Choosing between a private vs public company in Nepal is one of the most strategic decisions a foreign business will make. The structure you select shapes ownership, compliance, capital requirements, and long-term scalability. For overseas investors, Nepal offers a regulated but welcoming environment, backed by clear legislation and improving ease-of-doing-business practices.
This guide walks you through the entire company registration process in Nepal, from structure selection to post-incorporation compliance, with a sharp focus on what foreign companies actually need to know.
Before diving into registration, it is critical to understand the two primary corporate forms available under Nepalese law.
A private company in Nepal is the most common entry route for foreign investors.
Key characteristics:
Private companies are governed by the Companies Act 2006 and are ideal for:
A public company is designed for large-scale capital mobilization and public participation.
Key characteristics:
Public companies are typically chosen by:
| Criteria | Private Company | Public Company |
|---|---|---|
| Minimum shareholders | 1 | 7 |
| Maximum shareholders | 101 | Unlimited |
| Public share issue | Not allowed | Allowed |
| Compliance burden | Moderate | High |
| Ideal for foreign entry | Yes | Rare |
| Registration timeline | Shorter | Longer |
Original insight:
Over 90% of foreign-owned entities incorporated in Nepal opt for the private company structure due to speed, flexibility, and lower regulatory friction.
This section explains the company registration process in Nepal from start to finish, tailored for foreign companies.
Foreign investors must first determine:
Certain sectors require approval under foreign investment laws, especially for service-based or regulated industries.
Relevant framework:
The proposed company name must be unique and compliant with Nepalese standards.
Authority involved:
Key checks:
Two core documents are required:
These define:
Foreign investors must ensure alignment with:
Foreign shareholding requires approval from:
Documents reviewed include:
Once approved, the OCR issues:
At this point, the entity legally exists in Nepal.
After incorporation, companies must register with:
These steps activate the company for lawful operations.
Public companies face materially higher governance costs.
Nepal does not impose a fixed minimum capital for most private companies, but foreign-owned entities typically commit sufficient capital to justify operations.
Public companies often require substantial capitalization to meet regulatory expectations.
Private companies remain significantly more cost-efficient.
Why Nepal continues to attract foreign entities:
Expert guidance at entry prevents long-term friction.
When comparing private vs public company in Nepal, the private company structure remains the most practical, efficient, and scalable choice for foreign companies. It balances regulatory compliance with operational flexibility while enabling full foreign ownership in permitted sectors.
Understanding the company registration process in Nepal from start to finish empowers foreign investors to enter the market confidently, compliantly, and strategically.
Yes. Private companies offer faster setup, lower compliance, and greater control, making them ideal for foreign market entry.
Yes, in permitted sectors, full foreign ownership is allowed under Nepalese law.
Private company registration typically takes 2–4 weeks, depending on approvals.
No. Size alone does not mandate a public company unless public fundraising is planned.
Yes. Conversion is allowed with regulatory approval and compliance upgrades.