Insights

Private Limited Company Registration Cost in Nepal: All Fees Explained

Written by Vijay Shrestha | Oct 14, 2025 6:12:57 AM

You have already decided to expand into Nepal. You can see the opportunity, young talent, competitive salaries, and a stable, English-speaking workforce. You are ready to register your company and start operations.

But then the questions begin.

How much does it actually cost to register a company in Nepal? Are there any hidden government or compliance fees? What about foreign investment approval or tax registration?

You are not alone. Many foreign founders, mortgage brokers, and investors reach this stage with enthusiasm, only to feel uncertain when numbers start floating around. Some sources mention 10,000 rupees, others 100,000. The truth is, the cost of registering a private limited company in Nepal depends on far more than just the initial government filing fee.

This guide breaks everything down, transparently, clearly, and from experience, so you understand not just the registration fee, but the true cost of establishing and maintaining a company in Nepal as a foreign investor.

Why Understanding Registration Cost Matters for Foreign Companies

1. Predicting Total Investment with Confidence

When you know the full cost structure, you can plan capital allocation accurately and avoid mid-process delays caused by missing budget items such as translation, audit, or NRB verification.

2. Avoiding Regulatory Delays

Incomplete documentation or underfunded registration steps can trigger resubmission at the Office of the Company Registrar (OCR) or Department of Industry (DOI), extending your timeline by weeks.

3. Planning for Long-Term Compliance

In Nepal, post-registration filings, audits, and renewals are as important as initial incorporation. Factoring them in early saves you unnecessary compliance headaches later.

4. Enhancing Board Decision-Making

Knowing your setup costs also allows your board or global finance team to treat Nepal as a strategic growth hub, not a financial experiment.

Legal Framework Defining Company Registration Costs

Regulation Authority What It Covers
Companies Act 2006 Office of the Company Registrar Registration, annual filings, and share capital fees
FITTA 2019 Department of Industry or Investment Board Nepal Foreign investment approvals and equity remittance
NRB Directives Nepal Rastra Bank Foreign capital verification and repatriation documentation
Industrial Enterprise Act 2020 Ministry of Industry Investment incentives and industrial categorization
Income Tax Act 2002 Inland Revenue Department Tax registration, PAN, and VAT setup, and post-registration compliance

Types of Costs Involved in Registering a Private Limited Company in Nepal

Let us break down every major category of cost you will encounter from start to finish.

1. Government Registration Fees (OCR)

The Office of the Company Registrar charges fees based on your authorized capital amount.

Authorized Capital (NPR) Registration Fee (Approx.)
Up to 1 million NPR 9,500
1 to 10 million NPR 16,000
10 to 100 million NPR 30,000
100 million and above NPR 100,000 + variable government duty

Pro Tip: The authorized capital determines your registration bracket but not your immediate investment amount. Always select an amount slightly higher than paid-up capital to avoid future revisions.

2. Foreign Investment Approval Fees (DOI or IBN)

Before registering, foreign investors must obtain approval under FITTA 2019.

Investment Body Threshold Processing Fee
Department of Industry Below NPR 6 billion NPR 10,000
Investment Board Nepal Above NPR 6 billion NPR 25,000

This includes project assessment, documentation verification, and investment recording in the government FDI database.

3. NRB Compliance and Bank Charges

The Nepal Rastra Bank (NRB) verifies your foreign capital inflow before incorporation.

Item Estimated Cost
Bank Account Setup NPR 2,000 to 5,000
SWIFT Remittance Charge Varies by country (usually USD 30 to 50)
NRB Verification Fee NPR 3,000 to 5,000 (varies by bank)

The inward remittance must be recorded with the SWIFT copy and transaction confirmation before registration.

4. Legal Drafting and Notarization Costs

Professional drafting and notarization of Memorandum of Association (MOA) and Articles of Association (AOA) are mandatory.

Service Approx. Cost
Legal Drafting NPR 15,000 to 25,000
Notarization and Attestation NPR 5,000 to 10,000
Document Translation (if foreign) NPR 3,000 to 8,000 per document

Expert Insight: Ensure your foreign company documents are notarized both in your home country and re-authenticated in Nepal to avoid OCR rejections.

5. Tax Registration and PAN or VAT Setup

After incorporation, you must register your company with the Inland Revenue Department.

Type Cost
PAN Registration Free
VAT Registration Free (the government does not charge)
Accounting and Tax Setup NPR 10,000 to 20,000 (consultant fee)

Although registration itself is free, professional support ensures proper category selection and tax code setup from day one.

6. Labor and Social Security Fund (SSF) Registration

If you hire employees, you must register with the Social Security Fund and comply with Labor Act requirements.

Compliance Step Cost
SSF Registration Free
Employer Contribution 20 percent of gross salary
Employee Contribution 11 percent of gross salary
Documentation Employment contracts, attendance records, and payroll system

7. Office Setup and Administrative Costs

This is often the most underestimated part of company registration budgeting.

