--- title: "Company registration in Nepal: liaison office rules 2025" description: Liaison office rules in Nepal for 2025 explained—scope, process, documents, tax, HR, and compliance with clear checklists for foreign companies. image: https://digitalconsultingventures.com/hubfs/Untitled%20design%20%2813%29-Sep-16-2025-03-44-33-6255-AM.jpg --- [![Digital Consulting Ventures](https://digitalconsultingventures.com/hs-fs/hubfs/Digital%20Consulting%20(14).png?width=239&height=40&name=Digital%20Consulting%20(14).png "Digital Consulting Ventures")](https://digitalconsultingventures.com) - [Expand to Nepal](https://digitalconsultingventures.com/nepal-market-entry) - [Incorporate In Nepal](https://digitalconsultingventures.com/company-incorporation-in-nepal) - [Accounting & Tax Compliance](https://digitalconsultingventures.com/accounting-nepal) - [Legal Services](https://digitalconsultingventures.com/nepal-market-entry) - [HR Management & Recruitment](https://digitalconsultingventures.com/nepal-market-entry) - Hire Talent - [Outsource Mortgage Assistant Australia](https://digitalconsultingventures.com/outsource-mortgage-assistant) - [Mobile App Development](https://digitalconsultingventures.com/mobile-app-development) - [Influence Academy](https://digitalconsultingventures.com/persuasion-training) - Learn - [Insights](https://digitalconsultingventures.com/insights) - [Case Study](https://digitalconsultingventures.com/case-study) - [About](https://digitalconsultingventures.com/about-us) [Book a call](https://digitalconsultingventures.com/meetings/pjay-shrestha) - [Expand to Nepal](https://digitalconsultingventures.com/nepal-market-entry) - [Incorporate In Nepal](https://digitalconsultingventures.com/company-incorporation-in-nepal) - [Accounting & Tax Compliance](https://digitalconsultingventures.com/accounting-nepal) - [Legal Services](https://digitalconsultingventures.com/nepal-market-entry) - [HR Management & Recruitment](https://digitalconsultingventures.com/nepal-market-entry) - Hire Talent - [Outsource Mortgage Assistant Australia](https://digitalconsultingventures.com/outsource-mortgage-assistant) - [Mobile App Development](https://digitalconsultingventures.com/mobile-app-development) - [Influence Academy](https://digitalconsultingventures.com/persuasion-training) - Learn - [Insights](https://digitalconsultingventures.com/insights) - [Case Study](https://digitalconsultingventures.com/case-study) - [About](https://digitalconsultingventures.com/about-us) [Book a call](https://digitalconsultingventures.com/meetings/pjay-shrestha) Rich text area that allows you to add new HTML or text content as desired. [Nepal Accounting](https://digitalconsultingventures.com/insights/tag/nepal-accounting) # Company registration in Nepal: liaison office rules 2025 [![Pjay Shrestha](https://app.hubspot.com/settings/avatar/746dc962bd466bc39a861c64c40c6f32)](https://digitalconsultingventures.com/insights/author/pjay-shrestha) [Pjay Shrestha](https://digitalconsultingventures.com/insights/author/pjay-shrestha) Sep 15, 2025 1:25:48 PM 5 min read ![Company registration in Nepal – liaison office rules and compliance checklist (2025)](https://digitalconsultingventures.com/hubfs/Untitled%20design%20%2813%29-Sep-16-2025-03-44-33-6255-AM.jpg) **Company registration in Nepal** often begins with a low-risk footprint: a liaison (representative) office. In 2025, this model lets foreign companies research the market, coordinate with agents, and build relationships without trading locally. This guide explains the legal basis, permitted activities, registration steps, documents, taxes, payroll, HR, and typical pitfalls. It is written in plain English, with short sentences and action-oriented checklists. --- ## What is a liaison office in Nepal? A liaison office is a **non-trading presence**. It represents the parent company. It can **liaise, research, and coordinate**. It **cannot** sell, invoice, earn revenue, or sign local commercial contracts. All expenses are **funded from abroad**. The parent remains fully liable. Why choose it? - Lower risk. - Faster setup. - Clean compliance when you only need representation, not sales. --- ## Legal framework  - **Companies Act, 2063 (2006), Chapter on Foreign Companies.** Registration of a foreign company’s liaison office and ongoing filings. - **FITTA 2019 (Foreign Investment and Technology Transfer Act).** Relevant when you convert to a branch or invest in a Nepali entity. - **Nepal Rastra Bank (NRB) foreign exchange rules.** Inward remittance to fund expenses; recording of investment when applicable. - **Inland Revenue Department (IRD) rules.** PAN for payroll and withholding; VAT normally not required for a pure liaison. - **Labour Act and Social Security Fund (SSF).