If you are exploring private vs public company in Nepal, you are already asking the right question. For foreign companies, the legal structure you choose directly affects control, compliance, capital flexibility, and long-term exit options.
This guide explains private vs public company in Nepal in practical terms and walks you through how to register a company online in Nepal using the official government process. It is written for foreign founders, CFOs, and expansion teams who want clarity, not jargon.
By the end, you will know:
Before jumping into registration, it is critical to understand how Nepal classifies companies.
Company formation in Nepal is governed primarily by:
These laws define ownership, capital thresholds, and compliance obligations for both private and public companies.
A private company in Nepal is the most common structure for foreign investors.
Private companies offer:
This makes private companies ideal for:
A public company in Nepal is designed for large-scale capital raising and public participation.
Public companies are suitable when:
For most foreign entrants, this structure is excessive in the early stages.
| Factor | Private Company | Public Company |
|---|---|---|
| Shareholders | 1–101 | Minimum 7, unlimited |
| Public Share Issue | Not allowed | Allowed |
| Compliance | Moderate | High |
| Setup Time | Faster | Slower |
| Control | High | Diluted |
| Typical Foreign Use | Subsidiary, JV | IPO-driven ventures |
Original insight: Over 90 percent of foreign-owned companies registered in Nepal choose the private company model due to governance simplicity and speed.
For most foreign investors, the answer to private vs public company in Nepal is clear.
Nepal allows online company registration through the Office of Company Registrar.
Submit proposed company names through the OCR portal.
Approval usually takes 1–3 working days.
You must draft:
These documents define:
Foreign investors often underestimate the importance of correctly drafted MOA and AOA.
Upload the following:
All submissions are electronic.
Fees depend on:
Private companies enjoy significantly lower fees.
Once approved, OCR issues:
This legally establishes your Nepal entity.
Company registration is only the first milestone.
If capital originates outside Nepal, additional approvals apply.
Failure to follow this sequence can delay operations for months.
Nepal does not mandate minimum capital for all sectors, but:
Private companies allow capital to be staged, while public companies require upfront structuring.
Many investors struggle due to avoidable errors.
Top mistakes include:
These issues often lead to regulatory delays.
Taxation is identical for private and public companies in Nepal.
Key points:
Structure choice affects governance, not tax rates.
Private companies offer cleaner exit options.
Advantages include:
Public companies require additional regulatory approvals for exits.
The private vs public company in Nepal decision is strategic, not procedural.
A private company:
A public company:
Most foreign companies begin private and reassess later.
For foreign companies, private vs public company in Nepal almost always favors the private structure.
It offers:
Public companies are best reserved for large, capital-intensive ventures with local fundraising goals.
Yes. For foreign companies, private companies provide faster setup, lower compliance, and greater ownership control.
Yes. Foreigners can own up to 100 percent, subject to foreign investment approvals.
Typically 5–10 working days if documents are complete and approvals are sequential.
No fixed minimum applies, but foreign investment thresholds may apply by sector.
Yes. Conversion is allowed with regulatory approvals and compliance upgrades.
Choosing between private vs public company in Nepal defines your regulatory burden, control, and growth flexibility. For most foreign companies, a private company is the most efficient and future-proof entry vehicle.
If your goal is speed, clarity, and compliance-ready operations, start private and scale strategically.