Understanding the cost of company registration in Nepal is one of the first concerns for foreign companies entering the Nepali market. While Nepal offers one of South Asia’s most cost-effective incorporation regimes, government taxes and statutory charges can feel opaque to international investors.
This guide breaks down every government tax, registration charge, and mandatory payment you may encounter. It is written for foreign founders, CFOs, and legal teams who want clarity, predictability, and compliance from day one.
By the end, you will know exactly what you must pay, to whom, and why—with no hidden surprises.
Professional advisory fees vary by provider.
Government charges do not.
These statutory payments are non-negotiable, regulated, and enforced by law. Misunderstanding them often leads to delays, penalties, or rejected applications.
For foreign companies, government costs are especially important because they interact with:
Foreign investment approvals
Capital repatriation
Ongoing tax compliance
Banking and licensing timelines
Foreign companies interact with multiple regulators. Each charges specific statutory fees.
Office of the Company Registrar (OCR)
Inland Revenue Department (IRD)
Nepal Rastra Bank (NRB)
Department of Industry (DOI)
Each authority plays a distinct role in determining the cost of company registration in Nepal.
At a high level, government costs fall into four categories:
Company incorporation charges
Tax registration and compliance fees
Foreign investment approvals and banking costs
Ongoing statutory charges after registration
We explore each in detail below.
Nepal uses a capital-based slab system. The higher your authorized capital, the higher your registration fee.
| Authorized Capital (NPR) | Government Registration Fee |
|---|---|
| Up to 100,000 | NPR 1,000 |
| 100,001 – 500,000 | NPR 4,500 |
| 500,001 – 2,500,000 | NPR 9,500 |
| 2,500,001 – 10,000,000 | NPR 16,000 |
| Above 10,000,000 | Incremental slabs apply |
Insight for foreign companies:
Setting unnecessarily high capital increases cost without tax benefits.
Mandatory before incorporation
Valid for limited time
Cost: NPR 100
A rejected name requires re-application and additional time.
Foreign investors frequently incur additional OCR costs later:
Capital increase
Director change
Shareholding change
Registered address update
Each amendment attracts a separate statutory fee.
PAN registration is mandatory for all companies, including foreign-owned entities.
Government fee: NPR 0
Mandatory before bank accounts and invoicing
While PAN itself is free, delays here can halt operations.
VAT registration is mandatory if:
Annual turnover exceeds NPR 5 million
Engaged in VAT-applicable services
Government fee: NPR 0
Compliance impact: Monthly filings required.
While not always charged directly by IRD, companies incur indirect government-mandated costs for:
Digital tax filing systems
Authorized signatories
Foreign companies must obtain approval under Foreign Investment and Technology Transfer Act 2019.
Application processing charges
Documentation review fees
Indicative government cost: NPR 20,000 – 50,000
(varies by sector and investment size)
Nepal mandates a minimum FDI commitment.
Current threshold: NPR 20 million
This is not a fee, but it directly affects capital planning and cash flow.
NRB approvals are required for:
Capital inflow
Dividend repatriation
Loan structuring
While NRB itself charges minimal direct fees, banks pass on:
Swift charges
Compliance processing fees
These costs are regulatory-driven and unavoidable.
| Cost Type | One-Time | Recurring |
|---|---|---|
| OCR registration fees | ✓ | ✗ |
| PAN registration | ✓ | ✗ |
| VAT filings | ✗ | ✓ |
| Annual OCR filings | ✗ | ✓ |
| Tax clearance certificates | ✗ | ✓ |
Strategic takeaway:
Low entry cost does not mean low ongoing compliance responsibility.
Many investors underestimate the true cost of company registration in Nepal by ignoring indirect statutory costs.
Commonly missed items include:
Annual company renewal fees
Late filing penalties
Withholding tax compliance costs
Social Security Fund registration fees
Labor office registrations
These are not optional.
All charges described are governed by:
Companies Act 2006
Income Tax Act 2002
Industrial Enterprises Act 2020
Understanding the law protects foreign shareholders from compliance risk.
Here is a simplified sequence foreign companies follow:
Reserve company name at OCR
Pay OCR incorporation fee
Obtain PAN from IRD
Apply for FDI approval at DOI
Inject capital via NRB-approved bank
Register for VAT (if applicable)
Missing a step can restart the process.
Nepal remains one of the lowest-cost jurisdictions in South Asia for incorporation.
No paid-up capital tax
No stamp duty on share issuance
No incorporation VAT
This is a strategic advantage for lean market entry.
No. Government charges are low compared to regional markets. Most costs relate to compliance, not incorporation.
Yes. FDI approvals add additional statutory steps and costs.
No income tax is due at registration. Only administrative charges apply.
Yes. OCR and DOI fees may be revised through notices.
Only if your activity or turnover meets VAT thresholds.
Government charges are only one part of the equation.
Incorrect planning leads to delays and penalties.
👉 Request a tailored cost and compliance roadmap for your Nepal entry.
Our specialists guide foreign companies through registration, FDI approval, and ongoing compliance—end to end.
The cost of company registration in Nepal is transparent, affordable, and highly competitive.
The real value lies in understanding government taxes and statutory charges upfront.
Foreign companies that plan correctly enjoy faster approvals, smoother banking, and risk-free operations.
Those who guess often pay more later.