If you plan to incorporate a company in Nepal, banking and KYC come next. Banks apply strict AML/CFT controls. Foreign investors must follow FITTA and Nepal Rastra Bank rules. This guide shows a simple, bank-first path. You get checklists, timelines, and a practical playbook. Read it once. Avoid weeks of back-and-forth.
This law covers company formation. It sets the document set and authorities. Your board resolution will authorize banking and signatories.
FITTA governs foreign investment. It enables capital inflow, technology transfer, and repatriation rights. It also frames approvals with DOI or IBN.
NRB issues AML/CFT directives and the Foreign Investment and Foreign Loan Bylaw. These set KYC standards, EDD triggers, and FX rules.
After incorporation, obtain PAN. Register for VAT when your sector or thresholds require it. Banks often want PAN before full activation.
The registrar requires UBO transparency. Banks also verify UBOs. Keep a clean UBO chart and signed declarations.
Choose structure and draft statutes
Most foreign groups use a private limited subsidiary. Draft MoA and AoA to match banking and FX needs.
Secure FDI approval if required
Apply to the Department of Industry or Investment Board Nepal. The forum depends on project size and sector.
Register at the Office of the Company Registrar
File MoA, AoA, director details, and minutes. Receive the Certificate of Incorporation.
Register tax accounts
Obtain PAN. Evaluate VAT. Many banks request PAN before enabling full services.
Pass a banking resolution
Name the bank. Appoint account operators. Define signing matrix and limits. Approve e-banking and SWIFT usage.
Assemble a complete KYC pack
Include company, tax, UBO, and signatory proofs. Add a cover checklist. Keep everything in one folder.
Open the NPR current account
Submit the KYC pack. Expect address checks and site verification when needed.
Open foreign-currency account, if applicable
FDI companies often maintain USD or EUR accounts. Follow NRB notification steps.
Remit capital and record the investment
Bring funds through banking channels. Keep SWIFT and credit advice. Record within required timelines.
Activate operating services
Enable e-banking, payroll, vendor payments, and FX. Maintain KYC data for ongoing reviews.
Banks in Nepal follow risk-based KYC. Prepare these:
Company pack: Certificate of Incorporation, MoA, AoA, share register, official address proof.
Tax IDs: PAN certificate; VAT certificate if applicable.
Board approvals: Resolution to open accounts and set signing powers.
Authorized signatories: KYC forms, specimen signatures, photos, phone, email.
Identity proofs: National ID for Nepali signatories; passport for foreign signatories.
UBO details: Ownership percentages, control rights, and declarations.
FDI evidence: Approval letters, NRB notices, remittance proofs.
Office proof: Lease agreement or ownership proof, plus a utility bill if asked.
Pro tip: Build a single “Bank-Ready Folder.” Use clear file names and dates. Update versions promptly.
Banks must identify the humans who own or control the company. Common thresholds are 25% ownership or effective control. Disclose direct and indirect holdings. Attach the UBO chart and signed forms. This reduces EDD queries and speeds onboarding.
EDD can trigger if you have:
Complex chains or trusts with unclear control
Politically exposed persons or sanctions proximity
High-cash or higher-risk sectors
Third-country directors without local ties
Mismatched filings, addresses, or financials
Expect deeper questions, independent checks, and site visits.
| Account type | Primary use | Who opens it | KYC extras | Advantages | Watch-outs |
|---|---|---|---|---|---|
| NPR Current | Local payments | All companies | Standard corporate KYC | Smooth domestic operations | PAN often needed for full use |
| FCY Current (USD/EUR/GBP, etc.) | Hold foreign currency | FDI companies | FDI approvals and NRB notices | Hedge FX and avoid conversion loss | FX purpose controls apply |
| Capital Inflow | Receive share capital | FDI companies | Approval + remittance proofs | Clean trail for recording | Record within stated deadlines |
| Escrow/Settlement | M&A or share transfers | Case-by-case | Extra approvals and controls | Risk management for parties | More documents and lead time |
Pre-operating spend: Modest pre-ops can be supported against planned capital. Keep auditor certification for later recognition.
Post-approval inflows: After approvals, remit through banking channels. Notify NRB as required.
Share transfers: Remittances tied to share changes can need prior approvals. Build time for this.
Evidence pack: Keep SWIFT MT103, credit advice, and statements. You will need them for recording and future repatriation.
Repatriation relies on clean trails. Provide audited accounts, tax clearance, board approvals, and investment records. Banks process FX after regulatory checks. Plan repatriation at incorporation. It protects exit timelines and cash planning.
Prepare a master KYC pack with all proofs and forms.
Align registered address, tax address, and lease details.
Name two account operators. Use a maker-checker workflow.
Disclose potential EDD triggers early.
Keep a version log. Banks ask for “latest” copies.
For Nepali signatories, have National ID ready.
For foreign signatories, keep passport and address proof ready.
FX capability: Multi-currency accounts and competitive spreads
Trade support: SWIFT speed, cut-off times, and clear SLAs
EDD experience: Comfort with multi-country structures
Digital banking: Secure portals and role-based approvals
Service model: Named relationship manager and escalation path
Incorporation: Several working days after complete filing
PAN: Often within days, subject to file quality
Bank KYC: Commonly 3–10 working days with a complete pack
EDD, site checks, or complex UBOs can extend timelines.
Different addresses across registrar, tax, and bank files
Missing or unclear UBO declarations
No board resolution naming operators and limits
Capital remitted without the right notices or evidence
Assuming VAT or PAN is optional for banking activation
Pick structure and draft MoA/AoA.
Confirm if FDI approval is needed.
Incorporate at the registrar.
Obtain PAN and consider VAT.
Pass a banking resolution with operator names and limits.
Build your KYC pack and UBO chart.
Open NPR current; then FCY if needed.
Remit capital and keep all evidence.
Record investment within the required timeframe.
Activate e-banking and payroll.
Certificate of Incorporation, MoA, AoA
PAN certificate, VAT certificate if applicable
Board resolution for banking and FX
UBO declarations and org chart
Signatories’ KYC forms, specimen signatures, photos
National ID or passport and address proof
Lease agreement and utility bill
FDI approvals, NRB notices, SWIFT and bank advices
1) Can I open a bank account before incorporation?
Not a standard corporate account. Incorporate first, then open the account. For early expenses, structure pre-ops carefully and keep auditor evidence. Later recognition depends on approvals and proper trails.
2) Do I need prior approval to bring in capital?
After investment approvals, most capital inflows follow notification and recording steps. Share transfers can require prior approval. Keep timelines in mind.
3) What IDs work for bank signatories?
Nepali signatories use National ID. Foreign signatories use passports and address proofs. Banks verify identities and may perform site checks.
4) What triggers enhanced due diligence?
Opaque UBOs, complex chains, PEP exposure, higher-risk industries, or unusual cross-border flows. Expect deeper questions and extra documents.
5) How do I repatriate dividends or exit proceeds?
Provide audited accounts, tax clearances, approvals, and investment records. Banks process FX after checks. Plan for repatriation from day one.