If you are researching how to register a company in Nepal as a foreigner or Non-Resident Nepali (NRN), you are not alone. Nepal has become an increasingly attractive destination for foreign direct investment due to its growing workforce, competitive operating costs, and strategic access to South Asia.
This guide is written specifically for foreign companies, overseas founders, and NRNs who want a clear, legally accurate, and practical roadmap. It reflects real regulatory practice, not theory. By the end, you will understand the exact process, documents, approvals, timelines, and compliance obligations involved.
Foreign investment into Nepal has accelerated over the last decade. According to official data published by Nepal’s investment authorities, hundreds of foreign-owned companies are approved every year across IT, services, energy, manufacturing, and trading.
Key reasons include:
• Cost-efficient skilled workforce
• English-speaking professionals
• Favourable FDI policy under FITTA
• Access to South Asian markets
• Growing outsourcing and tech ecosystem
For NRNs, company registration also provides a formal structure to invest, repatriate profits, and operate legally inside Nepal.
Yes. Foreigners and NRNs are legally allowed to register companies in Nepal, provided the investment complies with foreign investment regulations.
Under Nepalese law, foreigners cannot operate as sole proprietors. They must register a company with foreign direct investment approval.
The most common structure is:
• Private Limited Company with FDI
This is the preferred structure for foreign investors.
• Minimum shareholders: 1
• Maximum shareholders: 101
• Limited liability
• Fully foreign-owned allowed (sector-dependent)
Used mainly for large infrastructure or regulated sectors.
• Minimum shareholders: 7
• Higher capital and compliance requirements
Used by foreign parent companies.
• No separate legal personality
• Restricted activities
• Cannot generate local revenue (liaison)
Foreign investment is allowed in most sectors, except those listed in the negative list under Nepal’s industrial and FDI laws.
Common permitted sectors include:
• Information technology and software
• Business process outsourcing
• Consulting and professional services
• Manufacturing
• Energy and hydropower
• Tourism and hospitality
Restricted sectors typically include small retail trading, personal services, and cottage industries.
As of current regulations, the minimum foreign investment threshold is NPR 20 million per foreign investor.
This capital must be:
• Approved by the investment authority
• Brought into Nepal through banking channels
• Recorded with Nepal Rastra Bank
NRNs investing under foreign status are subject to the same threshold.
Company name approval is obtained from the Office of Company Registrar.
• Name must be unique
• Cannot conflict with existing companies
• Online application via OCR portal
Foreigners must obtain FDI approval before company incorporation.
Approval authority depends on investment size:
• Department of Industry
• Investment Board Nepal
Documents typically include:
• Project profile
• Shareholding structure
• Passport and incorporation documents
• Source of funds declaration
Once FDI approval is granted:
• Memorandum of Association filed
• Articles of Association filed
• Shareholding registered
• Company certificate issued
Foreign capital must be remitted into Nepal.
• Funds sent through approved bank
• Capital inflow reported to Nepal Rastra Bank
• FDI registration number issued
After incorporation:
• Permanent Account Number (PAN)
• VAT registration (if applicable)
• Local ward registration
• Bank account activation
You will need the following:
• Passport copies of foreign shareholders
• Recent photographs
• Company profile or CV
• Board resolution (if corporate investor)
• Certificate of incorporation (foreign company)
• Power of attorney (if represented locally)
• Project report and investment plan
All foreign documents must be notarised and apostilled or consularised.
A realistic timeline is:
• Name reservation: 1 to 2 days
• FDI approval: 2 to 4 weeks
• Company registration: 3 to 5 days
• NRB capital approval: 1 to 2 weeks
Total expected timeframe: 4 to 6 weeks
Below is an indicative comparison.
| Cost Category | Estimated Range |
|---|---|
| Government registration fees | NPR 9,500 to 25,000 |
| FDI approval processing | NPR 20,000 to 50,000 |
| Legal and compliance support | Variable |
| Bank and capital compliance | Nominal |
| Minimum paid-up capital | NPR 20 million |
Actual costs depend on sector, capital size, and structure.
Avoid these frequent issues:
• Applying without FDI approval
• Incorrect shareholding structure
• Using restricted business activities
• Delayed capital remittance
• Ignoring post-registration compliance
Early professional guidance saves time and cost.
Once registered, foreign-owned companies must comply with:
• Annual financial audits
• Annual returns filing
• Tax filings and withholding obligations
• Labour law compliance
• FDI reporting to central bank
Non-compliance can lead to fines or operational restrictions.
Key points:
• Corporate income tax generally applies
• Withholding taxes on dividends and services
• VAT registration if threshold exceeded
• Repatriation permitted after tax clearance
Nepal allows profit repatriation under foreign exchange rules.
Compared to informal arrangements or representative offices:
• Full legal protection
• Ability to hire staff directly
• Access to banking and contracts
• Clear exit and repatriation rights
Company registration is the most secure long-term structure.
Foreigners do not need to travel to Nepal.
• Power of attorney can be issued
• Entire process handled remotely
• Digital filings accepted
• Bank coordination managed locally
This is common for overseas founders and NRNs.
Yes. Many sectors allow full foreign ownership, subject to FDI approval and sector regulations.
The current minimum foreign investment requirement is NPR 20 million per investor.
Yes. NRNs can register companies either as foreign investors or under specific NRN investment schemes.
On average, 4 to 6 weeks, depending on FDI approval and capital remittance.
Yes. Profits can be repatriated after tax compliance and central bank approval.
Understanding how to register a company in Nepal as a foreigner or NRN is the foundation of a successful market entry. The process is structured, lawful, and investor-friendly when handled correctly. With the right planning, Nepal offers strong long-term opportunities for foreign companies.
If you are planning to register a company in Nepal and want a clear, compliant, and stress-free process, speak with specialists who handle foreign investment daily.
Next step: Book a consultation to assess your eligibility, sector, and optimal structure.