The company registration process in Nepal can feel complex for foreign companies entering a new legal and regulatory environment. Multiple authorities, unfamiliar laws, and documentation requirements often slow progress.
The good news is this. With the right structure, local insight, and preparation, the process can be simplified significantly. Foreign investors who understand the steps upfront often reduce timelines by weeks and avoid costly compliance mistakes.
This guide explains, in clear language, how foreign companies can simplify the company registration process in Nepal while remaining fully compliant.
Nepal is no longer viewed only as a frontier market. It is emerging as a strategic South Asian hub for cost-efficient operations and long-term investment.
Key drivers include:
Competitive labour costs with strong English proficiency
Growing IT, outsourcing, and services sectors
Investment protections under the Foreign Investment and Technology Transfer Act (FITTA) 2019
Strategic location between India and China
However, opportunity must be matched with compliance. Understanding the company registration process in Nepal is the foundation.
The company registration process in Nepal involves more than simply filing incorporation documents. Foreign companies must navigate multiple regulatory layers.
At a high level, the process involves:
Company incorporation with the Office of the Company Registrar (OCR)
Foreign investment approval
Tax and regulatory registrations
Post-incorporation compliance
Each step builds on the previous one. Missing details early often creates delays later.
Understanding who regulates what is critical to simplifying the process.
Responsible for:
Company name approval
Incorporation of private and public companies
Maintaining statutory records
Responsible for:
Foreign investment approval under FITTA 2019
Sector-specific investment thresholds
Responsible for:
Permanent Account Number (PAN)
Value Added Tax (VAT) registration
Responsible for:
Foreign currency approvals
Share capital repatriation compliance
Knowing which authority applies to your investment avoids misfiling and duplication.
Foreign companies must select the correct legal structure at the outset.
Private Limited Company (most common)
Public Limited Company
Branch Office
Liaison Office
For most foreign companies, a Private Limited Company offers the best balance of control, flexibility, and compliance.
This simplified breakdown shows how the process works in practice.
The proposed company name is submitted to the OCR for approval.
Names must be unique and not misleading.
Key documents include:
Memorandum of Association
Articles of Association
Shareholder and director details
Once approved, the company receives:
Certificate of Incorporation
Company Registration Number
Foreign investors must obtain approval under FITTA 2019 from:
DOI, or
IBN for large-scale investments
The company registers for:
PAN
VAT (if applicable)
Foreign capital must be remitted through an NRB-approved banking channel.
Foreign investors typically need the following:
Passport copies of shareholders and directors
Board resolution approving Nepal investment
Company profile and incorporation certificate (parent company)
Power of attorney for local representatives
Proposed business plan
Proper notarisation and consularisation are often required.
Foreign companies face predictable friction points.
Nepalese laws leave room for interpretation. Local expertise matters.
Incorrect formatting or missing attestations cause rejections.
Many foreign investors underestimate approval timelines.
NRB compliance is often the most misunderstood step.
Simplification does not mean shortcuts. It means structure.
Branch, subsidiary, or liaison office decisions affect every step.
Authorities assess:
Economic contribution
Employment creation
Sector compliance
Capital remittance must match approved shareholding exactly.
Fragmented advisors increase delays and contradictions.
| Aspect | DIY Approach | Professional-Led Approach |
|---|---|---|
| Timeline | 8–16 weeks | 4–8 weeks |
| Compliance risk | High | Low |
| Regulatory coordination | Fragmented | Centralised |
| Foreign investment approval | Trial-and-error | Structured |
| Long-term scalability | Limited | Optimised |
This comparison shows why many foreign companies choose guided registration.
Costs vary by structure and sector.
Government registration fees
Foreign investment approval fees
Legal and advisory fees
Notarisation and translation costs
While Nepal remains cost-competitive, under-budgeting is a common mistake.
Registration is only the beginning.
Foreign companies must comply with:
Annual filings with OCR
Tax filings with IRD
Labour Act 2017 obligations
Social Security Fund contributions
Foreign exchange reporting
Ignoring post-registration compliance creates long-term risk.
Key legislation includes:
Companies Act 2006
Foreign Investment and Technology Transfer Act 2019
Industrial Enterprises Act 2020
Income Tax Act 2002
Labour Act 2017
These laws collectively shape the company registration process in Nepal.
A realistic timeline helps planning.
Typical ranges:
OCR incorporation: 7–10 working days
Foreign investment approval: 15–30 working days
Tax and bank registrations: 7–14 working days
Well-prepared applications move faster.
Some foreign companies do not need immediate incorporation.
An Employer of Record (EOR) allows companies to:
Hire employees legally in Nepal
Avoid incorporation delays
Test the market
This can be a strategic first step.
Yes. Foreign companies must register or obtain approval before operating or hiring locally.
Typically 4–8 weeks with proper preparation and local support.
Yes. FITTA 2019 allows full foreign ownership in approved sectors.
It varies by sector. Service companies often start from NPR 20 million for foreign investment.
Yes, provided compliance with investment, tax, and labour laws is maintained.
The company registration process in Nepal does not need to be overwhelming. With the right structure, clear documentation, and expert guidance, foreign companies can register efficiently and compliantly.
Simplification comes from preparation, not shortcuts. Companies that invest in getting it right from day one scale faster and avoid regulatory friction.
If you are planning to enter Nepal, speak with a local incorporation and compliance specialist before you file. A short consultation can save months of delays and long-term risk.