The Civil Aviation Authority of Nepal (CAAN), operating under the Ministry of Culture, Tourism, and Civil Aviation, is the primary regulatory body. It is responsible for safety oversight, airworthiness, aircraft registration, and the issuance of Air Operator Certificates (AOC).

To register a domestic commercial airline, you must have a minimum paid-up capital of NPR 500 million (approximately USD 4.2 million) and provide a security deposit of NPR 20 million.

Yes, foreign airlines can operate in Nepal by obtaining necessary flight permissions from CAAN and entering into an Air Service Agreement between Nepal and their home country.

An AOC is typically valid for two years and must be renewed at least 30 days before its expiry through a formal application to the Director General of CAAN.

Yes, Nepal acceded to the Montreal Convention so for international flights, this sets a liability limit of roughly $167,000 per passenger for damages, regardless of fault.

Yes, CAAN enforces specific age limits and technical standards for the import of pressurized and non-pressurized aircraft for commercial use to ensure safety and airworthiness.

Unauthorized entry or violation of aerial territory is a serious offense. Under the Civil Aviation Act, such acts can lead to imprisonment for one to three years. More severe crimes, such as hijacking or endangering flight safety, can result in life imprisonment

Yes. Under the Foreign Investment and Technology Transfer Act (FITTA) and aviation regulations, foreign investors can hold a maximum of 49% equity in a Nepali airline, with the majority 51% stake reserved for Nepali nationals.