Do You Need a Local Partner to Register a Company in Nepal?

Nepal is becoming a compelling choice for foreign businesses looking to establish a presence in South Asia. As more companies explore opportunities in IT, consulting, outsourcing, hydropower, and tourism, one critical question often arises:

Do I need a local partner to register a company in Nepal?

This is not just a bureaucratic concern—it affects shareholding, control, tax strategy, and long-term success.

The short answer? In most cases, foreign investors do not need a local partner to register a company in Nepal. You can own 100% of your business, provided you comply with the Foreign Investment and Technology Transfer Act (FITTA) and meet capital requirements.

In this comprehensive 2025 guide, we’ll explain when a local partner is (and isn’t) required, how ownership laws work in Nepal, what types of companies you can establish as a foreigner, and how Digital Consulting Ventures (DCV) supports you throughout the process.

Table of Contents

1. Overview: Can Foreigners Fully Own a Company in Nepal?

2. What Is a Local Partner?

3. When You Don’t Need a Local Partner

4. When You May Need One

5. Types of Business Entities and Ownership Rules

6. Foreign Investment Requirements Under FITTA

7. How to Register a 100% Foreign-Owned Company

8. Common Misconceptions About Local Partners

9. How Digital Consulting Ventures Helps

10. FAQs

1. Overview: Can Foreigners Fully Own a Company in Nepal?

Yes. Under Nepal’s Foreign Investment and Technology Transfer Act (FITTA) 2019, foreigners can register and own 100% of a private limited company in Nepal in most permitted sectors. You do not need a Nepali shareholder unless the sector explicitly requires joint ventures.

Key eligibility:

• The business must not fall under the restricted investment list.

• You must meet the minimum capital threshold: NPR 20 million (~USD 150,000).

• The company must register with the Department of Industry (DOI) and Office of the Company Registrar (OCR).

2. What Is a Local Partner?

A “local partner” refers to:

• A Nepali citizen or resident individual

• A Nepali-registered business entity

• A joint venture partner required for specific restricted sectors

In traditional setups across South Asia, foreign investors often required local partners to meet compliance, gain licenses, or navigate bureaucracy. However, Nepal’s modern legal framework does not mandate local partnerships for most foreign investments.

3. When You Don’t Need a Local Partner

You do not need a local partner in Nepal for foreign company registration if:

✅ You are investing in sectors open to 100% foreign ownership
✅ You meet the minimum capital requirement (NPR 20 million)
✅ You are registering as a private limited company, branch office, or liaison office
✅ Your business does not fall under the restricted or conditional sector list
✅ You are working with a local agent or consultant for compliance (not equity ownership)

Digital Consulting Ventures assists in all these cases—so you can retain full control while operating fully legally.

4. When You May Need One

You may need a local partner if:

• Your business is in a restricted sector (e.g., security services, retail trading, arms manufacturing, etc.)

• You are forming a joint venture (JV) for strategic partnerships, such as hydropower projects or infrastructure bids

• You are bidding on public procurement tenders that require local participation

• You wish to lower the capital investment threshold (only possible via local equity split)

Even then, this is a strategic choice, not a legal necessity in many industries.

5. Types of Business Entities and Ownership Rules

6. Foreign Investment Requirements Under FITTA

If you plan to fully own your company, you must comply with the FITTA regime:

• Minimum FDI: NPR 20 million (~USD 150,000)

• Proof of source of funds

• Project report/business plan

• No involvement in restricted sectors

• Use of formal banking channels for fund inflow

• Board resolution from the foreign investor company (if applicable)

Digital Consulting Ventures helps foreign investors navigate FITTA approval without needing to partner locally.

7. How to Register a 100% Foreign-Owned Company

Here’s how you can register a business without a local partner:

Step 1: Choose Your Business Structure

Decide between private limited, branch, or liaison.

Step 2: Prepare and Notarize Documents

Include passport, project proposal, charter documents, and board resolutions.

Step 3: File for Name Reservation and Registration

Submit to OCR and DOI via your local representative or legal advisor.

Step 4: Obtain Foreign Investment Approval (FITTA)

You’ll need to file with the Department of Industry, including proof of capital.

Step 5: Complete PAN/VAT Registration

Mandatory for business operations and taxation.

Step 6: Open a Corporate Bank Account

Funds must be transferred through formal banking channels.

DCV manages all the above steps end-to-end for you—including notarization, translation, liaison, and compliance.

8. Common Misconceptions About Local Partners

❌ “I must have a 51% local shareholder to operate legally.”

False. Foreigners can legally own 100% if sector and capital rules are met.

❌ “I can’t open a bank account or register a tax ID without a local partner.”

Incorrect. With the right documents and representative, this is fully possible.

❌ “Only locals can lease office space or hire employees.”

Misleading. Your foreign company can contract leases and hire through proper registration.

9. How Digital Consulting Ventures Helps

At Digital Consulting Ventures, we specialize in helping foreign companies enter the Nepalese market without needing a local partner.

Our services include:

✅ Company incorporation under FITTA
✅ Virtual registered office address
✅ Local directorship and representation (non-equity)
✅ Legal document preparation and translation
✅ Compliance with DOI, OCR, IRD, and SSF
✅ Post-registration support (HR, payroll, accounting)
✅ Outsourced staffing and visa/work permit facilitation

DCV allows you to stay in full control of your entity while ensuring compliance with all Nepalese laws.

10. FAQs

Q1. Can I register a company in Nepal without a local partner?
Yes. In most industries, foreign investors can fully own a business without needing a Nepali partner.

Q2. What sectors require joint ventures with locals?
Sectors like security services, mining, retail trade, and arms require local partners or are restricted.

Q3. Can Digital Consulting Ventures act as a local representative without equity?
Yes. We provide local representation and compliance services without taking any shareholding.

Q4. Is 100% foreign ownership legal in IT, consulting, or manufacturing?
Yes. These sectors are fully open to foreign investment under FITTA.

Q5. Can I still hire locals and lease office space without a local partner?
Absolutely. Once your company is legally registered, it has full rights to enter into contracts and hire in Nepal.