Foreign company registration in Nepal is no longer a niche move. It is a strategic decision for global companies seeking cost-efficient talent, South Asian market access, and long-term growth.
Nepal offers liberal foreign investment rules, competitive operating costs, and strong protections for overseas investors. But the registration process is legal-heavy and compliance-driven. One mistake can delay approvals for months.
This guide gives you the most authoritative, up-to-date, and practical explanation of foreign company registration in Nepal. It is written for founders, CFOs, legal heads, and expansion leaders.
You will learn the exact entry routes, legal steps, documents, timelines, costs, and compliance obligations.
Foreign company registration in Nepal refers to the legal approval for an overseas entity to operate commercially in Nepal under Nepali law.
It is governed primarily by:
Department of Industry
Office of Company Registrar
Registration is mandatory if a foreign company intends to:
Earn revenue in Nepal
Hire employees locally
Open bank accounts
Lease office premises
Repatriate profits legally
Nepal allows multiple legal entry routes. Choosing the wrong one increases tax and compliance risk.
This is the most common and scalable route.
Incorporated as a Private Limited Company
Minimum foreign ownership: 100 percent allowed
Eligible for profit repatriation
Subject to full tax and labor laws
Best for long-term operations, tech firms, service companies, and manufacturers.
A branch office is an extension of the foreign parent.
No separate legal identity
Limited to approved activities
Parent company bears liabilities
Best for execution of contracts and short-term projects.
A liaison office is non-commercial.
No revenue generation allowed
Limited to market research and coordination
Cannot invoice clients
Best for early market exploration.
| Criteria | FDI Company | Branch Office | Liaison Office |
|---|---|---|---|
| Revenue allowed | Yes | Yes (restricted) | No |
| Legal entity | Separate | Extension | Extension |
| Profit repatriation | Yes | Limited | No |
| Tax registration | Mandatory | Mandatory | Minimal |
| Best for | Long-term growth | Projects | Market study |
Foreign companies are protected and regulated under clear legislation.
Foreign Investment and Technology Transfer Act 2019
Companies Act 2006
Industrial Enterprises Act 2020
Income Tax Act 2002
Labour Act 2017
These laws guarantee national treatment, repatriation rights, and legal protection for foreign investors.
You must first obtain FDI approval from the Department of Industry.
Documents include:
Parent company incorporation certificate
Board resolution approving Nepal investment
Passport copies of shareholders and directors
Business plan and financial projections
The proposed company name is reserved at the Office of Company Registrar.
Must not conflict with existing entities
Must reflect permitted activities
After approval, the company is legally incorporated.
You will receive:
Certificate of Incorporation
Memorandum and Articles of Association
Foreign capital must enter Nepal through:
Nepal Rastra Bank approved channels
Authorized commercial banks
This step is critical for future profit repatriation.
Every foreign-owned company must register for:
Permanent Account Number
VAT registration if applicable
Depending on the sector, additional licenses may be required.
Examples include IT, education, fintech, and manufacturing.
From the Parent Company
Certificate of Incorporation
Memorandum and Articles
Board resolution
Audited financials
From the Nepal Entity
Lease agreement
Local director details
Company bylaws
Average timelines
FDI approval: 15–30 working days
Company registration: 7–10 days
Banking and tax setup: 10–15 days
Typical cost components
Government fees
Legal drafting
Notarization and translation
Compliance setup
Exact costs vary by sector and capital size.
Foreign company registration in Nepal does not end at incorporation.
Ongoing obligations include:
Monthly tax filings
Annual audits
Social Security Fund contributions
Labor law compliance
Annual DOI reporting
Non-compliance can lead to fines and repatriation delays.
Nepal allows full repatriation of:
Dividends
Royalties
Technical service fees
Sale proceeds
Repatriation must comply with Nepal Rastra Bank guidelines and proper documentation.
Avoid these costly errors:
Choosing a liaison office for revenue activities
Injecting capital outside banking channels
Ignoring labor compliance
Using generic MOA templates
Expert structuring saves time and money.
Nepal offers:
Competitive labor costs
English-speaking workforce
Strategic India-China location
Liberal foreign ownership rules
Stable FDI policy framework
These advantages make foreign company registration in Nepal increasingly attractive.
Yes. Nepal allows 100 percent foreign ownership in most sectors under FITTA 2019.
The standard minimum foreign investment threshold is NPR 20 million, subject to sector rules.
Yes. Registered foreign companies can legally hire Nepali and expatriate employees.
On average, 30–45 working days if documents are complete.
Yes. Profits and capital can be repatriated with Nepal Rastra Bank approval.
Foreign company registration in Nepal is a powerful gateway to South Asia when done correctly.
With the right legal structure, compliance strategy, and professional support, Nepal offers a secure and scalable base for global operations.
The key is precision, compliance, and expert guidance from day one.
Ready to register your foreign company in Nepal with confidence?
Book a consultation to receive a tailored entry strategy, cost estimate, and compliance roadmap.