The company registration process in Nepal is often perceived as low-cost. That perception is only partly true. While statutory fees are affordable, foreign companies must account for multiple regulatory, legal, tax, and compliance-driven costs.
If you are a foreign investor, startup founder, or international company planning market entry, understanding the true cost structure is critical. Budgeting only for government fees can lead to delays, compliance risk, and unexpected expenses.
This guide provides the most authoritative and up-to-date cost breakdown of the company registration process in Nepal. It reflects practical experience, statutory references, and real-world execution costs.
By the end, you will know:
Mandatory government fees
Professional and advisory costs
Post-registration compliance expenses
Hidden and often ignored cost items
Foreign companies face additional layers of regulation in Nepal. These include foreign investment approvals, currency repatriation rules, and ongoing compliance obligations.
Without cost clarity, foreign investors often:
Underestimate total setup expenses
Miss mandatory approvals under FITTA
Delay operations due to compliance gaps
Face tax and repatriation challenges later
Cost transparency enables:
Faster incorporation
Accurate financial planning
Reduced legal and regulatory risk
Smoother capital inflow and repatriation
Before diving into costs, it is important to understand the process stages.
Name reservation at the Office of Company Registrar (OCR)
Company incorporation and certificate issuance
Foreign investment approval (if applicable)
Tax registration (PAN and VAT)
Local authority registrations
Post-incorporation compliance setup
Each stage carries direct or indirect costs.
The Office of Company Registrar charges fees based on authorized capital.
Statutory reference: Companies Act, 2006 (Section 4 and Schedule)
| Authorized Capital (NPR) | Registration Fee (NPR) |
|---|---|
| Up to 100,000 | 1,000 |
| 100,001 – 500,000 | 4,500 |
| 500,001 – 2,500,000 | 9,500 |
| 2,500,001 – 10,000,000 | 16,000 |
| Above 10,000,000 | Incremental as prescribed |
Insight:
Many foreign companies deliberately set lower initial capital to manage upfront costs. Capital can be increased later.
Name reservation is mandatory before incorporation.
Fee: NPR 100
Validity: 35 days
While inexpensive, rejection due to similarity can delay timelines.
Foreign companies must comply with the Foreign Investment and Technology Transfer Act, 2019 (FITTA).
Department of Industry (DOI)
Investment Board Nepal (for large projects)
Government fees are nominal, but documentation and compliance costs are significant.
Typical government charges:
Application fees: Minimal or nil
Approval certificate issuance: Administrative fee only
Real cost driver: advisory and legal structuring.
PAN registration: Free
VAT registration: Free
However, professional handling is strongly recommended for foreign companies to avoid classification errors.
Government fees form only a small portion of the total company registration cost in Nepal for foreign companies.
Legal advisors assist with:
Memorandum and Articles drafting
Shareholding structure
Foreign investment compliance
Board and shareholder resolutions
Typical cost range:
NPR 50,000 – NPR 150,000
Costs vary by:
Ownership complexity
Industry sector
Capital structure
This is a foreign-specific cost.
Includes:
FITTA compliance
Capital inflow structuring
Share subscription documentation
Approval coordination with DOI
Typical cost range:
NPR 100,000 – NPR 300,000
This cost is often underestimated by first-time investors.
Accountants handle:
PAN and VAT registration
Opening balance sheet
Tax classification
Initial compliance mapping
Typical cost range:
NPR 30,000 – NPR 75,000
Foreign companies must budget beyond incorporation.
Municipal registration is mandatory.
Fee: NPR 2,000 – NPR 10,000
Depends on municipality and business type
Certain sectors require additional approvals:
IT and software exports
Education and training
Consulting with regulated activities
Costs vary widely:
NPR 10,000 – NPR 100,000+
Nepali banks require:
Extensive KYC documentation
Board resolutions
Foreign shareholder verification
Bank fees are minimal, but professional support often costs:
NPR 20,000 – NPR 50,000
These costs rarely appear in official checklists.
Document notarization and translation
Embassy or consular authentication
Courier and logistics
Re-submission due to regulatory clarifications
Time delays affecting operations
These can add 10–20% to total setup costs.
| Cost Category | Estimated Range (NPR) |
|---|---|
| Government registration fees | 5,000 – 20,000 |
| Legal drafting and advisory | 50,000 – 150,000 |
| Foreign investment approval support | 100,000 – 300,000 |
| Tax and accounting setup | 30,000 – 75,000 |
| Local registrations and licenses | 10,000 – 50,000 |
| Bank account assistance | 20,000 – 50,000 |
| Hidden and incidental costs | 20,000 – 50,000 |
| Total realistic budget | 235,000 – 695,000 |
Original insight:
Over 70% of total costs arise from foreign investment compliance, not incorporation itself.
Lowest regulatory burden
Most cost-efficient structure
Preferred by foreign SMEs
Higher compliance
Ongoing reporting to parent entity
Slightly higher professional costs
No revenue generation allowed
Lower tax exposure
Limited operational scope
Start with minimum viable capital
Avoid unnecessary sector licenses
Use bundled advisory services
Plan repatriation early
Align accounting and legal teams
FITTA compliance
Tax classification
Shareholding documentation
Bank compliance
This guide is based on:
Companies Act, 2006
Foreign Investment and Technology Transfer Act, 2019
Income Tax Act, 2002
VAT Act, 2052
Office of Company Registrar guidelines
Department of Industry directives
All cost estimates reflect real market practices, not just statutory minimums.
The company registration process in Nepal is affordable only when viewed narrowly. For foreign companies, the real cost lies in compliance, approvals, and long-term regulatory alignment.
A realistic budget ensures:
Faster market entry
Regulatory confidence
Predictable operations
Easier profit repatriation
Foreign investors who plan costs holistically outperform those who chase low headline fees.
Planning to register a company in Nepal?
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Total costs typically range from NPR 235,000 to NPR 695,000, including compliance, legal, and foreign investment approvals.
No. Government fees are minimal. Most costs come from legal, tax, and foreign investment compliance.
Yes. Foreign shareholders must obtain approval under FITTA 2019 before capital injection.
Online filing reduces time, not compliance costs. Professional and regulatory expenses remain.
Yes. Annual audit, tax filing, and regulatory compliance create recurring costs.