Can Foreigners Register a Company Online in Nepal?

If you’re a foreign entrepreneur or business owner, you’ve probably wondered whether you can register a company in Nepal online without having to travel. The short answer is yes, foreigners can use Nepal’s online company registration system through the Office of Company Registrar (OCR), but the process involves additional steps under FITTA 2019, NRB and DOI regulations.

This guide explains how foreigners can legally and efficiently register a company online in Nepal, what approvals they need, how to manage taxation, and how expert partners like Digital Consulting Ventures (DCV) simplify the process from abroad.

You will learn:

• How online company registration works for foreigners

• The laws governing foreign investment (FITTA 2019, Companies Act 2006)

• The OCR digital filing process and required documents

• How to manage NRB and DOI approvals remotely

• Key compliance duties after registration

Why Nepal Is Attracting Foreign Entrepreneurs

Nepal has become a rising destination for international entrepreneurs and SMEs expanding into South Asia.

• Strategic location: access to both India and China via trade corridors.

• Digital transformation: full online company registration through the OCR portal.

• Favorable laws: FITTA 2019 allows 100 percent foreign ownership in most industries.

• Cost-effective workforce: highly skilled yet affordable talent.

• Growing FDI inflows: reforms under the Industrial Enterprises Act 2020 and NRB directives.

Foreigners can complete nearly every step remotely, from name reservation to incorporation certificate, with the right documentation and authorized representatives in Nepal.

Legal Framework for Foreign Online Registration

1. Companies Act 2006 (2063)

Defines the process for incorporating private limited companies, both domestic and foreign-owned. It mandates online filing via OCR and establishes the legal personality of the company.

2. Foreign Investment and Technology Transfer Act (FITTA) 2019

Allows foreigners to invest in Nepal by purchasing shares or establishing a new entity. FITTA requires foreign investors to obtain approval from the Department of Industry (DOI) or the Investment Board of Nepal (IBN) before submitting to OCR.

3. Nepal Rastra Bank (NRB) Directives

When funds are brought in from abroad, NRB approval is required for foreign currency transactions and future repatriation of profits or capital.

4. Tax and Labor Acts

After incorporation, the company must register for tax under the Income Tax Act 2002, VAT under the VAT Act 1996, and employee benefits under the Labor Act 2017 and Social Security Act 2018.

Together, these laws enable foreigners to incorporate digitally while ensuring compliance with Nepal’s legal and fiscal systems.

Can Foreigners Really Register a Company Online in Nepal?

Yes. Nepal’s OCR platform allows foreign nationals to register companies digitally from anywhere. However, foreign applicants must first secure FDI approval from DOI/IBN and NRB authorization for their investment capital.

Foreigners can complete each phase remotely through authorized representatives or legal consultants such as DCV who act on behalf of the foreign shareholders.

Step-by-Step Process for Foreign Online Company Registration

1. Name Reservation through OCR Portal

Reserve a unique company name via the OCR online system. Once approved, the name is locked for 35 days.

2. Document Preparation

Prepare and digitally sign the following documents:

• Memorandum of Association (MOA) and Articles of Association (AOA)

• Passport copies of foreign directors/shareholders

• Proof of registered office address in Nepal

• Power of Attorney authorizing a local representative

3. Foreign Investment Approval (FITTA 2019)

Submit an investment proposal to the Department of Industry or Investment Board Nepal. This includes company details, capital structure, technology transfer (if any), and business objectives.

4. NRB Approval for Foreign Currency Inflow

After DOI/IBN approval, apply to NRB for permission to bring foreign currency into Nepal through formal banking channels. This approval is essential for future repatriation of profits.

5. Online Submission to OCR

Once approvals are in place, submit all documents to OCR digitally for registration. OCR reviews and issues the Certificate of Incorporation.

6. Tax Registrations (PAN and VAT)

Register for Permanent Account Number (PAN) and VAT as per Income Tax Act and VAT Act. These can be done online via the Inland Revenue Department.

7. Social Security Fund (SSF) Enrollment

If hiring staff, register employees with the Social Security Fund and make monthly contributions as required under the Social Security Act 2018.

8. Open Corporate Bank Account

Use a Nepalese bank authorized for foreign transactions to receive the investment capital and operational funds.

9. Post-Incorporation Compliance

Maintain proper books of accounts, file annual returns with OCR, and ensure timely tax filings and audits.

Key Requirements for Foreign Applicants

• Minimum one shareholder and one director (required under Companies Act 2006).

• Foreign investment must be in convertible currency and channeled through the banking system.

