Cost of Business Registration in Nepal: Fees, Taxes & Hidden Charges

Registering a company is fast if you prepare well. Budget mistakes slow everything. Government fees vary with authorized capital. Taxes, stamps, and local registrations add up. Professional help saves time but adds service fees. This guide explains every cost you should expect and where teams overspend.

What “cost of business registration in Nepal” includes

Your full budget has four layers:

1. Government filing fees at the OCR, DOI, and Ward Office.

2. Taxes and duties such as stamp duty on MOA/AOA and VAT on services.

3. Compliance and account setup at IRD (PAN, VAT) and banks.

4. Professional and operational expenses like legal drafting, translation, and office address.

Keep these layers separate. You can control layers three and four with planning.

Quick glossary for foreign teams

• OCR: Office of the Company Registrar. Handles company name approval and incorporation.

• DOI: Department of Industry. Approves foreign investment, branches, and liaison offices.

• IRD: Inland Revenue Department. Issues PAN and VAT.

• PAN: Permanent Account Number.

• VAT: Value Added Tax (13% standard rate).

• Ward Office: Local authority. Registers your business location and issues local approvals.

The cost drivers most investors overlook

• Authorized capital. OCR fees scale with the capital you register.

• Stamp duty. Charged on constitutional documents as a small percentage of capital.

• FDI route. Branch or liaison requires DOI approval and different OCR fees than a local private limited.

• Local address. You need a valid lease or address letter. Ward registration fees vary by municipality.

• Professional VAT. Legal and consulting invoices usually add 13% VAT.

• Translations and notarizations. Required if directors’ documents are in another language.

• Bank onboarding. Initial deposits are small, but documentary standards are strict.

• Sector licenses. Some activities need extra permits.

Typical government fees and taxes (at a glance)

• Name reservation (OCR): Nominal, typically a small filing amount.

• Company registration fee (OCR): Scales with authorized capital. Private companies pay a tiered fee; public companies pay higher bands.

• Stamp duty on MOA/AOA: Small percentage of authorized capital (commonly budgeted at around half a percent for planning).

• PAN registration (IRD): Nominal administrative charge.

• VAT registration (IRD): Nominal administrative charge.

• Ward registration: Varies by municipality and business category.

• DOI approval (FDI/Branch/Liaison): Fixed application fee for approval of foreign investment or branch/liaison presence.

• Special licenses: Sector-specific, where applicable.

Comparison table: routes and what you should budget

Business registration in Nepal: cost checklist you can trust

1) Pre-filing and name reservation

• Name clearance: Nominal OCR charge. Have three name options ready.

• Director/KYC prep: Passport copies, photos, and addresses. Translate if needed.

• Board resolution (FDI cases): From the foreign parent authorizing investment or branch.

2) Constitutional documents and stamps

• MOA/AOA drafting: Keep objects precise.

• Stamp duty: Budget a small percentage of authorized capital for stamps on MOA/AOA.

• Notarization: If documents are foreign, notarize and legalize per Nepal practice.

3) Incorporation filing (OCR) or DOI approval

• Private limited: Pay OCR registration fee based on authorized capital band.

• Branch/Liaison: Apply to DOI first, then pay OCR’s flat registration fee for the branch or liaison.

4) Post-incorporation setup

• PAN: Apply at IRD with company documents.

• VAT: Register if you expect taxable supplies; otherwise monitor threshold.

• Ward registration: File the tenancy/ownership paper and business details.

• Bank account: Provide KYC, company documents, and authorized signatory forms.

• Company seal: Order a rubber stamp; it is customary for official documents.

Hidden charges: where budgets drift

• Translations and legalizations. Foreign documents often require notarization, legalization, and sometimes translation.

• Courier and incidental fees. Moving originals between jurisdictions adds time and cost.

• Local address setup. Lease stamping, landlord letters, and municipality fees vary.

• Professional VAT. Add 13% VAT to most local service invoices.

• Re-filings. Name rejections or object clause edits can cause extra drafting and small refiling costs.

• Sector licenses. Do not forget industry permissions if you operate in regulated sectors.

Worked examples: realistic planning budgets

The numbers below show how to think about the budget. Replace with your actual capital and quotes.

Example A — Private Limited with NPR 1,000,000 authorized capital

• OCR registration fee: Use the capital band that covers 1,000,000.

• Stamp duty: Budget around half a percent of authorized capital for stamps on MOA/AOA.

• PAN/VAT: Nominal administrative fees for both.

