Cost of Company Registration in Nepal: Full Breakdown (2026)

The cost of company registration in Nepal is one of the first questions foreign investors ask before entering the market. And rightly so. Nepal offers low labour costs and growing demand, but regulatory fees, foreign investment approvals, and compliance expenses can surprise unprepared founders.

In this authoritative 2026 guide, we break down every official and practical cost involved in registering a company in Nepal as a foreign company. This includes government fees, legal expenses, foreign direct investment requirements, and post-registration compliance costs.

By the end, you will know exactly what to budget. No guesswork. No hidden surprises.

Why Nepal Attracts Foreign Companies in 2026

Foreign companies choose Nepal for several strategic reasons:

• Competitive operating costs compared to India and Southeast Asia

• English-speaking professional workforce

• Liberalised foreign direct investment (FDI) regime

• Strategic location between India and China

• Growing demand in IT, consulting, outsourcing, tourism, and energy

However, Nepal follows a regulated entry model. Understanding costs upfront is essential to avoid delays and budget overruns.

Overview: What Determines the Cost of Company Registration in Nepal?

The total cost depends on five main factors:

1. Type of legal entity

2. Amount of foreign investment committed

3. Industry sector

4. Professional support required

5. Ongoing compliance obligations

Each of these directly affects your final registration budget.

Legal Entity Options and Their Cost Implications

Private Limited Company (FDI Company)

This is the most common structure for foreign companies.

Key features:

• Separate legal entity

• 100 percent foreign ownership allowed (sector-dependent)

• Minimum foreign investment threshold applies

Cost impact: Moderate to high due to mandatory FDI approvals.

Branch Office

Suitable for companies executing specific projects in Nepal.

Key features:

• Extension of foreign parent company

• No separate legal personality

• Limited activities allowed

Cost impact: Lower registration fees but higher regulatory scrutiny.

Liaison Office

Used for market research and coordination only.

Key features:

• No revenue-generating activities

• Strict operational limitations

Cost impact: Lowest setup cost, but limited usefulness.

Government Fees: Official Cost of Company Registration in Nepal

Company Registration Fee (OCR)

Paid to the Office of the Company Registrar. Fees depend on authorised capital.

These fees are statutory and non-negotiable.

Name Reservation Fee

• NPR 100 per name application

• Usually approved within one business day

Minimal cost but mandatory.

Foreign Direct Investment Costs in Nepal (FDI)

FDI approval is the largest cost driver for foreign companies.

Minimum Investment Requirement

As per prevailing foreign investment guidelines:

• Minimum foreign investment: NPR 20 million

• Applies per company, not per shareholder

This is not a fee, but capital that must be committed and injected.

Department of Industry (DOI) Approval Costs

Government processing fees are low, but professional handling is critical.

Typical expenses include:

• Application preparation

• Project report drafting

• Investment structure review

These costs range from USD 1,500 to USD 3,000, depending on complexity.

Nepal Rastra Bank (NRB) Approval

After FDI approval, capital remittance requires central bank clearance.

Cost considerations:

• Bank charges

• Compliance documentation

• Timeline risk if errors occur

Expect USD 300–700 in indirect costs.

Professional Fees: Legal, Tax, and Advisory Costs

Foreign companies almost always require local expertise.

Legal Documentation Costs

Includes drafting and filing of:

• Memorandum of Association

• Articles of Association

• Share subscription agreements

• Power of attorney

Estimated cost: USD 1,000–2,500

Tax Registration and PAN/VAT Setup

Mandatory for all operating companies.

Costs include:

• Permanent Account Number registration

• VAT registration (if applicable)

Estimated cost: USD 200–500

Sector-Specific Licensing Costs

Certain industries require additional approvals.

Examples include:

• IT and software services

• Tourism and hospitality

• Energy and hydropower

• Education and training

Estimated range: USD 500–3,000+

Post-Registration Compliance Costs (Often Overlooked)

This is where many foreign companies under-budget.

Mandatory Ongoing Expenses

• Accounting and bookkeeping

• Payroll processing

• Social Security Fund contributions

• Annual audit

• Tax filings

Average annual compliance cost: USD 1,500–4,000

Office Address and Local Presence

Nepal requires a registered office address.

Options include:

• Physical office lease

• Serviced office

• Virtual office (limited use cases)

Estimated annual cost: USD 600–3,000

Total Cost of Company Registration in Nepal (2026)

Complete Cost Breakdown Table

The foreign investment capital (NPR 20 million) is separate and must be injected as equity.

Cost Comparison: Nepal vs Other South Asian Countries

Nepal remains cost-competitive when labour and tax incentives are factored in.

Common Costly Mistakes Foreign Companies Make

Avoid these frequent errors:

• Underestimating FDI compliance timelines

• Using incorrect shareholding structures

• Ignoring sector-specific restrictions

• Delaying capital remittance

• Skipping professional tax planning

Each mistake adds weeks and thousands in unplanned costs.

How to Reduce the Cost of Company Registration in Nepal

You can legally optimise costs by:

1. Choosing the correct entity structure

2. Planning capital injection in phases

3. Bundling legal and compliance services

4. Using an Employer of Record before FDI

5. Engaging experienced local advisors

Strategic planning often saves more than it costs.

When Employer of Record Is Cheaper Than Registration

For early-stage market entry, many foreign companies start with an Employer of Record (EOR).

Benefits include:

• No FDI requirement

• No entity registration costs

• Faster hiring

• Lower compliance burden

This is often the most cost-effective first step.

Frequently Asked Questions (People Also Ask)

How much does it cost to register a company in Nepal as a foreigner?

The cost of company registration in Nepal for foreign companies ranges from USD 4,500 to USD 10,000, excluding the mandatory NPR 20 million foreign investment capital.

Is the NPR 20 million investment a fee?

No. It is equity capital invested into the company. It remains the company’s money and can be used for operations.

Can I register a company in Nepal without FDI?

Only Nepali citizens can register companies without FDI. Foreigners must obtain foreign investment approval.

How long does company registration take in Nepal?

With proper documentation, registration typically takes 4 to 8 weeks, depending on approvals.

Are there hidden costs after registration?

Yes. Annual compliance, audits, payroll, and tax filings create ongoing costs that must be budgeted.

Conclusion: Is the Cost of Company Registration in Nepal Worth It?

The cost of company registration in Nepal is transparent when planned correctly. While foreign investment requirements increase upfront commitment, Nepal offers long-term operational savings and access to a skilled workforce.

With the right structure and expert guidance, Nepal remains one of South Asia’s most cost-effective expansion destinations in 2026.

Call to Action

If you are planning to enter Nepal and want a clear, fixed-cost registration roadmap, we can help.

👉 Book a free consultation to receive:

• A personalised cost breakdown

• Entity structure recommendation

• FDI and compliance timeline