Insights

Role of the Office of the Company Registrar in Nepal’s Incorporation Process

Written by Vijay Shrestha | Dec 19, 2025 9:53:37 AM

Company incorporation Nepal always begins and ends with one authority: the Office of the Company Registrar.
For foreign companies, understanding this office is critical. It controls name approval, legal registration, compliance filings, and public records. Without OCR approval, a company simply does not exist in Nepal.

This guide explains the OCR’s role clearly and practically. It is written for foreign founders, directors, and investors who want certainty, speed, and compliance when entering Nepal.

What Is the Office of the Company Registrar (OCR) in Nepal?

The Office of the Company Registrar (OCR) is the statutory authority responsible for incorporating and regulating companies in Nepal.

It operates under the Ministry of Industry, Commerce and Supplies and derives its powers from the Companies Act, 2006.

Core mandate of the OCR

The OCR is legally responsible for:

  • Registering companies in Nepal

  • Maintaining the public register of companies

  • Approving company names

  • Issuing certificates of incorporation

  • Recording changes in directors, shareholders, and capital

  • Enforcing filing and disclosure obligations

For company incorporation Nepal, OCR is the first gatekeeper.

Why the OCR Matters for Foreign Companies

Foreign companies often underestimate the OCR’s influence. This creates delays, rejections, and compliance risks.

The OCR ensures that every incorporated company:

  • Has a lawful purpose under Nepali law

  • Meets minimum capital requirements

  • Uses a compliant company name

  • Submits correct constitutional documents

  • Discloses ownership transparently

If OCR standards are not met, incorporation is refused.

Legal Authority of the OCR Under Nepali Law

The OCR’s authority is primarily governed by:

  • Companies Act, 2006 (2063)

  • Companies Regulation, 2009

  • Directives issued by the Ministry of Industry

Key legal powers

Under the Companies Act, the OCR can:

  1. Approve or reject incorporation applications

  2. Demand clarifications or amendments

  3. Suspend registration for non-compliance

  4. Strike off dormant companies

  5. Impose late-filing penalties

This makes OCR compliance a legal necessity, not a formality.

Step-by-Step: OCR’s Role in Company Incorporation Nepal

Step 1: Company name reservation

Every company incorporation Nepal starts with name approval.

The OCR verifies that the proposed name:

  • Is unique

  • Is not misleading

  • Does not conflict with trademarks or public interest

  • Matches the proposed business activity

Name approval is usually valid for 35 days.

Step 2: Review of constitutional documents

The OCR reviews:

  • Memorandum of Association (MOA)

  • Articles of Association (AOA)

These documents define:

  • Company objectives

  • Share capital structure

  • Governance rules

  • Director powers

Any inconsistency with the Companies Act leads to rejection.

Step 3: Verification of shareholders and directors

The OCR checks:

  • Identity documents

  • Shareholding percentages

  • Director consent letters

  • Registered office address

For foreign nationals, notarisation and apostille may be required.

Step 4: Capital declaration and filing fees

The OCR verifies declared capital and calculates government fees based on capital slabs.

Incorrect capital declarations are a common cause of delay.

Step 5: Issuance of Certificate of Incorporation

Once satisfied, the OCR issues the Certificate of Incorporation.

Only after this step does the company legally exist in Nepal.

Online OCR Portal: Digital Incorporation in Nepal

Nepal has significantly digitised company incorporation Nepal through the OCR online portal.

What can be done online?

  • Name reservation

  • Incorporation filing

  • Document uploads

  • Fee payments

  • Post-incorporation filings

This has reduced timelines but increased scrutiny. Errors are now flagged faster.

Typical Timelines Controlled by the OCR

Stage Average timeline
Name reservation 1–3 working days
Document review 2–5 working days
Clarifications (if any) 2–7 working days
Certificate issuance 1 working day

Total OCR-controlled timeline: 5–10 working days
Delays usually result from document errors, not OCR inefficiency.

Common Reasons OCR Rejects Incorporation Applications

Foreign companies should watch for these issues:

  • Vague or overly broad company objectives

  • Capital structure not matching objectives

  • Non-standard MOA or AOA clauses

  • Incomplete director disclosures

  • Incorrect address formats

Avoiding these errors saves weeks.

OCR vs Other Authorities: Who Does What?

Foreign companies often confuse OCR with other regulators.

Authority Primary role
Office of the Company Registrar Company incorporation and records
Department of Industry Foreign investment approval
Nepal Rastra Bank Capital repatriation and banking
Inland Revenue Department Tax registration

OCR incorporation is mandatory before dealing with any other authority.

Post-Incorporation Filings with the OCR

OCR involvement does not end after incorporation.

Companies must file:

  • Annual returns

  • Financial statements

  • Director or shareholder changes

  • Capital increases

  • Address changes

Late filings attract penalties under the Companies Act.

How OCR Ensures Transparency and Investor Protection

The OCR maintains a public company registry.

This registry allows:

  • Due diligence by investors

  • Credibility checks by banks

  • Transparency in ownership

For foreign companies, this increases trust with Nepali partners.

OCR Compliance Checklist for Foreign Companies

Before filing, ensure:

  • All documents match passport details

  • Capital aligns with business scope

  • MOA objectives are specific and lawful

  • AOA reflects Nepali governance norms

  • Translations are certified if required

Preparation is the key to smooth company incorporation Nepal.

Practical Insight: Why Professional Structuring Matters

While the OCR allows self-filing, foreign companies benefit from expert support.

Professionals help:

  • Draft OCR-compliant documents

  • Anticipate registrar objections

  • Coordinate with DOI and NRB

  • Reduce incorporation risk

This is especially important for regulated sectors.

Frequently Asked Questions (People Also Ask)

What is the role of the Office of the Company Registrar in Nepal?

The OCR registers companies, approves names, issues incorporation certificates, and maintains company records under the Companies Act, 2006.

Can foreigners directly deal with the OCR in Nepal?

Yes. Foreigners can apply online, but documents often require notarisation and local compliance expertise.

How long does OCR take for company incorporation in Nepal?

Typically 5–10 working days, assuming documents are correct and no clarifications are requested.

Is OCR approval enough to start business in Nepal?

No. Foreign companies also need foreign investment approval, tax registration, and sector-specific licenses.

Does OCR handle foreign investment approvals?

No. OCR only incorporates companies. Foreign investment approval is handled by the Department of Industry.

Conclusion

Company incorporation Nepal revolves around one authority: the Office of the Company Registrar.
Understanding its powers, expectations, and processes is essential for foreign companies seeking a compliant and efficient market entry.

With proper preparation and OCR-aligned documentation, incorporation in Nepal can be straightforward, predictable, and fast.

Call to Action

Planning company incorporation Nepal for your foreign business?
Speak with our Nepal incorporation specialists to handle OCR filings, approvals, and compliance end-to-end.
👉 Book a free incorporation consultation today.