process requires submitting detailed documents, fees, and justifications to the designated authority. If deemed appropriate, the license is issued with specified conditions and remains valid for five years, as outlined in the act’s sub-clauses. The Land Revenue Rules further clarify that both natural and legal persons must comply, aiming to formalize what has long been a fragmented sector.
