Cost of Registering Different Company Types in Nepal (PLC, Partnership, etc.)

Understanding the cost of company registration in Nepal is one of the first and most critical decisions foreign companies must make before market entry. Nepal offers multiple legal structures. Each comes with different government fees, capital thresholds, compliance duties, and timelines. Choosing the wrong structure can delay approvals, inflate costs, or restrict future operations.

This guide breaks down the actual cost of registering different company types in Nepal, with clear comparisons, legal references, and practical insights for foreign investors. It is written for decision-makers who want clarity, not complexity.

Why Company Type Directly Impacts the Cost of Company Registration in Nepal

Not all entities are treated equally under Nepali law. Costs vary due to:

• Minimum capital requirements

• Government registration and stamp fees

• Foreign investment approval processes

• Ongoing compliance and audit obligations

• Repatriation and tax treatment

For foreign companies, the cost is influenced as much by regulatory complexity as by government fees.

Overview of Company Types Available in Nepal

Foreign companies can operate in Nepal through the following structures:

1. Private Limited Company (FDI-based)

2. Public Limited Company (PLC)

3. Branch Office

4. Liaison Office

5. Partnership Firm

6. Sole Proprietorship

Each structure serves a different strategic purpose.

Cost of Registering a Private Limited Company in Nepal (FDI Company)

A Private Limited Company is the most common choice for foreign investors seeking full operational control.

Key Features

• Separate legal entity

• Can generate revenue in Nepal

• Allows profit repatriation

• Eligible for 100 percent foreign ownership in most sectors

Minimum Capital Requirement

• NPR 20 million minimum foreign investment threshold

Government Costs Breakdown

• Company registration fee: NPR 9,500 to NPR 25,000

• Name reservation: NPR 100

• Stamp duty: NPR 2,000

• PAN and VAT registration: No government fee

• Local ward registration: NPR 5,000 to NPR 20,000

Professional and Compliance Costs

• Legal drafting and filing

• FDI approval documentation

• Industry-specific licensing if required

Estimated Total Cost Range

NPR 150,000 to NPR 350,000, excluding paid-up capital.

This structure offers the best balance between cost, control, and scalability.

Cost of Registering a Public Limited Company (PLC) in Nepal

A Public Limited Company is designed for large-scale operations and capital markets access.

Key Features

• Minimum seven shareholders

• Mandatory board structure

• Higher disclosure and audit standards

Minimum Capital Requirement

• NPR 100 million

Government Fees

• Registration fee: NPR 40,000 to NPR 100,000

• Stamp duty and filings: NPR 5,000 to NPR 10,000

Additional Cost Considerations

• Mandatory statutory audit

• Ongoing compliance filings

• Securities regulation if publicly listed

Estimated Total Cost Range

NPR 300,000 to NPR 600,000, excluding capital.

PLC registration is rarely suitable for first-time foreign entrants due to cost and complexity.

Cost of Registering a Branch Office in Nepal

A Branch Office is an extension of a foreign parent company.

Key Features

• Not a separate legal entity

• Can generate revenue

• Parent company bears liability

Capital Requirement

• No fixed minimum capital

• Operating budget must be justified

Government and Approval Costs

• Industry authority approval

• Company registrar filing: NPR 15,000 to NPR 25,000

• Tax registration: No fee

Estimated Total Cost Range

NPR 200,000 to NPR 400,000

Branch offices are popular for project-based or short-term operations.

Cost of Registering a Liaison Office in Nepal

A Liaison Office is strictly non-commercial.

What It Can and Cannot Do

• Market research and coordination only

• No revenue generation

• No profit repatriation

Cost Structure

• Approval and registration: NPR 50,000 to NPR 100,000

• Annual renewal fees apply

Estimated Total Cost Range

NPR 100,000 to NPR 200,000

This is the lowest-cost option for market exploration.

Cost of Registering a Partnership Firm in Nepal

Partnerships are primarily for local businesses.

Key Limitations for Foreigners

• Foreign ownership restrictions

• Unlimited partner liability

Cost Overview

• Registration fee: NPR 2,000 to NPR 5,000

• Ward registration: NPR 3,000 to NPR 10,000

Estimated Total Cost Range

NPR 25,000 to NPR 50,000

Not recommended for foreign investors due to legal exposure.

Cost of Registering a Sole Proprietorship in Nepal

A sole proprietorship is the simplest structure.

Suitability

• Generally limited to Nepali citizens

• Not FDI-friendly

Cost Range

NPR 10,000 to NPR 30,000

This structure is unsuitable for foreign companies.

Comparison Table: Cost of Registering Different Company Types in Nepal

Hidden Costs Foreign Companies Often Miss

Many investors underestimate the true cost of company registration in Nepal due to hidden expenses.

These include:

• Industry licensing fees

• Environmental approvals

• Annual audit costs

• Payroll and social security compliance

• Bank compliance documentation

Planning for these early avoids delays and budget overruns.

Timeline vs Cost Trade-Off

Faster incorporation usually means higher professional fees. Delays often increase indirect costs like rent, staffing, and opportunity loss.

Choosing the right company type minimizes both cost and time.

How to Reduce the Cost of Company Registration in Nepal

A practical approach includes:

1. Choosing the simplest compliant structure

2. Preparing complete documentation upfront

3. Avoiding unnecessary licensing categories

4. Using experienced local advisors

Strategic planning reduces both setup and long-term compliance costs.

FAQs: Cost of Company Registration in Nepal

What is the cheapest company type for foreigners in Nepal?

A liaison office is the cheapest option. However, it cannot generate revenue. A private limited company offers the best value for operations.

Is paid-up capital the same as registration cost?

No. Paid-up capital is an investment requirement. Registration cost covers government and professional fees only.

Can foreign companies own 100 percent of a Nepali company?

Yes. Most sectors allow full foreign ownership through a private limited company.

How long does registration take?

Typically 3 to 6 weeks. Complex licensing can extend timelines.

Are registration costs refundable if rejected?

Government fees are non-refundable. Proper documentation reduces rejection risk.

Conclusion: Choosing the Right Structure Controls the Cost

The cost of company registration in Nepal depends less on government fees and more on choosing the right legal structure. For most foreign companies, a private limited company delivers the best balance of cost, control, and growth potential.

Making an informed decision at the start prevents regulatory friction later.

Call to Action

Planning to register a company in Nepal?
Speak with a Nepal-based incorporation specialist to receive a cost-accurate structure recommendation and compliance roadmap tailored to your business.