---
title: "Company registration in Nepal: step-by-step guide for 2025"
description: Plan to expand into Nepal? This 2025 step-by-step company registration guide covers FDI rules, timelines, costs, and compliance—written for foreign founders.
image: https://digitalconsultingventures.com/hubfs/Untitled%20design%20%2813%29-Sep-15-2025-03-38-53-2569-AM.jpg
---

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# Company registration in Nepal: step-by-step guide for 2025

[![Pjay Shrestha](https://app.hubspot.com/settings/avatar/746dc962bd466bc39a861c64c40c6f32)](https://digitalconsultingventures.com/insights/author/pjay-shrestha)

[Pjay Shrestha](https://digitalconsultingventures.com/insights/author/pjay-shrestha) Sep 15, 2025 9:24:20 AM 6 min read

![Company registration in Nepal process flowchart for foreign investors, 2025 – from name approval to FDI, NRB, PAN/VAT, and post-incorporation compliance](https://digitalconsultingventures.com/hubfs/Untitled%20design%20%2813%29-Sep-15-2025-03-38-53-2569-AM.jpg)

**Company registration in Nepal** is straightforward when you follow the right sequence. In 2025, foreign companies benefit from clearer FDI rules, a One-Stop Service Centre, and online filings. This guide explains entity options, approvals, documents, timelines, and compliance so you can launch fast and stay audit-ready.

You’ll get a practical, step-by-step checklist, a comparison table (subsidiary vs branch vs liaison), and answers to “People Also Ask.” We also reference core laws and official guidelines so your team can validate every step.

---

## Who this guide is for

- Foreign founders and CFOs setting up in Nepal
- Legal, tax, and compliance teams supporting market entry
- VCs and PE firms evaluating portfolio expansions
- Global HR and mobility leaders planning staffing in Nepal

---

## Snapshot: How foreign investment works in 2025 

- **Entity choices:** Wholly-owned **Private Limited (subsidiary)**, **Branch Office**, or **Liaison/Representative Office**.
- **Approvals:** Most foreign projects go through the **Department of Industry (DOI)** under the **One-Stop Service Centre (OSSC)**. Very large or strategic projects go to **Investment Board Nepal (IBN)**.
- **Minimum foreign investment (general):** **NPR 20 million** per project (policy in effect and referenced by DOI guidance through 2024–2025). Certain **ICT activities** can be exempt from the minimum under the automatic route as per DOI communications.
- **Negative list:** Some **primary agriculture**, **cottage industries**, and selected **sensitive activities** remain closed or restricted to foreign investors.
- **Forex & repatriation:** Capital inflows and profit repatriation proceed via **Nepal Rastra Bank (NRB)** once taxes and filings are cleared.
- **Company filing:** **Office of the Company Registrar (OCR)** handles name approval and incorporation through its **e-Services** portal.
- **Tax IDs & returns:** **PAN** (tax ID) and **VAT** (if applicable) with the **Inland Revenue Department (IRD)**, then routine filings and annual audit.

> **Good to know:** Nepal’s **Companies Act (2063/2006)**, **FITTA (2019) + Rules (2021)**, **Industrial Enterprises Act (2020)**, **Income Tax Act (2002)**, **VAT Act (1996)**, **Labor Act (2017)**, and **Foreign Exchange Regulation Act (1962)** anchor the process.

---

## Step-by-step: From decision to “ready to trade”

### Step 1: Choose the right vehicle

**A. Private Limited Subsidiary (most common)**

- Separate legal entity in Nepal.
- 100% foreign ownership usually allowed (unless restricted sector).
- Broad scope to invoice locally, hire, and sign contracts.

**B. Branch Office**

- Extension of the foreign parent.
- Allowed to earn revenue only within approved scope.
- Often chosen for short-term projects or regulated sectors.

**C. Liaison/Representative Office**

- No revenue-generating activity in Nepal.
- Market research, promotion, coordination only.

**Decision factors:** sector permissions, tax profile, speed, brand control, and planned scale.

---

### Step 2: Confirm FDI route and approving authority

- **DOI (OSSC):** standard FDI approvals and most industries.
- **IBN:** very large or strategic investments (e.g., multi-billion rupee or marquee projects).
- **Sector regulators:** telecom, insurance, banking, energy, healthcare, etc.

**Pro tip:** Check whether your activity is on the **Negative List**. If it is, consider a different model (e.g., services instead of primary production) or structure (e.g., contract manufacturing).

---

### Step 3: Name check and reservation (OCR)

- Prepare 2–3 name options that reflect your objects.
- Avoid prohibited or misleading words.
- Reserve the name via OCR e-Services.

