Start a business in Nepal is no longer a question reserved for seasoned entrepreneurs. Students—both Nepali and international—are increasingly exploring Nepal as a launchpad for startups. From IT services and e-commerce to social enterprises and tourism, the country offers a young workforce, competitive costs, and improving digital infrastructure. This guide explains whether students can legally start a business in Nepal, the rules that apply, and the opportunities worth pursuing—written for foreign companies, international students, and education-to-entrepreneurship pathways.
Yes—students can start a business in Nepal, but the rules depend on nationality and visa status.
Nepali students: May register and own companies without restriction.
International students: May participate subject to immigration, investment, and company laws. Direct work rights are limited on a student visa, but ownership and investment can be structured lawfully.
The key is choosing the right entity and compliance path.
While Nepal does not have a single “student startup law,” these frameworks matter:
Company incorporation and shareholding rules
Immigration and visa conditions
Foreign investment thresholds and approvals
Sector-specific licensing and tax compliance
For foreign participation, approvals often involve the Department of Industry and banking oversight by Nepal Rastra Bank.
Nepali students can incorporate a Private Limited Company with:
One or more founders
Full management control
Access to local banking, payment gateways, and grants
Suitable for freelancers and early pilots. It is simpler but less scalable.
Common for family-backed or community ventures.
Bottom line: Nepali students face no ownership restrictions.
International students must align immigration status with business ownership.
Equity ownership as a foreign investor
Board participation (non-operational)
Passive income through dividends
Day-to-day work on a student visa
Signing as local operational staff
Foreign Direct Investment (FDI) Company
Meet the minimum capital requirement and obtain approvals.
Local Partner Structure
Shareholding with a Nepali co-founder, with governance safeguards.
Holding Company Abroad + Nepal Subsidiary
Common for education-linked startups scaling later.
Practical tip: Many founders transition from a student visa to a business/investment visa once traction is proven.
Focus on sectors welcoming student founders:
IT and software services
Digital marketing and BPO
EdTech and training
Tourism experiences
Social enterprises
Private Limited Company is the default for growth.
FDI approval, bank account, and capital injection.
Name approval, incorporation, PAN/VAT.
Local account for operations; foreign inflows routed per NRB rules.
Accounting, annual filings, and renewals.
| Item | Nepali Student | International Student |
|---|---|---|
| Company registration | Low | Moderate |
| Government approvals | Minimal | Required |
| Bank account | Fast | Structured |
| Timeline | 7–14 days | 30–60 days |
| Work rights | Full | Restricted |
Insight: International founders trade speed for scalability and repatriation certainty.
Nepal’s talent pool enables export-oriented services.
Credentialing, test prep, and micro-courses.
High margins with local knowledge.
Impact-driven ventures attract grants and partners.
Working operationally on a student visa
Skipping FDI approvals for foreign ownership
Informal banking and tax shortcuts
No shareholders’ agreement with local partners
Avoiding these protects immigration status and future fundraising.
Company registration complete
PAN and VAT assessed
Bank account compliant
Annual filings scheduled
Visa status aligned
Yes. International students may own shares via FDI or structured partnerships. Operational work requires visa alignment.
Nepali students can. International students generally cannot work on a student visa.
FDI requires a government-set minimum capital. It must be remitted through approved banking channels.
Local founders: about two weeks. Foreign founders: one to two months.
Yes. Approved FDI companies may repatriate dividends and capital, subject to compliance.
Low startup costs
English-speaking talent
Strategic access to South Asia
Growing digital economy
For foreign companies, student-led startups often become early talent and innovation hubs.
If you want to start a business in Nepal, students absolutely can—with the right structure. Nepali students enjoy full freedom. International students can succeed through compliant ownership and a planned visa transition. Done right, Nepal offers a rare mix of affordability, talent, and growth potential.
Thinking of launching or investing in a student-led business in Nepal?
Book a consultation to map the right structure, approvals, and timeline—so you build fast and stay compliant.