Non-Resident Nepalis (NRNs) often face confusion when trying to invest or start a business in Nepal. Questions around company registration Nepal, approvals from the Department of Industry, and compliance with Nepalese tax and labour laws make the process overwhelming. If you are an NRN wondering whether you can register a company online in Nepal, this guide explains everything from the OCR process to tax compliance, NRB approvals, and foreign ownership rules.
By the end of this article, you will understand the step-by-step online registration process, legal requirements under FITTA 2019 and the Companies Act 2006, and how Digital Consulting Ventures (DCV) can simplify your company incorporation in Nepal.
NRNs are eligible to register companies in Nepal, subject to certain legal requirements:
Must comply with FITTA 2019 for foreign investment
Require NRB approval if capital is being brought in from abroad
Must meet local compliance for PAN and VAT registration, Social Security Fund, and labour regulations
Foreign ownership rules allow NRNs to hold up to 100% equity in certain sectors while other sectors require joint ventures with Nepali partners (Companies Act 2006, FITTA 2019).
Companies Act 2006 & Rules 2064 – Governs company incorporation and registration
FITTA 2019 – Rules for foreign investment, capital repatriation, and equity ownership
NRB Directives – For foreign remittance, FDI approval, and banking compliance
Income Tax Act 2002 & VAT Act 1996 – Registration for tax and indirect taxation
Labour Act 2017 & Social Security Act 2018 – Employee compliance
Industrial Enterprises Act 2020 – Special approvals for industrial units
NRNs can choose from the following structures:
Private Limited Company – Most common for NRNs; allows limited liability and 100% foreign ownership in approved sectors.
Public Limited Company – Requires a minimum number of shareholders and stricter regulatory compliance.
Branch of Foreign Company – Allows existing foreign companies to operate in Nepal without creating a new legal entity.
Partnership / Joint Venture – Suitable for NRNs investing with local partners
Faster registration through the OCR portal
Reduced paperwork and travel to Nepal
Compliance with all legal requirements in one process
Digital submission allows NRB and DOI approvals without delays
Convenient online application from anywhere
Immediate availability of digital documents
Integration with PAN and VAT registration
Streamlined Social Security Fund compliance
Access to government incentives for foreign investment
Name Reservation – Submit proposed company names online via the OCR portal for approval
NRB Approval – Apply for foreign capital inflow and registration with the central bank
Department of Industry (DOI) Approval – Submit business plan, foreign ownership details, and other required documents
Company Registration through OCR – Complete digital form, submit shareholder documents, and pay registration fees
PAN and VAT Registration – Register for tax purposes with Inland Revenue Department
Social Security Fund Registration – Mandatory for NRN-owned companies hiring employees
Labour Compliance – Ensure adherence to Labour Act 2017 and bonus regulations
Final Incorporation Certificate – Issued by DOI, allowing operations to commence
Optional FDI Incentives – Claim foreign investment benefits under FITTA 2019
Valid NRN certificate and passport
Proof of foreign capital remittance (NRB approval)
Business plan and articles of association
Minimum paid-up capital as per sector requirements
Compliance with sector-specific FDI rules
| Feature | NRN Registration | Local Nepali Registration |
|---|---|---|
| Shareholding | 100% foreign ownership in allowed sectors | 100% local ownership |
| NRB Approval | Required for capital inflow | Not applicable |
| OCR Process | Online submission available | Online and offline options |
| Tax Compliance | PAN, VAT mandatory | PAN, VAT mandatory |
| Labour Compliance | Labour Act 2017, Social Security Fund | Labour Act 2017, Social Security Fund |
| Timeline | 15–30 days | 10–20 days |
NRNs must comply with:
Annual financial statements prepared under Nepal Accounting Standards
Tax filing under Income Tax Act 2002 and VAT Act 1996
Audit requirements as per the Companies Act 2006
Labour and Social Security Fund reporting
Failing to comply can lead to penalties, delayed approvals, and reputational risk.
