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.
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.
The total cost depends on five main factors:
Type of legal entity
Amount of foreign investment committed
Industry sector
Professional support required
Ongoing compliance obligations
Each of these directly affects your final registration budget.
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.
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.
Used for market research and coordination only.
Key features:
No revenue-generating activities
Strict operational limitations
Cost impact: Lowest setup cost, but limited usefulness.
Paid to the Office of the Company Registrar. Fees depend on authorised capital.
| Authorised Capital (NPR) | Government 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 | 19,000 |
These fees are statutory and non-negotiable.
NPR 100 per name application
Usually approved within one business day
Minimal cost but mandatory.
FDI approval is the largest cost driver for foreign companies.
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.
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.
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.
Foreign companies almost always require local expertise.
Includes drafting and filing of:
Memorandum of Association
Articles of Association
Share subscription agreements
Power of attorney
Estimated cost: USD 1,000–2,500
Mandatory for all operating companies.
Costs include:
Permanent Account Number registration
VAT registration (if applicable)
Estimated cost: USD 200–500
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+
This is where many foreign companies under-budget.
Accounting and bookkeeping
Payroll processing
Social Security Fund contributions
Annual audit
Tax filings
Average annual compliance cost: USD 1,500–4,000
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
| Cost Category | Estimated Cost (USD) |
|---|---|
| Government registration fees | 50–200 |
| Legal documentation | 1,000–2,500 |
| FDI approval & structuring | 1,500–3,000 |
| Central bank compliance | 300–700 |
| Tax & statutory registrations | 200–500 |
| First-year compliance | 1,500–4,000 |
| Total (excluding investment) | 4,500–10,000 |
The foreign investment capital (NPR 20 million) is separate and must be injected as equity.
| Country | Avg Setup Cost (USD) | Min Foreign Capital |
|---|---|---|
| Nepal | 4,500–10,000 | NPR 20 million |
| India | 3,000–7,000 | None (most sectors) |
| Bangladesh | 5,000–12,000 | Sector-based |
| Sri Lanka | 4,000–9,000 | USD 250,000 (some) |
Nepal remains cost-competitive when labour and tax incentives are factored in.
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.
You can legally optimise costs by:
Choosing the correct entity structure
Planning capital injection in phases
Bundling legal and compliance services
Using an Employer of Record before FDI
Engaging experienced local advisors
Strategic planning often saves more than it costs.
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.
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.
No. It is equity capital invested into the company. It remains the company’s money and can be used for operations.
Only Nepali citizens can register companies without FDI. Foreigners must obtain foreign investment approval.
With proper documentation, registration typically takes 4 to 8 weeks, depending on approvals.
Yes. Annual compliance, audits, payroll, and tax filings create ongoing costs that must be budgeted.
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.
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