Once you’ve completed your company incorporation in Nepal, the next critical step is to open a corporate bank account. This is essential for capital injection, daily business operations, and complying with Nepal’s regulatory framework for foreign direct investment (FDI). For foreign companies, this step is not as simple as walking into a bank—it involves a formal process backed by regulatory guidelines and compliance requirements, especially under the Foreign Investment and Technology Transfer Act (FITTA) and related provisions.
In this guide, we’ll walk you through the bank account opening process step-by-step, backed by practical insights from Nepal's accounting and banking ecosystem.
Opening a Nepali bank account is legally required for:
Depositing foreign investment capital
Operating local transactions (paying staff, vendors, tax authorities)
Repatriating profits under FITTA guidelines
Import-export trade compliance
No company in Nepal can commence actual business activity without a verified bank account.
After company incorporation in Nepal, foreign companies generally open two types of accounts:
Paid-up Capital Account (Temporary)
Used initially to deposit the committed foreign investment amount (as per FITTA approval).
Can be converted to a general business account post-verification.
Operating Current Account (Permanent)
Used for ongoing operations, payroll, vendor payments, and revenue collections.
Opened after submitting incorporation and investment documentation.
Before initiating the banking process, your business must be:
Registered with the Office of the Company Registrar (OCR)
Approved under FITTA for foreign investment
Assigned a Permanent Account Number (PAN) for tax purposes
Opt for a Class 'A' commercial bank in Nepal that:
Supports foreign currency accounts
Has experience handling foreign direct investment clients
Offers international banking facilities like SWIFT remittance
Banks require the following documents post-company incorporation in Nepal:
Certificate of Incorporation from OCR
PAN Registration Certificate
FITTA Approval Certificate
Shareholders’ details and passport copies
Board resolution authorizing account opening
Lease agreement for registered office (as proof of address)
Tax clearance certificate (if previously operating in any form)
For foreign companies, notarized documents and translated versions may be required, especially for parent company records or overseas directors.
As per FITTA, foreign investors must inject their capital via banking channels. The capital must be remitted to the designated account through official remittance in foreign currency (USD, EUR, AUD, etc.).
The paid-up capital must match the investment commitment approved by the Department of Industry or Investment Board Nepal.
The bank issues a capital deposit certificate, which is crucial for activating the company’s operational status.
Once the capital deposit is verified and compliance is complete, the account can be converted into a normal current account. This allows the company to begin domestic and international transactions.
Nepal Rastra Bank (NRB), the central bank of Nepal, monitors foreign exchange transactions. Foreign companies must:
Report capital inflows and outflows through NRB’s banking channels
Maintain records of foreign transactions for profit repatriation
Avoid informal money transfers, which are prohibited under NRB regulations
Regular banking audits and tax compliance checks may require companies to produce records of transactions made through the corporate account.
Bank Selection Matters: Choose a bank with a strong international desk and experience working with FITTA-approved clients.
Know Your Customer (KYC) Is Strict: Banks will conduct due diligence on directors, investors, and the business model.
Repatriation Requires Documentation: If you plan to send profits back to your home country, your bank account must clearly reflect profit generation and tax clearance.
Delays due to incomplete paperwork
Lack of coordination between banks and government offices
Mismatch in paid-up capital vs. FITTA commitments
Unfamiliarity with repatriation procedures
Solution: Work closely with a local accounting or legal firm experienced in foreign investment to avoid delays and ensure compliance.
Opening a corporate bank account is a vital step following company incorporation in Nepal, especially for foreign entities governed by FITTA. While the process is more regulated than for domestic companies, it offers a transparent and secure system for handling investments, operations, and profit repatriation.
By ensuring the right documentation, engaging the right local advisors, and choosing a competent commercial bank, your company can smoothly transition from incorporation to full-fledged operation in Nepal’s growing business ecosystem.