If you are planning to start a business in Nepal, one of your first questions will be — how much does it actually cost to register a company?
The truth is that company formation in Nepal is affordable, but understanding the complete fee structure is essential. From government charges and legal documentation to translation, compliance, and audit costs, every step has its price tag.
In this guide, we will break down the cost of company formation in Nepal, step by step, and help foreign investors plan their budget confidently. You will also learn how factors such as share capital, business type, and FDI involvement can influence total expenses.
Company formation costs in Nepal vary based on:
Type of business (local or FDI-based)
Nature of operation (manufacturing, service, tech, or trading)
Number of shareholders and directors
Whether documents are local or foreign (requiring legalization)
Capital structure (affecting registration fees)
Typically, a standard Private Limited Company with foreign investment costs between USD 2,500 and USD 4,500 from start to finish, including professional service and compliance fees.
Every rupee you spend during registration connects to a law or authority requirement.
| Area | Relevant Law / Authority |
|---|---|
| Incorporation | Companies Act 2006 & Rules 2064 |
| Foreign Investment | FITTA 2019 |
| Capital Inflow / Outflow | NRB Directives on Foreign Investment |
| Industry Approval | Department of Industry (DOI) / Investment Board Nepal (IBN) |
| Tax Registration | Income Tax Act 2002 and VAT Act 1996 |
| Labour & Employee Benefits | Labour Act 2017 and Social Security Act 2018 |
| Annual Audit & Reporting | Companies Act 2006 and Tax Administration Act |
| Visa & Work Permit (If foreign staff) | Immigration Rules and Labour Approval Guidelines |
Each law introduces a compliance obligation that translates into either a fee, a professional charge, or an annual cost.
Here’s a realistic breakdown of expenses foreign investors typically incur.
| Stage | Description | Estimated Cost (USD) |
|---|---|---|
| 1. Name Reservation | OCR online application and reservation | 20 – 50 |
| 2. Legal Document Drafting | Preparation of MOA, AOA, POA, and translation (notary included) | 400 – 600 |
| 3. Government Registration Fee | OCR fee based on capital structure (up to NPR 10 million) | 100 – 200 |
| 4. FDI Approval (Foreign Investors) | DOI or IBN processing fee + translation/legalization | 150 – 300 |
| 5. NRB Verification of Capital Inflow | Bank charges and document endorsement cost | 50 – 100 |
| 6. PAN and VAT Registration | IRD application and digital certificate fee | 50 – 100 |
| 7. Office Lease and Notarization | Rent agreement stamp duty and tax registration | 100 – 200 |
| 8. Labour and SSF Registration | Staff registration and SSF portal setup | Free to Nominal |
| 9. Professional Service Fee (DCV) | Full registration management, legal filing, and compliance advisory | 1,800 – 2,800 |
| 10. Post-Incorporation Accounting Setup | Bookkeeping, PAN/VAT filing system, chart of accounts | 300 – 500 |
Total Estimated Cost: USD 2,500 – 4,500
(Inclusive of all government charges and consultant support)
| Category | Local Company | FDI Company |
|---|---|---|
| Registration Authority | OCR and IRD | OCR + DOI / IBN + NRB |
| Minimum Capital | No minimum | USD 20,000 per investor (FITTA 2019, Section 3) |
| Currency Used | NPR | Convertible foreign currency |
| Document Requirement | Simple notarization | Legalization and translation required |
| Total Cost Range | USD 800 – 1,500 | USD 2,500 – 4,500 |
| Setup Timeline | 5–7 days | 15–30 days |
Foreign investors face higher costs mainly due to translation, legalization, NRB coordination, and compliance verification.
The Office of the Company Registrar (OCR) charges a nominal fee based on authorised capital.
Under the Companies Act 2006, Rule 3, fees start at NPR 1,000 for up to NPR 1 million capital and scale progressively.
MOA and AOA must clearly define share capital, objectives, and board structure. Foreign documents require authentication at the Nepalese Embassy and translation into English or Nepali.
Applications under FITTA 2019 go to DOI or IBN depending on investment size. Government filing fees are low, but the main expense lies in documentation and processing support.
Every capital inflow must be recorded through a Nepalese bank and verified by Nepal Rastra Bank (NRB). Banks charge nominal fees for remittance certification.
Registration with Inland Revenue Department (IRD) is mandatory for tax purposes. Digital certificates and PAN cards are usually included in DCV’s service fee.