**Outcome:** name reservation letter.

---

### Step 4: Draft constitutional documents

- **Memorandum of Association (MOA)** and **Articles of Association (AOA)** that match your business objects and FDI approval.
- State **share capital**, **shareholding**, **registered office**, **directors**, and **authorised signatories**.
- Prepare **board resolutions** from the parent approving investment and signatories.

**Language & notarisation:** English is typical for foreign investors; notarise/apostille as required. Keep Nepali translations ready where authorities request them.

---

### Step 5: File the incorporation (OCR)

- Submit MOA, AOA, director/ shareholder KYC, address proofs, photos, and declarations (including **beneficial ownership** disclosure).
- Pay government fees (based on authorised capital slabs).
- Track OCR queries and respond promptly.

**Outcome:** **Certificate of Incorporation** and **Company Registration Number**.

---

### Step 6: Obtain FDI approval (DOI or IBN)

- File investment application with project profile, financials, parent documents, and source of funds.
- Align **project cost** with the **minimum foreign investment** rule (**NPR 20 million** general threshold; policy flexibility for certain **ICT** activities).
- Specify technology transfer, if any (royalties, technical know-how, or trademark license).

**Outcome:** **FDI Approval Letter** with permitted activities and equity composition.

---

### Step 7: NRB approval for foreign currency inflow

- Open an **FDI collection account** at an A-class commercial bank.
- Apply to **NRB** for inward remittance approval and subsequent repatriation rights.
- Remit capital through banking channels quoting the approval details.

**Outcome:** **NRB approval**; bank evidences each inflow for your share register.

---

### Step 8: Tax registrations and local licenses

- **PAN** (tax ID) at **IRD**; **VAT** if your activity crosses thresholds or is VAT-mandated.
- **Local municipality trade/operating license** if required by your location and activity.
- **Sector permits** where applicable (e.g., health import license, ISP license).

---

### Step 9: Post-incorporation compliance

- **Share allotment & share register** updated after remittance.
- **Board meeting** to adopt policies, appoint auditors, and approve bank signatories.
- **Employment**: issue written contracts; follow **Labor Act 2017**; enroll employees to social security where applicable.
- **Accounting**: maintain books, with **annual audit** and **AGM**; file annual returns with OCR and IRD.

---

## Document checklist (FDI + incorporation)

**Corporate documents (parent):**

- Certificate of incorporation, charter, and good-standing letter
- Latest shareholding and board list
- Board resolution approving Nepal investment
- Beneficial ownership declaration

**KYC & signatories:**

- Passports of directors/authorised signatories
- Photos and addresses
- Power of Attorney for local submissions

**Project & financials:**

- Business plan and 3-year financial projections
- Capital structure and funding schedule
- Technology/brand license terms (if any)

**Local documents:**

- Office lease or address proof in Nepal
- Draft MOA/AOA reflecting approved objects
- Auditor consent letter (if required)

---

## Timelines you can plan for (typical ranges)

- Name reservation (OCR): **1–3 business days**
- MOA/AOA drafting & notarisation: **3–7 business days**
- Incorporation (OCR review & approval): **3–10 business days**
- FDI approval (DOI/IBN): **2–4 weeks** for standard cases
- NRB approval & first remittance: **1–2 weeks**
- PAN/VAT and municipality license: **1–5 business days**
- Bank account operational: **1–3 business days** after KYC

> **Note:** Timelines vary by sector, completeness of file, and public holidays. Build buffers.

---

## Costs and capital: what to expect

- **Authorised capital & fees:** Government fees scale with authorised capital slabs.
- **Minimum foreign investment:** **NPR 20 million** (general), with **policy-level ICT exceptions** under automatic route.
- **Professional fees:** Legal, translation, audit, and secretarial support vary by complexity.
- **Ongoing:** Annual audit, tax filings, and license renewals.

**Tip for CFOs:** Model paid-up tranches aligned to milestones (fit-out, first hires, regulatory approvals) to optimise cash use and interest on idle capital.

---

## Taxes and payroll: essentials for foreign founders

- **Corporate income tax:** Standard rates apply by sector. Incentives exist for priority/remote industries in the **Industrial Enterprises Act** and annual Finance Acts.
- **Withholding tax:** On services, interest, royalties, and dividends, subject to domestic rules and any applicable treaties.
- **Indirect taxes:** **VAT** applies to most goods and many services.
- **Payroll:** Written contracts, **overtime rules**, leave, and benefits under the **Labor Act 2017**; employer contributions to the **Social Security Fund** follow the **Social Security Act/Rules** where applicable.

> Always confirm sector-specific rates and any treaty positions with a Nepal tax advisor before invoicing or repatriation.

