If you are planning to start a business in Nepal, understanding the true cost is critical. Nepal is one of South Asia’s most cost-efficient destinations for foreign companies, but the fees are not always obvious. Government charges, foreign direct investment approvals, compliance costs, and ongoing obligations can surprise first-time investors.
This guide provides a clear, authoritative, and up-to-date cost breakdown for foreign companies looking to enter Nepal. You will learn what you must pay, when you must pay it, and how to budget realistically from incorporation to operations.
Nepal offers a unique mix of affordability, talent availability, and regulatory openness to foreign investment.
Key advantages include
Competitive labor and operating costs
100 percent foreign ownership in most sectors
Full repatriation of profits and capital
English-speaking professional workforce
Growing IT, outsourcing, and services ecosystem
These advantages explain why many companies now start a business in Nepal instead of higher-cost Asian markets.
Foreign investment in Nepal is regulated under several core laws and institutions.
Department of Industry
Nepal Rastra Bank
Office of Company Registrar
Foreign Investment and Technology Transfer Act 2019
Companies Act 2006
Together, these govern company incorporation, FDI approval, capital inflow, and repatriation.
To start a business in Nepal as a foreign investor, you must meet the minimum FDI threshold.
NPR 20 million (approx. USD 150,000)
Applies to most sectors
Must be brought in via banking channels
This amount is investment capital, not a government fee. It remains your company’s money.
To budget accurately, costs should be grouped into five categories.
Government registration and statutory fees
Professional and legal fees
Capital import and banking costs
Office, staffing, and setup costs
Ongoing compliance and tax costs
Each category is explained in detail below.
Company registration fees depend on authorized capital.
| Authorized Capital | Registration Fee (Approx.) |
|---|---|
| Up to NPR 1 million | NPR 1,000 |
| NPR 1–10 million | NPR 4,500 |
| NPR 10–100 million | NPR 9,500 |
| Above NPR 100 million | NPR 16,000 |
These fees are paid to the Office of Company Registrar.
FDI approval from the Department of Industry is mandatory.
Application fee: NPR 20,000
Project approval fee: NPR 20,000–50,000
Sector-specific licensing fees may apply
Permanent Account Number registration: No government fee
VAT registration, if applicable: No government fee
Professional support is strongly recommended when you start a business in Nepal.
Company incorporation
FDI approval and documentation
Bank coordination
Capital repatriation structuring
Employment and compliance setup
Estimated professional fees
USD 3,000 to USD 7,000 for full incorporation and FDI support
Costs vary by complexity, sector, and timeline.
International wire fees: USD 30–100 per transfer
Nepal bank inward remittance fees: minimal
Mandatory approval from Nepal Rastra Bank
No official fee, but documentation costs apply
Office costs are one of Nepal’s strongest advantages.
Kathmandu prime area: USD 3–6 per sq. ft.
Secondary locations: USD 1.5–3 per sq. ft.
Furniture and IT: USD 2,000–5,000
Internet and utilities: USD 50–150 monthly
Labor costs in Nepal are highly competitive.
Accountant: USD 400–700
Software developer: USD 700–1,500
Operations executive: USD 350–600
Social Security Fund contribution: 31 percent of basic salary
Employer portion: 20 percent
Employee portion: 11 percent
Standard rate: 25 percent
Special industries may receive concessions
Applies on dividends, services, and royalties
Standard rate: 13 percent
Mandatory if annual turnover exceeds threshold
| Factor | Nepal | India | Philippines |
|---|---|---|---|
| Minimum FDI | Low | Medium | Medium |
| Office rent | Very low | Medium | Medium |
| Salary cost | Very low | Medium | Medium |
| Repatriation | Fully allowed | Allowed | Allowed |
| Setup time | Moderate | Slow | Moderate |
Insight: Nepal offers the lowest total cost base for service-oriented foreign companies.
Most foreign investors complete setup in 6–10 weeks.
Name reservation and documentation
FDI approval
Company registration
Bank account opening
Capital inflow
Tax and compliance setup
Underestimating compliance costs
Ignoring SSF and labor obligations
Delaying capital inflow approvals
Choosing incorrect business structure
Avoiding these mistakes protects your investment.
Nepal is ideal if you are:
Building a service or outsourcing center
Establishing a regional support office
Running IT, consulting, or professional services
Seeking cost efficiency with legal certainty
To start a business in Nepal, foreign companies should budget:
Minimum capital: NPR 20 million
Government fees: USD 500–1,000
Professional fees: USD 3,000–7,000
Initial office and setup: USD 3,000–8,000
Total initial budget: USD 10,000–20,000 excluding capital investment.
If you want to start a business in Nepal, the country offers one of the most attractive cost-to-value ratios in Asia. With transparent FDI laws, low operating expenses, and full profit repatriation, Nepal is no longer an emerging option. It is a strategic choice.
With the right guidance, your setup can be compliant, fast, and cost-efficient.
Planning to start a business in Nepal?
Book a free FDI cost consultation to receive a tailored budget, timeline, and compliance roadmap for your company.
Yes. Most sectors allow full foreign ownership under FITTA 2019.
Typically 6–10 weeks, depending on sector approvals.
Yes. Nepal allows full repatriation through Nepal Rastra Bank approval.
Yes, a registered office address is required.
Yes. Nepal offers skilled talent and low operational costs.