Business registration in Nepal has many cost lines. Some are obvious. Many are not. This guide gives a complete total cost breakdown for foreign companies. You will see one-time and recurring items. You will also see FDI-specific steps. We use practical ranges in NPR and USD. We explain why costs vary. We show how to budget with confidence.
Assumptions used for USD: NPR 135 = USD 1. Round to the nearest USD 10. Update to your bank’s rate as needed.
All government fees are in NPR.
Professional and vendor fees are in NPR and USD.
Ranges reflect Kathmandu pricing and standard service levels.
Your scope, capital, and sector can change totals.
Always confirm the latest fee notices before filing.
Companies Act 2063 (2006) and Companies Rules: Company formation requirements and filings.
Foreign Investment and Technology Transfer Act 2019 (FITTA 2019): FDI approvals and compliance.
Industrial Enterprises Act 2019: Industry registrations and incentives.
Nepal Rastra Bank (NRB) Directives: Inward remittance, foreign share capital, and FX rules.
Inland Revenue Department (IRD): PAN and VAT registration and tax filings.
Department of Industry (DOI) / Investment Board Nepal (IBN): FDI approvals by ticket size and sector.
Labor Act 2017 and SSF Act 2018: Labor registration and social security.
(Citations are provided as legislation and regulator names only, per your no-link preference.)
Below is a master checklist. Use it to build your budget.
| Cost category | Typical range (NPR) | USD approx | Who charges | Notes |
|---|---|---|---|---|
| Name reservation at OCR | 1,000 | 8 | Office of Company Registrar | Per name. One-time. |
| Company registration fee | 10,000–50,000 | 75–370 | OCR | Depends on authorized capital slabs. |
| Legal drafting & notary | 15,000–60,000 | 110–445 | Law firm / Notary | MOA, AOA, board resolutions. |
| Company stamp & seal | 2,000–5,000 | 15–40 | Vendor | Rubber stamp and round seal. |
| Share certificate stationery | 1,000–3,000 | 8–22 | Printer | Optional if e-share register used. |
| Board signboard | 2,000–8,000 | 15–60 | Vendor | As per local display rules. |
| Office lease stamping & docs | 1,000–5,000 | 8–37 | Local authority / Notary | Stamping and attestations. |
| PAN registration | 0–1,000 | 0–8 | IRD | Filing is free. Minor incidentals possible. |
| VAT registration (if applicable) | 0–2,000 | 0–15 | IRD | Filing is free. Minor incidentals possible. |
| FDI approval filing (DOI/IBN)* | 0–25,000 | 0–185 | DOI / IBN | Varies by project type. |
| NRB approval & bank KYC | 0–10,000 | 0–75 | Bank | Bank forms, SWIFT receipts. |
| Initial accounting setup | 20,000–80,000 | 150–590 | CPA / Firm | COA, tax codes, templates. |
| First payroll setup | 10,000–40,000 | 75–295 | Payroll provider | Policies and pay rules. |
| Labor office registration | 0–5,000 | 0–37 | Labor Office | Filing cost is minimal. |
| SSF enrollment | 0–3,000 | 0–22 | SSF | Filing cost is minimal. |
| Immigration filings** | 0–100,000 | 0–740 | DoI | Only when expat staff needed. |
| Importer/exporter code (if trade) | 0–10,000 | 0–75 | Customs / Dept. | Sector-specific. |
* FDI filing appears if you have foreign ownership or technology transfer.
** Work permits, business visas, or non-tourist visas for expats.
Typical one-time subtotal (no FDI, basic setup): NPR 65,000–250,000 (USD 480–1,850).
Typical one-time subtotal (with FDI and immigration items): NPR 150,000–500,000+ (USD 1,110–3,700+).
| Cost category | Monthly (NPR) | USD | Annual (NPR) | USD | Notes |
|---|---|---|---|---|---|
| Accounting & tax compliance retainer | 40,000–150,000 | 295–1,110 | — | — | Includes VAT/TDS returns. Scope driven. |
| Payroll processing | 10,000–35,000 | 75–260 | — | — | Headcount driven. |
| Registered address / office rent | 60,000–250,000 | 445–1,850 | — | — | Kathmandu grade and size. |
| Internet & utilities | 8,000–25,000 | 60–185 | — | — | Speed and backup lines. |
| Statutory audit fee | — | — | 75,000–300,000 | 555–2,220 | Annual audit is mandatory. |
| Local taxes & levies | — | — | 5,000–20,000 | 37–150 | Municipality and signage. |
| Data protection & IT tools | 15,000–60,000 | 110–445 | — | — | Email, security, backups. |
| HR compliance & training | 10,000–30,000 | 75–220 | — | — | Policies and sessions. |
| Corporate secretarial | 5,000–30,000 | 37–220 | — | — | Minutes, filings, updates. |
Typical monthly run-rate (lean team): NPR 140,000–300,000 (USD 1,035–2,220).
Typical annual add-ons (audit, levies, etc.): NPR 100,000–350,000 (USD 740–2,590).
Authorized capital
Registration fees follow capital slabs. Higher capital increases OCR fees.
FDI pathway
FDI adds approvals and bank compliance. Timelines and advisory depth add cost.
Sector rules
Some sectors need extra permits. Examples include healthcare, education, and finance.
People plan
Expat permits, payroll complexity, and headcount change fees.
