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.
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.
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.
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:
Government statutory fees
Professional and documentation costs
Post-registration compliance setup costs
Understanding all three is essential for realistic budgeting.
Government fees are determined primarily by authorized share capital and company type.
The government fee is paid to OCR and is calculated on authorized capital.
Indicative government fee structure (private company):
| Authorized Capital (NPR) | Registration Fee (NPR) |
|---|---|
| Up to 100,000 | 1,000 |
| 100,001 – 500,000 | 4,500 |
| 500,001 – 2,500,000 | 9,500 |
| 2,500,001 – 10,000,000 | 16,000 |
| Above 10,000,000 | 19,000 |
This makes Nepal one of the lowest-cost jurisdictions in South Asia for private company incorporation.
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.
Government fees are only part of the equation. Foreign companies almost always incur professional costs due to legal, regulatory, and cross-border complexity.
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
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
The table below offers a true cost-thinking comparison, not just registration fees.
| Cost Category | Private Company | Public Company |
|---|---|---|
| Minimum capital | NPR 1 | NPR 10 million |
| Government registration fee | Low | Moderate |
| Legal documentation | Simple | Complex |
| Audit requirement | Mandatory | Mandatory and stricter |
| Disclosure obligations | Limited | Extensive |
| Ongoing compliance cost | Low | High |
| Suitable for foreign SMEs | Yes | Rarely |
Insight: For over 90 percent of foreign entrants, a private company is the most cost-efficient structure.
Many foreign investors underestimate post-registration activation costs.
These are not optional.
Permanent Account Number (PAN)
Value Added Tax (if applicable)
Local municipality registration
Social Security Fund enrollment (for employees)
Bank account opening
NPR 10,000 to 30,000, excluding professional assistance
Higher if sector-specific licenses are required
If your company has foreign shareholding, Nepal’s Foreign Investment and Technology Transfer Act (FITTA) applies.
Investment approval filings
Capital inflow reporting
Ongoing repatriation compliance
While government fees are minimal, professional handling is critical to avoid delays or rejections.
Here are the most common blind spots that affect total cost:
Over-declaring authorized capital
Ignoring annual compliance obligations
Underestimating audit and tax filing costs
Selecting a public company unnecessarily
Delayed document legalization
A well-structured entry plan prevents cost overruns.
Registration is a one-time event. Compliance is recurring.
Statutory audit
Annual return filing
Tax filings
Board and shareholder resolutions
Financial statements preparation
Private company: USD 800 to USD 2,000
Public company: USD 3,000 to USD 7,000+
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.
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
No. Nepal offers one of the lowest incorporation costs in Asia. Most costs arise from compliance, not registration.
Yes. A private company can be registered with a single foreign shareholder, subject to FITTA approval.
A private limited company with minimal authorized capital is the most cost-efficient structure.
No. Public companies are optional and usually unnecessary for foreign operating businesses.
Typically 7 to 14 working days if documents are complete and approvals are smooth.
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.