Company registration in Nepal is the first and most critical step for foreign companies planning to enter South Asia’s emerging markets. Nepal offers competitive labour costs, a growing digital workforce, strategic access to India and China, and strong legal protections for foreign investors.
Yet, the registration process can feel complex. Multiple authorities, sector-specific approvals, and foreign investment rules often confuse first-time entrants.
This guide simplifies everything. You will learn how to register a company in Nepal legally, efficiently, and compliantly, whether you are a startup founder, SME, or multinational executive.
Nepal is no longer just a tourism economy. It is becoming a regional hub for IT, outsourcing, professional services, energy, education, and manufacturing.
Key advantages include:
Cost-efficient skilled workforce
English-speaking professionals
Favourable foreign investment laws
Full profit and capital repatriation rights
Government-supported FDI framework
According to Nepal Rastra Bank and the Department of Industry, foreign direct investment approvals have steadily increased year-on-year, especially in IT and services.
Company registration in Nepal refers to the legal incorporation of a business entity under the Companies Act, 2006, through the Office of the Company Registrar (OCR).
Once registered, the company becomes a separate legal entity with rights to:
Enter contracts
Hire employees
Open bank accounts
Pay taxes
Repatriate profits (for foreign investors)
Choosing the right structure is a strategic decision. The most common options include:
The preferred structure for foreign companies.
Features:
Separate legal identity
Limited liability
Shareholders can be foreign nationals
Suitable for FDI, subsidiaries, and joint ventures
Best for companies wanting a direct presence without incorporation.
Features:
Extension of parent company
Cannot generate independent profits
Requires annual renewals
Used for market research and coordination.
Features:
No commercial activities
No revenue generation
Strict regulatory scope
Often used by NGOs and international organisations.
Foreign company registration is governed by multiple laws:
Companies Act, 2006
Foreign Investment and Technology Transfer Act (FITTA), 2019
Industrial Enterprises Act, 2020
Income Tax Act, 2002
Labour Act, 2017
These laws collectively ensure investor protection, transparency, and repatriation guarantees.
You must first reserve a unique company name through the Office of the Company Registrar.
Tips:
Avoid restricted or sensitive terms
Include business objectives aligned with your sector
You will prepare:
Memorandum of Association (MOA)
Articles of Association (AOA)
These define your capital structure, governance, and activities.
Once submitted, OCR reviews and issues:
Certificate of Incorporation
Company Registration Number
Foreign shareholders must obtain approval from:
Department of Industry (DOI) or
Investment Board Nepal (IBN), depending on project size
FDI capital must be remitted through a Nepal Rastra Bank-approved bank.
Register with the Inland Revenue Department for tax compliance.
Certain sectors require additional permits.
| Stage | Estimated Time |
|---|---|
| Name reservation | 1–2 days |
| OCR incorporation | 3–5 working days |
| FDI approval | 2–4 weeks |
| Bank account & capital | 1–2 weeks |
| Tax registration | 2–3 days |
Total average timeline: 4–6 weeks
Registration costs vary based on authorised capital.
NPR 1 million capital: approx. NPR 9,500
NPR 10 million capital: approx. NPR 19,000
Additional costs include:
Legal drafting
Translation and notarisation
FDI approval processing
Accounting setup
Foreign companies must maintain ongoing compliance.
These include:
Annual financial audits
Tax filings and advance tax payments
Labour law compliance
Social Security Fund contributions
Annual OCR filings
Non-compliance may result in penalties or licence suspension.
Choosing the wrong entity structure
Underestimating compliance costs
Incomplete FDI documentation
Improper capital repatriation planning
Operating before approvals
Avoiding these mistakes saves months of delay.
| Aspect | Company Registration | Employer of Record |
|---|---|---|
| Legal entity | Required | Not required |
| Setup time | 4–6 weeks | 1–2 weeks |
| Compliance burden | High | Managed by provider |
| Best for | Long-term operations | Fast market entry |
Many foreign companies start with EOR before full registration.
Key tax rates:
Corporate tax: 25% (standard)
Dividend tax: 5%
VAT: 13%
Nepal has double taxation avoidance agreements (DTAAs) with several countries.
Foreign investors are legally entitled to repatriate:
Dividends
Sale proceeds of shares
Loan repayments
Technology fees
Approvals are processed through Nepal Rastra Bank under FITTA 2019.
While online portals exist, foreign company registration in Nepal is not fully self-service.
Professional advisors help with:
Regulatory navigation
FDI structuring
Banking coordination
Compliance management
This reduces legal risk and accelerates market entry.
Company registration in Nepal is a strategic gateway to South Asia. With the right structure, legal clarity, and compliance planning, foreign companies can scale confidently and profitably.
The key is doing it right the first time.
If you are planning to register a company in Nepal, our experts can handle the entire process end-to-end.
Book a free consultation to:
Assess the best entry structure
Understand FDI eligibility
Get a clear timeline and cost roadmap
Yes. Foreign nationals and companies can register a private limited company under FITTA 2019, subject to FDI approval and sector eligibility.
Typically 4–6 weeks, including incorporation, FDI approval, and tax registration.
There is no universal minimum, but sector-specific thresholds may apply under DOI guidelines.
Yes. Nepal allows full repatriation of profits and capital through Nepal Rastra Bank approval.
Partial online filing exists, but foreign companies still require manual approvals and documentation.