Cost of Online Company Registration in Nepal: Complete Breakdown

Online company registration in Nepal has become the preferred route for foreign companies looking to enter South Asia efficiently. The process is digital, structured, and governed by clear legislation. However, cost clarity remains a major concern for international founders.

Many foreign investors underestimate or misunderstand the total cost involved. Government fees are only one part. Professional fees, compliance costs, tax registrations, and post-incorporation obligations often come as surprises.

This guide provides a complete, authoritative cost breakdown. It reflects real-world registration scenarios faced by foreign companies. By the end, you will know exactly what to budget and how to avoid hidden expenses.

Why Foreign Companies Choose Online Company Registration in Nepal

Nepal offers a cost-efficient entry point compared to other South Asian jurisdictions. Online systems reduce bureaucracy and speed up approvals.

Foreign companies typically choose Nepal for:

• Competitive labor and operating costs

• Strategic access to South Asian markets

• Government-backed digital incorporation systems

• 100 percent foreign ownership in most sectors

The Office of the Company Registrar (OCR) now enables online submission, tracking, and approval of incorporation documents under the Companies Act 2006.

Legal Framework Governing Company Registration Costs in Nepal

Understanding the legal basis behind each cost adds credibility and trust.

The main laws influencing registration costs include:

• Companies Act, 2006

• Foreign Investment and Technology Transfer Act (FITTA), 2019

• Industrial Enterprises Act, 2020

• Income Tax Act, 2002

• Labour Act, 2017

Each statute defines fees, approvals, and compliance obligations that affect the total cost of online company registration in Nepal.

Types of Companies Foreigners Can Register Online in Nepal

Foreign investors usually choose one of the following:

Private Limited Company (Most Common)

• Separate legal entity

• Suitable for trading, services, and outsourcing

• Minimum paid-up capital applies for FDI

Subsidiary Company (FDI Route)

• 100 percent foreign ownership allowed

• Requires FITTA approval

• Higher compliance and reporting costs

Branch or Liaison Office

• No separate legal personality

• Restricted activities

• Ongoing approval and renewal costs

This article focuses primarily on online registration of a Private Limited Company with foreign investment, as it is the most common route.

Cost Components of Online Company Registration in Nepal

The total cost can be divided into five major categories.

1. Government Registration Fees

These are statutory fees paid directly to government authorities.

Company Registration Fee (OCR)

The Office of the Company Registrar charges fees based on authorized capital.

Indicative OCR fee structure:

• NPR 1 million capital: approx. NPR 9,500

• NPR 5 million capital: approx. NPR 16,000

• NPR 10 million capital: approx. NPR 19,000

These fees are prescribed under the Companies Act and updated periodically.

Name Reservation Fee

• NPR 100 to NPR 1,000

• Paid during online name approval

2. Foreign Investment Approval Costs (FITTA Route)

Foreign companies must obtain approval from the Department of Industry (DOI) or Investment Board Nepal (IBN).

Costs include:

• Application processing fee

• Documentation and notarization

• Investment approval charges

Typical government cost range: NPR 20,000 to NPR 50,000

Approval timelines and costs depend on the investment size and sector.

3. Professional and Legal Service Fees

This is where cost variations are highest.

Foreign companies usually engage professionals for:

• Legal drafting

• Regulatory coordination

• End-to-end online filing

Professional fee ranges:

• Basic registration support: USD 800 to 1,200

• Full FDI incorporation package: USD 1,500 to 3,000

Fees depend on complexity, capital size, and post-registration support.

4. Tax and Statutory Registration Costs

After incorporation, mandatory registrations follow.

PAN and VAT Registration

• Permanent Account Number (PAN): No government fee

• VAT registration: No government fee

However, professional handling typically costs USD 200 to 400.

Social Security Fund (SSF)

Mandatory if hiring employees.

• Employer contribution: 20 percent

• Employee contribution: 11 percent

Registration itself is free, but setup and compliance management incur advisory fees.

5. Post-Incorporation Compliance Costs

Many foreign companies overlook these recurring costs.

They include:

• Annual return filing

• Audit fees

• Tax return preparation

• Board resolutions and updates

Average annual compliance cost: USD 800 to 1,500

Complete Cost Table: Online Company Registration Nepal

Total initial cost estimate: USD 2,200 to 4,500

This table reflects realistic, end-to-end online company registration in Nepal for foreign companies.

Step-by-Step Cost Flow for Foreign Investors

To make budgeting easier, here is the typical cost flow.

1. Name reservation and OCR fee payment

2. FITTA or DOI approval and documentation

3. Company incorporation and certificate issuance

4. Tax registrations and SSF onboarding

5. Ongoing compliance and reporting

Each step builds on the previous one. Skipping professional guidance often increases long-term cost and risk.

Hidden Costs Foreign Companies Should Plan For

Not all costs are visible upfront.

Common hidden costs include:

• Document notarization and apostille abroad

• Translation into Nepali

• Bank account opening delays

• Compliance penalties for late filings

These costs can add USD 300 to 1,000 if not planned properly.

How Online Registration Reduces Overall Cost

Digital systems significantly reduce inefficiencies.

Benefits include:

• No physical presence required

• Faster approvals

• Reduced unofficial payments

• Transparent government fee structure

Online company registration in Nepal is now one of the most cost-efficient incorporation routes in South Asia.

Cost Comparison: Nepal vs Other South Asian Countries

Nepal consistently ranks among the most affordable options for foreign-owned companies.

Common Mistakes That Increase Registration Costs

Foreign companies often increase costs by:

• Choosing incorrect capital structure

• Delaying tax registrations

• Ignoring compliance deadlines

• Using unlicensed agents

Proper structuring at the start saves significant cost later.

How Long Does Online Company Registration Take in Nepal?

Cost and time are closely linked.

Typical timelines:

• Name approval: 1 to 2 days

• FITTA approval: 7 to 15 working days

• OCR incorporation: 2 to 3 days

• Tax registrations: 2 to 5 days

Delays usually increase advisory and operational costs.

Why Working With a Local Expert Matters

Local experts understand:

• Regulatory expectations

• Informal procedural bottlenecks

• Cost-saving structuring options

For foreign companies, expert guidance often reduces total cost by preventing rework and penalties.

Conclusion: Budget Confidently for Online Company Registration in Nepal

Online company registration in Nepal is transparent, affordable, and well-suited for foreign investors. However, the real cost goes beyond basic government fees.

When properly planned, foreign companies can establish a compliant Nepal entity for under USD 5,000. With the right partner, the process is predictable, fast, and scalable.

If your goal is long-term growth, correct registration and compliance planning is an investment, not a cost.

Call to Action

Planning to register a company in Nepal?
Book a free consultation with our Nepal FDI and incorporation specialists to receive a tailored cost estimate and compliance roadmap for your business.

Frequently Asked Questions (People Also Ask)

What is the minimum cost for online company registration in Nepal?

The minimum realistic cost for foreign companies ranges from USD 2,200, including government and professional fees.

Is online company registration in Nepal fully digital?

Yes. Name reservation, incorporation, and tracking are online through the Office of the Company Registrar portal.

Do foreign companies need local directors in Nepal?

No. Foreign nationals can be directors, but a local representative is often required for compliance coordination.

Are there annual costs after registration?

Yes. Annual audit, tax filing, and compliance typically cost USD 800 to 1,500 per year.

Can foreign companies own 100 percent of a Nepal company?

Yes. Most sectors allow 100 percent foreign ownership under FITTA 2019.