• FDI threshold requirements may apply (depending on sector).

• All foreign documents must be translated into Nepali and notarized.

• Registered office address in Nepal is mandatory.

• Annual audit and financial statements must be prepared under Nepal Accounting Standards.

Benefits of Using Online Services for Company Registration

• Remote access: Foreigners can incorporate from anywhere.

• Reduced time: Digital submission minimizes bureaucratic delays.

• Transparency: Direct status updates through OCR portal.

• Legally recognized: All digital approvals have equal legal validity as manual filing.

• Cost-effective: Eliminates multiple physical visits to Nepal.

• Integrated workflow: OCR, DOI and NRB data can be coordinated electronically through consultants.

Cost and Timeline Comparison

Understanding Tax and Compliance Obligations

1. Corporate Tax and VAT

The standard corporate tax rate in Nepal is 25 percent for general businesses. Additional rates apply for specific sectors like banking and telecom. VAT registration is mandatory when turnover exceeds the threshold.

2. Accounting and Audit

All companies must maintain accounting records and appoint a licensed auditor under the Companies Act. Audited financial statements are submitted annually to OCR and tax authorities.

3. Labor and Social Security Compliance

Foreign companies must abide by the Labor Act 2017 regarding employee contracts, working conditions, and termination. Employers and employees must contribute to the Social Security Fund.

4. Repatriation of Profits

FITTA 2019 and NRB allow foreign investors to repatriate profits, dividends, and capital after tax clearance and submission of supporting documents.

Key Challenges Foreigners Face During Online Registration

• Complex documentation requirements for FDI approval.

• Limited understanding of Nepalese legal terminology.

• Delay due to translation or notarization issues.

• Coordination between DOI, NRB and OCR.

• Ensuring compliance with tax, labour and social security laws.

With expert guidance from DCV, these challenges can be mitigated effectively through end-to-end compliance support.

Post-Incorporation Compliance Checklist

Immigration and Visa Considerations

Foreign shareholders or directors visiting Nepal for business operations must obtain a Business Visa or Non-Tourist Visa through the Department of Immigration. A copy of the company’s registration certificate and PAN is typically required for visa endorsement.

Data Protection and Intellectual Property Compliance

Under the Consumer Protection Act and Industrial Property Act, foreign entities operating digitally in Nepal should also protect their intellectual property through trademark or patent registration. These can be filed electronically through the Department of Industry.

Advantages of Partnering with DCV

Digital Consulting Ventures (DCV) is a leading incorporation and compliance firm based in Kathmandu specializing in foreign company setup. Our services cover every aspect of the process:

• Company registration through OCR online portal.

• Foreign investment approvals from DOI and NRB.

• PAN, VAT and SSF registrations.

• Monthly accounting and payroll compliance.

• Tax filing and audit coordination.

• Legal representation and visa advisory for foreign directors.

With DCV, foreigners can register a company in Nepal remotely and operate with complete compliance confidence.

Frequently Asked Questions

1. Can foreigners use online services to register a company in Nepal?
Yes. Through OCR’s online portal and with FITTA and NRB approvals, foreigners can register companies remotely using digital documentation and authorized representatives.

2. What approvals do foreign investors need before registration?
They must secure FDI approval from the Department of Industry or Investment Board Nepal, and NRB authorization for capital inflow.

3. Is physical presence required for registration?
No. Most steps can be done remotely, but some documents may require notarization or submission via a local agent.

4. What are the main tax and labour obligations for foreign companies in Nepal?
Companies must register for PAN and VAT, file annual tax returns, appoint auditors, and enroll employees in the Social Security Fund.

5. How can DCV assist foreigners in online registration and compliance?
DCV manages OCR filings, FITTA and NRB approvals, tax registrations, and post-incorporation compliance on behalf of foreign investors.

So yes foreigners can online register and with the right partner it is simple, compliant, and fast. Nepal’s OCR portal enables digital incorporation. FITTA twenty nineteen supports foreign ownership. NRB rules allow repatriation when your banking trail is correct. After incorporation you manage PAN, VAT, SSF, audit, and labour compliance to operate smoothly. 

Digital Consulting Ventures brings legal, tax, and compliance under one roof. We manage OCR, DOI and IBN filings, NRB steps, PAN and VAT, payroll and SSF, accounts and audit, and annual compliance. You focus on your market. We handle the rest.

Book a consultation with DCV to start your online registration in Nepal today. We will assess your sector, map your approvals, and launch your company with a clean bank trail and a complete compliance calendar.