Online Company Registration Process in Nepal Explained

Many foreign companies and entrepreneurs are drawn to Nepal’s emerging economy, its strategic trade position between India and China, its youthful workforce, and its growing service and technology sectors.

Yet one of the first challenges they face is understanding how to register a company in Nepal online. While the Office of the Company Registrar (OCR) has digitized much of the process, the online system still requires careful alignment with Nepalese legal, tax, and foreign investment frameworks.

In this article, we’ll break down every step of the online company registration process in Nepal, explain what documents you’ll need, clarify FITTA and NRB approvals for foreign investors, and outline your post-registration compliance responsibilities, from tax registration to labour and social security filings.

By the end, you’ll have a clear roadmap, and know how Digital Consulting Ventures (DCV) can help your company get registered quickly, compliantly, and confidently.

Understanding the Legal Framework Behind Company Registration

Before clicking through the OCR portal, you need to understand which laws govern your registration and compliance process.

Key Legal Acts and Authorities

1. Companies Act, 2006 (and Rules 2064):
   This act governs the formation, operation, and closure of all companies in Nepal. It defines company types (private, public, non-profit) and outlines director duties, capital structure, and annual compliance.

2. Foreign Investment and Technology Transfer Act (FITTA) 2019:
   Regulates all forms of foreign investment in Nepal, including equity, joint ventures, technology transfer, and profit repatriation.

3. Nepal Rastra Bank (NRB) Directives:
   The NRB ensures that all foreign capital inflows are legal and that repatriation of profits follows proper channels.

4. Industrial Enterprises Act, 2020:
   Classifies industries by size and sector, granting incentives for manufacturing, energy, IT, and tourism sectors.

5. Income Tax Act, 2002 & VAT Act, 1996:
   Define the registration requirements for PAN, VAT, and the applicable corporate tax rate in Nepal.

6. Labor Act, 2017 & Social Security Act, 2018:
   Cover employee contracts, working conditions, and mandatory registration with the Social Security Fund (SSF).

These frameworks collectively ensure that every company registered online through OCR is not just legally incorporated, but fully compliant with Nepal’s corporate and fiscal ecosystem.

The Office of the Company Registrar (OCR): Nepal’s Digital Gateway

The Office of the Company Registrar (OCR) under the Ministry of Industry, Commerce, and Supplies (MoICS) is the single authority for registering companies in Nepal.

In recent years, OCR has introduced a digital registration system via its online portal (application.ocr.gov.np), allowing local and foreign applicants to:

• Reserve a company name

• Submit electronic documents (MOA, AOA, IDs, Power of Attorney)

• Track the registration status in real time

• Receive the digital Certificate of Incorporation

The OCR’s digitalization initiative aims to improve transparency, reduce manual bureaucracy, and make it easier for both local entrepreneurs and foreign investors to start a company in Nepal.

Step-by-Step: Online Company Registration Process in Nepal

Let’s walk through the full process from start to finish, whether you’re a local entrepreneur or a foreign investor entering Nepal for the first time.

Step 1: Creating an OCR Portal Account

Visit the OCR’s official portal and click “Create User Account.”
You’ll provide details like your full name, nationality, contact number, and identification (citizenship for locals or passport for foreigners).

After verification, OCR sends login credentials to your email. This account allows you to manage every step of the registration process digitally, including document uploads, payment tracking, and receiving your incorporation certificate.

Step 2: Reserving Your Company Name

The next step is name reservation.

Your proposed name must be unique and aligned with your business objectives under the Companies Act 2006. OCR checks for duplicates or restricted words and then issues approval within 2–3 working days.

Tips for Approval:

• Avoid generic names similar to existing companies.

• Ensure the name matches the nature of your business.

• Provide an English and Nepali version if you plan to register bilingual documents.

Step 3: Preparing Documents for Online Submission

After the name is approved, prepare all mandatory documents in soft copy (PDF or scanned image).

Core Documents Include:

• Memorandum of Association (MOA) — defines your objectives, capital, and shareholding.

• Articles of Association (AOA) — details governance, director powers, and management rules.

• Director and Shareholder Identification — citizenship, passport, or company incorporation certificate for foreign investors.

• Power of Attorney — if registration is being handled by a representative.

• Registered Office Proof — lease agreement or utility bill.

For foreign investors, additional documentation is required:

• Parent company’s Certificate of Incorporation

• Board resolution approving investment in Nepal

• Investment proposal and capital inflow plan

• FITTA and NRB approval (if foreign capital is involved)

Step 4: Filling Out the Online Application Form

Once documents are ready, log in to your OCR account and select “New Company Registration.”

