Insights

Company Registration Charges in Nepal: Government Fees + Service Costs

Written by Vijay Shrestha | Dec 23, 2025 8:38:36 AM

 

 

 

 

Understanding the cost of company registration in Nepal is one of the first and most critical steps for foreign companies planning market entry. While Nepal is cost-competitive compared to many Asian jurisdictions, the total registration expense is not limited to a single government fee.

Foreign investors must account for government charges, professional service costs, regulatory approvals, and ongoing compliance obligations. When these are misunderstood or underestimated, budgets overrun quickly.

This guide breaks down exactly what foreign companies pay, why the costs vary, and how to plan a realistic registration budget with no surprises.

Why understanding company registration charges in Nepal matters for foreign companies

Foreign investors often compare Nepal with India, Bangladesh, or Vietnam. Nepal stands out for its lower setup cost, English-based legal documentation, and improving FDI framework.

However, Nepal follows a multi-authority registration system, meaning costs are spread across several institutions rather than one single office.

Key regulators involved include:

  • Office of the Company Registrar

  • Department of Industry

  • Nepal Rastra Bank

  • Inland Revenue Department

Each authority introduces its own fees, timelines, and documentation requirements.

Cost of company registration in Nepal for foreign companies

The cost of company registration in Nepal depends on three main variables:

  1. Entity type

  2. Authorized capital

  3. Business activity and sector

Foreign companies typically register under one of the following structures.

Common business structures available to foreign investors

1. Private Limited Company (FDI subsidiary)

The most popular structure for long-term operations.

  • Separate legal entity

  • Eligible for profit repatriation

  • Can hire local and foreign staff

  • Subject to full tax and compliance regime

2. Branch Office

Suitable when the foreign parent wants operational control.

  • Not a separate legal entity

  • Restricted activities

  • Parent company liability applies

3. Liaison Office

Used only for market research and coordination.

  • No revenue-generating activity allowed

  • Lower setup cost

  • Limited regulatory scope

Government fees for company registration in Nepal

Government charges are statutory and non-negotiable. These are paid directly to regulators.

Company registration fee at OCR

The Office of the Company Registrar charges a fee based on authorized capital.

Indicative structure:

  • NPR 1,000,000 capital → approx. NPR 9,500

  • NPR 10,000,000 capital → approx. NPR 29,500

  • NPR 100,000,000 capital → approx. NPR 109,500

Higher capital means higher registration fees.

Foreign investment approval fee (DOI)

All foreign investments must be approved under the Foreign Investment and Technology Transfer Act (FITTA).

DOI charges include:

  • Application processing fee

  • Industry registration fee

  • Sector-specific review charges

This cost typically ranges from NPR 20,000 to NPR 50,000, depending on complexity.

Tax registration fees

Foreign-owned companies must register for:

  • Permanent Account Number (PAN)

  • VAT (if applicable)

Government fees here are minimal, but documentation preparation adds indirect cost.

Professional service costs (legal, tax, compliance)

This is where the largest cost variation occurs.

Legal and incorporation services

Foreign companies require:

  • Memorandum of Association

  • Articles of Association

  • Share subscription agreements

  • Board resolutions (local and overseas)

Professional legal fees typically cover:

  • Drafting

  • Regulatory liaison

  • Filing and follow-ups

Accounting and tax advisory costs

Initial tax structuring includes:

  • Capital structuring advice

  • Profit repatriation planning

  • Transfer pricing considerations

These services ensure compliance with:

  • Income Tax Act, 2002

  • Companies Act, 2006

Table: Realistic cost comparison by entity type

Entity Type Government Fees (NPR) Professional Fees (NPR) Total Estimated Cost
Liaison Office 30,000 – 50,000 150,000 – 250,000 180,000 – 300,000
Branch Office 40,000 – 70,000 200,000 – 350,000 240,000 – 420,000
FDI Pvt Ltd 50,000 – 120,000 300,000 – 600,000 350,000 – 720,000

Figures are indicative and vary by sector and capital.

Hidden costs foreign investors often overlook

Many foreign companies underestimate post-registration obligations.

Common hidden costs include:

  • Bank account opening support

  • Share capital certification

  • Translation and notarization

  • Annual audit and tax filings

  • Social Security Fund registration

  • Visa and work permit support

These costs are not “optional” once operations begin.

Numbered list: Step-by-step cost timeline

  1. Name reservation and document drafting

  2. OCR registration fee payment

  3. DOI foreign investment approval

  4. Bank account and capital injection

  5. PAN and VAT registration

  6. Post-incorporation compliance setup

Each step adds incremental cost and time.

Cost vs value: why cheapest registration is risky

Low-cost providers often:

  • Skip tax structuring

  • Ignore repatriation planning

  • Underestimate compliance scope

This leads to:

  • Delayed approvals

  • Penalties

  • Blocked profit repatriation

For foreign companies, compliance certainty is more valuable than upfront savings.

How long does company registration take in Nepal?

Time affects cost.

Typical timelines:

  • Liaison Office: 2–3 weeks

  • Branch Office: 3–5 weeks

  • FDI Company: 4–8 weeks

Delays increase professional fees and opportunity cost.

How to reduce company registration costs legally

Foreign companies can optimize costs by:

  • Choosing realistic authorized capital

  • Avoiding unnecessary sector licensing

  • Structuring FDI correctly at entry

  • Bundling legal, tax, and compliance services

Strategic planning reduces lifetime cost, not just registration expense.

Call to action

If you want a clear, all-inclusive estimate of the cost of company registration in Nepal, tailored to your industry and expansion goals, speak with a specialist before filing anything.

👉 Book a free FDI cost assessment and registration roadmap today.

Conclusion

The cost of company registration in Nepal is affordable, transparent, and competitive for foreign companies—but only when understood holistically. Government fees are only one piece of the puzzle.

Professional services, compliance obligations, and regulatory alignment determine whether your Nepal entry is smooth or painful. Plan correctly, and Nepal becomes one of South Asia’s most cost-effective expansion destinations.

FAQs: Cost of company registration in Nepal

Is company registration in Nepal expensive for foreigners?

No. Nepal is one of the most cost-competitive countries in South Asia. Costs depend on structure and capital.

What is the minimum investment required for foreign companies?

Most sectors require a minimum foreign investment of NPR 20 million, subject to sector rules.

Are government fees refundable if registration fails?

No. Government fees are non-refundable once paid.

Can foreigners own 100% of a Nepal company?

Yes. Most sectors allow full foreign ownership under FITTA.

Are annual compliance costs mandatory?

Yes. Audits, tax filings, and statutory reporting are legally required.