If you are evaluating private vs public company in Nepal, one compliance step applies to both structures immediately: PAN registration.
For foreign companies, founders, and representatives, the Government of Nepal now allows online PAN registration through the Nagarik App, reducing paperwork and in-person visits.
This guide explains private vs public company in Nepal, then walks you through how to apply for a PAN card in Nepal using the Nagarik App, with legal references, timelines, and common pitfalls.
It is written specifically for foreign companies planning FDI, branch offices, or representative offices.
A Permanent Account Number (PAN) is the tax identity issued by the Inland Revenue Department (IRD).
Without PAN, a company cannot legally operate, open tax accounts, or comply with payroll and withholding obligations.
For foreign investors comparing private vs public company in Nepal, PAN is required immediately after incorporation or registration approval.
Before applying for PAN, you must understand which structure applies to your investment.
A private limited company is the most common structure for foreign investors.
Key features:
A public limited company is designed for large capital raises.
Key features:
Both structures are governed by the Companies Act 2006 and require PAN registration after incorporation.
The Nagarik App is Nepal’s official digital citizen platform.
It integrates multiple government services, including online PAN application.
For foreign companies:
PAN via Nagarik App is available if:
Foreign shareholders do not need a Nagarik App account.
A local director, company secretary, or authorized representative can apply.
Document requirements are similar for both structures, with scale-based differences.
This process applies equally when analyzing private vs public company in Nepal.
Navigate to:
Inland Revenue Services → PAN Registration
Select Company for private or public companies.
Ensure files are clear and legible.
Once approved, the PAN certificate is issued electronically.
| Company Type | Average Processing Time |
|---|---|
| Private company | 2–5 working days |
| Public company | 3–7 working days |
| Foreign branch | 5–10 working days |
Delays usually occur due to:
| Aspect | Private Company | Public Company |
|---|---|---|
| PAN requirement | Mandatory | Mandatory |
| Withholding tax | Applicable | Applicable |
| VAT registration | Threshold-based | Threshold-based |
| Reporting frequency | Standard | Enhanced |
| Audit scrutiny | Moderate | High |
Insight:
Public companies face higher post-PAN scrutiny, even though the PAN application process itself is identical.
Avoid these issues early.
These errors delay approvals and may trigger manual IRD reviews.
PAN registration does not automatically:
However, PAN is required for:
Foreign companies comparing private vs public company in Nepal should treat PAN as the first tax activation step, not the last.
PAN requirements and digital registration are backed by:
According to IRD guidance, all entities conducting economic activities in Nepal must obtain PAN before commencing operations.
In some cases, manual IRD visits are still required:
A hybrid approach is often used:
Choosing between private vs public company in Nepal affects governance, capital strategy, and compliance intensity.
What does not change is the importance of timely PAN registration.
Using the Nagarik App allows foreign companies to:
If Nepal is part of your Asia growth strategy, PAN registration is your first operational checkpoint.
Yes. All foreign companies operating in Nepal must obtain PAN before conducting taxable activities or opening operational accounts.
Usually no. A local authorized representative with a verified Nagarik App account applies on behalf of the company.
The application process is the same. Public companies face higher post-registration reporting obligations.
Private companies usually receive PAN within 2–5 working days if documents are complete.
No. PAN enables tax compliance. Profit repatriation requires NRB and FDI approvals.