If you’re a foreign company entering Nepal, your first major decision is often private vs public company structure. On paper, it looks technical. In reality, it determines your capital structure, compliance obligations, governance model, and even how regulators and banks perceive you.
I’ve worked with Australian, Chinese, and Indian investors expanding into Nepal. The biggest delays rarely happen at the filing stage. They happen because founders choose the wrong structure at the start.
This guide is written specifically for foreign companies. In this post, we’ll explain what private vs public company means in Nepal, break down the company registration process step-by-step, clarify FDI approval requirements, and share practical insights to help you avoid costly mistakes. By the end, you’ll know exactly how to move forward with confidence.
Before registering in Nepal, you must understand the difference.
A private company:
Most foreign-owned companies in Nepal choose a private limited structure under the Companies Act, 2063 (2006).
A public company:
Choosing between private vs public company affects:
For most foreign companies entering Nepal for subsidiaries, tech operations, service delivery, manufacturing, or back-office support, a private limited company is the practical choice.
Public companies are typically used for:
Understanding this early prevents restructuring later.
Below is a clear, step-by-step roadmap designed specifically for foreign investors.
Start by asking:
Example:
An Australian mortgage processing company setting up a Nepal back-office will almost always choose a private limited company.
A hydropower developer planning IPO listing may need a public company.
Foreign investors must secure FDI approval before company registration.
Approval authority depends on investment size:
You will need:
This is where many delays occur. Documentation must align with Nepal’s regulatory requirements.
After FDI approval:
Tip: Avoid generic names. Nepal rejects similar names frequently.
You must prepare:
These must reflect:
For foreign companies, precision here is critical. Business objectives must align with FDI approval scope.
Submit:
Once approved, you receive:
Your company is now legally formed.
After incorporation:
Many foreign investors underestimate this stage. Incorporation is only the beginning.
Let’s say a UK SaaS company wants to build a development center in Kathmandu.
They:
Total timeline: 4–8 weeks (if documentation is clean).
Delays typically happen due to:
Nepal’s system is structured, but procedural. Precision reduces friction.
Planning reduces risk significantly.
Navigating Nepal’s company registration process becomes straightforward once you understand private vs public company differences and the FDI approval framework. The right structure saves time, reduces compliance burden, and strengthens long-term operational stability.
For most foreign investors, a private limited company provides flexibility, control, and faster setup. Public companies serve strategic capital-raising goals but come with heavier governance requirements.
The key is making the right decision from day one.
A private company limits shareholders and cannot offer shares publicly. A public company can issue shares to the public and has stricter compliance requirements.
Yes. Foreign investors can establish a private limited company after obtaining FDI approval from relevant authorities.
Typically 4–8 weeks, depending on FDI approval timeline and documentation accuracy.
Yes. Minimum investment thresholds apply under foreign investment regulations and vary by sector.
Yes, subject to regulatory approvals and compliance with tax and banking regulations.
Planning to enter Nepal?
Our team specializes in helping foreign companies structure the right private vs public company model, secure FDI approval, and complete end-to-end registration without delays.
Book a consultation today and receive a customized Nepal market entry roadmap tailored to your industry.