Company registration in Nepal is often the first and most critical step for foreign companies planning to enter South Asia. Nepal offers strategic access to India and China, a young workforce, and clear foreign investment laws. However, incorporation involves multiple approvals, documents, and post-registration obligations.
This 2026 checklist is designed as a single authoritative guide for foreign founders, CFOs, and legal teams. It walks you through every requirement, from name reservation to tax registration and ongoing compliance, using plain language and current law.
Nepal has steadily modernised its investment framework. Key drivers include:
Liberalised Foreign Investment and Technology Transfer Act (FITTA) 2019
Full foreign ownership allowed in most sectors
Competitive operating costs compared to India and Southeast Asia
Growing IT, outsourcing, energy, and consulting sectors
For many investors, the challenge is not whether to register a company in Nepal, but how to do it correctly the first time.
Before diving into the checklist, it is important to understand the laws that regulate incorporation.
Companies Act 2006
Governs company formation, shareholding, directors, and filings.
Foreign Investment and Technology Transfer Act 2019 (FITTA)
Regulates foreign ownership, approvals, and repatriation.
Industrial Enterprises Act 2020
Sector classification and industry registration.
Income Tax Act 2002
Corporate tax, withholding tax, and permanent account number.
Labour Act 2017 & Social Security Act 2018
Employment and payroll compliance.
These laws form the backbone of company registration in Nepal for foreign companies.
Choosing the correct structure is a strategic decision.
Private Limited Company
Most popular structure for foreign investors.
Branch Office
Suitable for project-based or parent-controlled operations.
Liaison Office
Non-revenue generating, market research only.
Over 80 percent of foreign investors opt for a Private Limited Company, due to flexibility, limited liability, and local credibility.
This is where most delays happen. Preparation matters.
Not all sectors are open to FDI.
Check whether your business falls under:
Fully open sectors
Restricted sectors requiring approval
Prohibited sectors (few and specific)
Professional verification avoids rejection at the Department of Industry.
Foreign companies must define:
Shareholding percentage
Minimum paid-up capital (varies by sector)
Currency of investment
FDI typically requires inward remittance through a Nepal Rastra Bank-approved bank.
Key requirements:
Minimum one shareholder
Minimum one director
Foreign nationals allowed as directors
Passports, photographs, and notarised documents are mandatory.
Submit 3 proposed names via the Office of Company Registrar (OCR) portal.
Tips for approval:
Avoid restricted or sensitive words
Ensure name reflects actual business activity
Check trademark conflicts early
You will need:
Memorandum of Association (MOA)
Articles of Association (AOA)
Shareholder and director details
Registered office address in Nepal
All foreign documents must be notarised and, in some cases, apostilled.
Submit documents online and pay government fees.
Once approved, you receive:
Certificate of Incorporation
Company Registration Number
This marks the legal birth of your company in Nepal.
Foreign companies must obtain approval from:
Department of Industry (DOI) or
Investment Board Nepal (IBN) for large projects
Approval is based on:
Business plan
Capital commitment
Sector classification
After approval:
Open a company bank account in Nepal
Remit foreign capital
Obtain inward remittance certificate
This step is crucial for future profit repatriation.
Company registration in Nepal does not end with incorporation.
Permanent Account Number (PAN)
VAT registration (if applicable)
Industry registration
Foreign companies must comply with:
Labour Act 2017
Social Security Fund (SSF) registration
Employment contracts under Nepali law
Failure here can trigger penalties.
You must maintain:
Annual returns with OCR
Tax filings (monthly, quarterly, annual)
Audit reports
Professional compliance support is highly recommended.
Avoid these costly errors:
Choosing the wrong entity type
Underestimating capital requirements
Ignoring post-registration compliance
Using generic MOA/AOA templates
Delaying FDI approval filings
| Stage | Estimated Time |
|---|---|
| Name reservation | 1–2 working days |
| Company incorporation | 3–5 working days |
| FDI approval | 2–4 weeks |
| Bank remittance & setup | 1–2 weeks |
| Full operational readiness | 4–6 weeks |
Costs vary by sector and structure.
Government registration fees
FDI approval processing
Legal documentation
Tax and compliance setup
A realistic budget avoids surprises later.
A structured checklist:
Reduces approval delays
Ensures legal compliance
Protects repatriation rights
Builds credibility with regulators
For foreign companies, process discipline equals risk reduction.
Experienced local advisors help with:
Regulatory interpretation
Documentation accuracy
Government liaison
Ongoing compliance
This is especially critical for foreign founders unfamiliar with Nepal’s regulatory culture.
Planning company registration in Nepal in 2026?
👉 Speak with our Nepal FDI and incorporation specialists to receive a personalised checklist, timeline, and cost estimate tailored to your business model.
Getting it right at the start saves months later.
Yes. Foreigners can own up to 100 percent equity in most sectors under FITTA 2019.
Typically 4–6 weeks, including FDI approval and bank formalities.
No. Foreign nationals can serve as directors in Nepalese companies.
The minimum threshold depends on the sector and is set by government policy.
Yes. FITTA 2019 allows repatriation of profits, dividends, and capital, subject to compliance.
Company registration in Nepal for foreign companies is straightforward when approached with the right checklist, legal clarity, and professional guidance. Nepal’s 2026 regulatory environment rewards investors who plan early and comply fully.
With the right structure, your Nepal entity can scale confidently and compliantly