Under the Labor Act 2017 (Section 6) and Social Security Act 2018 (Section 21), employers must register employees within a month of hiring. The registration itself is free but requires monthly contributions to SSF (31% of basic salary).
Every company must appoint an auditor approved by the Institute of Chartered Accountants of Nepal (ICAN). Annual audit costs range from USD 300 to 600 depending on size.
| Category | One-Time (Setup) | Recurring (Annual) |
|---|---|---|
| OCR Registration | ✅ | ❌ |
| FDI Approval | ✅ | ❌ (unless additional capital) |
| PAN / VAT | ✅ | Annual renewal free |
| SSF Registration | ✅ | ✅ (Monthly contributions) |
| Accounting and Audit | ❌ | ✅ (Annual audit required) |
| Labour Compliance | ❌ | ✅ (Ongoing) |
| DCV Consulting Retainer | ❌ | ✅ (Optional support plan) |
| Phase | Activity | Estimated Days |
|---|---|---|
| Pre-Incorporation | Name reservation and document drafting | 3–5 |
| FDI Approval | DOI or IBN review and approval | 10–20 |
| Capital Inflow | NRB verification | 2–5 |
| Company Registration | OCR approval | 2–3 |
| PAN / VAT Registration | IRD processing | 1–2 |
| Labor and SSF Setup | Post-incorporation | 3–5 |
Total Expected Duration: 15 – 30 days
Allocate 20% contingency for translation or courier delays.
Budget an additional USD 300–400 for legal opinion or document re-submission.
Retain a compliance advisor for your first fiscal year to prevent late filing penalties.
Translation and Notarization Delays: Extra certifications can add USD 100–200.
Capital Injection Bank Charges: Wire fees and currency conversion costs.
Work Visa and Labour Approval for Foreign Directors: Processing fee USD 50–100 per person.
Accounting Software Setup: Cloud bookkeeping platforms USD 200–300 per year.
Tax and Legal Advisory Retainer: USD 100–200 monthly depending on scope.
Planning ahead saves both time and money.
| Entity Type | Registration Fee (USD) | FDI Approval | Audit Obligation | Best For |
|---|---|---|---|---|
| Private Limited Company | 2,500 – 4,500 | Required | Annual Audit Mandatory | New ventures and startups |
| Branch Office | 3,000 – 4,800 | Required | Annual Audit Mandatory | Foreign companies expanding |
| Liaison Office | 2,000 – 3,500 | Required | Simplified reporting | Market research and representation |
Once your company is registered, ongoing obligations include:
A. Accounting and Bookkeeping
Monthly service packages range from USD 100 to 250 depending on transaction volume.
B. Tax Filing and Advisory
Quarterly filings and annual returns typically cost USD 300–600 per year.
C. Social Security Fund Contributions
31% of basic salary as combined employer and employee share.
D. Audit and Renewal
Mandatory audit every fiscal year; filing fee NPR 500–1,000 to OCR.
E. Compliance Review and Board Meeting Support
Annual corporate secretarial services USD 200–400.
Choose the right capital size: Higher capital increases registration fees and tax obligations.
Prepare documents accurately: Avoid re-submission delays that add legal costs.
Leverage digital registration: OCR and IRD now support online filing for faster approvals.
Bundle services with one advisor: DCV provides legal, tax, and compliance under one roof.
Plan early for post-setup costs: Budget for audit, SSF, and tax filing from day one.
1. What is the average cost to register a company in Nepal?
Between USD 2,500 and 4,500 for foreign investors, depending on structure and scope.
2. What is the minimum capital requirement for foreign investment?
USD 20,000 per investor under FITTA 2019 (Section 3).
3. How much does OCR charge for company registration?
NPR 1,000 to 5,000 based on authorised capital and company type.
4. Are there annual fees after registration?
Yes. Audit, tax filing, and compliance renewals usually cost USD 500–1,000 per year.
5. Can I register a company myself without a consultant?
Yes, but professional guidance reduces delays and ensures compliance with OCR, NRB, and IRD requirements.
Company formation in Nepal is cost-effective when done strategically.
Understanding every fee, from OCR charges to NRB verification, helps you budget accurately and avoid hidden surprises.
Digital Consulting Ventures (DCV) offers end-to-end setup support for foreign investors, including FDI approval, company registration, tax planning, labour compliance, and audit management.
Our legal and accounting experts handle every step with transparency so you can focus on business growth.
Book a consultation today to receive a tailored cost proposal and step-by-step company formation plan for Nepal in 2025.