Cost and Timeline for Company Registration in Nepal (Complete Guide)

Understanding the cost of company registration in Nepal is one of the first decisions foreign companies must make before entering the market. Nepal offers competitive setup costs, a young talent pool, and a clear legal framework for foreign direct investment. But timelines, government fees, professional charges, and compliance obligations vary by structure. This complete guide breaks down exact costs, realistic timelines, and practical risks, so you can plan with confidence and avoid delays.

Why Nepal Is Attractive for Foreign Companies

Nepal has steadily improved its investment climate through policy reforms and digitalization. For foreign founders, Nepal offers:

• Competitive company registration costs

• English-language legal and tax systems

• 100 percent foreign ownership in most sectors

• Access to South Asian markets

• A growing skilled workforce

However, costs and timelines differ depending on how you enter the market.

Cost of Company Registration in Nepal (Overview)

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

1. Entity type (private limited, branch, liaison, or FDI subsidiary)

2. Authorized capital

3. Professional and compliance support

Government fees are relatively low. Most surprises come from compliance and post-registration obligations.

Types of Company Structures Available to Foreign Companies

1. Private Limited Company (FDI Subsidiary)

The most common structure for long-term operations.

Best for: Hiring staff, generating revenue, scaling operations
Ownership: Up to 100 percent foreign ownership
Minimum capital: NPR 50 million (sector dependent)

2. Branch Office

An extension of the foreign parent company.

Best for: Project-based work
Limitations: Cannot operate independently

3. Liaison Office

A non-revenue-generating presence.

Best for: Market research and representation
Limitations: No commercial activity allowed

4. Employer of Record (Pre-FDI Option)

Not a registration model, but often used before incorporation.

Best for: Hiring staff quickly without entity setup

Government Fees for Company Registration in Nepal

Company Registrar Fees (OCR)

Fees depend on authorized capital.

Name Reservation Fee

• NPR 100 to NPR 500

• Valid for 30 days

Professional and Advisory Costs (Where Foreign Companies Spend Most)

Foreign companies typically require professional support due to regulatory complexity.

Typical professional costs include:

• Legal drafting and notarization

• FDI approval documentation

• Tax registration and compliance setup

• Bank account coordination

Estimated range: USD 1,500 to USD 5,000 depending on complexity

Hidden and Ongoing Costs Most Foreign Founders Miss

Many founders underestimate post-registration costs.

Common hidden expenses:

• Annual company renewal fees

• Audit and tax filings

• Social Security Fund contributions

• Visa and work permit processing

• Sector-specific licenses

These do not appear during incorporation but impact your annual budget.

Timeline for Company Registration in Nepal

Realistic Registration Timeline (Foreign-Owned Company)

1. Name reservation: 1–2 working days

2. FDI approval: 10–20 working days

3. Company registration: 2–3 working days

4. Tax and VAT registration: 3–5 working days

5. Bank account setup: 5–10 working days

Total realistic timeline: 3–6 weeks

Delays usually arise from incomplete documentation or sector approvals.

Comparison Table: Cost vs Timeline by Entry Model

Step-by-Step: How Foreign Companies Register a Company in Nepal

Step 1: Choose the Right Entry Structure

This decision impacts cost, compliance, and future scalability.

Step 2: Prepare FDI Documentation

Includes:

• Parent company documents

• Board resolutions

• Investment plan

• Passport and shareholder details

Step 3: Obtain FDI Approval

Required for all foreign investments under Nepal’s investment laws.

Step 4: Register the Company

Filed with the Office of Company Registrar.

Step 5: Complete Tax and Compliance Registration

Includes:

• Permanent Account Number

• VAT (if applicable)

• Social Security Fund

Compliance Obligations After Registration

Foreign companies must maintain:

• Annual audits

• Monthly tax filings

• Employee social security contributions

• Statutory records and renewals

Non-compliance results in penalties and operational risk.

Cost of Company Registration in Nepal vs Other South Asian Markets

Nepal remains cost-effective compared to regional alternatives.

• Lower professional fees than India

• Lower minimum capital than Bangladesh

• Faster setup than Sri Lanka

For service-based businesses, Nepal offers a strong cost-to-value ratio.

Common Mistakes Foreign Companies Make

• Underestimating compliance costs

• Choosing the wrong entity structure

• Delaying tax registration

• Not planning repatriation strategy

Avoiding these saves time and money.

Frequently Asked Questions (People Also Ask)

How much does it cost to register a company in Nepal for foreigners?

The cost of company registration in Nepal for foreign companies typically ranges from USD 2,000 to USD 5,000, including government and professional fees.

How long does company registration take in Nepal?

Foreign-owned company registration usually takes 3 to 6 weeks, depending on FDI approvals and documentation readiness.

Is 100 percent foreign ownership allowed in Nepal?

Yes. Most sectors allow 100 percent foreign ownership, except a few restricted industries.

Do I need to visit Nepal to register a company?

No. Registration can be completed remotely with proper notarized and apostilled documents.

What is the minimum investment required for FDI in Nepal?

The minimum foreign investment threshold is NPR 50 million, subject to sector rules.

Conclusion

The cost of company registration in Nepal is competitive, transparent, and attractive for foreign companies. With proper planning, most businesses can be operational within weeks. The key is understanding both upfront and ongoing obligations. When structured correctly, Nepal offers long-term scalability with manageable compliance.

Call to Action

If you are planning to enter Nepal, speak with a local FDI and compliance specialist before you register. A short consultation can save months of delays and unexpected costs.

👉 Book a free market-entry consultation today

References and EEAT Signals

• Companies Act, 2006 (Nepal)

• Foreign Investment and Technology Transfer Act, 2019

• Office of Company Registrar Guidelines

• Nepal Rastra Bank Foreign Investment Directives