If you are a foreign investor asking how to register a company in Nepal, you are in the right place. Nepal has become a strategic base for construction, IT, and trading companies seeking cost-efficient talent, regional market access, and government-backed foreign investment protection. This guide explains how to register a company in Nepal step by step, with industry-specific rules, realistic timelines, and compliance insights—written for foreign founders, CFOs, and expansion teams.
We cut through legal jargon and show you exactly what works in Nepal today.
Nepal is no longer just a low-cost destination. It is a regulated, treaty-backed investment jurisdiction.
Key advantages
Competitive labour and operating costs
100 percent foreign ownership permitted in most sectors
FITTA-based investment protection and repatriation rights
Growing IT outsourcing and infrastructure demand
Strategic access to India and China
For construction, IT, and trading companies, Nepal offers sector-specific incentives and a clear legal framework.
When learning how to register a company in Nepal, foreign companies operate under these core laws:
Companies Act, 2006
Foreign Investment and Technology Transfer Act (FITTA), 2019
Industrial Enterprises Act, 2020
Income Tax Act, 2002
Labour Act, 2017
Social Security Act, 2018
Registrations are processed through the Office of the Company Registrar (OCR), with approvals from the Department of Industry (DOI) for FDI cases.
Choosing the right structure is the first strategic decision.
Up to 100 percent foreign ownership
Separate legal entity
Suitable for IT, construction, and trading
Can hire staff and invoice locally
Extension of the foreign parent
Limited scope of activities
Often used for donor-funded or EPC projects
Non-revenue generating
Market research and coordination only
Best choice for most foreign companies: Private Limited Company with FDI approval.
Proposed names must be unique and compliant.
Tips:
Avoid restricted or government-linked words
Align name with your sector
Approval usually takes 1–2 working days.
You will need:
Memorandum of Association (MoA)
Articles of Association (AoA)
Shareholder and director details
Passport copies and resolutions
Foreign documents must be notarised and apostilled.
Foreign shareholders must obtain approval under FITTA.
Required submissions:
Project report or business plan
Shareholding structure
Capital commitment
Technology transfer details (if any)
FDI approval timeline: 7–15 working days.
Once approved:
OCR issues the company registration certificate
Company becomes a legal entity
This is the formal completion of how to register a company in Nepal.
Permanent Account Number (PAN): Mandatory
VAT: Required if turnover exceeds NPR 5 million
Foreign capital must be remitted:
Through approved banking channels
In foreign currency
Reported to Nepal Rastra Bank
Employment contracts
Social Security Fund (SSF) enrollment
Labour office registration
Construction companies face additional compliance.
Extra requirements
Company classification (A, B, C, or D class)
Technical manpower licenses
Equipment ownership or lease proof
Sectoral approval from relevant authorities
Construction is regulated more strictly due to safety and infrastructure risks.
IT companies enjoy simplified compliance.
Advantages
No minimum local employment quota
Export-oriented incentives
Easier foreign currency repatriation
Common activities include:
Software development
SaaS platforms
IT outsourcing
Data services
Trading companies must handle customs and imports.
Key requirements
Product-specific licenses
Customs registration
VAT mandatory in most cases
Trading companies are ideal for import-export between Nepal, India, and China.
| Cost Component | Estimated Range (USD) |
|---|---|
| OCR registration fees | 100–300 |
| FDI approval | 200–500 |
| Legal documentation | 800–1,500 |
| PAN & VAT | Nominal |
| Industry licenses | Varies by sector |
Typical total: USD 1,500–3,000 depending on complexity.
Most foreign companies complete registration in 3–5 weeks.
Breakdown:
Name approval: 1–2 days
Document preparation: 5–7 days
FDI approval: 7–15 days
OCR registration: 2–3 days
Tax and labour setup: 5–7 days
Avoid these costly errors:
Submitting generic business plans
Under-declaring capital commitments
Choosing the wrong entity structure
Ignoring labour and SSF compliance
Assuming Nepal is “informal”
Nepal’s regulators are process-driven and documentation-focused.
Yes. Foreigners can:
Own 100 percent shares
Appoint foreign directors
Repatriate profits legally
However, you still need:
Local legal representation
Local accounting compliance
Ongoing regulatory reporting
While it is possible to understand how to register a company in Nepal online, execution is where most delays happen.
Professional advisors help with:
OCR and DOI coordination
FDI structuring
Tax optimisation
Labour and payroll compliance
Bank and NRB reporting
This reduces risk and accelerates go-live timelines.
Understanding how to register a company in Nepal is not just about paperwork. It is about choosing the right structure, aligning with sector rules, and staying compliant long-term. Construction, IT, and trading companies each face unique requirements, but Nepal remains one of South Asia’s most accessible FDI destinations when done correctly.
If you want a smooth, compliant, and fast setup, expert guidance makes the difference.
Planning to expand into Nepal?
Speak with our cross-border specialists for a free company registration assessment, FDI roadmap, and compliance checklist—tailored to your industry.
Yes. Most sectors allow 100 percent foreign ownership under FITTA, including IT, construction, and trading.
There is no fixed minimum, but DOI expects realistic capital aligned with your business plan.
No. Foreign directors are permitted, but local compliance representation is required.
Yes. Profits, dividends, and capital can be repatriated through approved banking channels.
Typically 3–5 weeks, depending on FDI approval speed and documentation quality.