Foreign company registration in Nepal has become one of the most searched topics among Non-Resident Nepalis (NRNs) and expatriates looking to enter South Asia’s fastest-opening frontier market. Nepal offers low operating costs, a young workforce, and improving investment protections.
Yet the legal path differs depending on whether you are an NRN with Nepali roots or a foreign national with no Nepali citizenship. This guide explains exactly how NRNs and expats can register a business in Nepal, which structure fits best, and how to stay compliant from day one.
This article is written for founders, directors, and investors who want clarity, not legal jargon.
Nepal is no longer just a tourism or remittance-based economy. Policy reforms over the past decade have actively encouraged foreign investment.
Key drivers include:
Competitive labor and operating costs
English-speaking professional talent
Strategic access to India and China
100% foreign ownership in most sectors
Repatriation of profits permitted under law
According to government investment data, foreign direct investment approvals have consistently increased in services, IT, energy, and manufacturing.
NRNs are individuals of Nepali origin who hold foreign citizenship or residency. Under Nepal’s investment laws, NRNs are treated similarly to foreign investors, with some procedural advantages in practice.
NRNs can:
Own up to 100% equity in permitted sectors
Invest individually or jointly
Repatriate dividends and capital
Foreign nationals with no Nepali citizenship can also register and own companies in Nepal, subject to:
Minimum investment thresholds
Sectoral restrictions
Foreign investment approvals
Both NRNs and expats must comply with Nepal’s foreign investment framework.
Choosing the right structure is the most important strategic decision.
This is the most common and recommended structure.
Best for:
Long-term operations
Hiring local staff
Generating revenue in Nepal
Features:
Separate legal entity
Limited liability
Can be 100% foreign-owned
Suitable if:
You already have a parent company overseas
Activities are limited to the parent’s scope
Limitations:
Cannot operate outside approved scope
Profit repatriation is more controlled
Used mainly for:
Market research
Relationship building
Non-commercial presence
Important:
Cannot generate revenue
Cannot issue invoices
| Criteria | Private Limited (FDI) | Branch Office | Liaison Office |
|---|---|---|---|
| Revenue generation | Yes | Yes (restricted) | No |
| Hiring employees | Yes | Yes | Limited |
| Ownership | Up to 100% | Parent company | Parent company |
| Compliance burden | Medium | Medium–High | Low |
| Best for | Scale and growth | Project execution | Market entry |
Original insight:
If your goal is talent hiring, client billing, and long-term presence, the private limited company almost always outperforms branch or liaison models within 12 months.
Not all sectors are open to foreign investment. Restricted areas include:
Small retail trade
Personal services
Certain media activities
Professional services, IT, consulting, manufacturing, energy, and outsourcing are widely permitted.
For most sectors:
Minimum foreign investment: NPR 20 million
This applies to both NRNs and expats.
You must submit a foreign investment proposal including:
Business plan
Shareholding structure
Investment source declaration
Approval is granted by the relevant authority depending on investment size.
Once investment approval is obtained:
Reserve company name
Register with the Company Registrar
Issue shares to foreign investors
Mandatory registrations include:
Permanent Account Number
VAT registration if applicable
Social security registration for employees
Foreign capital must be:
Remitted through approved banking channels
Certified by the bank
Reported to authorities
Annual obligations include:
Tax filings
Audit and financial statements
Renewals and reporting
Typical documentation checklist:
Passport and visa copies
NRN card (for NRNs)
Board resolution or investor declaration
Business plan
Source of funds confirmation
Company incorporation documents
Clean documentation significantly reduces approval timelines.
On average:
Foreign investment approval: 2–4 weeks
Company incorporation: 1 week
Tax and bank setup: 1–2 weeks
Total: Approximately 4–6 weeks when properly managed.
Choosing the wrong entity type
Underestimating compliance obligations
Incomplete source-of-funds documentation
Registering a liaison office when revenue is planned
Not planning profit repatriation early
Avoiding these errors can save months of delay.
Key points:
Corporate tax applies on net profits
Withholding tax applies on dividends
Double taxation relief may apply depending on country
Proper structuring at registration stage reduces long-term tax exposure.
Foreign-owned companies can legally:
Hire Nepali nationals
Sponsor expatriate work visas
Register employees under social security
Employment contracts must comply with local labor regulations.
Yes, profits can be repatriated if:
Taxes are fully paid
Financials are audited
Regulatory approvals are obtained
Advance planning ensures smooth outward remittance.
Foreign company registration in Nepal involves multiple authorities, overlapping laws, and strict documentation standards.
Professional advisors help with:
Structuring decisions
Faster approvals
Compliance risk reduction
Long-term scalability
For NRNs especially, blending local insight with international compliance is critical.
Foreign company registration in Nepal is not only possible for NRNs and expats, it is increasingly attractive. The key is choosing the right structure, meeting investment rules, and staying compliant from the start.
With proper planning and expert guidance, Nepal can become a profitable and strategic base for your regional or global operations.
Thinking of registering a company in Nepal?
Book a confidential consultation to assess eligibility, structure options, timelines, and compliance requirements tailored to NRNs and expatriates.
Yes. NRNs can own up to 100% equity in most permitted sectors, subject to foreign investment approval.
Yes. Physical presence is not mandatory. Authorized representatives can complete the process.
The standard minimum foreign investment is NPR 20 million for most sectors.
Yes. Profits and capital can be repatriated after tax clearance and regulatory approvals.
For most expats, a private limited company with foreign investment is the most flexible and scalable option.