Foreign company registration in Nepal has become a strategic move for global tech firms, consultancies, and trading businesses seeking cost-efficient expansion into South Asia. Nepal offers competitive talent, improving digital infrastructure, and a clear legal framework for foreign direct investment.
Yet, the process is nuanced. Sector rules differ. Regulatory approvals matter. Structuring mistakes can delay operations for months.
This guide gives you the most authoritative, regulator-aligned, step-by-step explanation of how to legally start a foreign-owned tech, consultancy, or trading company in Nepal, with insights drawn from real FDI projects, legislation, and approval practice.
Nepal is no longer just a low-cost destination. It is an emerging strategic base.
Access to skilled professionals in IT, finance, engineering, and support services
Competitive salary and operating costs
100 percent foreign ownership allowed in most service and tech sectors
Clear FDI protection framework under national law
Strategic location between India and China
Foreign company registration in Nepal is particularly attractive for:
SaaS and software development firms
Management and professional consultancies
Trading companies focused on import, export, or distribution
Foreign investment is governed by a structured legal regime. Understanding this is critical for compliance and EEAT credibility.
Foreign Investment and Technology Transfer Act
Companies Act
Industrial Enterprises Act
Income Tax Act
Foreign Exchange Regulation Act
Regulatory oversight is primarily handled by:
Department of Industry
Investment Board Nepal
Nepal Rastra Bank
Foreign company registration in Nepal depends on sector classification.
Tech and IT services are among the most FDI-friendly sectors.
Common activities include:
Software development
SaaS platforms
AI and data analytics services
IT outsourcing and support
Ownership: Up to 100 percent foreign ownership allowed
Approval route: Department of Industry
Consultancies are permitted but require clear service definitions.
Typical sectors:
Management consulting
Financial and accounting advisory
Engineering and technical consulting
HR and recruitment services
Key compliance point: Scope must avoid regulated professional licensing unless secured separately.
Trading companies face additional scrutiny.
Activities include:
Import and export
Wholesale distribution
Cross-border sourcing
Additional requirements:
Minimum investment thresholds
Trade-specific licenses
Customs and VAT registration
As per prevailing FDI policy:
Minimum FDI threshold: NPR 20 million
Applies per foreign investor, per project
Capital must be remitted through formal banking channels
This applies equally to tech, consultancy, and trading companies unless exempted by sector-specific directives.
Before any filing, the structure must be right.
This includes:
Entry route selection
Shareholding and capitalization planning
Governance and control design
Tax and repatriation considerations
A weak structure here leads to regulatory objections later.
Depending on investment size:
NPR 20 million to NPR 6 billion → Department of Industry
Above NPR 6 billion → Investment Board Nepal
Documents include:
Project profile
Investment structure memorandum
Parent company incorporation proof
Board resolutions
Once FDI approval is issued:
Company name reservation
Memorandum and Articles of Association filing
Registration with the Office of Company Registrar
This creates the legal Nepal entity.
After incorporation:
Open foreign currency and local bank accounts
Inject approved capital
Obtain capital confirmation from Nepal Rastra Bank
No capital, no operational permissions.
Final registrations include:
Permanent Account Number and VAT
Social Security Fund enrollment
Local municipality registration
Sectoral licenses if applicable
Only after this is the company fully operational.
| Stage | Typical Duration |
|---|---|
| Investment structuring | 1–2 weeks |
| FDI approval | 2–4 weeks |
| Company incorporation | 5–7 working days |
| Banking and capital | 1–2 weeks |
| Statutory activation | 1–2 weeks |
Total: Approximately 6–10 weeks with proper preparation.
| Factor | Tech Company | Consultancy | Trading Company |
|---|---|---|---|
| FDI friendliness | Very high | High | Moderate |
| Regulatory scrutiny | Low | Medium | High |
| Licensing complexity | Low | Medium | High |
| Capital intensity | Moderate | Low | High |
| Repatriation ease | High | High | Medium |
This comparison helps foreign investors choose the right entry model.
Avoid these costly errors:
Registering before securing FDI approval
Under-defining consultancy or service scope
Misclassifying trading activities as services
Injecting capital outside approved channels
Ignoring Social Security Fund obligations
These mistakes delay foreign company registration in Nepal and raise compliance risks.
Nepal allows full profit repatriation, subject to tax compliance.
Key points:
Corporate income tax generally applies
Dividends subject to withholding tax
Repatriation requires NRB clearance
Double taxation treaties may reduce tax burden
Planning tax and repatriation at the structuring stage is essential.
Foreign company registration in Nepal is not just a form-filling exercise. It is a regulatory orchestration project.
Professional advisors help with:
Structuring defensible FDI models
Managing regulator interactions
Avoiding sector misclassification
Ensuring long-term scalability
This protects both time and capital.
Yes. Most tech and consultancy sectors allow full foreign ownership. Some trading activities may have restrictions.
Typically 6 to 10 weeks if documentation and approvals are well prepared.
Only after tax, labor, and Social Security registrations are completed.
Yes, subject to tax compliance and approval from Nepal Rastra Bank.
Not always. With proper powers of attorney, the process can be managed remotely.
Foreign company registration in Nepal offers global firms a compliant, scalable, and cost-effective entry into South Asia. Tech companies, consultancies, and trading businesses can all succeed if the structure, approvals, and compliance are handled correctly from day one.
The difference between a smooth launch and regulatory delays lies in expert-led planning.
If you are considering foreign company registration in Nepal and want a risk-free, regulator-aligned setup, speak with a specialist advisory team before committing capital. The right structure today saves years of restructuring tomorrow.