How to Register an IT or Tech Company Online in Nepal

Online company registration Nepal has transformed how foreign IT and tech companies enter the Nepali market. What once required weeks of in-person filings can now be completed digitally through the Office of the Company Registrar (OCR).

For software firms, SaaS providers, fintech startups, AI labs, and IT outsourcing companies, Nepal offers a rare mix of skilled talent, cost efficiency, and a fully online incorporation system.

This guide gives you the most authoritative, practical explanation available. It is written specifically for foreign companies planning to register an IT or tech company online in Nepal.

Why Nepal Is Attractive for IT & Tech Companies

Nepal has quietly become a strategic technology destination in South Asia. Several structural advantages explain why.

Key advantages for foreign tech firms

• Large English-speaking IT talent pool

• Competitive salary and operating costs

• Strong outsourcing and remote-work culture

• Growing startup ecosystem and IT exports

• Fully digitised online company registration Nepal system

According to government data, Nepal’s ICT and IT-enabled services exports have grown steadily over the last decade, driven by software development, data services, and remote support functions.

Legal Framework Governing Online Company Registration in Nepal

Before starting the process, foreign founders must understand the legal foundation.

Core legislation

Online company registration Nepal is governed by:

• Companies Act, 2006

• Foreign Investment and Technology Transfer Act (FITTA), 2019

• Industrial Enterprises Act, 2020

• Labour Act, 2017

• Income Tax Act, 2002

For IT companies with foreign shareholding, FITTA approval is mandatory in addition to OCR registration.

Types of IT & Tech Companies You Can Register Online

Foreign companies usually choose one of the following structures.

1. Private Limited Company (Most Common)

Best for:

• Software development firms

• SaaS startups

• IT outsourcing and BPO companies

This structure allows foreign ownership, profit repatriation, and long-term operations.

2. Branch Office of a Foreign Company

Best for:

• Cost centres

• Internal development teams

• Non-revenue-generating operations

Revenue generation in Nepal is restricted for branch offices.

3. Liaison Office

Best for:

• Market research

• Client coordination

• Business development

Not suitable for tech delivery teams.

Step-by-Step Process: Online Company Registration Nepal for IT Companies

This is the exact sequence followed by foreign IT and tech companies.

Step 1: Name Reservation on OCR Portal

You begin by reserving your company name online.

Requirements:

• Unique name

• No similarity with existing companies

• Alignment with IT or tech activities

Approval typically takes 1–3 working days.

Step 2: Define IT & Tech Objectives Precisely

Your objectives must clearly state IT activities.

Common examples:

• Software development and testing

• SaaS product development

• IT outsourcing services

• Data analytics and AI solutions

Poorly drafted objectives are a common cause of rejection.

Step 3: Prepare Incorporation Documents

Documents are uploaded digitally to the OCR system.

Required documents:

• Memorandum of Association (MoA)

• Articles of Association (AoA)

• Passport copies of shareholders and directors

• Registered office address in Nepal

All documents must be consistent and legally precise.

Step 4: Submit Online Application to OCR

The full application is submitted through the OCR portal.

Key details include:

• Shareholding structure

• Director information

• Capital structure

• Business classification

OCR reviews the submission digitally.

Step 5: Obtain Company Registration Certificate

Once approved, OCR issues:

• Company Registration Certificate

• Permanent Account Number (PAN)

Your IT company now legally exists in Nepal.

Additional Step for Foreign-Owned IT Companies: FITTA Approval

If your company has foreign ownership, you must also complete foreign investment approval.

FITTA approval process

• Submit investment proposal

• Declare technology transfer or capital inflow

• Obtain approval from Department of Industry

Only after FITTA approval can you:

• Inject foreign capital

• Open foreign currency accounts

• Repatriate profits later

Timeline: How Long Does Online Registration Take?

Below is a realistic timeline based on actual registrations.

Total time:

• Local IT company: ~7–10 working days

• Foreign-owned IT company: ~30–45 days

Cost Breakdown for Online Company Registration Nepal (IT Sector)

Costs vary depending on structure and foreign ownership.

Typical cost components

• Government registration fees

• FITTA approval fees

• Legal drafting and advisory

• Translation and notarisation

Most foreign IT companies budget between USD 2,000 to USD 5,000 for compliant registration.

Common Mistakes Foreign Tech Companies Make

Avoiding these mistakes saves weeks.

Frequent issues

• Vague IT objectives

• Incorrect shareholding disclosures

• Underestimating FITTA requirements

• Missing post-registration compliance

Professional guidance reduces these risks significantly.

Post-Registration Compliance for IT & Tech Companies

Registration is only the beginning.

Mandatory ongoing compliance

• Monthly tax filings

• Annual audit

• Labour law compliance

• Social Security Fund registration

• Data protection and confidentiality policies

Non-compliance can block profit repatriation.

Hiring IT Talent After Registration

Nepal has a strong IT workforce.

Common IT roles hired

• Software engineers

• QA testers

• UI/UX designers

• Data analysts

• DevOps engineers

Foreign companies may hire directly or use an Employer-of-Record model initially.

Online Company Registration Nepal vs Employer-of-Record (EOR)

Many tech firms compare both options.

Many companies start with EOR, then transition to registration.

Taxation for IT & Tech Companies in Nepal

Understanding tax exposure is critical.

Key tax points

• Corporate tax generally applies

• Withholding tax on services

• VAT may apply for certain services

• Profit repatriation allowed under FITTA

Proper structuring can reduce tax leakage.

Repatriation of Profits for Foreign IT Companies

Nepal allows profit repatriation.

Conditions include:

• FITTA approval

• Tax clearance

• Audited financials

This is a major advantage compared to many emerging markets.

Why Professional Support Matters

Online company registration Nepal is digital, but not simple.

What experts handle

• OCR filings and follow-ups

• FITTA approvals

• Compliance structuring

• Banking and capital injection

• Long-term tax planning

This ensures speed, accuracy, and compliance.

Call to Action: Start Your IT Company in Nepal with Confidence

If you are planning online company registration Nepal for an IT or tech business, expert guidance makes all the difference.

👉 Book a free strategy call to understand timelines, costs, and the best structure for your tech expansion.

Frequently Asked Questions (People Also Ask)

Is online company registration in Nepal fully digital?

Yes. The OCR process is fully online, including name reservation and document submission.

Can a foreigner own 100% of an IT company in Nepal?

Yes. FITTA allows full foreign ownership in most IT and tech activities.

How much capital is required for an IT company?

There is no fixed minimum, but practical capital depends on your business plan.

Can IT companies repatriate profits from Nepal?

Yes, after tax clearance and FITTA compliance.

Is Nepal suitable for SaaS and software exports?

Yes. Many Nepali IT companies serve global clients remotely.

Conclusion: Nepal Is Ready for Global Tech Companies

Online company registration Nepal has created a clear, digital, and scalable path for foreign IT and tech companies. With the right structure and compliance, Nepal offers one of South Asia’s most efficient entry points for technology businesses.