How Long Does It Take to Incorporate a Company in Nepal?

You want to incorporate a company in Nepal and you need a clear clock.
How many working days does it really take?
The answer depends on your ownership and sector.
Local founders follow a shorter path.
Foreign investors add FDI and central-bank steps.
This guide gives realistic time ranges, stage-by-stage detail, and speed tactics.
It also shows common traps and how to avoid them.

TL;DR: Realistic Timelines at a Glance

• Local private limited (no FDI): 5 to 10 working days from complete papers.

• FDI company (foreign shareholding): 2 to 8 weeks end-to-end in straightforward cases.

• Complex or sensitive sectors: 8 to 12+ weeks with extra approvals.

• Name reservation validity: 35 days once approved. Plan your filings within that window.

• Company PAN: often 1 to 3 working days after incorporation if records match.

How long does it take to incorporate a company in Nepal? 

Time flows through three gates.
Gate one is corporate registration at the Office of the Company Registrar.
Gate two is tax setup with the Inland Revenue Department.
Gate three is banking and, for FDI, central-bank facilitation.
Local companies clear gates faster.
FDI cases add approvals, capital remittance, and repatriation controls.

Local vs FDI at a glance

• Local setup: name approval, incorporation filing, PAN, and optional VAT.

• FDI setup: FDI approval, incorporation filing, PAN or VAT, bank account, and NRB processes.

Comparison table: scenarios, critical path, and typical duration

Notes: Ranges assume complete and compliant papers.
Public holidays and peak seasons can extend queues.
Large investments or regulated sectors often require extra review.

What drives the timeline?

• Regulatory path. Local setups are shorter than FDI.

• Document completeness. Missing exhibits cause rejections and rework.

• Name compliance. Conflicting or restricted names stall at OCR.

• Sector rules. Regulated sectors add licences.

• On-site checks. VAT may require address verification.

• Bank KYC depth. Account opening varies by bank policy.

• Seasonality. Festivals and year-end periods slow response times.

The fast path for locals (no FDI)

Step 1: Name reservation (1–3 working days)

Apply on the OCR e-Services portal.
Prepare two backup names.
Approved names stay valid for 35 days.
File the incorporation within that window.

Step 2: Documents and notarization (1–2 working days)

Prepare MOA and AOA in the approved name.
Match share tables across all forms.
Collect citizenship copies, photos, and addresses.

Step 3: OCR filing and certificate (2–5 working days)

Upload the forms and pay fees.
Respond quickly to any queries.
Receive the certificate and registration number.

Step 4: Company PAN (1–3 working days)

Apply with the new certificate and address proof.
Keep the registered office documents handy.
PAN often arrives within a few days.

Step 5: Municipality or ward letter (same day to a few days)

Check your local office requirement.
Many issue a letter quickly when papers are complete.

Result: You are operational for domestic invoices and hiring.
Add VAT registration later if your model requires it.

The FDI path for foreign shareholders

Phase 1: FDI approval (about 7–30 working days in normal cases)

Most cases go to the Department of Industry.
Large, strategic, or PPP projects may go to the Investment Board Nepal.
Complete files move faster than partial ones.
Plan a longer window for sensitive sectors.

Your FDI file typically includes:

• Investor IDs and corporate documents.

• Board resolution approving investment.

• Source-of-funds explanation.

• Draft MOA/AOA or business plan.

• Shareholding and sector description.

Phase 2: Company incorporation at OCR (about 7–10 working days)

Use the FDI approval letter during filing.
Attach the foreign shareholder documents.
Keep share tables and objectives aligned.

Phase 3: Tax registrations and municipality (about 4–10 working days)

PAN is fast with accurate records.
VAT may require a site verification visit.
Prepare tenancy agreements and utility bills.

Phase 4: Bank account opening and capital remittance (variable)

Each bank has its own KYC depth.
Schedule a branch meeting in advance.
Prepare signatories, photographs, and specimen signatures.
Plan inward remittance according to the approved capital plan.

Phase 5: NRB facilitation related to foreign currency (up to 15 working days per decision)

NRB by-laws set decision service levels.
Expect additional time for bank coordination.
Maintain a clean paper trail for future repatriation.

End-to-end reality:
Straightforward FDI can complete within 2 to 8 weeks.
Complex sectors or large tickets can run 8 to 12+ weeks.

Detailed day-by-day planners

Local company (no FDI)

• Day 0–1: Prepare documents, create OCR account.

• Day 1–3: Name reservation and approval.

• Day 3–7: OCR filing, clarifications, and certificate.

• Day 7–9: PAN application and issuance.

• Day 7–10: Municipality letter if required.

FDI company

• Week 0: Build the FDI file and appoint an authorized local representative.

• Week 1–4: FDI approval review and decision.

• Week 4–5: OCR incorporation with approval letter.

• Week 5–6: PAN and, if applicable, VAT registration.

• Parallel: Bank KYC and account opening.

• As needed: NRB facilitation for FX matters, typically within service windows.

Numbered plan to speed things up

1. Pre-screen three compliant names and keep two backups ready.

2. Align MOA, AOA, and portal entries to avoid share-table mismatches.

3. Collect all IDs, photos, and address proofs in one folder.

4. For FDI, finalize the board resolution and source-of-funds note early.

5. Pick a bank and obtain the KYC checklist before OCR filing.

6. Book a single day for all notarizations and specimen signatures.

7. Track your file daily and respond to clarifications within hours.

8. Avoid festival peaks when possible to reduce wait times.

Documents checklist (copy-paste and use)

• Proposed name and two backups.

• MOA and AOA drafts in the approved name.

• Shareholding structure and authorized capital.

• Promoter or director IDs and photos.

• Registered office address documents.

• For FDI: board resolution, investor charter docs, source-of-funds note.

• For VAT: tenancy agreement, utility bill, and a simple office layout sketch.

• Bank KYC pack: signatories, photographs, and specimen signatures.

Common bottlenecks and how to avoid them

• Name rejections. Research conflicts and restricted words first.

• Mismatched numbers. Ensure capital and shares match across all forms.

• Missing exhibits. Use a two-person checklist before filing.

• VAT site visit delays. Keep the office accessible and documented.

• Bank KYC loops. Bring originals and notarized copies to the first meeting.

• Holiday slippage. File early in the week before long holidays.

Compliance and policy anchors (EEAT reinforcement)

• Companies Act 2063 (2006): primary incorporation law and OCR procedures.

• Foreign Investment and Technology Transfer Act 2019: FDI framework and investor rights.

• NRB Foreign Investment and Foreign Loan Management By-Laws 2021, amended 2024: FX, inward remittance, and repatriation rules.

• DOI One-Stop Service guidance: downstream steps after FDI approval.

• Inland Revenue procedures: timelines for PAN and VAT registration.

These instruments inform the timelines and steps described in this article.
They also govern board approvals, capital plans, and repatriation paths.
Your case should map to these rules before you fix a go-live date.

FAQ

1) Can we incorporate before FDI approval?
No, not if foreign shareholders will hold equity from day one.
Obtain FDI approval first, then incorporate.
This avoids re-filing and capital plan changes.

2) How long is the reserved company name valid?
Thirty-five days from approval.
File within that window or reserve the name again.
Keep two backups ready.

3) How fast is company PAN?
Often one to three working days when records match.
Delays occur with address mismatches or missing documents.

4) Do NRB processes add months?
The by-laws set decision service windows.
Actual time depends on bank coordination and document quality.

5) What pushes FDI timelines past eight weeks?
Sector licences, complex capital structures, and board-level reviews.
Public holidays and VAT site checks add time as well.