Timeline for Company Incorporation in Nepal: How Long Does It Take

Company incorporation Nepal is often perceived as slow or unpredictable by foreign investors.
In reality, timelines are quite structured if you understand the legal process and prepare correctly.

For most foreign companies, incorporation in Nepal takes 2 to 6 weeks, depending on ownership structure, approvals, and document readiness.
This guide explains the exact timeline, step by step, so you know what to expect and how to avoid delays.

Whether you are planning a private limited company, a wholly foreign-owned subsidiary, or an FDI-backed operation, this article gives you the most authoritative and up-to-date timeline available.

Quick Snapshot: How Long Does Company Incorporation in Nepal Take?

Before diving deeper, here is a high-level view.

• Local shareholder company: 7–14 working days

• Foreign-owned company (FDI): 3–6 weeks

• Branch or liaison office: 4–8 weeks

The difference lies mainly in foreign investment approvals, not the company registry itself.

What Determines the Timeline for Company Incorporation in Nepal?

The company incorporation Nepal timeline depends on five key factors.

1. Ownership Structure

Companies with foreign shareholders require approvals under the Foreign Investment and Technology Transfer Act (FITTA) 2019.
This adds additional steps compared to local companies.

2. Business Sector

Certain industries require sectoral approvals or fall under restricted or regulated categories.

Examples include:

• Financial services

• Hydropower

• Education

• Healthcare

• Media

3. Investment Size

Larger investments may trigger additional scrutiny by:

• Department of Industry (DOI)

• Nepal Rastra Bank (NRB)

4. Document Readiness

Delays usually happen due to:

• Inconsistent names

• Missing notarisation or apostille

• Poorly drafted constitutional documents

5. Professional Handling

Experienced advisors can run several steps in parallel, cutting weeks off the timeline.

Step-by-Step Timeline for Company Incorporation in Nepal

This section breaks down the actual timeline foreign companies experience, not just the legal theory.

Step 1: Company Name Reservation (1–2 Working Days)

The process begins with name approval at the Office of the Company Registrar (OCR).

Key points:

• Names must be unique

• Certain words require justification or approval

• English names are allowed

Timeline:
1 to 2 working days

Step 2: Document Preparation (3–5 Working Days)

This step happens mostly outside Nepal.

Documents typically include:

• Passport copies of shareholders and directors

• Board resolutions

• Memorandum of Association (MOA)

• Articles of Association (AOA)

• Power of Attorney

Foreign documents must usually be:

• Notarised

• Apostilled or consularised

Timeline:
3 to 5 working days
This can run parallel with name reservation.

Step 3: Foreign Investment Approval (7–15 Working Days)

This is the most time-sensitive stage for foreign companies.

Applications are submitted to:

• Department of Industry (DOI) or

• Investment Board Nepal (IBN) for large projects

Approval is issued under FITTA 2019.

Timeline:
7 to 15 working days
Simple service companies often get approval faster.

Step 4: Company Registration at OCR (2–3 Working Days)

Once FDI approval is granted, the company is formally incorporated.

OCR issues:

• Certificate of Incorporation

• Company Registration Number

Timeline:
2 to 3 working days

Step 5: Tax Registration and PAN/VAT (1–2 Working Days)

After incorporation, the company must register with the Inland Revenue Department (IRD).

• PAN is mandatory

• VAT is required if turnover exceeds NPR 5 million

Timeline:
1 to 2 working days

Step 6: Bank Account Opening and Capital Injection (5–10 Working Days)

Foreign shareholders must inject capital through:

• A Nepali commercial bank

• Approved foreign currency channels

This step also triggers NRB reporting.

Timeline:
5 to 10 working days

Step 7: Post-Incorporation Compliance (Ongoing)

These steps do not block incorporation but affect operations.

They include:

• Local municipality registration

• Social Security Fund (SSF) enrolment

• Industry-specific licenses

Company Incorporation Nepal Timeline Table (Original Insight)

This table reflects real-world timelines, not just statutory limits.

Common Delays in Company Incorporation Nepal (And How to Avoid Them)

Typical causes of delay

• Incorrect shareholder details

• Poorly drafted MOA or AOA

• Apostille issues from foreign jurisdictions

• Incomplete FDI applications

• Banking compliance questions

How professionals reduce timelines

• Pre-clear company names

• Use regulator-aligned document templates

• Run FDI approval and document prep in parallel

• Coordinate directly with OCR and DOI

Can Company Incorporation in Nepal Be Fast-Tracked?

There is no official fast-track lane, but practical acceleration is possible.

Incorporation can be completed faster if:

• Business falls under services or IT

• Shareholding is simple

• Capital is modest

• Documents are clean and consistent

With proper structuring, foreign companies sometimes incorporate within 20–25 days.

Legal Basis Supporting the Timeline

The process is governed by:

• Companies Act, 2006

• Foreign Investment and Technology Transfer Act, 2019

• Industrial Enterprises Act, 2020

• Nepal Rastra Bank Foreign Exchange Directives

• Inland Revenue Act, 2002

These laws clearly define approval windows and authority responsibilities.

Why Nepal’s Incorporation Timeline Is Shorter Than Many Think

Compared to other South Asian jurisdictions:

• Nepal has centralised digital filing

• OCR approvals are relatively fast

• No minimum paid-up capital for many sectors

• English documentation is accepted

The real bottleneck is lack of guidance, not bureaucracy.

FAQs: Company Incorporation Nepal Timeline

How long does company incorporation Nepal take for foreigners?

For foreign-owned companies, the process usually takes 3 to 6 weeks, depending on FDI approval speed and document readiness.

Is FDI approval mandatory for company incorporation Nepal?

Yes. Any foreign ownership requires approval under FITTA 2019 before company registration.

Can I start operations before incorporation is complete?

No. You must receive the Certificate of Incorporation and PAN before conducting business activities.

Does bank account opening delay incorporation?

It does not delay registration but affects capital injection and operational readiness.

Is the timeline different for branch offices?

Yes. Branch and liaison offices typically take 4 to 8 weeks due to additional approvals.

Final Thoughts: Plan Your Company Incorporation Nepal Timeline Strategically

Company incorporation Nepal is not slow when done correctly.
With the right structure and guidance, foreign companies can establish a legal presence within weeks.

Understanding the timeline helps you:

• Budget accurately

• Plan market entry

• Avoid compliance risks

• Start operations confidently

Call to Action

Planning to incorporate a company in Nepal?
Speak with a Nepal incorporation specialist to receive a personalised timeline, compliance checklist, and cost breakdown tailored to your business.