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:
Private Limited Company with FDI
Branch Office
Liaison (Representative) Office
Each has distinct cost implications, explained below.
The OCR charges fees based on authorized capital. These are one-time registration fees.
| Authorized Capital (NPR) | Government Fee (Approx.) |
|---|---|
| Up to 1 million | NPR 1,000 – 2,000 |
| 1–5 million | NPR 4,500 – 9,500 |
| 5–10 million | NPR 9,500 – 16,000 |
| Above 10 million | Incremental slabs apply |
Insight:
Many foreign companies over-declare capital unnecessarily. Optimizing capital structure can significantly reduce upfront costs without impacting operations.
Fee: NPR 100
Validity: 35 days
Platform: OCR Online Portal
This is a mandatory step before incorporation.
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.
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.
Foreign companies almost always require professional support to navigate Nepal’s regulatory environment.
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.
Memorandum & Articles of Association
Shareholder resolutions
FDI approval documentation
PAN & VAT registration
Local compliance advisory
Company registration in Nepal does not end at incorporation.
PAN registration: Free
VAT registration: Free (mandatory if turnover exceeds threshold)
Under the Social Security Act 2018, employers must contribute:
20% employer contribution
11% employee contribution
This applies once local staff are hired.
Foreign-owned companies must maintain:
Registered office address
Authorized local representative
Costs vary by city and service level.
Foreign companies must budget for recurring compliance costs.
Annual return filing
Tax filings and audits
Renewal of registrations
Accounting and payroll services
Estimated annual compliance cost:
USD 1,000 – 2,500
| Entry Model | Setup Cost | Compliance Cost | Best For |
|---|---|---|---|
| Liaison Office | Low | Low | Market research |
| Branch Office | Medium | Medium | Project execution |
| FDI Private Company | Higher | Higher | Long-term operations |
Original Insight:
Many investors start with an Employer of Record (EOR) model, then transition to FDI once revenue stabilizes—reducing initial risk.
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.
Name reservation
OCR registration fee
FDI approval fee
Industry registration
Professional and legal fees
Tax and SSF registration
Annual compliance budgeting
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
For foreign investors, total setup costs typically range from USD 2,000 to 5,000, excluding FDI capital commitment and annual compliance expenses.
The NPR 20 million minimum is an investment, not a fee. It remains company capital and can be used for operations.
Company registration in Nepal usually takes 3–6 weeks, including FDI approval and incorporation.
Yes. Most sectors allow 100% foreign ownership, subject to Nepal’s negative list under FITTA 2019.
There are no annual license fees, but annual filings, audits, and tax compliance costs apply.
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.
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