If you are comparing a private vs public company in Nepal, one of the first compliance checkpoints you will face is PAN card registration. For foreign companies, this step is not just procedural. It determines how you pay tax, open bank accounts, hire employees, and repatriate profits.
Within the first days after incorporation, the Permanent Account Number (PAN) issued by Nepal’s tax authority becomes mandatory. Yet, the documents required differ subtly but critically depending on whether your entity is a private limited company or a public limited company.
This guide breaks it all down. No legal fog. No generic lists. Just a clear, authoritative explanation tailored for foreign investors and international businesses entering Nepal.
A PAN card is a unique tax identification number issued by the Inland Revenue Department under the Income Tax Act 2002.
Without a PAN, a company in Nepal cannot legally operate.
A PAN is required to:
For foreign companies, PAN registration also becomes the anchor document referenced by banks, regulators, and auditors.
Before listing documents, it is important to understand how company structure affects scrutiny level.
Both structures are governed by the Companies Act 2006, but public companies trigger higher compliance thresholds.
Whether private or public, every company must submit the following:
This is where the distinction starts to matter.
Private companies benefit from simpler disclosure requirements.
Additional documents typically include:
Processing is usually faster, provided foreign ownership approvals are already in place.
Public companies face expanded compliance checks due to public interest risk.
Additional requirements may include:
The Inland Revenue Department often conducts manual verification before issuing PAN.
| Aspect | Private Company in Nepal | Public Company in Nepal |
|---|---|---|
| Shareholding disclosure | Limited | Extensive |
| Regulatory scrutiny | Moderate | High |
| Approval layers | Fewer | Multiple |
| PAN processing time | Faster | Slower |
| Suitability for foreigners | Highly suitable | Strategic cases only |
Insight: Most foreign investors choose a private limited company unless capital markets access is required.
For foreign companies, PAN registration is linked to investment approvals.
Additional documents may include:
These align PAN registration with Nepal’s foreign investment framework.
Avoid these pitfalls during PAN registration:
These errors cause avoidable delays.
PAN registration does not automatically mean VAT registration.
Foreign companies often confuse these steps. PAN always comes first.
Typical timelines:
Delays usually arise from document inconsistencies, not system issues.
Your PAN registration data influences:
This is why structure selection matters early when deciding between a private vs public company in Nepal.
If your goal is:
A private limited company with clean PAN registration is almost always the optimal choice.
Public companies make sense only for capital-intensive or regulated industries.
Choosing between a private vs public company in Nepal is not just a corporate law decision. It directly affects PAN card registration, compliance burden, and operational speed.
For most foreign companies, private entities offer:
Getting the documents right from day one saves months later.
If you are planning market entry, treat PAN registration as a strategic foundation, not a clerical task.
Yes. Every company operating in Nepal must obtain a PAN, regardless of ownership.
Yes, with a proper board resolution or power of attorney.
Yes. Branch offices submit parent company documents instead of MOA and AOA.
In most cases, yes. Banks require PAN for full account activation.
Yes, but amendments require formal application and supporting documents.