You’ll input:

• Company name (approved from Step 2)

• Share capital and structure

• Registered office address

• Director and shareholder information

• Business objectives (must align with FITTA and Industrial Enterprises Act)

Double-check every entry before submission. Errors at this stage often delay registration by several days.

Step 5: Paying the Registration Fee

The OCR system automatically calculates the registration fee based on your authorised capital.

For example:

Payment can be made directly online or through designated banks.

Once payment is confirmed, your application enters the review queue for officer verification.

Step 6: Review and Verification by OCR

An OCR officer will examine:

• Accuracy of information

• Legitimacy of documents

• Compliance with the Companies Act and Rules 2064

• Alignment of objectives with FITTA 2019 (for foreign ownership)

If minor corrections are required, the portal will notify you to make edits. Once approved, OCR issues your Certificate of Incorporation digitally, typically within 5–7 working days.

Step 7: Post-Registration Compliance

Your company is now legally registered, but that’s just the beginning.

You must complete the following regulatory registrations before starting operations:

Benefits of the Online Registration Process

Online registration has transformed how businesses start in Nepal.

Efficiency and Accessibility

Applicants can submit all documents from anywhere in the world. Foreign investors no longer need to travel to Kathmandu for every step.

Transparency and Traceability

You can monitor your application status and receive updates directly through your OCR dashboard.

Legitimacy and Compliance

Digital registration ensures your company meets the Companies Act’s recordkeeping and public database requirements, an advantage when opening bank accounts or signing local contracts.

Integration with FDI Approvals

The OCR system is now aligned with FITTA 2019, allowing DOI and NRB coordination for smoother FDI recognition.

Common Pitfalls Foreign Investors Should Avoid

Many applications are delayed or rejected due to avoidable mistakes.

• Submitting incomplete documentation (especially missing NRB/FITTA approvals).

• Using generic business objectives not aligned with MOA/AOA templates.

• Uploading unclear or low-resolution document scans.

• Forgetting to register for PAN or VAT post-incorporation.

• Ignoring labour and social security compliance once hiring begins.

Professional guidance ensures that your company avoids these errors from day one.

Taxation and Accounting Obligations After Registration

Once registered, your company becomes a taxable entity under the Income Tax Act 2002.

• Corporate tax rate is typically 25 % (reduced rates apply to priority sectors).

• Annual audit is mandatory under the Companies Act 2006.

• VAT registration becomes mandatory once annual turnover crosses NPR 5 million.

• Dividend tax and TDS obligations must be filed quarterly under the Tax Administration Act.

Outsourcing compliance to a licensed firm like DCV ensures accounting accuracy and audit readiness.

Labor Compliance and Social Security Fund Enrolment

Under the Labor Act 2017 and Social Security Act 2018, all registered companies employing staff in Nepal must:

• Issue written contracts to every employee.

• Register both employer and employees with the Social Security Fund (SSF).

• Contribute 31 % of monthly salary (20 % employer + 11 % employee share).

This compliance safeguards your company against penalties and demonstrates long-term credibility.

Digital Signatures and Future of e-Governance in Nepal

The government is gradually integrating digital signatures and online payment gateways into all business filings. The OCR’s digitization aligns with the Nepal Government’s e-Governance Master Plan, encouraging paperless filings, digital archiving, and e-auditing.

For foreign investors, this digital push means lower administrative friction and higher transparency, a strong signal that Nepal is open to modern, compliant foreign investment.

Frequently Asked Questions

1. How long does online company registration take in Nepal?
Typically 7 – 10 business days for local companies and 15 – 25 days for foreign-owned ones due to FDI approvals.

2. Is physical presence required during registration?
No. Everything can be done online via the OCR portal, although some notarized documents may need courier submission.

3. Can a foreigner fully own a company registered online?
Yes, in many sectors under FITTA 2019. Some industries, however, have ownership caps or require joint ventures.

4. What are the main post-registration compliance steps?
PAN, VAT, and SSF registration; accounting setup; annual audit; and regulatory filings under the Companies Act 2006.

5. What if my company name gets rejected by OCR?
You can resubmit a new name immediately. Make sure it’s distinct and relevant to your business activity.

Conclusion: Register Smart, Operate Confidently

The online company registration process in Nepal has made starting a business easier than ever, but success still depends on compliance precision. From OCR filings to FDI approvals and ongoing audit obligations, each step requires expert handling.

At Digital Consulting Ventures (DCV), our lawyers and chartered accountants guide foreign investors through every stage, ensuring your company is incorporated smoothly, legally compliant, and ready for operations in Nepal’s fast-growing market.

Book your free consultation today and let DCV help you launch your company in Nepal with confidence and clarity.