• Ward registration: Budget a modest local fee; exact amount set by municipality.

• Professional fees: Legal drafting, filings, and tax setup. Add 13% VAT to service invoices.

• Miscellaneous: Company seal, incidental photocopying, passport translations if any.

Example B — Private Limited with NPR 10,000,000 authorized capital

• OCR fee: Higher capital band applies.

• Stamp duty: Scales with capital; set aside a proportional amount.

• Ward: Slightly higher local classification may apply.

• Professional: Similar scope, but more director KYC and bank onboarding time.

• Sector license: If you import, manufacture, or export, budget for that license.

Example C — Branch office of a foreign company

• DOI approval fee: Fixed application fee.

• OCR branch registration: Flat fee for branch registration.

• PAN/VAT: Nominal administrative fees.

• Local rep and address: Budget for appointment documentation and Ward registration.

• Professional fees: Legalization of parent docs plus filings.

• Audit and tax: Branch returns filed in Nepal; plan annual costs.

Example D — Liaison office (non-trading)

• DOI approval fee: Fixed application fee.

• OCR liaison registration: Flat fee, typically lower than branch.

• PAN: Obtain for identification; VAT not applicable for non-trading.

• Operating costs: Office lease, staff permits if applicable, and periodic activity reports.

• Professional fees: Modest compared to branch.

Numbered action plan: register without budget surprises

1. Fix authorized capital early. It drives OCR fee and stamp duty.

2. Pick the route. Subsidiary for trading, branch for direct presence, liaison for representation.

3. Collect KYC. Directors, shareholders, and parent board resolutions.

4. Draft MOA/AOA. Align your objects with business scope and licenses.

5. Confirm fee bands. Check the latest OCR schedule before paying.

6. File and obtain certificate. Keep the certificate and PAN/VAT handy for banks.

7. Register at Ward. Complete local registration and tenancy filings.

8. Open bank account. Prepare signatory forms and specimen signatures.

9. Order company seal. Common local requirement.

10. Calendar compliance. Annual return, audit, and tax filing dates.

Bulleted checklist: documents that reduce rework

• Proposed company names (three options).

• Shareholder and director passports and addresses.

• Local address proof and lease or ownership documents.

• MOA and AOA in final form.

• Board resolutions (for FDI, branch, or liaison).

• Power of Attorney for local representative.

• Draft bank mandate and signatory list.

• PAN/VAT application forms prepared.

Taxes after registration (plan these too)

• Corporate income tax. General rate applies to most companies; financial institutions have higher rates.

• VAT at 13%. Charge VAT on taxable supplies. Claim input VAT per rules.

• Withholding tax. On selected payments such as services and rent.

• Payroll taxes. Pay As You Earn (PAYE), Social Security Fund where applicable.

• Customs and excise. If you import capital goods or manufacture.

Tax is not a registration cost. It affects your first-year budget. Set up accounting from day one.

EEAT note: what the law and guidance say

• Companies Act 2063 (2006). Sets incorporation procedures, share capital rules, and filings.

• Foreign Investment and Technology Transfer Act 2019. Governs FDI entry, branch and liaison approvals.

• OCR fee schedules. Publish band-wise incorporation fees for private and public companies.

• IRD procedures. Explain PAN/VAT registration and filing obligations.

• Local Government procedures. Ward offices set local business registration and municipal fees.

Cite these instruments in your internal memo. Keep PDFs or official circulars in your deal room.

Frequently asked questions 

1) What is the minimum cost to register a company in Nepal?
You pay an OCR fee based on authorized capital, plus a small stamp duty on MOA/AOA, nominal PAN/VAT charges, Ward registration, and reasonable professional fees. The totals are modest for low-capital companies and scale with capital and scope.

2) Do foreign investors need a local partner?
No. A private limited company can be 100% foreign-owned under the FDI regime, subject to sectoral restrictions. Branch and liaison offices are also available, each with specific conditions.

3) How long does registration take?
If your documents are complete, company registration often completes within business days. Add time for DOI approval if you set up a branch or liaison. Bank onboarding and local registrations may add a few days.

4) Is VAT registration mandatory for all companies?
Not always. You must register if you make taxable supplies above the prevailing threshold or if your sector requires VAT. Many investors register at the outset to claim input VAT and avoid delays.

5) What are the main hidden costs?
Translations, notarizations, address setup, professional VAT, courier charges, sector licenses, and re-filing after name or object rejections. Good planning keeps these small.