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.
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.
The cost depends heavily on the legal structure you choose.
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.
These are statutory fees based on authorised capital, not paid-up capital.
| Authorised Capital (NPR) | Government Fee (NPR) |
|---|---|
| Up to 100,000 | 1,000 |
| 100,001 – 500,000 | 4,500 |
| 500,001 – 2,500,000 | 9,500 |
| 2,500,001 – 10,000,000 | 16,000 |
| Above 10,000,000 | 19,000 |
These fees are relatively low.
They are not the main cost for foreign companies.
Foreign investors must obtain FDI approval before or alongside registration.
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.
NRB oversees foreign currency inflow and repatriation.
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.
PAN registration: Free
VAT registration (if applicable): Free
However, free registration does not mean zero cost.
Tax consultant fees
Accounting system setup
Monthly and annual filing costs
This is one of the largest financial commitments.
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.
Most foreign companies underestimate this category.
Company incorporation documentation
FDI application drafting
NRB compliance support
Tax registration and structuring
Employment and payroll setup
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+
This is where budgets break.
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.
| Cost Category | One-Time | Ongoing |
|---|---|---|
| OCR registration | ✔ | ✖ |
| FDI approval | ✔ | ✖ |
| Legal documentation | ✔ | ✖ |
| Accounting & tax filings | ✖ | ✔ |
| Compliance reporting | ✖ | ✔ |
| Bank charges | ✖ | ✔ |
Understanding this split helps forecast year-one expenses accurately.
Here is how costs typically appear during the process:
Name reservation and OCR filing fees
Professional documentation charges
FDI application and approval fees
Capital remittance and bank charges
Tax and labour registrations
Post-incorporation compliance setup
This staged approach helps manage cash flow.
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.
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.
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.
Foreign companies typically spend USD 3,000 to 6,000 excluding capital investment. Costs depend on structure, sector, and compliance complexity.
Government fees are low, but professional and compliance costs make total expenses higher for foreign investors.
The minimum foreign investment threshold is NPR 20 million, remitted through approved banking channels.
Yes. Accounting, tax filings, NRB reporting, and labour compliance create ongoing expenses.
Yes. Nepal allows 100 percent foreign ownership in most permitted sectors.
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.
Planning to register a company in Nepal?
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