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In Nepal, any business involved in the production, processing, packaging, or sale of food items must operate under a license from the Department of Food Technology and Quality Control (DFTQC). When a food business closes or changes its nature, Food License Cancellation is a critical regulatory requirement. Failing to formally close a license can result in the business being held responsible for food safety incidents at the premises, even after operations have ceased, and leads to ongoing liability for annual renewal fees.
₨ 150,000.00
Under the Food Hygiene and Quality Act, 2081 (2024)—maintaining an active license is a continuous legal obligation. Whether you operate a restaurant, a food processing plant, or a small-scale bakery, the formal closure process ensures your entity is removed from the NeFFILS (Nepal Food/Feed Information and Licensing System) portal. This transition officially stops the clock on your hygiene compliance duties and prevents your brand from being misused in the marketplace.
In accordance with Section 12 of the Food Hygiene and Quality Act, 2081, a food business operator intending to cease operations must voluntarily submit an application to the DFTQC for the revocation of their license. This legal requirement necessitates the submission of a formal board resolution or proprietor’s declaration, a “No Objection Certificate” from the local Ward Office, and the physical surrender of the Original Food License.
The consequences of failing to formally cancel a food license are severe under the new enforcement regime established by the Act. Section 42 criminalizes producing or selling food in a deceptive manner or failing to meet safety standards during the transition period can lead to fines of up to NPR 3,00,000 and imprisonment for up to six months. Beyond financial and criminal liabilities, the Department maintains the authority to blacklist the proprietor, effectively barring them from obtaining any future food-related certifications or business licenses in Nepal.
