Understanding the company incorporation cost in Nepal is one of the first and most important questions foreign investors ask. While Nepal is known for its affordable labour market and growing digital economy, incorporation costs vary widely depending on your structure, capital, and compliance needs.
This guide offers the most comprehensive, transparent, and up-to-date breakdown of company incorporation Nepal costs. It is written specifically for foreign companies planning market entry, FDI, or long-term operations. By the end, you will know exactly what to budget, what is mandatory, and what costs are often overlooked.
Company incorporation in Nepal is not a flat-fee process. Costs depend on several variables defined under the Companies Act, 2006, FITTA 2019, and related regulations.
Ownership structure (foreign-owned or local)
Type of entity registered
Authorised capital
Sector-specific approvals
Compliance and post-registration needs
Foreign companies should budget not only for registration but also for legal, tax, and operational compliance.
This is the preferred structure for foreign investors.
Why it matters for cost:
Private limited companies require higher compliance, capital disclosure, and approvals.
A branch is not a separate legal entity.
Cost impact:
Lower incorporation fees, but higher regulatory scrutiny and limited scope.
Used for market research only.
Cost impact:
Lower setup cost but no revenue generation allowed.
Government fees are paid mainly to the Office of the Company Registrar (OCR).
| Authorised Capital (NPR) | Government Registration Fee (NPR) |
|---|---|
| Up to 100,000 | 1,000 |
| 100,001 – 500,000 | 4,500 |
| 500,001 – 2,500,000 | 9,500 |
| 2,500,001 – 10,000,000 | 16,000 |
| Above 10,000,000 | Incremental as prescribed |
This fee structure is prescribed under the Companies Act, 2006.
Foreign companies must obtain approval under the Foreign Investment and Technology Transfer Act (FITTA) 2019.
FDI approval application: Minimal government fee
Sector ministry approval (if applicable)
Nepal Rastra Bank (NRB) reporting
While government fees are modest, professional handling is essential to avoid rejection.
Legal and advisory fees often exceed government fees.
Company name reservation
MOA and AOA drafting
FDI application preparation
OCR registration filing
NRB compliance
PAN and VAT registration
Estimated range:
NPR 150,000 to NPR 400,000 depending on complexity.
Nepal does not mandate a fixed minimum capital for all sectors. However, FDI projects generally require a minimum investment threshold, often interpreted at NPR 20 million depending on sectoral guidelines.
Bank account opening
Capital remittance charges
Currency conversion losses
Audit verification of capital inflow
After incorporation, companies must register with the Inland Revenue Department (IRD).
Permanent Account Number (PAN)
VAT (if applicable)
Withholding tax setup
These registrations are low-cost but require accurate documentation.
Foreign companies often underestimate post-incorporation HR costs.
Social Security Fund (SSF) registration
Employer contribution: 20%
Employee contribution: 11%
Payroll compliance filings
These costs begin immediately after hiring employees.
Foreign investors frequently overlook these expenses.
Notary and translation fees
Stamp duties
Digital signature certificates
Annual compliance filings
Accounting and audit retainers
Visa and work permit processing
| Cost Category | Estimated Range (NPR) |
|---|---|
| Government registration fees | 1,000 – 25,000 |
| Legal and advisory fees | 150,000 – 400,000 |
| FDI processing and compliance | 50,000 – 150,000 |
| Tax and post-registration setup | 20,000 – 50,000 |
| First-year compliance support | 100,000 – 300,000 |
Total estimated first-year cost:
NPR 320,000 to NPR 900,000+
Name reservation and document preparation
Government registration fee payment
FDI approval submission
OCR incorporation certificate issuance
PAN and tax registration
Bank account and capital remittance
Labour and SSF compliance
Each step has direct or indirect cost implications.
Low-cost incorporation often results in:
Incorrect shareholding structures
FDI rejection
Delayed capital repatriation
Tax penalties
Labour compliance risks
Professional structuring saves long-term cost and legal exposure.
Time and cost are directly related.
Standard incorporation: 2–4 weeks
FDI-backed incorporation: 4–8 weeks
Fast-tracked filings: Higher professional fees
Company incorporation Nepal costs do not end at registration.
Annual return filing
Financial audit
Tax returns
SSF filings
Board resolutions
Regulatory renewals
Budgeting for compliance avoids regulatory shutdowns.
Despite compliance requirements, Nepal offers:
Low labour costs
Affordable professional services
Strategic South Asia access
Investor protections under FITTA 2019
When structured correctly, Nepal offers strong ROI.
Foreigners should budget NPR 320,000 to NPR 900,000 depending on structure, capital, and compliance needs.
There is no universal minimum, but FDI projects often require higher capital thresholds based on sector.
No. Professional, compliance, and post-registration costs usually exceed government fees.
Yes. Incorporation can be completed remotely using Power of Attorney.
Government fees are non-refundable. Professional fees depend on service terms.
The company incorporation cost in Nepal is affordable, but only when approached with clarity and compliance. Foreign companies that understand the full cost landscape avoid delays, penalties, and restructuring expenses.
A properly structured incorporation is not a cost. It is an investment in stability, compliance, and long-term growth.