How Long Does It Take to Register a Company in Nepal Timeline Explained

Company registration in Nepal is often faster than foreign investors expect. Yet timelines vary widely based on structure, approvals, and documentation. If you are a foreign company planning market entry, understanding the realistic registration timeline helps you avoid delays, cost overruns, and regulatory frustration.

This guide explains how long it takes to register a company in Nepal, step by step. It is written specifically for foreign companies, investors, and founders who want clarity before committing capital. You will learn average timelines, legal stages, and practical tips to accelerate the process.

Why Timeline Matters for Foreign Companies

For foreign investors, time equals risk. Delays can affect:

• Investment approvals

• Hiring and payroll start dates

• Bank account opening

• Lease agreements

• Tax registration and invoicing

Nepal allows foreign ownership under the Foreign Investment and Technology Transfer Act (FITTA) 2019, but timelines depend on compliance accuracy and structure.

Overview: Company Registration Timeline in Nepal

Before diving deeper, here is the high-level timeline most foreign companies experience:

1. Name reservation

2. Company incorporation

3. Foreign investment approval

4. Tax and VAT registration

5. Bank account and capital injection

6. Post-registration compliance

Each step has its own timeframe and approval authority.

Company Registration in Nepal Timeline at a Glance

Timeline assumes complete and compliant documentation.

Step-by-Step Breakdown of the Registration Timeline

Step 1 – Company Name Reservation (1–2 Days)

The process begins with reserving a company name through the Office of the Company Registrar (OCR) online system.

Key points:

• Names must be unique

• Certain words require justification

• Reservation is valid for 35 days

Delays occur when names resemble existing companies or regulated terms.

Step 2 – Company Incorporation at OCR (3–5 Days)

Once the name is approved, incorporation documents are submitted:

• Memorandum of Association

• Articles of Association

• Shareholder details

• Registered office address

For foreign companies, documents must align with Companies Act 2006.

With clean filings, incorporation is usually completed within five working days.

Step 3 – Foreign Investment Approval (7–30 Days)

This is the most time-sensitive stage for foreign companies.

Approval authority depends on investment size:

• Department of Industry (DOI): Investment below NPR 6 billion

• Investment Board Nepal (IBN): Investment above NPR 6 billion

Documents include:

• Investment proposal

• Parent company documents

• Board resolutions

• Financial projections

Under FITTA 2019, approvals are legally time-bound, but practical timelines vary.

Step 4 – Tax Registration (1–2 Days)

After incorporation, the company registers for:

• PAN (Permanent Account Number)

• VAT, if applicable

This is handled by the Inland Revenue Department.

Delays usually arise from mismatched incorporation and FDI details.

Step 5 – Bank Account Opening and Capital Injection (3–7 Days)

A Nepalese bank account is mandatory to bring in foreign capital.

Banks require:

• FDI approval letter

• OCR certificate

• Tax registration documents

Once opened, capital must be remitted through formal banking channels per Nepal Rastra Bank (NRB) regulations.

Step 6 – Post-Registration Compliance (Ongoing)

Registration does not end incorporation obligations.

Foreign companies must comply with:

• Annual filings at OCR

• Tax returns

• SSF registration for employees

• Audit requirements

Missing these steps does not delay registration, but causes future penalties.

Timeline Differences by Business Structure

What Causes Delays in Company Registration in Nepal?

Common delay triggers include:

• Incomplete foreign documents

• Improper notarization or legalization

• Sector-restricted activities

• Banking compliance reviews

Frequent problem areas:

• Shareholding inconsistencies

• Parent company constitutional documents

• Investment source clarification

How Foreign Companies Can Register Faster

Here are proven ways to reduce registration time:

• Prepare documents before name reservation

• Use Nepal-compliant MoA and AoA

• Pre-clear sector eligibility

• Coordinate OCR, DOI, and bank steps together

Checklist for faster approval:

• Apostilled parent documents

• Clear capital structure

• Local legal and tax advisor

Legal Basis Governing Timelines (EEAT Reinforcement)

Company registration timelines are governed by:

• Companies Act 2006

• Foreign Investment and Technology Transfer Act 2019

• Industrial Enterprises Act 2020

• Nepal Rastra Bank Foreign Exchange Directives

These laws mandate processing efficiency but allow discretion for compliance review.

Frequently Asked Questions (People Also Ask)

1. How long does company registration in Nepal take for foreigners?

For foreign companies, company registration in Nepal usually takes 15 to 45 days, depending on FDI approval speed and documentation accuracy.

2. Can company registration in Nepal be completed online?

Name reservation and incorporation filings are online. However, foreign investment approval and banking steps still require offline coordination.

3. What is the fastest way to register a company in Nepal?

A private limited company with pre-approved documents and professional handling can be registered in under three weeks.

4. Does FDI approval delay company registration in Nepal?

Yes. FDI approval is the most time-consuming stage and can take 7–30 days depending on sector and authority.

5. Can I start business activities before registration is complete?

No. Foreign companies must complete incorporation, FDI approval, and tax registration before commencing operations.

Conclusion

Company registration in Nepal is efficient when approached strategically. While the legal framework supports foreign investment, timelines depend heavily on preparation and compliance quality.

For most foreign companies, the realistic timeline ranges from 15 to 45 days. With expert guidance, delays can be minimized, and approvals accelerated.

Call to Action

If you are planning company registration in Nepal and want a clear timeline, fixed costs, and zero regulatory surprises, speak with a local specialist.

👉 Book a free consultation to assess your structure, timeline, and compliance roadmap.