---

## Repatriation and foreign exchange

- **Permitted remittances:** dividends, loan principal/interest, royalty/technical fees, lease rentals, and sale proceeds (on exit), subject to documentary compliance.
- **Pre-conditions:** tax clearance, board approvals, and **NRB** permission referencing the original FDI approval and share certificates.
- **Banking:** Use designated A-class banks, maintain proper **purpose codes**, and keep a reconciliation file (remittances, contracts, tax proofs).

---

## Governance, audit, and annual calendar

- Hold your **AGM** within the statutory period after financial year end.
- File **annual returns and audited financials** with OCR and IRD on time.
- Maintain **statutory registers**: members, directors, charges, and beneficial owners.
- Record **board resolutions** for key actions (capital calls, banking, contracts).
- Implement **risk policies**: related-party controls, procurement, data protection, KYC/AML where relevant.

---

## Common pitfalls (and how to avoid them)

1. **Mismatch between MOA/AOA and FDI approval**
   
     - Keep objects and activity codes consistent across OCR, DOI/IBN, and NRB.
2. **Treaty assumptions**
   
     - Confirm if a double-tax treaty exists and how it applies before paying royalties or services.
3. **Negative-list surprises**
   
     - Validate sector eligibility early. If restricted, explore a different activity or structure.
4. **Weak documentation for NRB**
   
     - Keep a **capital file**: approvals, SWIFT slips, bank credits, share allotments, tax receipts.
5. **Ignoring labor compliance**
   
     - Issue contracts, maintain attendance, and follow leave and termination rules.
6. **Delay in annual filings**
   
     - Put a compliance calendar in your first board meeting minutes.

---

## Table: Subsidiary vs Branch vs Liaison 

| Feature | Private Limited Subsidiary | Branch Office | Liaison/Rep Office |
| --- | --- | --- | --- |
| Legal status | Separate Nepal entity | Extension of foreign parent | No separate legal entity |
| Revenue in Nepal | **Yes** | **Yes** (approved scope) | **No** (non-commercial) |
| FDI approval | Required (DOI/IBN) | Required (as applicable) | Required (as applicable) |
| OCR filing | New company registration | Foreign company branch registration | Foreign company liaison registration |
| Taxable in Nepal | **Yes** | **Yes** | **No**, if no income |
| Profit repatriation | Dividends via NRB after tax | Branch profits via NRB after tax | Not applicable |
| Branding & contracts | Full local contracting power | Contracts in branch name | No contracts for fee-earning |
| Suitable for | Long-term operations | Project-based, regulated sectors | Market study, coordination |

> **Note:** Sector regulators may impose extra licenses regardless of form.

---

## Numbered setup plan (your first 90 days)

1. Select vehicle (subsidiary vs branch vs liaison).
2. Validate sector (negative-list and regulator).
3. Reserve name (OCR).
4. Draft MOA/AOA and board resolutions.
5. File incorporation (OCR).
6. Apply for FDI approval (DOI/IBN).
7. Secure NRB approval and open FDI bank account.
8. Remit capital and allot shares.
9. Obtain PAN/VAT and municipality license.
10. Hire first employees; set payroll and policies.
11. Sign first client and vendor contracts.
12. Prepare for first audit and compliance calendar.

---

## Bulleted best-practice checklist 

- Align objects across OCR, DOI/IBN, and NRB documents.
- Maintain bilingual seals and templates if you deal with local offices.
- Use purpose-built **PoAs** for filings and bank KYC.
- Pre-clear **royalty** and **technical fee** models to avoid withholding surprises.
- Keep scanned copies of all approvals and SWIFT receipts in a single drive.
- Book board meetings on a fixed annual calendar (AGM, audit, budgets).

---

## FAQ 

**1) What is the minimum capital to register a company in Nepal?**  
There’s no statutory minimum paid-up capital for a domestic private limited. For **foreign investment**, plan **NPR 20 million** per project, with certain **ICT** exceptions under the automatic route.

**2) How long does company registration take in Nepal?**  
With complete papers, **OCR** incorporation can be done within **one to two weeks**. Add **2–4 weeks** for FDI and **1–2 weeks** for **NRB**. Buffer for sector approvals.

**3) Can a foreigner own 100% of a Nepal company?**  
Yes, in most permissible sectors. Some activities are restricted or prohibited under the **Negative List** or sector laws.

**4) Do I need a local partner or director?**  
Not generally. Many foreign-owned subsidiaries have only foreign shareholders and directors, subject to KYC and sector rules.

**5) How do I repatriate profits from Nepal?**  
After paying taxes and filing returns, apply through your **A-class bank** with **NRB** permissions, dividend minutes, tax proofs, and share registers.

 

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