Expense Estimated Range
Office Lease or Business Address NPR 20,000 to 50,000 per month (depending on location)
Office Stamp and Stationery NPR 1,500
Company Seal NPR 2,000
Digital Signature for e-Filing NPR 5,000

Note: Foreign investors may use a registered local address service during setup before establishing a permanent office.

Hidden and Ongoing Costs You Must Not Ignore

  1. Annual Audit Fee: NPR 25,000 to 60,000 per year, depending on company size.

  2. Renewal Fee at OCR: NPR 3,000 annually.

  3. Tax Return Filing Cost: Around NPR 10,000 to 15,000 per year if handled by a professional firm.

  4. Compliance Management Software: NPR 5,000 per month for automated filings and HR records.

  5. Consultancy Support for FDI Reports: NPR 10,000 to 20,000 yearly.

Comparison: Cost Breakdown for Local vs. Foreign Investors

Category Local Company Foreign-Invested Company
Registration Fee (OCR) NPR 9,500 to 30,000 NPR 30,000 to 100,000
FDI Approval Not required NPR 10,000 to 25,000
NRB Compliance Not required NPR 5,000 to 10,000
Legal Drafting NPR 10,000 NPR 25,000
Professional Support NPR 15,000 NPR 30,000
Total Estimated Cost NPR 40,000 to 60,000 NPR 100,000 to 200,000

Emerging Cost Factors for 2025 and Beyond

Digital Incorporation and E-Verification Fees

Digital filing systems have introduced minimal verification charges by OCR and DOI for online submissions.

Environmental and Sustainability Disclosures

Green or ESG-oriented investors may pay for environmental impact documents required for certain industries.

Cross-Border Payment Compliance

Nepal Rastra Bank may require third-party verification for large remittances to prevent currency reporting discrepancies.

Professional Advisory Costs

Most global investors now hire legal, tax, and HR consultants for end-to-end compliance, ensuring accuracy and speed.

Real Example: Typical Cost to Register a Foreign-Invested IT Company in Nepal (2025)

Item Estimated Cost (NPR)
OCR Registration Fee 30,000
DOI FDI Approval 10,000
Legal Drafting and Notarization 25,000
NRB Verification and SWIFT Charge 8,000
PAN and VAT Setup 10,000
Office and Address Setup 35,000
SSF and HR Setup 5,000
Audit and Compliance Setup 20,000
Total Estimated Initial Cost 143,000 (Approx. USD 1,100)

This figure excludes ongoing rent, staff salaries, and operational expenses.

Post-Registration Cost Considerations

After incorporation, maintaining compliance is essential.

  1. Annual Audit and Financial Reporting
    Every company must file audited financial statements with OCR and IRD annually.

  2. Tax and VAT Filings
    VAT returns must be submitted monthly, while annual tax filings are due after each fiscal year.

  3. Renewal of Business License
    Renewal fees are due annually along with updated shareholder information.

  4. HR Compliance Reporting
    Maintain employee contracts, SSF contributions, and labor records digitally.

Insight: Companies using a managed compliance service such as DCV’s end-to-end corporate management plan save more than 30 percent on recurring administrative expenses.

Frequently Asked Questions

1. What is the minimum cost to register a private limited company in Nepal?
For a local company, the minimum registration cost starts around NPR 40,000. For a foreign investor, expect about NPR 100,000 to 200,000, including professional, legal, and FDI-related expenses.

2. Are there any hidden costs in the company registration process?
Yes, indirect costs such as notarization, document translation, NRB remittance proof, and audit setup often add to the total budget.

3. Do foreign investors need to pay taxes during registration?
No taxes are charged during registration, but you must register for PAN and VAT immediately after incorporation for ongoing tax compliance.

4. How much does it cost to renew a private limited company in Nepal?
The annual renewal fee at the Office of the Company Registrar is approximately NPR 3,000.

5. Can I reduce registration costs by using a professional consultant?
Yes. Using a consultant minimizes delays, reduces repeated filings, and ensures compliance, which can save both money and time in the long run.

Setting up a private limited company in Nepal is not just about paying a registration fee. It is about understanding the total cost of compliance and building a foundation that keeps your business legally strong, financially predictable, and operationally secure.

At Digital Consulting Ventures (DCV), we help foreign investors and companies navigate every financial and compliance step, from registration cost forecasting to FDI approval and post-registration management.

What You Get with DCV

  • Transparent cost breakdowns with no hidden fees

  • Complete document preparation and government coordination

  • NRB, OCR, and DOI filing handled by specialists

  • Post-registration accounting, HR, and compliance management

If you are serious about expanding into Nepal, partner with experts who understand both local law and international business expectations.

Ready to take the next step?
Book a consultation with DCV’s Corporate Compliance Team today and get a customized cost and compliance roadmap for your Nepal entry.