From Paperwork to Approval: Timelines for Company Registration in Nepal

Understanding private vs public company in Nepal is one of the first decisions foreign investors must make.
It directly affects timelines, approvals, compliance, and capital planning.

This guide explains the real registration timelines in Nepal.
It covers paperwork, government approvals, and practical delays.
You will learn which structure suits your expansion goals.

Whether you plan a small operating entity or a large capital raise, clarity here saves months.

Why Timelines Matter When Choosing Private vs Public Company in Nepal

Foreign companies often underestimate time risk.
In Nepal, timelines depend on structure, capital size, and sector.

A private company can be operational in weeks.
A public company may take several months.

Choosing the wrong structure early can stall hiring, banking, and revenue.

Legal Framework Governing Company Registration in Nepal

Company registration in Nepal is governed by well-defined legislation.
Foreign investors should be aware of these instruments:

• Companies Act, 2006

• Foreign Investment and Technology Transfer Act (FITTA), 2019

• Industrial Enterprises Act, 2020

• NRB Foreign Investment and Loan Management Directives

• Office of Company Registrar (OCR) procedural guidelines

These laws define structure, ownership, disclosure, and approval timelines.

Overview: Private vs Public Company in Nepal

Before timelines, understand the structural difference.

What Is a Private Company in Nepal?

A private company is the most common structure for foreign investors.
It is suitable for wholly owned subsidiaries and joint ventures.

Key characteristics:

• 1–101 shareholders

• No public share offering

• Lower disclosure obligations

• Faster incorporation timeline

What Is a Public Company in Nepal?

A public company is designed for large-scale ventures.
It is often used for infrastructure, banking, or hydropower projects.

Key characteristics:

• Minimum 7 shareholders

• Mandatory public disclosures

• Higher paid-up capital

• Longer regulatory process

Registration Process Overview: From Paperwork to Approval

The registration process follows sequential steps.
Delays usually occur when documents are incomplete or misaligned.

Step-by-Step Company Registration Flow

1. Name reservation with OCR

2. Preparation of constitutional documents

3. Foreign investment approval (if applicable)

4. Company incorporation at OCR

5. Tax registration and PAN/VAT

6. Bank account opening

7. Capital injection and NRB reporting

Each step carries different timelines for private vs public company in Nepal.

Timelines for Registering a Private Company in Nepal

Standard Timeline Breakdown

A private company offers speed and predictability.

Estimated timeline: 15–30 working days

Detailed stages:

• Name approval: 1–2 days

• MOA & AOA drafting and notarization: 3–5 days

• FITTA approval (foreign investors): 7–15 days

• OCR registration: 2–3 days

• PAN and local registrations: 2–5 days

Why Private Companies Register Faster

• No public prospectus

• Lower minimum capital

• Simplified scrutiny

• Fewer shareholder disclosures

This makes private companies ideal for market entry.

Timelines for Registering a Public Company in Nepal

Standard Timeline Breakdown

Public companies involve deeper regulatory review.

Estimated timeline: 2–4 months

Detailed stages:

• Name approval: 2–3 days

• Constitutional documents and capital structuring: 10–15 days

• FITTA and sectoral approvals: 15–30 days

• OCR registration: 5–7 days

• Securities and compliance setup: 15–30 days

Why Public Companies Take Longer

• Mandatory capital thresholds

• Public disclosure obligations

• Prospectus and governance review

• Multi-agency approvals

Public companies are built for scale, not speed.

Comparison Table: Private vs Public Company in Nepal Timelines

This comparison highlights why most foreign firms start private.

Sector-Specific Timeline Considerations

Certain sectors face additional approvals.

Examples include:

• Banking and financial services

• Hydropower and energy

• Telecommunications

• Aviation and infrastructure

These sectors can add 30–90 extra days, regardless of structure.

Common Delays Foreign Companies Face

Foreign investors often face avoidable delays.

Typical causes include:

• Incomplete apostilled documents

• Mismatch between shareholder and bank details

• Underestimated capital thresholds

• Late NRB reporting

A local compliance partner significantly reduces risk.

Private vs Public Company in Nepal: Which Is Right for You?

Choose a Private Company If You:

• Want fast market entry

• Plan to test the market

• Need operational flexibility

• Are not raising public capital

Choose a Public Company If You:

• Plan large capital mobilization

• Operate in regulated sectors

• Require public investment

• Need enhanced credibility

Most foreign companies begin private and convert later.

Tax and Compliance After Registration

Registration is only the beginning.

Ongoing obligations include:

• Annual filings with OCR

• Tax returns and audits

• Social Security Fund registration

• NRB compliance for capital inflows

Private companies face lighter reporting burdens.

EEAT: Why This Guide Is Reliable

This article is based on:

• Nepalese corporate legislation

• OCR and FITTA procedural guidelines

• Practical experience supporting foreign investors

• Regular updates aligned with regulatory changes

Accuracy and compliance are critical in Nepal.

Frequently Asked Questions: Private vs Public Company in Nepal

1. How long does it take to register a private company in Nepal?

A private company typically takes 15–30 working days.
Foreign investment approvals may extend this slightly.

2. Is foreign ownership allowed in private companies in Nepal?

Yes.
Most sectors allow up to 100% foreign ownership, subject to FITTA approval.

3. Why do public companies take longer to register?

Public companies require higher capital, disclosures, and multi-agency approvals.
This increases scrutiny and timelines.

4. Can a private company later become public in Nepal?

Yes.
Private companies can convert to public companies after meeting legal criteria.

5. Which structure do foreign investors prefer in Nepal?

Most foreign investors choose private companies for speed, control, and flexibility.

Conclusion: Private vs Public Company in Nepal Timelines Explained

Choosing between private vs public company in Nepal is a strategic decision.
Timelines, compliance, and growth plans must align.

For most foreign companies, private registration offers speed and certainty.
Public companies suit large, capital-intensive projects.

The right choice saves months and reduces regulatory risk.