How Much Does It Cost to Register a Company in Nepal

The cost of company registration in Nepal is one of the first and most important questions foreign companies ask when exploring market entry. Nepal offers a relatively low-cost, high-potential destination for international investors, but the true cost goes far beyond basic government fees.

Foreign companies must account for FDI approvals, legal structuring, tax registration, compliance setup, and ongoing reporting. Understanding these costs upfront helps avoid delays, regulatory risks, and budget overruns.

This guide provides the most authoritative, end-to-end breakdown of company registration costs in Nepal for foreign investors, based on current law, regulatory practice, and real execution experience.

Why Foreign Companies Need a Clear Cost Breakdown

Registering a company in Nepal is not a single-step process. It is a regulated investment activity governed by multiple authorities, including:

• Office of the Company Registrar (OCR)

• Department of Industry (DOI)

• Nepal Rastra Bank (NRB)

• Inland Revenue Department (IRD)

Each authority introduces specific costs, documentation requirements, and timelines. Missing one step can stall the entire investment.

Cost of Company Registration in Nepal: High-Level Overview

For foreign companies, the total cost typically ranges between NPR 250,000 and NPR 1,200,000+, depending on structure, capital, and support required.

Cost categories include:

• Government registration fees

• FDI approval costs

• Legal and professional fees

• Tax and compliance setup

• Post-registration mandatory costs

Cost of Company Registration in Nepal (Government Fees Only)

Government fees are standardized and relatively affordable.

1. Company Registration Fee (OCR)

The Office of the Company Registrar charges fees based on authorized capital.

Indicative OCR fees:

• Up to NPR 1 million capital: NPR 1,000–5,000

• NPR 10 million capital: ~NPR 15,000

• NPR 100 million capital: ~NPR 40,000

These fees apply equally to domestic and foreign-owned companies.

2. Name Reservation Fee

• NPR 100 per name application

• Usually approved within 1–3 working days

Foreign Direct Investment (FDI) Approval Costs

FDI approval is mandatory for all foreign shareholders.

Department of Industry (DOI) Fees

• Application and processing fees: NPR 20,000–50,000

• Project evaluation and capital review included

Nepal Rastra Bank (NRB) Costs

• No official fee

• Banking compliance, capital inflow verification, and reporting apply

Legal and Professional Fees (The Real Cost Driver)

This is where most foreign companies underestimate the true cost of company registration in Nepal.

Professional support ensures:

• Correct investment structure

• Faster approvals

• Zero compliance gaps

Typical professional services include:

• FDI structuring and advisory

• Drafting constitutional documents

• Regulatory filings and liaison

• Tax registration and compliance setup

Market range: NPR 150,000 to NPR 500,000 depending on scope.

Table: True Cost Comparison by Entry Model (Original Insight)

Minimum Capital Requirement and Its Impact on Cost

Nepal mandates a minimum foreign investment capital.

Current threshold:

• Minimum FDI capital: NPR 20 million

This is investment capital, not a fee. However, it affects:

• Banking setup costs

• NRB reporting

• Audit and compliance scope

Tax Registration and Statutory Setup Costs

After incorporation, companies must register for tax and compliance.

Mandatory registrations:

• PAN/VAT registration

• Social Security Fund (SSF)

• Local ward registration

Estimated cost: NPR 10,000–30,000

Ongoing Annual Compliance Costs (Often Ignored)

Foreign companies must budget for annual obligations.

Recurring costs include:

• Annual audit

• Tax filings

• Company renewals

• NRB compliance reports

Annual budget: NPR 100,000–300,000+

Numbered List: Step-by-Step Cost Timeline

1. Name reservation and OCR filing

2. FDI approval from DOI

3. Company incorporation

4. Capital inflow and NRB reporting

5. Tax and SSF registration

6. Operational compliance setup

Each step introduces time-linked costs.

Hidden Costs Foreign Investors Must Plan For

Many investors overlook these:

• Document notarization and legalization

• Embassy attestation

• Translation fees

• Banking delays and compliance revisions

These can add NPR 50,000–150,000 unexpectedly.

Is Nepal Cost-Effective Compared to Other Countries?

Yes. Compared to regional alternatives, Nepal offers:

• Lower government fees

• Affordable professional services

• Competitive labor costs

• Full profit repatriation rights

This makes the cost of company registration in Nepal highly attractive for foreign companies building offshore teams or regional hubs.

FAQ: Cost of Company Registration in Nepal

How much does it cost to register a company in Nepal for foreigners?

Typically NPR 500,000 to NPR 1.2 million, including approvals, legal work, and compliance setup.

Is the NPR 20 million FDI capital a fee?

No. It is investment capital that remains in the company.

Can foreigners register a company without visiting Nepal?

Yes. Registration can be completed remotely with proper authorization.

How long does the process take?

Usually 4 to 8 weeks, depending on approvals.

Are profits freely repatriable?

Yes, subject to tax clearance and NRB procedures.

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

For foreign investors seeking cost efficiency, regulatory clarity, and long-term scalability, the cost of company registration in Nepal offers strong value.

With the right structure and professional support, Nepal becomes a low-risk, high-return destination for international expansion.

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