Starting a private counselling or psychology practice in Nepal

Private practice is how many psychologists and counsellors in Nepal build their work, whether that is a room in a polyclinic, video sessions with clients in other districts or abroad, or evenings alongside a hospital or NGO job. The clinical work you already know. This guide covers the rest. Some of the rules are unsettled, so treat it as a checklist to confirm with your professional body and a tax adviser, not as legal advice.

1. Know which registration applies to you

The Nepal Health Professional Council (NHPC) runs a licensing exam for the M.Phil. in Clinical Psychology, and the NHPC Act 2053 lets only registered health professionals practise. If you are a clinical psychologist, pass the exam and register before you take private clients. Registration lasts five years and then needs renewing.

Counselling psychologists and psychosocial counsellors have no national register or licence yet, and proposals for one have not become law. Describe your training accurately, and do not call yourself a clinical psychologist unless you are registered as one.

2. Understand confidentiality and consent

Nepal has no separate mental health act, though the Ministry of Health says one is planned. For now the main rules are in the Public Health Service Act 2075 (2018):

• Get informed consent. Some treatments need it in writing, so a signed form at intake is the safe habit.
• Keep a client's health condition, diagnosis and treatment confidential unless they agree in writing, a court or law requires disclosure, or there is a serious public health risk. A breach carries a fine of NPR 25,000 to 50,000.

The National Mental Health Strategy and Action Plan 2020 is policy, not law, and it does not license anyone.

3. Treat client records as private data

The Privacy Act 2075 (2018) treats a person's mental condition and medical history as private. It also bars anyone from disclosing what they learn through their professional work without consent or an official order, so it covers counsellors outside any council. Breaches can mean up to three years in prison, a fine of up to NPR 30,000, or both.

• Tell clients what you record and why, and get their consent. A short intake form is better than a long one.
• For clients under 18, disclosure needs a guardian's consent and must benefit the child.
• Use a password on every device, and keep no client notes in Viber or WhatsApp chats.
• Decide how long you keep records, and delete them safely afterwards.

4. Set up the business side

• Register a sole proprietorship (private firm) with the Department of Commerce, Supplies and Consumer Protection or the provincial office that handles it.
• Get a PAN from the Inland Revenue Department. You can apply on the IRD taxpayer portal and finish at your local Inland Revenue Office.
• Register with your ward office and pay its business tax.
• Open a bank account in the firm's name. Since the Finance Act 2081, business receipts, including QR payments, must not go into a personal account.
• Private health institutions need a licence, and municipalities license clinics. We could not find whether one counselling room counts as a clinic, so ask your municipality's health section.

5. Income tax and VAT

• Sole proprietorship profit is taxed as your own income. The 2083/84 budget widened the lowest band to NPR 10 lakh and cut the top rate to 29 percent.
• Pay advance tax in instalments by the end of Poush, Chaitra and Asar, and file your annual return by the end of Asoj.
• Health services are VAT exempt under Schedule 1 of the VAT Act 2052, and someone supplying only exempt services cannot register for VAT. For other work, such as workshops, the services threshold is NPR 30 lakh in any twelve months.
• Whether counselling outside the NHPC register counts as a health service for VAT is not settled, so ask a tax adviser before you quote fees.

6. Insurance

Some Nepali insurers sell professional indemnity cover for doctors, consultants and other professionals. We found no rule that makes it compulsory for you. If you buy it, ask in writing whether it covers psychological work and online sessions.

7. Fees and payments

Most clients will pay by eSewa, Khalti, Fonepay QR, connectIPS or bank transfer, so show one QR code linked to the firm's account. Give a numbered PAN bill for every payment, describe the service in neutral words such as consultation, and keep financial records for five years. Agree a cancellation policy at the first session.

8. Online sessions

The Privacy Act forbids recording an electronic conversation without consent, so record sessions only with the client's written agreement. At the start, check the client is somewhere private, note their location and an emergency contact, and keep the national suicide prevention helpline, 1166, in your crisis plan. The Ministry of Health has a 2077 telemedicine guideline and the Nepal Medical Council has one for doctors, so ask your professional body how they apply to you.

9. Keep your records in one place

The Public Health Service Act makes the head of a health institution responsible for keeping client records safe, and in solo practice that will usually be you. Keep intake details, consent, appointments, SOAP or DAP notes and payments together from your first client, not scattered across notebooks and phone chats.

MindMaster was built for this: client records, sessions, case notes and session income in your own currency, on your phone or laptop. It is completely free for the first six months, then a flat Rs 499 a month for a small practice.