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.
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.
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.
Before starting company registration in Nepal, foreign companies must select the correct structure.
Private Limited Company (FDI route)
Branch Office of a foreign company
Liaison Office (non-revenue)
For most foreign construction IT consultancies, the Private Limited Company with FDI is the best option.
Allows revenue generation in Nepal
Permits 100% foreign ownership in IT services
Enables hiring local engineers and consultants
Allows profit repatriation
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
For company registration in Nepal under the FDI route:
| Item | Requirement |
|---|---|
| Minimum FDI capital | NPR 20 million |
| Ownership | Up to 100% foreign |
| Sector | IT consultancy / technical services |
| Repatriation | Allowed with approvals |
This capital must be remitted through an approved banking channel and certified by Nepal Rastra Bank.
Apply online with the Office of Company Registrar (OCR)
Name must reflect IT consultancy activities
Avoid restricted or misleading terms
Apply to the Department of Industry (DOI)
Submit business plan and investment structure
Approval timeline: 15–30 working days
Register with the Office of Company Registrar
Submit Memorandum and Articles of Association
Obtain company registration certificate
Transfer capital via a commercial bank
Obtain FDI inflow certificate
PAN and VAT registration
Social Security Fund (SSF) registration
Local ward registration
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)
| Stage | Estimated Time |
|---|---|
| Name reservation | 1–2 days |
| FDI approval | 15–30 days |
| Company incorporation | 3–5 days |
| Tax & SSF registration | 3–5 days |
| Total | 4–6 weeks |
This assumes complete documentation and correct sector classification.
| Cost Component | Approx. Range (USD) |
|---|---|
| Government fees | 300–600 |
| Legal & advisory | 2,000–5,000 |
| Bank & compliance | 300–800 |
| Minimum FDI capital | ~150,000 |
Costs vary based on structure and advisory scope.
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
Once company registration in Nepal is complete, firms can hire:
BIM modellers
Civil and structural engineers
GIS specialists
Software developers
Project controls analysts
Labour Act 2017 compliance
SSF contributions (31% combined)
Written employment contracts
Corporate income tax: 25%
VAT (if applicable): 13%
Service payments
Foreign consultant payments
Dividend distributions
Proper structuring ensures tax efficiency and repatriation readiness.
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.
Avoid these frequent errors:
Registering under construction contracting instead of IT consultancy
Underestimating minimum capital rules
Poorly drafted MOA/AOA
Ignoring SSF and labour compliance
Delayed bank reporting
These mistakes cause delays and regulatory risk.
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.
Yes. Under FITTA 2019, foreign investors can own up to 100% of IT consultancy companies, provided the activity excludes physical construction contracting.
Foreign investors must bring a minimum of NPR 20 million as FDI for service-based companies, including construction IT consultancies.
Typically 4–6 weeks, depending on FDI approval timelines and document readiness.
VAT registration is required if annual turnover exceeds the statutory threshold or if services are VAT-applicable.
Yes. Profit repatriation is allowed with audited accounts and Nepal Rastra Bank approval.
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.
Planning to register a construction IT consultancy company in Nepal?
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