Business setup & regulatory

Getting established in Nepal, without the guesswork.

Incorporation, foreign investment approval, registrations and the filings that follow. We handle the process end to end, and tell you the realistic timeline before you start — not after.

Company Incorporation

Getting the entity right at the start is cheaper than restructuring it later.

  • Private and public limited company registration
  • Not-for-profit and section-based entities
  • Branch and liaison office registration
  • MoA and AoA drafting
  • Shareholding and capital structure setup
  • PAN and VAT registration
  • Sector-specific licences and permits

Foreign Direct Investment

The full approval path for capital entering Nepal — and profits leaving it.

  • FDI approval via the Department of Industry or IBN
  • Automatic route and approval route advisory
  • Minimum investment threshold and sector eligibility checks
  • Nepal Rastra Bank approval and share registration
  • Profit and dividend repatriation
  • Joint-venture and technology-transfer agreements
  • BIPPA treaty considerations
  • Work permits and visas for foreign nationals

Ongoing Regulatory Compliance

The filings that keep the entity in good standing, handled on schedule.

  • Annual returns to the Office of the Company Registrar
  • Amendments to capital, objectives and shareholding
  • Director, shareholder and registered-office changes
  • Social Security Fund registration and filings
  • Industry registration renewals
  • Compliance reviews and penalty resolution
  • Deregistration and closure

Bringing foreign investment into Nepal

Most investors are surprised by the sequence, not the paperwork. This is the order it actually runs in.

  1. 01

    Eligibility & structure

    Confirm the sector is open to foreign investment, check the minimum threshold, and settle the entity and shareholding structure.

  2. 02

    Investment approval

    Prepare and file the FDI application with the Department of Industry or the Investment Board, depending on the size of the investment.

  3. 03

    Incorporation & registration

    Register the company with the OCR, obtain PAN and VAT registration, and complete industry registration.

  4. 04

    Bringing capital in

    Obtain Nepal Rastra Bank approval, remit the investment through banking channels, and record the share issue.

  5. 05

    Operating & repatriating

    Maintain ongoing filings, and when the time comes, obtain approval to repatriate dividends or capital.

Timelines depend on the sector, the completeness of your documents and the regulator's current workload. We give you a realistic estimate at the first meeting, and we will tell you if your sector is restricted before you spend anything.

Nepal tax rates at a glance

The figures businesses ask us for most often, in one place.

Corporate income tax

  • General companies25%
  • Banks, financial institutions and insurance30%
  • Telecom and internet service providers30%
  • Tobacco, alcohol and related products30%
  • Special industries (manufacturing)20%
  • Cooperatives (registered, rural)0%

VAT, TDS and contributions

Value Added Tax (VAT)
13%
VAT registration threshold — goods
NPR 5,000,000
VAT registration threshold — services
NPR 3,000,000
Dividend distribution tax
5%
TDS — service fee to a resident
1.5%
TDS — contract or agreement payment
1.5%
TDS — rent (to a natural person)
10%
TDS — interest
5% / 15%
Social Security Fund — employer
20%
Social Security Fund — employee
11%

Finance Act 2082/83 (2025/26). Verify before relying on any figure. Rates change with each Finance Act and vary by industry, entity type and exemption. This is a summary, not advice on your situation.

Once you are set up, the harder questions start.

Registration is the easy part. Knowing whether the business is actually profitable, where cash is trapped, and what your reporting should look like — that is the work we are built for.

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