Location and office grade
Prime areas cost more. Shared offices reduce early spend.
| Scenario | Use case | One-time (NPR) | USD | Monthly (NPR) | USD | Notes |
|---|---|---|---|---|---|---|
| Lean launch | Small services, no FDI | 65,000–180,000 | 480–1,330 | 120,000–200,000 | 890–1,480 | Virtual address or small office. |
| Standard FDI | Foreign-owned SME | 150,000–350,000 | 1,110–2,590 | 180,000–320,000 | 1,330–2,370 | FDI filings and bank work. |
| Regulated/large | High-compliance or headcount | 300,000–800,000+ | 2,220–5,930+ | 300,000–800,000+ | 2,220–5,930+ | Permits and audits scale up. |
List your authorized capital and ownership.
Check if FDI applies to your structure.
Pick an office model and location.
Map headcount and payroll rules.
Choose accounting and tax scope.
Add audit and secretarial items.
Add visa/immigration if needed.
Add a 10–20% contingency buffer.
Convert to USD with your bank rate.
Review with a local advisor before filing.
Name reservation is quick but must meet OCR rules.
Keep two backup names to avoid repeat fees.
Draft MOA/AOA aligned with FITTA if FDI.
OCR fees rise with capital.
Set capital to your first-year needs plus buffer.
Later increases cost more admin. Plan ahead.
Open a capital account early.
Align remittance purpose codes with NRB forms.
Keep SWIFT copies for DOI and tax evidence.
PAN is mandatory. VAT is sector and turnover driven.
Map your supply chain before choosing VAT.
Train your team on TDS and e-filing calendars.
Draft contracts that fit Labor Act rules.
Register staff in SSF. Budget employer contributions.
Set leave and overtime policies in writing.
Audit is annual and mandatory.
Minutes, registers, and filings must be timely.
Keep a compliance calendar for peace of mind.
Extra translations for home-country parent documents.
Courier and notary loops for board resolutions.
Immigration medicals and police reports for expats.
Municipal signage and waste-management levies.
Data backup and cybersecurity subscriptions.
Board meeting administration and minute writing.
When does FDI apply?
Any foreign shareholding or technology transfer triggers FITTA. Banks and DOI will check documents closely.
Typical extra items
FDI application drafting and schedule mapping.
Shareholder KYC and notarized documents.
NRB compliance for capital inflow and share allotment.
Post-approval reporting to DOI/IBN.
Periodic changes, expansions, or technology transfer updates.
Budget impact
Add NPR 75,000–250,000 one-time for advisory and filings. Add bank and courier costs.
Week 1: Name reservation, document prep, office selection.
Week 2–3: Company registration and PAN.
Week 3–5: VAT (if required), labor office, SSF.
FDI path: Add 2–6+ weeks for DOI/NRB and remittance steps.
Immigration: Add 2–8+ weeks based on visa class.
Use staged payments with milestones to manage cash burn.
Negotiate scope, not quality.
Fixed-fee packages with clear deliverables reduce drift.
Bundle compliance.
Accounting, tax, payroll, and secretarial under one provider save time.
Right-size your office.
Start with managed or shared space, then upgrade.
Automate filings.
Adopt e-invoicing, payroll systems, and a compliance calendar.
Plan capital wisely.
Avoid oversized authorized capital in year one.
Companies Act: filings for formation, directors, capital changes, and annual returns.
FITTA 2019: approvals for foreign share capital and technology transfers.
NRB Directives: evidence for inward remittance and share allotment.
Income Tax Act 2058 / VAT Act 2052: registration, TDS, VAT, and returns.
Labor Act 2017 / SSF Act 2018: employee rights and social security.
These define your must-do tasks and related costs.
Assume: 100% foreign-owned IT services company in Kathmandu. Five staff. VAT registered. Authorized capital NPR 10 million.
One-time
OCR items: NPR 60,000
Legal and notary: NPR 40,000
Stamps, seal, signage: NPR 10,000
FDI and NRB advisory: NPR 120,000
Accounting and payroll setup: NPR 60,000
Total one-time: NPR 290,000 (~USD 2,150)
Monthly
Accounting & tax retainer: NPR 90,000
Payroll processing: NPR 20,000
Office rent and utilities: NPR 160,000
IT tools and security: NPR 30,000
Secretarial: NPR 10,000
Total monthly: NPR 310,000 (~USD 2,300)
Annual add-ons
Audit: NPR 150,000
Local levies: NPR 10,000
Total annual add-ons: NPR 160,000 (~USD 1,185)
Missed filings and penalties.
VAT or TDS non-compliance.
Delayed FDI remittance approvals.
Visa issues for expats.
Reputational damage with banks and partners.
Budget conservatively and track actuals monthly.
| Task | You | Local Advisor | Auditor | Bank / Regulator |
|---|---|---|---|---|
| Name reservation & filing | C | R | I | I |
| MOA/AOA drafting | C | R | I | I |
| OCR registration | I | R | I | A |
| PAN/VAT | I | R | I | A |
| FDI/NRB | I | R | I | A |
| Payroll & HR | A | R | I | I |
| Audit | I | C | R | I |
| Annual returns | I | R | C | A |
A = Accountable, R = Responsible, C = Consulted, I = Informed.
1) What is the cheapest way to register a company in Nepal?
Use a lean authorized capital, shared office, and bundled compliance. Avoid VAT unless needed. Keep scope narrow and file clean documents.
2) How much does FDI add to the cost?
Expect NPR 75,000–250,000 extra one-time for drafting, filings, and bank coordination. Add courier and translation costs.
3) Is VAT registration mandatory for all companies?
No. VAT is sector and turnover driven. Many service firms can start without VAT. Check your customer chain first.
4) What ongoing annual costs should I expect?
Audit, secretarial filings, and local levies. Add your monthly run-rate for accounting, payroll, office, and IT.
5) How long does registration take?
Local companies often complete core steps in 2–3 weeks. FDI cases add 2–6+ weeks for approvals and remittance steps.