Understanding the cost of company registration in Nepal is the first critical step for foreign companies planning market entry. Nepal has emerged as a cost-efficient destination for South Asia expansion, offering competitive setup costs, improving ease of doing business, and full foreign ownership in many sectors.
Yet, founders and CFOs often underestimate total expenses. Government fees are only one part of the picture. Legal structuring, foreign investment approvals, tax registration, and post-incorporation compliance can materially affect budgets.
This startup guide breaks down exact registration costs, hidden expenses, and realistic timelines, so you can plan confidently and avoid surprises.
Before diving into numbers, it helps to understand why Nepal attracts foreign founders.
Strategic access to India and China
Low operating and labor costs
Young, English-speaking workforce
100% foreign ownership allowed in most sectors
Government-backed foreign investment framework
For foreign investors, Nepal offers a rare combination of affordability and growth potential.
Company registration costs are determined by multiple laws and regulators:
Companies Act, 2006
Foreign Investment and Technology Transfer Act (FITTA), 2019
Income Tax Act, 2002
Industrial Enterprises Act, 2020
All companies are registered through the Office of the Company Registrar (OCR) in Nepal.
The cost of company registration in Nepal varies based on the legal structure you choose.
Separate legal entity
Up to 101 shareholders
Limited liability
Eligible for FDI
This is the preferred structure for startups and SMEs.
Extension of the foreign parent
No separate legal personality
Sector-specific approvals required
Non-commercial presence
Market research and coordination only
| Authorized Capital (NPR) | OCR Registration Fee (NPR) |
|---|---|
| Up to 100,000 | 1,000 |
| 100,001 – 500,000 | 4,500 |
| 500,001 – 2,500,000 | 9,500 |
| 2,500,001 – 10,000,000 | 16,000 |
| 10,000,001 – 100,000,000 | 19,000 |
Insight: Many foreign startups over-declare capital, increasing fees without operational benefit. Optimizing capital can reduce initial costs.
Beyond OCR fees, foreign companies must budget for:
PAN registration: NPR 0 (mandatory)
Company stamp: NPR 300–500
Ward office registration: NPR 1,000–2,000
Share certificate printing: NPR 500–1,000
These are small individually but unavoidable.
Foreigners must secure FDI approval before incorporation.
USD 50,000 minimum foreign investment (as per FITTA 2019)
Investment approval application
Industry registration
Bank account setup for capital inflow
Government filing fees are minimal, but professional support is often required.
While government fees are low, professional services make up the bulk of the cost of company registration in Nepal for foreign companies.
Legal structuring and advisory
FDI approval documentation
Memorandum and Articles drafting
OCR filings and follow-ups
Bank coordination
Tax and compliance setup
Average professional fees:
USD 1,200 – USD 3,000 depending on complexity.
| Cost Category | Estimated Cost (USD) |
|---|---|
| Government fees | 20 – 150 |
| Documentation & stamps | 20 – 40 |
| Professional services | 1,200 – 3,000 |
| FDI processing support | 500 – 1,500 |
| Total Estimated Cost | 1,700 – 4,500 |
Original insight: Nepal has one of the lowest company setup costs in Asia when measured against regulatory complexity.
A realistic timeline for foreign companies:
Name reservation: 1 day
FDI approval: 7–15 working days
Company registration: 1–2 days
PAN and local registration: 2–3 days
Total: 2–4 weeks on average.
Many founders ask why budgets overrun. Commonly overlooked costs include:
Annual compliance filings
Accounting and tax retainer fees
Local director or nominee services
Bank compliance documentation
Company renewal fees
These do not appear in basic cost guides but matter long-term.
Company registration is only the beginning.
Annual general meeting
Financial statements preparation
Tax filings and audits
Labor and social security compliance
Typical annual compliance cost:
USD 1,000 – USD 2,500 depending on scale.
| Country | Avg Setup Cost (USD) | Timeline |
|---|---|---|
| Nepal | 1,700 – 4,500 | 2–4 weeks |
| India | 2,500 – 6,000 | 3–6 weeks |
| Bangladesh | 3,000 – 7,000 | 4–8 weeks |
| Sri Lanka | 2,000 – 5,000 | 3–5 weeks |
Nepal consistently ranks among the most affordable jurisdictions.
Start with realistic authorized capital
Use a single-window professional advisor
Align FDI approval with business scope
Avoid re-filings caused by document errors
Smart planning can cut costs by 20–30%.
The minimum cost of company registration in Nepal for foreign companies typically starts around USD 1,700, including professional support.
Yes. Most sectors allow 100% foreign ownership under FITTA 2019.
Capital must be committed, but timing depends on FDI approval and banking procedures.
Foreign company registration usually takes 2–4 weeks end-to-end.
There are no license renewal fees, but annual compliance costs apply.
The cost of company registration in Nepal remains one of the lowest in South Asia. For foreign companies, Nepal offers a rare balance of affordability, regulatory clarity, and market potential.
The key is understanding total costs, not just government fees. With proper structuring and expert guidance, Nepal can be an efficient and scalable entry point into the region.
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