Online Registration Process for Foreign Companies in Nepal

Foreign company registration in Nepal has become significantly more streamlined with the government’s shift toward online approvals and digital filings. For global companies seeking market entry, cost-efficient talent, or South Asia expansion, Nepal offers a compliant, investor-friendly pathway when the process is done correctly.

This guide explains the online registration process for foreign companies in Nepal, from pre-investment structuring to digital approvals and post-registration compliance. It is written for decision-makers who want clarity, not legal jargon, and outcomes, not guesswork.

Why Foreign Companies Are Registering in Nepal

Nepal has quietly emerged as a strategic destination for foreign investors.

Key drivers of interest

• Competitive operating and labor costs

• English-speaking professional workforce

• Open FDI policy across most sectors

• Repatriation guarantees under investment law

• Digitalised approval systems via DOI and OCR

Foreign companies commonly enter Nepal to build delivery centers, regional offices, manufacturing units, or long-term subsidiaries.

What “Foreign Company Registration in Nepal” Actually Means

Foreign company registration in Nepal usually refers to one of three legally recognised entry routes.

Common registration structures

1. FDI-backed Private Limited Company
   The most popular and scalable option.

2. Branch Office
   Allowed for revenue-generating activities tied to the parent company.

3. Liaison Office
   Restricted to non-commercial, representative activities.

Each structure follows a different approval path, documentation standard, and compliance burden.

Legal Framework Governing Foreign Company Registration in Nepal

Foreign investment is regulated by several core statutes and policies.

Key laws and regulations

• Foreign Investment and Technology Transfer Act (FITTA) 2019

• Industrial Enterprises Act 2020

• Companies Act 2006

• Income Tax Act 2002

• Nepal Rastra Bank foreign exchange directives

These laws collectively define ownership thresholds, capital requirements, approval authorities, and repatriation rules.

Online Registration Process for Foreign Company Registration in Nepal

Overview of the digital process

While Nepal is not yet fully “one-click,” most approvals now run through online portals, supported by scanned filings and digital tracking.

The process is best understood in six structured phases.

Phase 1: Pre-Investment Structuring and Eligibility Check

Before any online filing, structure matters.

What is assessed first

• Sector eligibility under FDI policy

• Minimum investment threshold compliance

• Ownership and shareholding structure

• Capitalisation plan and funding timeline

• Tax and repatriation implications

Mistakes at this stage lead to rejections later.

Phase 2: Online FDI Approval Application (Department of Industry)

Portal authority

Department of Industry (DOI)

Documents uploaded online

• Parent company incorporation certificate

• Board resolution approving Nepal investment

• Passport and KYC of shareholders

• Project profile and business plan

• Proposed capital structure

Once submitted, the DOI reviews the application digitally and issues FDI approval if compliant.

Typical timeline

15–30 working days, depending on sector.

Phase 3: Online Company Registration (Office of Company Registrar)

After FDI approval, the entity is incorporated online.

OCR online filings include

• Memorandum of Association

• Articles of Association

• Shareholder and director details

• Registered office address in Nepal

Once approved, the company receives a Certificate of Incorporation.

Phase 4: Tax Registration and Digital PAN/VAT Enrollment

Immediately after incorporation, tax registration is mandatory.

Online registrations include

• Permanent Account Number (PAN)

• Value Added Tax (VAT), if applicable

This enables lawful invoicing, payroll, and banking.

Phase 5: Bank Account Opening and Capital Injection

Regulatory authority

Nepal Rastra Bank (NRB)

Key steps

• Open local bank account

• Register foreign currency inflow

• Inject approved capital amount

• Obtain NRB confirmation

Capital must enter Nepal through formal banking channels.

Phase 6: Statutory Activation and Post-Registration Filings

Registration is not the finish line.

Mandatory post-registration steps

• Social Security Fund enrollment

• Labour office registration

• Industry-specific licenses, if required

• Ongoing annual filings and audits

Online Registration Timeline at a Glance

Common Mistakes Foreign Companies Make Online

Many delays are avoidable.

Frequent issues

• Incorrect parent company documents

• Mismatch between business plan and sector policy

• Poor capital structuring

• Ignoring post-registration compliance

• Assuming “online” means no physical follow-up

A guided approach prevents rework.

Benefits of Registering a Foreign Company in Nepal Online

Strategic advantages

• Faster approvals than manual filings

• Transparent application tracking

• Reduced administrative friction

• Alignment with NRB and DOI systems

• Clear compliance audit trail

How Nepal Compares to Other South Asian Markets

Nepal balances cost efficiency with regulatory clarity.

When a Foreign Company Should Consider Alternatives

In some cases, direct registration is not ideal.

Consider alternatives if

• You want to test the market quickly

• You need immediate hiring without entity setup

• Capital commitment is not final

Employer of Record or project-based models may suit early entry.

Compliance Obligations After Foreign Company Registration in Nepal

Foreign-owned companies must maintain ongoing compliance.

Annual requirements

• Financial audit

• Tax filings and advance tax

• SSF contributions

• Company renewals

• FDI reporting

Non-compliance affects repatriation and future approvals.

Frequently Asked Questions (People Also Ask)

Is online foreign company registration in Nepal fully digital?

Most steps are online, but some banking and licensing stages still require physical coordination.

What is the minimum investment for foreign company registration in Nepal?

The general threshold is NPR 20 million, subject to sector-specific rules.

How long does foreign company registration in Nepal take?

End-to-end timelines usually range from 30 to 45 days.

Can profits be repatriated outside Nepal?

Yes. FITTA 2019 guarantees lawful repatriation through NRB channels.

Is 100 percent foreign ownership allowed in Nepal?

Yes, in most sectors, unless specifically restricted.

Conclusion

Foreign company registration in Nepal is no longer a paper-heavy, opaque process. With structured online approvals, clear investment laws, and growing institutional efficiency, Nepal offers a credible entry point for global businesses.

Success depends on correct structuring, compliant filings, and proactive post-registration management. When done right, Nepal becomes a scalable, cost-efficient base for long-term growth.

Call to Action

If you are planning foreign company registration in Nepal, speak with an advisor who manages the entire process, not just filings.

👉 Book a strategic consultation to assess your eligibility, timeline, and optimal entry structure.