** Minimum wage, contracts, and mandatory SSF contributions when you hire. --- ## Permitted vs restricted liaison-office activities ### Permitted  - Market research and competitor tracking. - Relationship management with Nepali stakeholders. - Technical coordination with distributors or agents. - Non-commercial customer assistance and information desks. - Internal quality checks, sourcing support, and visits scheduling. ### Restricted  - No selling goods or services in Nepal. - No issuing invoices or collecting local payments. - No marketing that constitutes solicitation of sales locally. - No signing local sales contracts or purchase orders. - No local revenue, commissions, or fees. > Shortcut: If money would be earned **in Nepal**, or a contract would create **local revenue**, the liaison office **cannot** do it. --- ## Registration pathway (step-by-step) > **Target timeline:** 10–20 working days in straightforward cases. 1. **Decide scope and name** Define the office name (normally “ Nepal Liaison Office”) and a short activity statement. 2. **Board resolution** Approve the establishment of a liaison office in Nepal; appoint an authorized signatory and local notice recipient. 3. **Document set (prepare and notarize)** - Charter/incorporation documents of the parent. - Memorandum/Articles (or equivalents). - Latest audited financials (if available). - Parent company profile and primary business line. - Passport copies of directors. - Appointment letter and ID of local notice recipient. - Power of attorney to the filer. Translations into Nepali are typically required. 4. **Application to the Office of Company Registrar (OCR)** Submit the liaison-office application under the **Companies Act** with prescribed fees. 5. **Sectoral checks (only if applicable)** Some sectors may require additional “no objection” or specific authorization. Your advisor will flag this early. 6. **Certificate of registration** OCR issues a liaison-office registration certificate. 7. **PAN at Inland Revenue** Obtain **PAN** for payroll, TDS, and compliance filings. 8. **Banking and inward remittance** Open a local bank account in the name of the liaison office. Fund **all** expenses through **foreign inward remittances** from the parent. 9. **Office setup and HR compliance** Lease space; register employees to **SSF**; align contracts and payroll with minimum wage rules. 10. **Operational kick-off** Start non-trading activities. Keep books, retain documents, and file annual returns on time. --- ## Documents checklist  - Board resolution approving the Nepal liaison office. - Parent’s registration certificate, charter, and constitutional docs. - Parent’s latest audited financials (if available). - Power of attorney to local filer/representative. - Passport copies of directors. - Appointment letter + ID of local notice recipient in Nepal. - Company profile and short activity note for Nepal. - Nepali translations where required. - Draft lease or virtual office arrangement (as applicable). --- ## Fees and typical costs - **Government filing fees:** modest for liaison office registration. - **Translations and notarizations:** depend on page count. - **Professional fees:** vary by complexity and sector. - **Banking:** standard KYC and account opening costs. (We can provide a precise quote after a short scope call.) --- ## Tax, accounting, and payroll: what changes in 2025? - **Corporate income tax:** A **pure** liaison office has **no Nepal-source income**, so **no corporate income tax** should arise. If income appears, you risk **re-characterization** and tax exposure. - **PAN and withholding:** Obtain **PAN**. Withhold **TDS** on salaries, rent, and any payments where applicable. - **VAT:** No VAT registration if you **do not** make taxable supplies in Nepal. - **Books and filings:** Maintain local books for Nepal operations. File **annual returns** and updates with **OCR**. - **Payroll:** 2025 minimum wage increased. Enrol all staff in **SSF** and contribute monthly. > **Snapshot (2025):** Minimum monthly wage is NPR **19,550**. Total **SSF** contributions equal **31%** of basic salary (20% employer + 11% employee).   --- ## HR, visas, and staffing model - **Local hires:** Allowed. Use compliant employment contracts. - **Expat managers:** Work visas and permits apply; plan lead time. - **Outsourcing mix:** For a lean presence, combine one local coordinator with parent-side teams and short-term visits. - **Policies:** Adopt a local employee handbook aligned with the Labour Act (leave, overtime, benefits, termination). --- ## Bank, currency, and remittance rules - **Funding:** Bring in **all** operating expenses as inward **foreign remittance** from the parent. - **Forbidden:** Local revenue or settlement of invoices from Nepali customers. - **Proof:** Keep bank SWIFT copies and purpose codes for audits. - **Budgeting:** Annual budget helps banks and auditors track compliance. --- ## Compliance calendar  **Monthly** - Payroll, TDS deductions and deposits. - SSF contributions. - Expense recording and bank reconciliation. **Quarterly** - TDS