How to Register a Construction IT Consultancy Company in Nepal

Company registration in Nepal is increasingly on the radar for foreign construction and IT consultancy firms seeking cost-efficient expansion, skilled talent, and access to South Asian markets. Nepal’s growing infrastructure sector and rapidly digitising construction ecosystem have created strong demand for construction IT consultancies, including BIM services, project management software, GIS, ERP for construction, and engineering design support.

This guide is written specifically for foreign companies. It explains, step by step, how to register a construction IT consultancy company in Nepal, comply with local laws, and structure operations correctly from day one.

Why Nepal Is Attractive for Construction IT Consultancies

Nepal sits at the intersection of infrastructure growth and digital transformation. Foreign firms benefit from:

• Competitive operating costs

• English-speaking technical professionals

• Strong demand for BIM, CAD, GIS, ERP, and project controls

• Government-backed infrastructure and hydropower projects

• A clear legal framework for foreign investment

According to Nepal Rastra Bank and the Department of Industry, IT services and consulting remain among the most approved FDI sectors, especially when paired with construction, engineering, and infrastructure advisory.

What Is a Construction IT Consultancy Company in Nepal?

A construction IT consultancy in Nepal typically provides:

• BIM modelling and coordination

• Construction ERP and project management systems

• GIS and surveying data solutions

• Engineering design technology support

• Digital transformation for contractors and developers

Legally, this activity falls under IT consultancy and technical services, not physical construction contracting. This distinction is critical for foreign ownership eligibility.

Types of Legal Entities Available in Nepal

Before starting company registration in Nepal, foreign companies must select the correct structure.

Common Options

1. Private Limited Company (FDI route)

2. Branch Office of a foreign company

3. Liaison Office (non-revenue)

For most foreign construction IT consultancies, the Private Limited Company with FDI is the best option.

Why a Private Limited Company Works Best

• Allows revenue generation in Nepal

• Permits 100% foreign ownership in IT services

• Enables hiring local engineers and consultants

• Allows profit repatriation

Foreign Ownership Rules for Construction IT Consultancies

Under the Foreign Investment and Technology Transfer Act (FITTA) 2019, foreign investors may own up to 100% of companies engaged in IT consultancy and software-based services.

Key points:

• Pure construction contracting is restricted

• IT, design, engineering consultancy is permitted

• Minimum FDI threshold applies

Minimum Capital Requirement for FDI

For company registration in Nepal under the FDI route:

This capital must be remitted through an approved banking channel and certified by Nepal Rastra Bank.

Step-by-Step Company Registration in Nepal (Construction IT Consultancy)

1. Name Reservation

• Apply online with the Office of Company Registrar (OCR)

• Name must reflect IT consultancy activities

• Avoid restricted or misleading terms

2. FDI Approval

• Apply to the Department of Industry (DOI)

• Submit business plan and investment structure

• Approval timeline: 15–30 working days

3. Company Incorporation

• Register with the Office of Company Registrar

• Submit Memorandum and Articles of Association

• Obtain company registration certificate

4. Capital Inward Remittance

• Transfer capital via a commercial bank

• Obtain FDI inflow certificate

5. Tax and Statutory Registrations

• PAN and VAT registration

• Social Security Fund (SSF) registration

• Local ward registration

Documents Required for Foreign Companies

A complete documentation set reduces delays.

Key documents include:

• Passport and KYC of foreign shareholders

• Parent company incorporation certificate

• Board resolution approving Nepal investment

• Business plan and financial projections

• Power of attorney (if applicable)

Typical Timeline for Registration

This assumes complete documentation and correct sector classification.

Cost Breakdown for Company Registration in Nepal

Costs vary based on structure and advisory scope.

Licensing and Sector-Specific Considerations

A construction IT consultancy does not require contractor licensing if it does not execute physical construction works.

However:

• Engineering sign-offs may require local licensed professionals

• Software and IT services fall under service exports

• Data security and IP clauses should be addressed contractually

Hiring Engineers and IT Professionals in Nepal

Once company registration in Nepal is complete, firms can hire:

• BIM modellers

• Civil and structural engineers

• GIS specialists

• Software developers

• Project controls analysts

Key employment compliance

• Labour Act 2017 compliance

• SSF contributions (31% combined)

• Written employment contracts

Taxation for Construction IT Consultancies

Corporate Taxes

• Corporate income tax: 25%

• VAT (if applicable): 13%

Withholding Taxes

• Service payments

• Foreign consultant payments

• Dividend distributions

Proper structuring ensures tax efficiency and repatriation readiness.

Profit Repatriation for Foreign Owners

Under FITTA 2019, foreign investors may repatriate:

• Dividends

• Capital on exit

• Loan repayments

• Technology fees

Approvals are required from Nepal Rastra Bank with audited accounts.

Common Mistakes Foreign Companies Make

Avoid these frequent errors:

1. Registering under construction contracting instead of IT consultancy

2. Underestimating minimum capital rules

3. Poorly drafted MOA/AOA

4. Ignoring SSF and labour compliance

5. Delayed bank reporting

These mistakes cause delays and regulatory risk.

Compliance Checklist After Registration

• Monthly tax filings

• Payroll and SSF compliance

• Annual audit

• DOI and NRB reporting

• Renewal of business registrations

Strong compliance builds EEAT and long-term credibility.

Frequently Asked Questions (People Also Ask)

Can foreigners fully own a construction IT consultancy in Nepal?

Yes. Under FITTA 2019, foreign investors can own up to 100% of IT consultancy companies, provided the activity excludes physical construction contracting.

What is the minimum investment for company registration in Nepal?

Foreign investors must bring a minimum of NPR 20 million as FDI for service-based companies, including construction IT consultancies.

How long does company registration in Nepal take?

Typically 4–6 weeks, depending on FDI approval timelines and document readiness.

Is VAT mandatory for IT consultancy firms?

VAT registration is required if annual turnover exceeds the statutory threshold or if services are VAT-applicable.

Can profits be sent back to the parent company?

Yes. Profit repatriation is allowed with audited accounts and Nepal Rastra Bank approval.

Conclusion

Company registration in Nepal for a construction IT consultancy is straightforward when structured correctly. Nepal welcomes foreign expertise in digital construction, engineering technology, and infrastructure advisory. With the right entity, approvals, and compliance framework, foreign companies can operate, scale, and repatriate profits confidently.

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