Timeline for Company Registration Process in Nepal: What to Expect

If you are a foreign investor or overseas founder, understanding the company registration process in Nepal timeline is critical before committing capital or signing contracts. Nepal offers strategic access to South Asia, a young workforce, and growing digital infrastructure. However, timelines depend on approvals from multiple regulators.

This guide explains what to expect, how long each stage takes, and where delays usually occur, so you can plan realistically and avoid costly mistakes.

Why the Company Registration Timeline in Nepal Matters for Foreign Companies

For foreign companies, time is not just administrative. It affects:

• Market entry schedules

• Hiring plans and payroll

• Lease agreements and vendor contracts

• Bank account opening and fund remittance

Nepal’s registration framework is transparent, but sequential. Missing one step can pause the entire process.

Overview of the Company Registration Process in Nepal (Foreign-Owned)

Before diving into timelines, it helps to understand the structure.

Foreign companies usually register under one of these models:

• Private Limited Company with foreign investment

• Branch Office

• Liaison (Representative) Office

This article focuses on the foreign-owned private limited company, the most common structure.

High-Level Timeline Snapshot

Typical duration:
30 to 60 working days, depending on sector, document readiness, and regulator responsiveness.

Step-by-Step Timeline for Company Registration Process in Nepal

Stage 1: Pre-Incorporation Planning (5–10 days)

This stage is often underestimated. It sets the pace for everything else.

Key activities include:

• Deciding the shareholding structure

• Defining business objectives under Nepal’s Industrial Classification

• Preparing constitutional documents

• Aligning investment amount with sector rules

Tip: Poorly drafted objectives are a leading cause of approval delays.

Stage 2: Name Reservation at OCR (1–3 working days)

The Office of the Company Registrar (OCR) checks name availability.

Timeline factors:

• Similar existing company names

• Restricted or regulated words

• Inconsistent objectives

Approval is usually quick if alternatives are pre-selected.

Stage 3: Foreign Investment Approval (DOI or IBN) (10–20 working days)

This is the most time-sensitive step.

Applications are submitted to:

• Department of Industry (DOI) for investments below NPR 6 billion

• Investment Board Nepal (IBN) for large or strategic investments

Documents reviewed include:

• Parent company incorporation proof

• Board resolution approving Nepal investment

• Passport copies of foreign shareholders

• Detailed business plan

Legal basis:
Foreign Investment and Technology Transfer Act, 2019 (FITTA 2019).

Stage 4: Company Incorporation at OCR (3–5 working days)

Once foreign investment approval is granted, incorporation becomes procedural.

OCR reviews:

• Memorandum of Association

• Articles of Association

• Shareholder details

• Registered office address

Upon approval, you receive:

• Certificate of Incorporation

• Company registration number

Stage 5: Tax Registration (PAN & VAT) (1–3 working days)

The Inland Revenue Department (IRD) issues:

• Permanent Account Number (PAN)

• VAT registration, if applicable

This step enables:

• Invoicing

• Payroll processing

• Statutory tax compliance

Stage 6: Bank Account Opening & Capital Inflow (5–10 working days)

Foreign capital must enter Nepal through a local commercial bank.

Banks perform:

• KYC and AML checks

• Source of funds verification

• Compliance with Nepal Rastra Bank (NRB) directives

Only after capital inflow can operations fully commence.

Stage 7: Post-Registration Compliance (Ongoing)

Registration is not the end.

Mandatory registrations include:

• Social Security Fund (SSF)

• Labour Office enrollment

• Local municipality registration

Timeline Summary Table (Original Insight)

Factors That Can Delay the Company Registration Process in Nepal

Common causes of delay include:

• Incomplete foreign documents

• Unclear business objectives

• Restricted sectors under FITTA

• Banking compliance queries

• Poor coordination between advisors

Most delays are avoidable with proper preparation.

How Foreign Companies Can Fast-Track the Process

A few strategic steps make a significant difference.

Numbered Best Practices

1. Prepare notarized and apostilled documents early

2. Align business objectives with DOI classifications

3. Choose banks experienced in foreign investment

4. Use a single advisor for legal, tax, and banking coordination

5. Avoid regulated words in company names

Compliance After Registration: What Foreign Investors Must Know

Foreign-owned companies must comply with:

• Labour Act, 2017

• Social Security Fund Act, 2018

• Income Tax Act, 2002

• Bonus Act, 1974

Non-compliance can trigger penalties or profit repatriation issues.

Comparing Nepal with Other South Asian Jurisdictions

Nepal remains competitive for long-term, compliance-driven investors.

Frequently Asked Questions (People Also Ask)

How long does the company registration process in Nepal take for foreigners?

Most foreign companies complete registration within 30 to 60 working days. Timelines depend on investment approval, document readiness, and banking compliance.

Can foreigners own 100% of a company in Nepal?

Yes. FITTA 2019 allows 100% foreign ownership in most permitted sectors, subject to approval from DOI or IBN.

Which authority approves foreign investment in Nepal?

The Department of Industry approves most investments. Large or strategic projects are reviewed by Investment Board Nepal.

Is physical presence required during registration?

No. Foreign investors can complete the company registration process in Nepal remotely using a local legal representative.

When can profits be repatriated from Nepal?

Profits can be repatriated after tax clearance and NRB approval, usually after the first financial year.

Conclusion

The company registration process in Nepal follows a clear but sequential timeline. With proper planning, most foreign companies can register within two months. The key is aligning legal, regulatory, and banking steps from day one.

Nepal rewards investors who respect process, compliance, and documentation.

Call to Action

If you are planning market entry and want a clear, risk-free registration timeline, speak with a Nepal-based specialist before you start.

Book a consultation to receive a personalized company registration roadmap for Nepal.