Frequently Asked Questions About the Cost of Company Registration in Nepal

The cost of company registration in Nepal is one of the first questions foreign companies ask when exploring South Asia for expansion. Nepal offers a low-cost entry point, a growing talent pool, and improving digital infrastructure. But the registration cost is not just a single government fee. It includes legal, regulatory, compliance, and operational expenses that vary by structure and sector.

This guide answers the most frequently asked questions foreign investors have about company registration costs in Nepal. It is written from the perspective of advisors who register companies, manage FDI approvals, and handle compliance daily.

By the end, you will know exactly what you will pay, why you pay it, and how to optimise the cost legally.

What Does “Cost of Company Registration in Nepal” Really Include?

When people search for the cost of company registration in Nepal, they often expect a single number. In reality, costs fall into four distinct layers.

1. Government Registration Fees

These are statutory charges payable to government bodies. They are fixed and published.

2. Legal and Professional Fees

Foreign companies usually require lawyers, tax advisors, and compliance consultants.

3. FDI and Regulatory Approval Costs

Applies when foreign shareholding exists. These approvals add time and expense.

4. Post-Registration Compliance Costs

Costs continue after incorporation through accounting, payroll, tax, and reporting.

Understanding these layers prevents under-budgeting.

Cost of Company Registration in Nepal: Government Fees Explained

Office of the Company Registrar (OCR)

The OCR handles incorporation. Fees depend on authorised capital.

Typical OCR fees for a Private Limited Company:

• NPR 1–10 million capital: NPR 9,500–15,000

• NPR 10–50 million capital: NPR 15,000–25,000

• Above NPR 50 million: incremental slabs apply

These are one-time fees.

Department of Industry (FDI Approval)

Foreign investors must obtain approval under FITTA 2019.

• Application and processing fees

• Sector-specific approvals (if applicable)

Local Ward Office Registration

A small but mandatory local registration cost applies.

Legal and Professional Fees: What Foreign Companies Actually Pay

Foreign companies rarely self-register. Legal and advisory costs form a major part of the total cost of company registration in Nepal.

Typical professional services include:

• Name reservation and incorporation filing

• Shareholding and capital structuring

• FDI approval documentation

• Tax registration (PAN and VAT)

• Bank account coordination

Typical professional fee range:
USD 800 to USD 2,500 depending on complexity.

FDI-Specific Costs Foreign Companies Must Budget For

If foreign ownership exists, additional steps apply.

Key cost drivers include:

• Foreign investment approval application

• Capital source documentation

• Industry-specific clearances

• Bank coordination for inward remittance

FDI approval itself does not require high government fees, but documentation and compliance work increases advisory costs.

Cost Comparison Table: Registration Options for Foreign Companies

Insight: For cost-sensitive entry, EOR often replaces incorporation initially.

Hidden Costs Most Blogs Don’t Mention

The cost of company registration in Nepal is often underestimated because of overlooked items.

Common hidden costs include:

• Notarisation and translation of foreign documents

• Bank compliance charges

• Minimum capital parking period

• Accounting system setup

• Annual audit preparation

These costs are legal and unavoidable.

How Much Capital Is Required to Register a Company in Nepal?

Nepal does not impose a high minimum capital requirement for most sectors.

• Many service sectors: NPR 1 million minimum

• Certain regulated industries: higher thresholds

Capital must be declared, not always immediately spent. However, foreign capital must be remitted through formal banking channels.

Cost of Company Registration in Nepal vs Other South Asian Countries

Nepal remains cost-competitive.

Regional comparison (approximate):

• Nepal: USD 1,500–3,500

• India: USD 2,500–6,000

• Bangladesh: USD 3,000–7,000

• Sri Lanka: USD 4,000–8,000

Nepal’s advantage lies in lower professional fees and simpler post-setup compliance.

Timeline vs Cost: Why Faster Usually Costs More

Expedited registration increases professional fees.

• Standard timeline: lower cost

• Fast-track filings: higher advisory charges

Foreign companies should align urgency with budget.

Can Foreign Companies Reduce the Cost Legally?

Yes. Cost optimisation is possible with the right structure.

Proven cost-saving strategies:

1. Start with EOR instead of incorporation

2. Use realistic authorised capital

3. Avoid unnecessary VAT registration initially

4. Consolidate legal and accounting services

Strategic planning reduces both upfront and ongoing costs.

Cost of Company Registration in Nepal for Different Business Models

Tech and IT Services

• Lower capital needs

• Faster approvals

• Minimal sector restrictions

Consulting and Professional Services

• Simplified compliance

• Cost-effective setup

Manufacturing and Trading

• Higher capital

• Additional licenses

• Longer approval timelines

Business model matters more than nationality.

Ongoing Costs After Registration

Registration is only the beginning.

Annual compliance costs include:

• Accounting and bookkeeping

• Tax filings

• Social security contributions

• Annual audit

Expect USD 1,200–3,000 per year depending on scale.

EEAT: Why This Guidance Is Reliable

This article reflects current practice under:

• Companies Act 2006

• FITTA 2019

• Income Tax Act 2002

• Labour Act 2017

Figures are based on active registrations handled for foreign clients, not theory.

Frequently Asked Questions (People Also Ask)

1. What is the minimum cost of company registration in Nepal for foreigners?

The minimum realistic cost is around USD 1,500, including government and basic professional fees. Costs rise with complexity.

2. Can a foreigner own 100 percent of a Nepali company?

Yes. Nepal allows full foreign ownership in most service sectors under FITTA 2019.

3. Is physical presence required to register a company?

No. Registration can be completed remotely with notarised documents and a local representative.

4. How long does company registration take in Nepal?

Typically 3 to 6 weeks for foreign-owned companies, depending on approvals.

5. Are there annual renewal fees after registration?

There are no renewal fees, but annual compliance and audit costs apply.

Conclusion: Is the Cost of Company Registration in Nepal Worth It?

For foreign companies, the cost of company registration in Nepal is modest compared to regional alternatives. When planned correctly, Nepal offers a compliant, scalable, and cost-efficient base for South Asian operations.

The key is choosing the right structure at the right time.

Call to Action

If you want a clear cost breakdown tailored to your business model, speak with our foreign investment specialists.
We will assess your sector, timeline, and budget before you spend a dollar.