--- title: "Nepal Company Registration Process: From Name Approval to PAN" description: Step-by-step guide to Nepal’s company registration process for foreign companies—from name approval to PAN. 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[Nepal Accounting](https://digitalconsultingventures.com/insights/tag/nepal-accounting) # Nepal Company Registration Process: From Name Approval to PAN [![Vijay Shrestha](https://digitalconsultingventures.com/hs-fs/hubfs/s%20(2)-1.png?width=48&height=48&name=s%20(2)-1.png)](https://digitalconsultingventures.com/insights/author/vijay-shrestha) [Vijay Shrestha](https://digitalconsultingventures.com/insights/author/vijay-shrestha) May 29, 2025 12:23:24 PM 5 min read ![](https://digitalconsultingventures.com/hubfs/Nepal%20Accounting%20%2852%29.png) Nepal is fast emerging as a hub for foreign investment in South Asia. Whether you're an IT firm, an energy company, or a consultancy, the country offers a promising gateway to two major markets: India and China. Moreover, the government has taken substantial steps to simplify foreign company registration, encouraging international entities to explore business opportunities within its borders. However, navigating a foreign bureaucracy can be daunting. If you're planning to incorporate in Nepal, understanding the **company registration process from start to finish** is essential. In this comprehensive guide, we walk you through the full company registration lifecycle—from name reservation to tax registration (PAN/VAT)—with a specific focus on **foreign company registration in Nepal**. You'll also learn how **Digital Consulting Ventures (DCV)** can help you register your company remotely and compliantly. --- ## Table of Contents 1. Can Foreigners Register a Company in Nepal? 2. Types of Companies Foreigners Can Register 3. Benefits of Incorporating in Nepal 4. Overview of the Registration Process 5. Step 1: Name Reservation with the Office of the Company Registrar (OCR) 6. Step 2: Drafting and Preparing Legal Documents 7. Step 3: Company Registration Application at OCR 8. Step 4: Foreign Investment Approval (FITTA Process) 9. Step 5: PAN and VAT Registration with the Inland Revenue Department (IRD) 10. Step 6: Bank Account Opening and Capital Injection 11. Step 7: Obtaining Industry-Specific Licenses (If Applicable) 12. Timeline for Completion 13. Post-Registration Compliance and Operational Setup 14. Why Choose Digital Consulting Ventures? 15. FAQs 16. Sources --- ## 1. Can Foreigners Register a Company in Nepal? Yes. Nepal's legal framework, primarily governed by the **Companies Act, 2006** and the **Foreign Investment and Technology Transfer Act (FITTA), 2019**, allows foreign nationals and companies to fully or partially own businesses in Nepal. Foreign investors can: - Establish a **Private Limited Company** under FITTA - Open a **Branch Office** of their existing foreign company - Set up a **Liaison Office** for market research and representation Ownership can be up to 100% foreign in most sectors, provided regulatory conditions and investment thresholds are met. --- ## 2. Types of Companies Foreigners Can Register | Type of Entity | 100% Foreign Ownership | Revenue-Generating | Regulatory Approval Required | | --- | --- | --- | --- | | Private Limited | Yes | Yes | Yes (via DOI & OCR) | | Branch Office | Yes | Yes | Yes | | Liaison Office | Yes | No | Yes | Most foreign companies opt for the **Private Limited** model under FITTA to operate as independent legal entities. --- ## 3. Benefits of Incorporating in Nepal - **Access to South Asia**: Proximity to India and China opens large export markets. - **Affordable Talent**: Skilled workforce at competitive salary benchmarks. - **Double Taxation Avoidance**: Agreements in place with countries like India, China, and the UK. - **IT Outsourcing Hub**: Growing ecosystem for software and IT-enabled services. - **Sector Liberalization**: Many sectors fully open to FDI with 100% foreign ownership. - **Government Support**: FITTA 2019 aims to streamline investment procedures. --- ## 4. Overview of the Registration Process The process typically includes: 1. Name reservation 2. Drafting and notarizing legal documents 3. Submitting the registration application to OCR 4. Applying for foreign investment approval via DOI (if applicable) 5. Obtaining PAN/VAT from the tax authority (IRD) 6. Opening a bank account and injecting the capital 7. Registering with the Social Security Fund (if hiring) 8. Acquiring additional industry-specific licenses, if required Each of these stages has its own documentation, procedures, and processing times. --- ## 5. Step 1: Name Reservation with the Office of the Company Registrar (OCR) The first step is to check and reserve your company name through the OCR's online portal. Names must: - Be unique and not already registered - Reflect the nature of the business - Not violate trademarks or local sensitivities **Documents Needed:** - Online application form - Passport copy of applicant (foreigner or authorized rep) **Timeline:** 1–2 working days DCV assists with name checks, translation into Nepali, and application filing. --- ## 6. Step 2: Drafting and Preparing Legal Documents This step is crucial for ensuring your company meets Nepalese regulatory and investment standards. **Core