How Much Does It Cost to Register a Company in Nepal?

If you are a foreign company evaluating private vs public company in Nepal, one of your first and most practical questions is simple: how much does it actually cost to register a company in Nepal?

The answer depends on your chosen structure, share capital, regulatory pathway, and long-term business intent. Nepal offers a relatively low-cost entry point compared to many Asian markets, but cost transparency is critical to avoid delays, compliance gaps, and hidden obligations.

This guide delivers a clear, authoritative, and investor-grade breakdown of registration costs, statutory fees, and compliance considerations, tailored specifically for foreign companies exploring Nepal.

Why “Private vs Public Company in Nepal” Matters for Cost Planning

Before discussing numbers, you must understand how company type drives cost exposure.

Under the Companies Act, 2006, Nepal recognizes two primary corporate forms:

• Private Limited Company

• Public Limited Company

Both are legal persons, but their capital rules, disclosure obligations, and compliance costs differ significantly.

At a strategic level

• Private companies are cost-efficient and operationally flexible.

• Public companies carry higher formation and ongoing compliance costs, but enable large-scale capital raising.

For foreign investors, the decision impacts not only registration fees but also audit scope, reporting depth, and regulator oversight.

Overview of Company Registration in Nepal

All companies in Nepal are registered with the Office of the Company Registrar (OCR) under the Ministry of Industry, Commerce and Supplies.

Registration costs fall into three broad buckets:

1. Government statutory fees

2. Professional and documentation costs

3. Post-registration compliance setup costs

Understanding all three is essential for realistic budgeting.

Government Registration Fees in Nepal

Government fees are determined primarily by authorized share capital and company type.

1. Registration fees for a Private Limited Company

The government fee is paid to OCR and is calculated on authorized capital.

Indicative government fee structure (private company):

This makes Nepal one of the lowest-cost jurisdictions in South Asia for private company incorporation.

2. Registration fees for a Public Limited Company

Public companies require a minimum authorized capital of NPR 10 million, which directly increases registration cost.

Indicative government fee (public company):

• NPR 19,000 (minimum threshold)

• Additional fees may apply for amendments and capital increases

While the base fee appears similar, public companies incur significantly higher compliance expenses after registration, which must be factored into total cost.

Professional and Documentation Costs

Government fees are only part of the equation. Foreign companies almost always incur professional costs due to legal, regulatory, and cross-border complexity.

Common professional cost components

• Name reservation and availability checks

• Drafting Memorandum and Articles of Association

• Shareholder and director resolutions

• Certified translations (if documents are foreign-language)

• Notarization and legalization

• Regulatory coordination with OCR and sector authorities

Typical professional fee ranges

• Private company: USD 800 to USD 1,500

• Public company: USD 2,500 to USD 5,000+

Costs vary based on:

• Number of shareholders

• Foreign ownership percentage

• Industry sector

• Need for regulatory approvals

Private vs Public Company in Nepal: Cost Comparison Table

The table below offers a true cost-thinking comparison, not just registration fees.

Insight: For over 90 percent of foreign entrants, a private company is the most cost-efficient structure.

Additional Mandatory Costs After Registration

Many foreign investors underestimate post-registration activation costs.

These are not optional.

Key statutory registrations

• Permanent Account Number (PAN)

• Value Added Tax (if applicable)

• Local municipality registration

• Social Security Fund enrollment (for employees)

• Bank account opening

Estimated setup costs

• NPR 10,000 to 30,000, excluding professional assistance

• Higher if sector-specific licenses are required

Foreign Investment Approval Costs

If your company has foreign shareholding, Nepal’s Foreign Investment and Technology Transfer Act (FITTA) applies.

Cost implications

• Investment approval filings

• Capital inflow reporting

• Ongoing repatriation compliance

While government fees are minimal, professional handling is critical to avoid delays or rejections.

Cost Drivers Most Foreign Companies Miss

Here are the most common blind spots that affect total cost:

1. Over-declaring authorized capital

2. Ignoring annual compliance obligations

3. Underestimating audit and tax filing costs

4. Selecting a public company unnecessarily

5. Delayed document legalization

A well-structured entry plan prevents cost overruns.

Compliance Costs: Annual Perspective

Registration is a one-time event. Compliance is recurring.

Annual cost elements

• Statutory audit

• Annual return filing

• Tax filings

• Board and shareholder resolutions

• Financial statements preparation

Indicative annual compliance cost

• Private company: USD 800 to USD 2,000

• Public company: USD 3,000 to USD 7,000+

When a Public Company Makes Financial Sense

Despite higher costs, public companies can be justified when:

• Raising capital from the public

• Planning a future IPO

• Operating regulated financial institutions

• Managing large infrastructure projects

For most foreign operating companies, these scenarios are rare.

Practical Recommendation for Foreign Companies

For foreign businesses comparing private vs public company in Nepal, cost efficiency and control point overwhelmingly toward private limited companies.

They provide:

• Faster registration

• Lower upfront and recurring costs

• Simplified governance

• Full foreign ownership in most sectors

Frequently Asked Questions

Is company registration in Nepal expensive for foreigners?

No. Nepal offers one of the lowest incorporation costs in Asia. Most costs arise from compliance, not registration.

Can a foreigner register a company alone in Nepal?

Yes. A private company can be registered with a single foreign shareholder, subject to FITTA approval.

What is the cheapest company structure in Nepal?

A private limited company with minimal authorized capital is the most cost-efficient structure.

Are public companies mandatory for foreign investors?

No. Public companies are optional and usually unnecessary for foreign operating businesses.

How long does company registration take in Nepal?

Typically 7 to 14 working days if documents are complete and approvals are smooth.

Conclusion

Choosing between private vs public company in Nepal is fundamentally a cost and compliance decision, not just a legal one.

For foreign companies, a private limited company delivers the best balance of affordability, speed, and regulatory clarity. Public companies should only be considered when capital markets access is essential.

Understanding the true cost picture upfront saves time, money, and regulatory friction.