From the snow-capped Himalayas to the buzzing startup hubs of Kathmandu and Pokhara, Nepal is becoming a magnet for digital nomads, remote workers, and early-stage founders. With low operating costs, a growing digital ecosystem, and a young tech-savvy population, company incorporation in Nepal is emerging as a smart move for global startups and freelancers looking to scale or base their operations in Asia.
Yes. Under the Foreign Investment and Technology Transfer Act (FITTA) 2019, international entrepreneurs — whether individuals or companies — are allowed to incorporate businesses in Nepal, including full foreign ownership in many sectors. While the country doesn't yet have a "digital nomad visa," it does allow incorporation and residency through legal investment pathways.
100% Foreign Ownership in Many Sectors (IT, software, outsourcing, consulting)
Low Operational Costs (office space, salaries, utilities)
Highly Skilled, English-Speaking Workforce
Access to South Asian Markets (bordering India and China)
Growing Startup and Tech Ecosystem in cities like Kathmandu, Lalitpur, and Pokhara
According to Nepal’s foreign investment law, the minimum threshold for company incorporation by a foreigner is NPR 20 million (roughly USD 150,000). While this may seem high for solopreneurs, many nomads and startup teams partner with local co-founders or form joint ventures to meet this threshold and access additional tax and legal benefits.
The ideal structure is a Private Limited Company, which offers:
Limited liability protection
Full legal identity
Flexibility in operations and ownership
Eligibility for local contracts, payments, and employment
Other options include setting up a branch office (for existing companies abroad) or a joint venture with a Nepali citizen or company.
Include:
Purpose of the business
Investment capital
Technology to be used (if applicable)
Employment plan
Submit your proposal to the Department of Industry (DoI). Upon review, they will issue a Foreign Investment Approval Letter.
Provide:
Articles and Memorandum of Association
Passport and ID verification
Director/shareholder details
After approval, you will receive your Company Registration Certificate.
You must register your investment funds and confirm they are brought in through formal banking channels. This enables future profit repatriation and ensures full legal compliance.
Your business must be registered with the Inland Revenue Department (IRD) for:
PAN (Permanent Account Number)
VAT (if applicable)
This is necessary for injecting capital, making payments, and complying with NRB regulations.
IT and Software Development
Remote Consultancy
Digital Marketing and SEO Services
BPO and Outsourcing
eLearning and Online Education Platforms
Sustainable Tourism & Ecotourism Ventures
These industries are generally open to full foreign ownership and require minimal local infrastructure, making them ideal for location-independent founders.
Corporate Tax: 25% for most companies
VAT: 13% (only if turnover exceeds NPR 2 million annually)
Dividend Repatriation: Allowed with NRB approval and tax clearance
Nepal also provides incentives for IT-related industries, including tax holidays and duty-free import of software/hardware.
While Nepal is a land of opportunity, digital entrepreneurs should also consider:
Visa Limitations: No digital nomad visa exists yet; most stay under business, work, or investment visas.
Internet Connectivity: Improving rapidly, but backup plans (e.g., mobile data, generators) are still advised.
Bureaucracy: Paperwork can be lengthy, so working with a local consulting or legal firm is highly recommended.
Nepal is not just a destination for trekking — it’s becoming a launchpad for remote-first businesses and digital creators. For entrepreneurs who want a base in South Asia with competitive costs, favorable ownership laws, and a vibrant tech community, company incorporation in Nepal offers an underrated but powerful gateway.
By understanding the legal framework, investment requirements, and local nuances, digital nomads and startup founders can unlock long-term opportunity while enjoying a unique and culturally rich work-life experience.