Documents Include:** - **Memorandum of Association (MoA)** - **Articles of Association (AoA)** - **Board Resolution** (from parent company or shareholders) - **Power of Attorney (POA)** authorizing a local rep - **Project Proposal** (for FITTA) - **Lease Agreement** or proof of local address - **Passport copies** of directors/shareholders All documents must be: - Notarized in the country of origin - Translated into Nepali by a licensed translator - Submitted both in hard and soft copy --- ## 7. Step 3: Company Registration Application at OCR After name approval and document preparation, your registration application is submitted to OCR. If approved, you receive: - **Company Registration Certificate** - **Registration Number** - Digitally signed MoA and AoA **Fee Structure:** Fees range based on authorized capital: - Up to NPR 10 million: NPR 15,000 - NPR 10–100 million: NPR 40,000 - Higher tiers based on progressive slabs **Timeline:** 7–10 working days --- ## 8. Step 4: Foreign Investment Approval (FITTA Process) For 100% foreign-owned companies, FITTA approval is mandatory. This is done via the Department of Industry (DOI). **Requirements:** - Minimum capital: NPR 20 million (~USD 150,000) - Board resolution for investment - Proposed business plan - Foreign investor KYC and passport copies - Capital transfer plan **Additional Documents:** - Draft employment plan - Technology transfer clause (if applicable) - Sector-specific approvals (e.g., hydropower, telecom) **Timeline:** 20–40 working days --- ## 9. Step 5: PAN and VAT Registration with IRD Upon OCR approval, companies must obtain a **Permanent Account Number (PAN)** from the Inland Revenue Department. **Process:** - Application submission - Tax office verification visit - PAN certificate issuance VAT is required if: - Expected turnover exceeds NPR 2 million - Operating in VAT-applicable sectors (retail, consulting, etc.) **Documents Required:** - Lease agreement - Citizenship copy of the landlord - Office photos with nameplate - Company certificate **Timeline:** 2–5 working days --- ## 10. Step 6: Bank Account Opening and Capital Injection To activate the company, you must open a bank account in Nepal and inject the committed capital. **Requirements:** - Company registration documents - PAN certificate - FITTA approval letter - Passport and POA of authorized signatory **Steps:** 1. Open a temporary bank account 2. Transfer investment via SWIFT code from foreign bank 3. Get proof of capital injection for DOI endorsement --- ## 11. Step 7: Obtaining Industry-Specific Licenses (If Applicable) Some sectors require additional licenses before starting operations. Examples include: - **Telecom**: Approval from the Nepal Telecommunications Authority - **Hydropower**: Ministry of Energy clearance - **Education/Training**: Ministry of Education certification - **Travel/Tourism**: Nepal Tourism Board registration DCV coordinates with relevant ministries to expedite these processes. --- ## 12. Timeline for Completion | Stage | Estimated Time | | --- | --- | | Name Reservation | 1–2 days | | Document Preparation | 5–10 days | | OCR Registration | 7–10 days | | FITTA Approval | 20–40 days | | PAN/VAT & Bank Setup | 3–5 days | | Licenses (if needed) | Varies by sector | **Total Estimated Time**: 4–8 weeks for most industries; longer if special licenses are required. --- ## 13. Post-Registration Compliance and Operational Setup After successful registration, foreign companies must: - File **annual financial reports** to OCR - Submit **monthly VAT returns** and **annual tax returns** - Register with **Social Security Fund (SSF)** if hiring staff - Maintain **board minutes and statutory books** - Renew industry-specific licenses DCV provides: - Bookkeeping and accounting - Payroll processing - Tax compliance - HR advisory and recruitment services --- ## 14. Why Choose Digital Consulting Ventures? **Digital Consulting Ventures (DCV)** is Nepal's leading consulting firm for foreign company setup. We offer: - End-to-end registration services - Local address and virtual office options - Local nominee directors and representatives - Full FITTA approval management - Document notarization and courier handling - PAN/VAT, SSF, labor and tax registrations - HR, recruitment, and visa assistance Our team consists of bilingual legal experts, chartered accountants, and regulatory advisors. We make incorporation easy—even if you're based abroad. --- ## 15. FAQs **Q1: Can I register a company in Nepal without being physically present?** Yes. With POA and local representation, all steps can be completed remotely. **Q2: Do I need a local partner to register a company?** No. 100% foreign ownership is permitted in most sectors. **Q3: What is the minimum investment for foreign companies?** NPR 20 million (~USD 150,000), as per FITTA. **Q4: Can I use a virtual office for company registration?** Yes. DCV provides compliant registered office services. **Q5: What happens if I don't comply with FITTA or tax rules?** Fines, business suspension, or rejection of fund repatriation. DCV ensures compliance. **Q6: Can DCV help with work permits for foreign staff?** Yes. We assist with visas, labor approvals, and employee onboarding.   #### Don't forget to share this post! 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