Online company registration Nepal has transformed how foreign founders enter the Nepali market. What once required weeks of physical paperwork can now be initiated digitally through government portals. But a critical question remains: can foreigners actually use online services to register a company in Nepal?
The short answer is yes. However, the process differs from that of local founders and involves additional Foreign Direct Investment (FDI) compliance. This guide explains everything foreign companies need to know, step by step, in clear and practical terms.
Online company registration in Nepal is primarily administered by the Office of the Company Registrar (OCR). The OCR’s electronic system allows founders to reserve names, submit incorporation documents, and track approvals.
For foreigners, the online system is only one part of a multi-authority approval framework that also includes investment and sector regulators.
Office of the Company Registrar (OCR) – company incorporation
Department of Industry (DOI) or Investment Board Nepal (IBN) – FDI approval
Nepal Rastra Bank (NRB) – capital inflow and repatriation
Inland Revenue Department (IRD) – tax registration
Online submission is possible, but foreign ownership triggers additional offline verification and approvals.
Yes. Foreigners can use online services for company registration in Nepal, but not as a fully automated, end-to-end process.
Online portals are used for:
Name reservation
Incorporation filings
Document uploads
Status tracking
However, FDI approval and banking compliance still require parallel regulatory processes.
Foreign company registration in Nepal is governed by several key laws:
Companies Act 2006
Foreign Investment and Technology Transfer Act (FITTA) 2019
Industrial Enterprises Act 2020
Nepal Rastra Bank Foreign Exchange Regulations
These laws collectively permit foreign ownership while ensuring regulatory oversight.
This is the most common structure for foreign investors.
Features:
Minimum 1 shareholder
100 percent foreign ownership allowed in most sectors
Suitable for IT, consulting, outsourcing, and services
Less common for initial market entry.
Used when:
Large capital investment is planned
Public fundraising is expected
Not incorporated companies, but registered presences.
Used for:
Market research
Coordination activities
Non-revenue operations
Foreigners can reserve a company name directly on the OCR portal.
Requirements:
Unique name
Clear business objective
Alignment with permitted FDI sectors
Key documents include:
Memorandum of Association
Articles of Association
Shareholder passport copies
Board resolutions
The following are uploaded online:
Incorporation forms
Company statutes
Shareholding details
OCR reviews the submission digitally.
This is where foreign companies differ from locals.
FDI approval requires:
Investment proposal
Source of funds declaration
Sector eligibility confirmation
Foreign capital must be:
Remitted through approved banking channels
Reported to Nepal Rastra Bank
After incorporation:
PAN and VAT registration
Social Security Fund registration
Local bank account activation
| Process Stage | Fully Online | Hybrid | Offline |
|---|---|---|---|
| Name reservation | ✓ | ||
| OCR incorporation filing | ✓ | ||
| FDI approval | ✓ | ||
| Capital verification | ✓ | ||
| Bank account setup | ✓ | ||
| Tax registration | ✓ |
Insight: Online company registration Nepal works best when combined with local compliance support.
Foreign founders often underestimate regulatory complexity.
Incorrect FDI categorization
Delays in capital verification
Misaligned company objectives
Incomplete compliance sequencing
Most delays occur after online submission, not during it.
Foreigners commonly register companies online in these sectors:
Information Technology
Software development
Business process outsourcing
Management consulting
Digital marketing
Engineering services
Restricted sectors require special approvals or are prohibited under FITTA.
Faster document submission
Transparent tracking
Reduced physical presence
Early legal recognition
Online filing allows foreign founders to:
Secure brand names early
Align incorporation with FDI timelines
Plan staffing and contracts confidently
| Factor | Online Company Registration | Employer of Record |
|---|---|---|
| Legal entity | Yes | No |
| Time to start | 6–10 weeks | 1–2 weeks |
| FDI approval | Required | Not required |
| Compliance burden | High | Low |
| Scalability | Long term | Short to medium term |
Original insight: Many foreign companies start with EOR and transition to full online company registration Nepal later.
Foreign-owned companies must maintain ongoing compliance.
Monthly tax filings
Annual audits
FDI reporting to NRB
Shareholding change approvals
Non-compliance can restrict profit repatriation.
Under FITTA 2019, foreign investors are entitled to repatriate:
Dividends
Capital gains
Loan repayments
Technology fees
Conditions:
Taxes must be settled
NRB approval required
Costs vary depending on capital and sector.
Government registration fees
FDI approval fees
Legal and advisory fees
Bank compliance costs
Foreign founders should budget conservatively.
In most cases:
Initial registration can be managed remotely
Power of attorney enables local representation
Bank account setup may require presence
Finalize FDI eligibility before name registration
Align company objectives with sector rules
Use professional compliance support
Plan capital injection early
Maintain clean documentation
Online company registration Nepal looks simple on the surface. For foreign companies, it is legally layered.
Professional advisors help:
Prevent regulatory rejections
Reduce delays
Ensure repatriation eligibility
Protect long-term operations
Online company registration Nepal is fully accessible to foreign investors when approached correctly. While the OCR system enables digital incorporation, foreign ownership introduces FDI, banking, and tax compliance layers.
Foreigners can absolutely use online services to register a company in Nepal. Success depends on sequencing, documentation, and regulatory alignment.
If you plan carefully, Nepal offers one of South Asia’s most cost-effective and scalable entry points for international businesses.
Planning online company registration Nepal as a foreign investor?
Speak with a specialist who handles OCR filing, FDI approval, NRB compliance, and post-registration support end-to-end.
👉 Book a free consultation to assess your best entry strategy.
Yes. Foreigners can use online portals for company registration, but FDI approval and banking compliance are also required.
Yes. Most service and IT sectors allow full foreign ownership under FITTA 2019.
Typically 6 to 10 weeks, depending on FDI approval and capital verification.
Not always. Registration can be done remotely, though banking steps may require presence.
Government fees are similar, but foreign companies incur additional FDI and compliance costs.