returns. - Internal review of activity scope (no creep into trading). **Annually** - OCR annual return and updated information. - Financial statements for Nepal operations. - Lease renewal and KYC refresh with bank. **Ad-hoc** - Update OCR on changes (authorized person, address, signatories). - Board re-authorizations as needed. --- ## Liaison vs branch vs subsidiary  | Feature | **Liaison office** | **Branch office** | **Subsidiary (Pvt Ltd)** | | --- | --- | --- | --- | | Legal form | Foreign company (rep. office) | Foreign company (branch) | Separate Nepali company | | Activities | Non-trading only | Trading allowed per scope | Full business scope per licenses | | Revenue in Nepal | **Not allowed** | Allowed | Allowed | | Liability | Parent liable | Parent liable | Limited to Nepali entity | | Tax | None if no income; TDS on payroll/rent | Corporate income tax on profits | Corporate income tax on profits | | VAT | Normally **no** | Likely **yes** if taxable | Likely **yes** if taxable | | Hiring staff | Yes (payroll + SSF) | Yes | Yes | | Setup speed | Fast | Medium | Medium-high | | Best for | Testing, coordination | Contract delivery | Long-term Nepal business | --- ## Seven frequent mistakes  1. **Hidden selling.** Even “informational” webinars can slide into sales. Keep it non-commercial. 2. **Local collections.** Never collect fees locally. Route sales to the parent or a licensed channel. 3. **No PAN.** You still need PAN for payroll and TDS. 4. **Skipping SSF.** Enrol employees; contribute monthly. 5. **Weak document trail.** Keep remittance proofs and board resolutions. 6. **No annual return.** File with OCR on time. 7. **Scope creep.** Re-train teams quarterly on what a liaison can and cannot do. --- ## Seven signs you should convert to a branch or subsidiary 1. You need to **invoice** Nepali customers. 2. You plan **after-sales** with SLAs inside Nepal. 3. You need **import** or **inventory** in Nepal. 4. You must **hire a full local team** with sales targets. 5. You require **VAT** compliance for local supplies. 6. You want **limited liability** and local equity incentives. 7. Government tenders require a local **bidder of record**. --- ## Numbered setup roadmap  1. Decide scope, name, and headcount. 2. Draft board resolution and POA. 3. Prepare notarized parent documents and translations. 4. Submit OCR application; pay fees. 5. Receive registration certificate. 6. Obtain PAN at IRD. 7. Open bank account; remit seed budget. 8. Sign office lease and create HR files. 9. Enrol staff in SSF; roll payroll. 10. Go live and monitor compliance monthly. --- ## Bulleted compliance toolkit  - Board resolution template. - POA template. - OCR application set and annex list. - PAN checklist and officer visit notes. - Payroll and SSF enrollment pack. - Monthly compliance tracker. - Annual return calendar with reminders.   --- ## FAQ  **1) Can a liaison office invoice in Nepal?** No. A liaison office cannot earn revenue or issue invoices locally. All operating expenses must be funded by foreign remittances. **2) Do I need Department of Industry approval?** Generally, no. Registration is through the Office of Company Registrar. Sector-specific clearances may apply in regulated industries. **3) Do I need PAN or VAT?** PAN: yes, for payroll and withholding. VAT: not if you make no taxable supplies. If activity shifts to trading, VAT may apply. **4) Can a liaison office hire staff?** Yes. Use compliant contracts, pay at least the legal minimum wage, and contribute to the Social Security Fund monthly. **5) How long does registration take?** Simple cases close in about 10–20 working days. Complex sectors or extra approvals can add time. #### Don't forget to share this post! [mailto:example@example.com](mailto:example@example.com) ![Pjay Shrestha](https://app.hubspot.com/settings/avatar/746dc962bd466bc39a861c64c40c6f32) ##### Pjay Shrestha [More by author](https://digitalconsultingventures.com/insights/author/pjay-shrestha) ## Related posts [Nepal Accounting](https://digitalconsultingventures.com/insights/tag/nepal-accounting) ### How to Prepare the Required Documents for Company Registration in Nepal Dec 23, 2025 11:29:31 AM Vijay Shrestha [Nepal Accounting](https://digitalconsultingventures.com/insights/tag/nepal-accounting) ### Legal Requirements for the Company Registration Process in Nepal Dec 12, 2025 4:31:39 PM Vijay Shrestha [Nepal Accounting](https://digitalconsultingventures.com/insights/tag/nepal-accounting) ### How to Register a Company at the Company Registrar Office Nepal Dec 22, 2025 3:14:00 PM Vijay Shrestha ![Digital Consulting Ventures](https://digitalconsultingventures.com/hs-fs/hubfs/Digital%20Consulting%20(15).png?width=239&height=40&name=Digital%20Consulting%20(15).png) Digital Consulting Ventures helps rapidly scaling companies that have a demand for outsourced talent. 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