Online Company Registration Process in Nepal: Digital Guide

The company registration process in Nepal has evolved rapidly in recent years. Foreign companies can now complete most steps online through government portals, reducing paperwork and delays. However, “online” does not mean “simple.” Nepal’s system blends digital filing with strict legal compliance under multiple laws.

This digital guide to the company registration process in Nepal is written specifically for foreign investors, founders and international businesses. It explains what can truly be done online, what still requires physical presence, and how to register compliantly without costly mistakes.

If you are planning to expand into Nepal in 2025 and beyond, this guide gives you a clear, authoritative roadmap.

What “Online Company Registration” Really Means in Nepal

Many foreign founders assume Nepal offers a fully end-to-end digital incorporation system. The reality is more nuanced.

Online vs Physical Components

Nepal uses a hybrid registration model:

• Online name reservation and application filing

• Digital submission of constitutional documents

• Physical verification and approvals by regulators

• Mandatory post-registration compliance filings

Understanding this distinction is critical for timeline and cost planning.

Foreign companies must comply with several overlapping laws. Online filing does not reduce legal obligations.

Key Laws and Regulations

• Companies Act, 2006

• Foreign Investment and Technology Transfer Act (FITTA), 2019

• Industrial Enterprises Act, 2020

• Income Tax Act, 2002

• Labour Act, 2017

• Social Security Fund Act, 2018

The Office of Company Registrar (OCR) administers incorporation, while Department of Industry (DOI) and Nepal Rastra Bank (NRB) regulate foreign investment and capital flows.

Types of Companies Foreigners Can Register Online

Foreign investors must first select the correct legal structure.

Common Options for Foreign Companies

• Private Limited Company (most common)

• Public Limited Company (rare for new entrants)

• Branch Office

• Liaison Office

For most SMEs and startups, a foreign-owned private limited company is the optimal structure.

Step-by-Step Online Company Registration Process in Nepal

This section provides the most searched and most misunderstood topic: how the company registration process in Nepal actually works online.

Step 1: Name Reservation via OCR Portal

The process starts with online name approval.

Requirements

• Proposed company name

• Nature of business

• Shareholding details

Names are checked against existing companies and restricted words.

Timeline: 1–3 working days

Step 2: Online Preparation of Incorporation Documents

Foreign companies must prepare:

• Memorandum of Association (MOA)

• Articles of Association (AOA)

• Passport copies of shareholders and directors

• Board resolution from parent company (if applicable)

All documents must align with Nepalese company law.

Step 3: Online Submission to Office of Company Registrar

Documents are uploaded through the OCR online system.

This includes:

• Company details

• Capital structure

• Director information

• Registered office address in Nepal

Errors at this stage are the most common cause of delays.

Step 4: FITTA Approval for Foreign Investment

This step is not fully online but starts digitally.

Foreign companies must obtain:

• Foreign investment approval under FITTA 2019

• Clearance from Department of Industry

Sectors such as consulting, IT, outsourcing and manufacturing are commonly approved.

Step 5: Company Registration Certificate Issuance

Once OCR and DOI approvals align, the Certificate of Incorporation is issued.

This legally creates the company.

Step 6: Post-Registration Online Compliance

Registration is not the end.

Mandatory post-registration steps include:

• PAN registration with Inland Revenue Department

• VAT registration if applicable

• Bank account opening

• NRB capital injection approval

• SSF and labour compliance setup

Numbered Overview: Online Company Registration Flow

1. Reserve company name online

2. Draft MOA and AOA

3. Submit incorporation documents digitally

4. Obtain foreign investment approval

5. Receive company registration certificate

6. Complete tax, banking and labour registrations

Timeline for Online Company Registration in Nepal

Foreign companies should plan realistically.

Typical Timeline

• Name approval: 1–3 days

• OCR filing review: 3–7 days

• FITTA approval: 2–4 weeks

• Post-registration setup: 1–2 weeks

Total expected timeline: 3–6 weeks

Cost Breakdown: Online Company Registration in Nepal

Below is a practical cost comparison foreign founders rarely see.

Common Mistakes Foreign Companies Make

Avoiding these errors saves months.

Frequent Pitfalls

• Assuming 100 percent online registration

• Using generic MOA and AOA templates

• Choosing prohibited or restricted sectors

• Incorrect capital structuring

• Ignoring labour and tax compliance

Online Company Registration Process in Nepal for Specific Sectors

IT and Software Companies

Approved quickly. Low regulatory friction.

Outsourcing and EOR Businesses

Require clarity on employment and payroll compliance.

Manufacturing

Additional environmental and industrial approvals required.

Consulting and Professional Services

Must clearly define scope under FITTA.

Compliance Obligations After Registration

Foreign companies must maintain ongoing compliance.

Key Obligations

• Annual return filing with OCR

• Tax returns and withholding compliance

• Labour contracts and SSF contributions

• Audit and financial reporting

Non-compliance can result in fines, blacklisting or deregistration.

Why Expert Support Matters in Online Registration

While portals are digital, decisions are discretionary.

A local expert helps you:

• Structure capital correctly

• Draft legally compliant documents

• Navigate regulator expectations

• Reduce approval risk

For foreign companies, DIY registration is high risk.

Conclusion: Is Online Company Registration in Nepal Worth It?

Yes, but only with the right guidance.

The company registration process in Nepal is faster and more transparent than before. However, it remains legally complex for foreign companies. A digital portal does not remove regulatory scrutiny.

With the right structure, Nepal offers:

• Competitive operating costs

• Skilled workforce

• Favorable foreign investment laws

Call to Action

Planning to register a company in Nepal?

Speak with a Nepal-based corporate advisor who specializes in foreign company registration, compliance and post-incorporation support. A short consultation can save weeks of delay and thousands in rework.

Frequently Asked Questions (People Also Ask)

Is company registration in Nepal fully online?

No. Initial filing is online, but foreign investment approvals and banking steps still require physical verification and regulator interaction.

How long does online company registration in Nepal take?

For foreign companies, the full process typically takes three to six weeks depending on sector and approvals.

Can a foreigner own 100 percent of a Nepal company?

Yes. FITTA 2019 allows 100 percent foreign ownership in approved sectors.

What is the minimum capital requirement?

It varies by sector. Many service companies start from USD 20,000 equivalent, subject to approval.

Do I need a local director in Nepal?

No local director is mandatory, but a registered local address and compliance officer are required.