Timeline for Company Incorporation in Nepal: What to Expect

Foreign companies increasingly view Nepal as an attractive destination for incorporation due to its strategic location, favorable regulatory environment, and cost advantages. Understanding the timeline involved in company incorporation in Nepal ensures efficient planning and smooth operations. This guide outlines the comprehensive timeline, backed by official data and optimized for SEO, tailored specifically for foreign businesses.

Step 1: Name Reservation (1-3 Days)

The incorporation process begins with reserving a unique company name through Nepal’s Office of the Company Registrar (OCR). Typically, approval is granted within 1-3 working days, assuming the proposed name is distinct and compliant with local naming regulations.

Step 2: Preparation of Incorporation Documents (2-5 Days)

After name approval, essential documents must be prepared:

• Memorandum of Association (MoA)

• Articles of Association (AoA)

• Company registration application

• Identification documents and proofs for directors/shareholders

This step typically requires 2-5 working days, depending on the availability of documentation and professional support.

Step 3: Submission and Approval of Documents (7-10 Days)

All incorporation documents must be submitted online to the OCR. The approval process generally takes around 7-10 working days. This timeline may vary slightly depending on the complexity of the company structure and OCR workload.

Step 4: Tax Registration (2-4 Days)

Upon successful incorporation, the next critical step is registering the company with the Inland Revenue Department (IRD) for tax purposes. This process typically takes about 2-4 working days.

Step 5: Industry-Specific Licenses (5-15 Days)

Depending on the industry, additional licenses or permits may be necessary:

• Manufacturing licenses: 7-15 days

• Trading licenses: 5-10 days

• Service sector licenses: 5-12 days

Ensuring timely application submission accelerates the overall incorporation process.

Step 6: Bank Account Opening (3-7 Days)

Opening a local corporate bank account in Nepal usually takes between 3-7 working days. It requires company registration documents, proof of tax registration, and identification of authorized signatories.

Step 7: Registration for Social Security Fund (2-5 Days)

Foreign companies employing staff must register with Nepal’s Social Security Fund, typically completed within 2-5 working days post-company setup.

Step 8: Operational Setup (Variable, Typically 5-10 Days)

Setting up office operations, including infrastructure and hiring, typically takes an additional 5-10 days. Virtual office solutions can significantly reduce this timeline.

Summary of Total Timeline

Overall, foreign companies can expect the entire incorporation process in Nepal—from initial name reservation to operational readiness—to take approximately 4-6 weeks, assuming smooth processing and timely submissions.

Conclusion

Understanding the detailed timeline for company incorporation in Nepal enables foreign businesses to effectively plan and strategically enter the Nepali market. The efficient, clear processes and favorable business climate make Nepal increasingly popular for foreign incorporation.