Table of content
-

There are different forms of business through which a business can be operated in Nepal. These include sole proprietorship firms, partnership firms, limited liability companies, and local businesses (registered with the local government, i.e., ward office). Among these business vehicles, limited liability companies are the most common form of business vehicle registered in Nepal.
This article explains the detailed procedure for registering a limited liability company in Nepal and the support you can get from Bhandari Law, a leading law firm in Nepal with best company registration service.
Companies Act, 2006 (2063) is the law governing company registration in Nepal .
The office of Company Registrar ("OCR") is the governing authority for the company registration process in Nepal .
Company Act of Nepal has classified companies into the following categories:

The company registration process in Nepal is mentioned below:

Figure: Steps Explaining the Company Registration Process in Nepal
It will require 7 to 10 days for the company registration process in Nepal .
The following documents are required for the company registration process in Nepal .
| S.N. | Documents |
|---|---|
| 1 | Application for registration in the standard format |
| 2 | Memorandum of Association and Article of Association of Nepalese Entity |
| 3 | Shareholder agreement, if any |
| 4 | Citizenship Certificate/Passport of investor in case of an individual |
| 5 | Copy of certificate of registration and other registration documents (memorandum of association, articles of association) of corporate entity in case a corporate entity wants to invest in the company |
| 6 | Resolution of the corporate entity for incorporating the entity in case a corporate entity wants to invest in the company |
| 7 | Copy of prior approval of the Department of Industry ("DOI") in case of investment through a foreign investor |
The differences between the public and private companies are as mentioned:
| S.N. | Subject | Public Company | Private Company |
|---|---|---|---|
| 1 | Number of Shareholders | Minimum 7 and maximum any number of shares | Minimum 1 and maximum up to 101 |
| 2 | Number of Director | Minimum 3 to maximum 11 | As provided by the Articles of Association |
| 3 | Requirement of Independent Director | At least 1 director in case of directors not exceeding 7 At least 2 directors in case of directors exceeding 7 | No requirement of Independent Director |
| 4 | Transfer of share | No consensus is required among shareholders for the transfer of share | Consensus between shareholders is required for the transfer of share |
| 5 | Invitation to Public | Can invite the public to subscribe to shares and debentures | Cannot issue such an invitation |
| 6 | Name of Company | Name of the company ends with Ltd. | Name of the company ends with Pvt. Ltd. |
| 7 | Company Secretary | Public Company must appoint a Company Secretary | Not compulsory to appoint the Company Secretary |
| 8 | Approval while starting a business | Need to take approval from OCR while starting a business | No approval is required |
| 9 | Minimum Paid-up Capital | The minimum paid-up capital of the company should be ten million Nepalese rupees and should be maintained. | Not specified by law. In practice, the minimum amount should be NPR 1,00,000. |
| 10 | Undertaking type of business | Banking transactions, financial transactions, insurance businesses, stock exchange businesses, pension funds, or mutual fund businesses are allowed to be undertaken by public companies only. | No compulsion requirement on undertaking type of business |
The government fee that is required to be paid for registration of a private company at the Office of Company Registrar is as mentioned:
| S.N. | Amount of Authorized Capital (in NRs.) | Registration Fee (in NRs.) |
|---|---|---|
| 1 | 5,00,001 to 25,00,000 | 9,500 |
| 2 | 25,00,001 to 1,00,00,000 | 16,000 |
| 3 | 1,00,00,001 to 2,00,00,000 | 19,000 |
| 4 | 2,00,00,001 to 3,00,00,000 | 22,000 |
| 5 | 3,00,00,001 to 4,00,00,000 | 25,000 |
| 6 | 4,00,00,001 to 5,00,00,000 | 28,000 |
| 7 | 5,00,00,001 to 6,00,00,000 | 31,000 |
| 8 | 6,00,00,001 to 7,00,00,000 | 34,000 |
| 9 | 7,00,00,001 to 8,00,00,000 | 37,000 |
| 10 | 8,00,00,001 to 9,00,00,000 | 40,000 |
| 11 | 9,00,00,001 to 10,00,00,000 | 43,000 |
| 12 | 10,00,00,000 | 30 Per Lakh |
| S.N. | Amount of Authorized Capital (in NRs.) | Registration Fee (in NRs.) |
|---|---|---|
| 1 | Up to 1,00,00,000 | 15,000 |
| 2 | 1,00,00,001 to 10,00,00,000 | 40,000 |
| 3 | 10,00,00,001 to 20,00,00,000 | 70,000 |
| 4 | 20,00,00,001 to 30,00,00,000 | 1,00,000 |
| 5 | 30,00,00,001 to 40,00,00,000 | 1,30,000 |
| 6 | 40,00,00,001 to 50,00,00,000 | 1,60,000 |
| 7 | Above 50,00,00,000 | 3000 Per Lakh |
Except for the registration fee at OCR, there are few additional fees that need to be paid for registration of a company in Nepal, as mentioned:
| S.N. | Particulars | Government Fee |
|---|---|---|
| 1 | Guarantee amount to be deposited at DOI (in case of investment in the company through a foreign investor) | NPR 20,000 (Approx. USD 155) |
| 2 | Business Registration at Ward Office | NPR 5,000 to 15,000 per year (Approx. USD 38 to 115) |
| 3 | House Rent Tax | 10% of the house rent amount per month (Please note house rent rate tax depends on each local level and is subject to change every fiscal year. As a matter of practice, the local government takes 4 to 6 months advance house rent tax during the business registration.) |
Important 2026 Update: While the tiered fee structure below remains the statutory standard, the Nepal government frequently introduces waivers or simplified 0.1% calculations through the annual Finance Act. Always verify the current month's "Gazette" notification before filing.
Following are the post-registration compliances that a company should do after registration of a company in Nepal:
There are some natures of business that need additional approval from the concerned department prescribed by the law even after the incorporation of the company before their operation.
| S.N. | Nature of Business | Institution to grant License/Approval |
|---|---|---|
| 1 | Colleges | Affiliated University |
| 2 | Insurance Company | Insurance Board |
| 3 | Bank and Financial Institution | Nepal Rastra Bank |
| 4 | Hydro Power | Electricity Development Board |
| 5 | Travels and Trek | Ministry of Tourism, Culture, and Civil Aviation |
| 6 | Food Industries | Department of Food Technology and Quality Control |
| 7 | Business related to telecommunication | Nepal Telecommunication Authority |
Date of Publication: 18 August 2023
Related Article Link:
Please click the articles published on our law firm's website, which are related to the above article topic:
FDI (Foreign Direct Investment) Approval Process in Nepal
Branch Office Registration Process in Nepal
Liaison Office Registration Process In Nepal
Registration of Company Not Distributing Profits in Nepal
Disclaimer: This article on Company Registration Process in Nepal is published on our website is just for information purpose only. It shall not be taken as the legal advice, advertisement, personal communication, solicitation or inducement. Bhandari Law and Partners is one of the leading Full-service legal consultancy in Nepal and any of the team members of the firm shall not be liable for the consequence arising of the information provided. As the factual situation may be different on your case, thereof if you need further legal advice on the subject matter, please Contact Us.
Related Professionals:
Frequently Asked Question
For quick legal assistance:
You can directly call to our legal expert: +977-9808811027
Even can call or drop a text through What’s app , Viber, Telegram and We Chat at the same number.
Also can do email on : info@lawbhandari.com
contact us
Phone :,
,Connect with our professional lawyers in Nepal :
Follow Our Law Firm on Social Media :