Cost to Register a Company in Nepal: Fees, Taxes & Hidden Charges

If you are researching how to register a company in Nepal, cost is one of the first and most misunderstood questions.
On paper, Nepal appears inexpensive. In reality, foreign companies often face additional regulatory, tax, and compliance costs that are rarely explained upfront.

This guide breaks down the true cost to register a company in Nepal, including government fees, professional charges, taxes, and hidden expenses.
It is written specifically for foreign founders, investors, and global businesses planning market entry.

By the end, you will know exactly what to budget and how to avoid common cost traps.

Understanding Company Registration Costs in Nepal

Before diving into numbers, it is important to understand why costs vary.

Company registration in Nepal is governed by multiple authorities, not just one office.
Foreign companies usually deal with:

• Office of the Company Registrar (OCR)

• Inland Revenue Department (IRD)

• Nepal Rastra Bank (NRB)

• Department of Industry (DOI)

• Sector-specific regulators if applicable

Each layer introduces cost, time, and documentation.

Types of Companies Foreigners Can Register in Nepal

The cost depends heavily on the legal structure you choose.

Common options for foreign companies

• Private Limited Company (FDI company)

• Branch Office

• Liaison Office

• Joint Venture with Nepali partner

Most foreign businesses choose a Private Limited Company with foreign direct investment.

Government Fees to Register a Company in Nepal

Office of Company Registrar (OCR) fees

These are statutory fees based on authorised capital, not paid-up capital.

OCR registration fee (Private Limited Company)

These fees are relatively low.
They are not the main cost for foreign companies.

Cost of Foreign Direct Investment Approval

Foreign investors must obtain FDI approval before or alongside registration.

Department of Industry (DOI) fees

• Application fee: NPR 20,000

• Project approval fee: NPR 5,000

• Amendment or variation fees (if required): NPR 10,000+

Approval timelines directly affect professional fees and opportunity cost.

Nepal Rastra Bank (NRB) Related Costs

NRB oversees foreign currency inflow and repatriation.

Typical NRB-related expenses

• Bank charges for inward remittance

• Foreign currency conversion losses

• Compliance documentation preparation

• Ongoing reporting costs

While NRB does not charge high official fees, banking and compliance costs add up.

Tax Registration and Fiscal Costs

Inland Revenue Department (IRD) registration

• PAN registration: Free

• VAT registration (if applicable): Free

However, free registration does not mean zero cost.

Practical tax-related costs

• Tax consultant fees

• Accounting system setup

• Monthly and annual filing costs

Mandatory Capital Requirements for Foreign Companies

This is one of the largest financial commitments.

Minimum investment threshold

• Minimum foreign investment: NPR 20 million

• Capital must be remitted through banking channels

This is not a fee, but it directly impacts cash flow planning.

Professional Fees: The Real Cost Driver

Most foreign companies underestimate this category.

Common professional services required

• Company incorporation documentation

• FDI application drafting

• NRB compliance support

• Tax registration and structuring

• Employment and payroll setup

Typical professional fee ranges

• Basic incorporation support: USD 1,000 – 2,000

• Full FDI + registration package: USD 2,500 – 5,000

• Complex structures or regulated sectors: USD 6,000+

Hidden Costs Foreign Companies Often Miss

This is where budgets break.

Frequently overlooked expenses

• Document notarisation and translation

• Embassy or consular legalisation

• Power of attorney execution

• Delays due to resubmissions

• Local address and office compliance

• Initial payroll and labour registration

These costs are small individually but significant combined.

One-Time vs Ongoing Costs Comparison

Understanding this split helps forecast year-one expenses accurately.

Step-by-Step Cost Flow When Registering a Company

Here is how costs typically appear during the process:

1. Name reservation and OCR filing fees

2. Professional documentation charges

3. FDI application and approval fees

4. Capital remittance and bank charges

5. Tax and labour registrations

6. Post-incorporation compliance setup

This staged approach helps manage cash flow.

How Much Does It Really Cost to Register a Company in Nepal?

Realistic total budget estimate

For most foreign companies:

• Government fees: USD 100 – 300

• Professional and compliance costs: USD 2,500 – 5,000

• Initial compliance setup: USD 500 – 1,000

Total realistic setup cost: USD 3,000 – 6,000
Excluding minimum capital investment.

Cost-Saving Tips for Foreign Companies

• Finalise shareholding before filing

• Avoid unnecessary capital revisions

• Use a single integrated advisor

• Prepare documents correctly the first time

• Plan NRB compliance early

Good planning reduces delays and repeat fees.

Legal and Regulatory References (EEAT)

This guide aligns with:

• Companies Act, 2006

• Foreign Investment and Technology Transfer Act, 2019

• Industrial Enterprises Act, 2020

• Income Tax Act, 2002

• Nepal Rastra Bank Unified Directives

These laws govern incorporation, taxation, and foreign investment compliance.

Frequently Asked Questions (People Also Ask)

How much does it cost to register a company in Nepal for foreigners?

Foreign companies typically spend USD 3,000 to 6,000 excluding capital investment. Costs depend on structure, sector, and compliance complexity.

Is company registration in Nepal cheap?

Government fees are low, but professional and compliance costs make total expenses higher for foreign investors.

What is the minimum capital required for foreign investors?

The minimum foreign investment threshold is NPR 20 million, remitted through approved banking channels.

Are there hidden costs after registration?

Yes. Accounting, tax filings, NRB reporting, and labour compliance create ongoing expenses.

Can I register a company in Nepal without a local partner?

Yes. Nepal allows 100 percent foreign ownership in most permitted sectors.

Conclusion

Understanding how to register a company in Nepal starts with understanding cost.
While government fees are modest, foreign companies must budget for compliance, professional services, and ongoing obligations.

A transparent cost plan prevents delays, penalties, and cash flow surprises.

If you are planning Nepal market entry, clarity now saves money later.

Call to Action

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