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.
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.
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.
Foreign investors usually choose one of the following:
Separate legal entity
Suitable for trading, services, and outsourcing
Minimum paid-up capital applies for FDI
100 percent foreign ownership allowed
Requires FITTA approval
Higher compliance and reporting costs
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.
The total cost can be divided into five major categories.
These are statutory fees paid directly to government authorities.
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.
NPR 100 to NPR 1,000
Paid during online name approval
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.
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.
After incorporation, mandatory registrations follow.
Permanent Account Number (PAN): No government fee
VAT registration: No government fee
However, professional handling typically costs USD 200 to 400.
Mandatory if hiring employees.
Employer contribution: 20 percent
Employee contribution: 11 percent
Registration itself is free, but setup and compliance management incur advisory fees.
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
| Cost Category | Estimated Cost (USD) | One-Time or Recurring |
|---|---|---|
| OCR registration fees | 75–150 | One-time |
| FITTA / DOI approval | 150–400 | One-time |
| Legal & professional fees | 1,500–3,000 | One-time |
| PAN & VAT setup | 200–400 | One-time |
| Initial compliance setup | 300–600 | One-time |
| Annual compliance & audit | 800–1,500 | Recurring |
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.
To make budgeting easier, here is the typical cost flow.
Name reservation and OCR fee payment
FITTA or DOI approval and documentation
Company incorporation and certificate issuance
Tax registrations and SSF onboarding
Ongoing compliance and reporting
Each step builds on the previous one. Skipping professional guidance often increases long-term cost and risk.
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.
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.
| Country | Average Foreign Registration Cost (USD) |
|---|---|
| Nepal | 2,200–4,500 |
| India | 3,000–6,000 |
| Bangladesh | 4,000–7,000 |
| Sri Lanka | 3,500–6,500 |
Nepal consistently ranks among the most affordable options for foreign-owned companies.
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.
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.
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.
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.
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.
The minimum realistic cost for foreign companies ranges from USD 2,200, including government and professional fees.
Yes. Name reservation, incorporation, and tracking are online through the Office of the Company Registrar portal.
No. Foreign nationals can be directors, but a local representative is often required for compliance coordination.
Yes. Annual audit, tax filing, and compliance typically cost USD 800 to 1,500 per year.
Yes. Most sectors allow 100 percent foreign ownership under FITTA 2019.