Insights

Cost of Registering a Company in Nepal for Foreigners & NRNs

Written by Vijay Shrestha | Dec 23, 2025 9:00:40 AM

 

 

 

 

The cost of company registration in Nepal is one of the first questions foreign companies and Non-Resident Nepalis (NRNs) ask when exploring market entry. Nepal offers competitive setup costs, a young workforce, and clear FDI laws. But the real cost goes beyond a single government fee. Legal filings, approvals, capital thresholds, and ongoing compliance all matter.

This guide gives you a clear, end-to-end breakdown of costs, timelines, and decisions. It is written for foreign founders, CFOs, and expansion teams who want certainty before committing capital.

Why Foreigners and NRNs Are Registering Companies in Nepal

Nepal has become attractive for foreign investors due to three structural advantages:

• Low setup and operating costs
• Strong legal protection for FDI
• Full profit and capital repatriation under law

Under the Foreign Investment and Technology Transfer Act (FITTA 2019), foreigners can own up to 100 percent equity in most sectors.

Popular sectors include IT services, BPO, fintech support, education services, tourism, manufacturing, and professional services.

Cost of Company Registration in Nepal for Foreign Investors

The cost depends on three core factors:

  1. Type of entity

  2. Amount of foreign investment

  3. Whether you use professional support

Entity Types Available to Foreigners

Foreigners and NRNs can register:

• FDI Private Limited Company
• Branch Office
• Liaison Office (no revenue activities)

Most investors choose an FDI Private Limited Company due to operational flexibility.

Government Fees for Company Registration in Nepal

Office of Company Registrar (OCR) Fees

Company incorporation fees are charged by the Office of Company Registrar and depend on authorized capital.

Authorized Capital (NPR) Government Fee (Approx.)
Up to 1 million NPR 1,000
1–5 million NPR 4,500
5–10 million NPR 9,500
Above 10 million Scales progressively

These fees are low. They are not the main cost driver for foreign investors.

FDI Approval Costs and Capital Requirements

Minimum Foreign Investment Threshold

Nepal mandates a minimum foreign investment of NPR 20 million (approx. USD 150,000).

This capital must be:

• Approved by authorities
• Remitted through banking channels
• Declared during registration

Department of Industry (DOI) Processing

FDI approval is issued by the Department of Industry.

Typical government processing costs:

• Application fees: NPR 20,000–25,000
• Industry registration: NPR 10,000–15,000

These are statutory and unavoidable.

Legal and Professional Fees (Major Cost Component)

While government fees are modest, professional support is where most foreign founders invest.

Typical Legal and Advisory Costs

Professional fees generally range between:

• USD 1,500 to USD 4,000

This usually covers:

• FDI structuring advice
• Company incorporation
• Drafting MOA and AOA
• DOI approval coordination
• Tax registration
• Bank account setup support

Using experienced advisors reduces rejection risk and delays.

One-Time Setup Costs Beyond Registration

Foreign investors should also budget for:

• Company seal and statutory books
• PAN and VAT registration
• Office lease documentation
• Initial accounting setup

Estimated additional cost: USD 300–700

Comparison Table: DIY vs Professional Setup

Factor DIY Registration Professional Support
Cost Lower upfront Higher upfront
Approval risk High Low
Timeline 2–4 months 3–5 weeks
Compliance accuracy Uncertain High
Bank coordination Difficult Guided

Insight: Most foreign companies choose professional support to protect capital and timelines.

Ongoing Compliance Costs (Often Overlooked)

Registration is only the start. Annual compliance is mandatory.

Annual Costs to Maintain a Company

• Accounting and bookkeeping
• Tax filings and audits
• Company renewals
• Labor and SSF compliance

Typical annual compliance cost:

• USD 1,200 to USD 3,000

These costs scale with company size.

Hidden Costs of Company Registration in Nepal

Foreign investors often miss these items:

• Bank compliance delays
• Currency conversion charges
• Audit thresholds
• Employment compliance fines

Planning for these avoids surprises.

Timeline: How Long Does Registration Take?

A realistic timeline:

  1. Name reservation: 2–3 days

  2. FDI approval: 10–20 working days

  3. Company incorporation: 3–5 days

  4. Bank account and capital injection: 1–2 weeks

Total: 3 to 5 weeks with proper guidance.

Legal Protections for Foreign Investors

Nepal provides strong investor protection under:

• FITTA 2019
• Industrial Enterprises Act 2020
• Companies Act 2006

Key guarantees include:

• Full profit repatriation
• Capital repatriation on exit
• Protection against nationalization

These protections significantly reduce risk.

Cost of Company Registration in Nepal for NRNs

NRNs receive special treatment under Nepal law.

NRN Advantages

• Treated as foreign investors
• Simplified banking coordination
• Faster approvals in practice

Costs for NRNs are generally identical but timelines are often shorter.

Tax Considerations After Registration

Foreign-owned companies are subject to:

• Corporate income tax
• Withholding tax
• VAT (if applicable)

Nepal’s corporate tax rate is competitive within South Asia.

Professional tax planning at setup can save long-term costs.

Practical Cost Summary

Realistic total initial cost for foreigners:

• Minimum capital: NPR 20 million
• Government fees: USD 200–400
• Legal and advisory: USD 1,500–4,000
• Miscellaneous setup: USD 300–700

Total non-capital setup cost: USD 2,000–5,000

Conclusion

The cost of company registration in Nepal is transparent, affordable, and investor-friendly when done correctly. Government fees are low. The real value lies in proper structuring, legal compliance, and speed.

For foreign companies and NRNs, Nepal offers one of South Asia’s most accessible FDI regimes with strong legal protection and repatriation rights.

Call to Action

Planning to register a company in Nepal?
Speak with a Nepal FDI specialist to get a tailored cost breakdown, timeline, and compliance roadmap before you invest.

FAQs: People Also Ask

Is Nepal open to 100 percent foreign ownership?

Yes. Most sectors allow full foreign ownership under FITTA 2019, with limited restricted industries.

What is the minimum investment to register a foreign company in Nepal?

Foreign investors must bring at least NPR 20 million as foreign direct investment.

How long does company registration take in Nepal for foreigners?

With proper documentation, registration typically takes 3 to 5 weeks.

Can foreigners repatriate profits from Nepal?

Yes. Nepal guarantees full profit and capital repatriation through legal banking channels.

Do NRNs get special benefits when registering a company?

NRNs are treated as foreign investors but often experience smoother banking and approvals.