Not all sectors allow full foreign ownership. Under FITTA 2019, sector rules include:
Allowed 100% foreign ownership: IT, consultancy, export industries, education
Restricted sectors: Banking, media, insurance, real estate (may require a Nepali partner)
Special approvals: DOI approval or other ministry permissions may be required for regulated sectors
This ensures compliance with Nepalese industrial and economic policy while protecting local business interests.
NRNs must follow Nepal Rastra Bank (NRB) directives for capital inflows:
Declare initial capital with NRB for approval
Minimum capital requirements vary by sector
Profits can be repatriated abroad following NRB approval
Record all remittances for audit and compliance
This ensures transparent foreign investment and legal protection for NRN companies.
Corporate tax obligations:
Standard corporate tax rate: 25% for general companies
VAT registration mandatory if turnover exceeds threshold
Incentives available for export-oriented businesses and certain FDI sectors under FITTA 2019
Other tax compliance requirements:
Withholding tax on employee salaries
Deduction of taxes on payments to suppliers
Annual tax filing deadlines strictly enforced
NRN-owned companies must follow Labour Act 2017:
Register employees with Social Security Fund (SSF)
Provide statutory benefits like gratuity, provident fund, and bonus
Draft employment contracts in compliance with local laws
Maintain proper HR and payroll records for audits
Non-compliance can lead to fines or suspension of business operations.
Submit business plan and capital details to DOI and NRB
Ensure sector compliance under FITTA 2019
Claim incentives for foreign investment
Integrate FDI approval with OCR registration for faster processing
FDI vs Local Capital Comparison:
| Feature | FDI NRN | Local Capital |
|---|---|---|
| Ownership | Up to 100% in allowed sectors | 100% |
| NRB Approval | Mandatory | Not needed |
| Incentives | Available | Limited |
| Registration | Online OCR | Online/Offline |
After registration, NRN companies must:
File annual tax returns (PAN & VAT)
Conduct annual audit
Maintain statutory books
Submit labour and Social Security Fund reports
Renew DOI approvals if needed
NRN-managed companies hiring foreign staff must comply with Nepal Immigration Rules
Work permits must be applied through Department of Immigration
Align visa approvals with company incorporation
OCR portal reduces paperwork and speeds up registration
Digital payment and document submission simplifies NRB and DOI approvals
DCV leverages technology to streamline NRN registration and compliance, saving time and resources
Submitting incomplete documents on the OCR portal
Ignoring NRB foreign capital approval requirements
Confusing FITTA 2019 rules for sectoral restrictions
Delaying PAN and VAT registration
Overlooking labour law compliance
Avoiding these ensures smooth and fast incorporation.
1. Can NRNs register a private limited company in Nepal online?
Yes, NRNs can register a private limited company online through the OCR portal with DOI and NRB approvals.
2. What approvals do NRNs need before registering a company?
NRNs require NRB approval, DOI registration, and tax registrations such as PAN and VAT.
3. How long does NRN company registration take in Nepal?
Typically, registration takes 15 to 30 days depending on document completeness and sectoral approvals.
4. Are NRNs allowed 100% foreign ownership in Nepal?
Yes, but only in sectors permitted under FITTA 2019; some sectors require joint ventures.
5. Do NRN companies need to comply with Nepalese labour laws?
Yes, NRN companies must comply with Labour Act 2017, Social Security Fund, and employee benefit requirements.
NRNs can successfully register a company online in Nepal if they follow the OCR process, obtain NRB and DOI approvals, and comply with tax and labour regulations. Understanding FITTA 2019, foreign ownership rules, and sector-specific requirements is critical for smooth incorporation.
Digital Consulting Ventures specializes in NRN company registration, tax, and compliance in Nepal. Our experts handle end-to-end incorporation, approvals, and audit compliance so you can focus on growing your business.
Book a consultation with DCV today to start your online company registration in Nepal effortlessly.