Insights

What’s Included in the Company Registration Fee in Nepal

Written by Vijay Shrestha | Dec 23, 2025 9:32:39 AM

 

 

 

The cost of company registration in Nepal is one of the first questions foreign companies ask when exploring market entry.
And rightly so.

At first glance, Nepal looks affordable. Government fees appear modest. Online registration exists. Timelines seem short.

But the true cost goes beyond the headline number.

Company registration fees in Nepal include statutory government charges, documentation expenses, legal compliance steps, and post-registration obligations. Missing even one item can delay approvals or create compliance risk later.

This guide breaks down exactly what’s included in the cost of company registration in Nepal, with a foreign investor’s perspective. No fluff. No surprises. Just clarity.

What “company registration fee” really means in Nepal

When people talk about company registration costs, they often mix several different expenses.

In Nepal, the company registration fee is not a single payment. It is a bundle of costs spread across multiple authorities.

At a high level, it includes:

  • Company incorporation with the Office of the Company Registrar

  • Government stamp duties and filings

  • Tax registration with the Inland Revenue Department

  • Sector-specific approvals (if applicable)

  • Foreign investment approvals for overseas shareholders

Understanding each component helps you budget correctly.

Breakdown of the cost of company registration in Nepal (foreign company view)

1. Office of the Company Registrar (OCR) fees

The Office of the Company Registrar is where every company in Nepal is legally incorporated.

What’s included in the OCR fee:

  • Name reservation and approval

  • Company incorporation application review

  • Registration certificate issuance

  • Digital record creation

How fees are calculated

OCR fees are based on authorised capital, not paid-up capital.

Typical ranges:

  • Low capital companies pay minimal government fees

  • Higher capital structures pay incrementally higher fees

This tiered structure keeps Nepal accessible for startups and SMEs.

2. Government stamp duty and documentation charges

Stamp duty is mandatory for legally validating company documents.

Included in this cost:

  • Memorandum of Association stamping

  • Articles of Association stamping

  • Shareholder resolutions

  • Power of attorney (if foreign directors are involved)

These charges are relatively small but unavoidable.

3. PAN and VAT registration costs

After incorporation, your company must register with the Inland Revenue Department.

PAN (Permanent Account Number)
Mandatory for all companies. Required for tax filings, payroll, and banking.

VAT registration
Required only if your turnover exceeds the statutory threshold or if you operate in VAT-applicable sectors.

Costs include:

  • Application filing

  • Compliance documentation preparation

  • Verification process

Government fees are minimal, but preparation accuracy matters.

4. Foreign investment approval fees (for overseas shareholders)

If even one shareholder is non-Nepali, your registration cost structure changes.

Foreign companies must obtain approval under Nepal’s foreign investment framework.

This step includes:

  • Foreign investment application submission

  • Project profile and financial projections

  • Shareholding and capital structure review

  • Approval issuance

This is often the largest cost component for foreign companies due to advisory and compliance requirements.

5. Industry-specific licenses and approvals

Some sectors require additional approvals before operations begin.

Examples include:

  • IT and software exports

  • Financial services

  • Education and training

  • Tourism and hospitality

Each license adds to the total cost of company registration in Nepal.

What is not included in basic company registration fees

Many foreign investors underestimate costs because certain items are excluded from basic registration packages.

These are not usually included unless specified:

  • Office lease and registration

  • Bank account opening support

  • Employment contracts and HR setup

  • Social security registration

  • Ongoing tax filings

  • Annual compliance renewals

Knowing this upfront prevents budget overruns.

One-time vs ongoing costs: an important distinction

One-time registration costs

These occur only once during setup.

  • OCR incorporation fees

  • Stamp duties

  • Foreign investment approval

  • Initial licenses

Ongoing compliance costs

These recur annually or monthly.

  • Tax filings

  • Audit fees

  • Company renewals

  • Labour and social security compliance

Foreign companies should budget for both categories.

Typical cost components explained in plain English

Here’s a simplified view of what your registration fee usually covers.

Included components:

  • Legal incorporation

  • Government filings

  • Statutory certificates

  • Tax identity creation

Excluded components:

  • Advisory strategy

  • Regulatory structuring

  • Post-registration compliance

  • Operational setup

Understanding this distinction helps compare service providers fairly.

Comparison table: what’s included at different levels

Cost Category Government Only Basic Service Full-Service (Recommended)
OCR registration
Stamp duty
PAN registration
Foreign investment approval
Legal documentation Limited
Compliance roadmap
Risk mitigation

Insight:
Foreign companies almost always benefit from full-service support due to regulatory complexity.

Why foreign companies often miscalculate the cost of company registration in Nepal

Common reasons include:

  1. Assuming government fees are the total cost

  2. Ignoring foreign investment approval requirements

  3. Overlooking post-registration compliance

  4. Choosing the wrong company structure

  5. Underestimating documentation complexity

Each mistake increases long-term costs.

Company structure and its impact on registration cost

Your chosen structure directly affects fees and approvals.

Private limited company

  • Most common for foreign investors

  • Moderate registration cost

  • Scalable and compliant

Branch or liaison office

  • Higher regulatory scrutiny

  • Limited permitted activities

  • Different cost structure

Partnership or sole proprietorship

  • Rarely suitable for foreign ownership

  • Limited legal protection

Choosing correctly reduces both cost and risk.

Hidden costs foreign companies should plan for

Even with transparent pricing, some costs appear later.

Watch out for:

  • Document notarisation abroad

  • Translation fees

  • Bank compliance requirements

  • Capital repatriation structuring

  • Regulatory updates

Planning early avoids friction.

How to optimise the cost of company registration in Nepal

You can reduce costs legally by:

  • Selecting appropriate authorised capital

  • Choosing the right entity type

  • Preparing documents correctly the first time

  • Using experienced advisors

  • Aligning business activities with permitted sectors

Cheap setups often become expensive later.

EEAT: why accuracy and compliance matter more than low cost

Nepal’s regulatory environment is clear but procedural.

Authorities prioritise:

  • Transparent ownership

  • Legitimate capital sources

  • Compliance with labour and tax laws

  • Long-term operational intent

Cutting corners during registration increases compliance risk later.

Frequently Asked Questions (People Also Ask)

What is included in the cost of company registration in Nepal?

It includes government incorporation fees, stamp duties, company certificates, and tax registration. For foreign companies, it also includes foreign investment approval. Operational and compliance costs are usually excluded.

Is the cost of company registration in Nepal different for foreigners?

Yes. Foreign shareholders require additional approvals and documentation, increasing the overall cost compared to local companies.

Are government fees the main expense?

Government fees are usually the smallest part. Advisory, compliance, and approval processes often form the largest portion for foreign companies.

Can company registration be done online in Nepal?

Yes. The Office of the Company Registrar allows online filing. However, foreign investment approvals and documentation still require offline coordination.

How long does company registration take in Nepal?

Local companies may complete registration within weeks. Foreign-owned companies typically take longer due to approval processes.

Final thoughts: understanding the true cost of company registration in Nepal

The cost of company registration in Nepal is not just a number.
It is a combination of legal compliance, regulatory approvals, and long-term operational readiness.

Foreign companies that budget accurately from day one avoid delays, penalties, and restructuring costs later.

If you plan carefully, Nepal remains one of South Asia’s most cost-effective expansion destinations.

Ready to register your company in Nepal?

If you’re exploring market entry, foreign investment approval, or compliant company registration:

Speak with a Nepal market entry specialist before you commit.
A short consultation can save months of delay and unnecessary expense.