Company Registration Cost in Nepal Full Breakdown of Fees (Updated)

Company registration in Nepal is increasingly attractive for foreign companies seeking cost-effective expansion into South Asia. Nepal offers competitive setup costs, a young workforce, and clear legal pathways for foreign direct investment. However, understanding the true cost of company registration is critical. Fees vary based on entity type, capital structure, sector, and compliance requirements.

This guide provides the most authoritative, updated, and practical cost breakdown for foreign investors. It goes beyond headline government fees to cover hidden costs, compliance obligations, and real-world budgeting insights—so you can plan with confidence.

The cost of company registration in Nepal depends on several variables:

• Legal entity type

• Authorized and issued capital

• Whether foreign direct investment (FDI) is involved

• Sectoral approvals

• Professional and compliance support required

Foreign companies typically register through one of three models:

1. Private Limited Company with FDI

2. Branch Office

3. Liaison (Representative) Office

Each has distinct cost implications, explained below.

Government Fees for Company Registration in Nepal

1. Office of Company Registrar (OCR) Fees

The OCR charges fees based on authorized capital. These are one-time registration fees.

Insight:
Many foreign companies over-declare capital unnecessarily. Optimizing capital structure can significantly reduce upfront costs without impacting operations.

2. Name Reservation Cost

• Fee: NPR 100

• Validity: 35 days

• Platform: OCR Online Portal

This is a mandatory step before incorporation.

Foreign Direct Investment (FDI)–Related Costs

Minimum FDI Threshold

Under FITTA 2019, the minimum FDI requirement is:

• NPR 20 million (approx. USD 150,000)

This amount must be committed but not fully spent upfront.

Department of Industry (DOI) Approval Fees

• FDI application fee: NPR 20,000

• Industry registration fee: NPR 5,000 – 15,000

Approval timelines typically range from 15–30 working days, depending on sector sensitivity.

Professional Fees (Legal, Advisory, and Compliance)

Foreign companies almost always require professional support to navigate Nepal’s regulatory environment.

Typical Professional Fee Components

• Legal documentation and filings

• FDI approval coordination

• Tax and compliance registration

• Bank account opening support

Average professional fees:
USD 1,500 – 3,500, depending on complexity.

What These Fees Usually Cover

• Memorandum & Articles of Association

• Shareholder resolutions

• FDI approval documentation

• PAN & VAT registration

• Local compliance advisory

Post-Incorporation Mandatory Costs

Company registration in Nepal does not end at incorporation.

1. Tax Registration

• PAN registration: Free

• VAT registration: Free (mandatory if turnover exceeds threshold)

2. Social Security Fund (SSF)

Under the Social Security Act 2018, employers must contribute:

• 20% employer contribution

• 11% employee contribution

This applies once local staff are hired.

3. Local Address & Company Secretary

Foreign-owned companies must maintain:

• Registered office address

• Authorized local representative

Costs vary by city and service level.

Annual Compliance & Ongoing Costs

Foreign companies must budget for recurring compliance costs.

Typical Annual Costs

• Annual return filing

• Tax filings and audits

• Renewal of registrations

• Accounting and payroll services

Estimated annual compliance cost:
USD 1,000 – 2,500

Cost Comparison: Entry Models for Foreign Companies

Original Insight:
Many investors start with an Employer of Record (EOR) model, then transition to FDI once revenue stabilizes—reducing initial risk.

Hidden Costs to Watch Out For

Foreign companies often underestimate:

• Capital repatriation documentation

• Banking compliance fees

• Sector-specific licenses

• Delays due to incomplete filings

Working with experienced advisors helps avoid costly rework.

Step-by-Step Cost Flow (Numbered Overview)

1. Name reservation

2. OCR registration fee

3. FDI approval fee

4. Industry registration

5. Professional and legal fees

6. Tax and SSF registration

7. Annual compliance budgeting

Why Nepal Remains Cost-Competitive

Despite compliance requirements, Nepal remains attractive because:

• Low labor and operational costs

• Favorable tax incentives for priority sectors

• Strategic access to India and China

• Growing IT and services ecosystem

Frequently Asked Questions (People Also Ask)

How much does company registration in Nepal cost for foreigners?

For foreign investors, total setup costs typically range from USD 2,000 to 5,000, excluding FDI capital commitment and annual compliance expenses.

Is the FDI amount a fee or investment?

The NPR 20 million minimum is an investment, not a fee. It remains company capital and can be used for operations.

How long does company registration in Nepal take?

Company registration in Nepal usually takes 3–6 weeks, including FDI approval and incorporation.

Can foreigners own 100% of a company in Nepal?

Yes. Most sectors allow 100% foreign ownership, subject to Nepal’s negative list under FITTA 2019.

Are there annual renewal fees?

There are no annual license fees, but annual filings, audits, and tax compliance costs apply.

Final Thoughts

Company registration in Nepal is affordable, transparent, and increasingly streamlined for foreign companies. The key is understanding total cost of ownership, not just government fees. With proper structuring and expert guidance, Nepal can be one of the most cost-efficient expansion destinations in Asia.

Call to Action

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