Table of content
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Construction Company Registration Process in Nepal
01. Introduction
This article outlines the registration process for a construction company in Nepal and provides the detailed procedure for obtaining the necessary construction license.
02. Governing Law
The major law governing the registration of the construction company and obtaining construction license are as mentioned:
| SN | Act | Scope |
|---|---|---|
| 1 | Act | Scope |
| 2 | Company Act 2063 | Incorporation and regulation of Company |
| 3 | Construction Business Act, 1999 | Regulation of License |
| 4 | Construction Business Regulations, 2000 | Detailed requirements for obtaining the construction Company License |
03. Process of registration of Construction Company in Nepal
The process for registration of a construction company along with obtaining a construction license are is outlined as below:
- Step 1: Incorporate the company with the Office of the Company Registrar (OCR)
- Step 2: Register the business with the respective local government authority.
- Step 3: Complete tax registration with the Inland Revenue Office (IRO).
- Step 4: Register the company with the Department of Industry (DOI).
- Step 5: Prepare all necessary supporting documents and apply for the Construction License
- Step 6: Obtain the relevant operating license from the local government or Ministry of Urban Development.
Please note: D-Class licenses are provided by local government whereas A, B and C license are provided by the Nepal Government through the recommendation of Committee formed under the Section 15 of Construction Business Act,2055 of Nepal.
04. Timeline for registration of Construction Company
The timeline for the company registration would take around 10-15 days and further obtaining of a license would vary from type of class of license which generally takes 4-8 weeks.
05. Categorization of Construction License in Nepal
The construction license are categorized into 4 types based on their capacity. The running capital of different class of license are:
| S.No. | Class | Working Capital | Capacity |
|---|---|---|---|
| 1 | Class “A” | More than 10 Million | Construction project with more than 20 Million |
| 2 | Class “B” | More than 5 Million | Construction project from 6 Million to 20 Million |
| 3 | Class “C” | More than 1 Million | Construction project from 2 Million to 10 Million |
| 4 | Class “D” | More than 1 Hundred Thousand | Construction project up to 3 Million |
06.
The Construction Rules outline separate qualifications for construction licenses, illustrated in the table below.
Class “A” Construction License
| S.No. | Area | Requirement |
|---|---|---|
| 1 | Financial Capacity | Minimum running capital of NPR 1,00,00,000 (One Million). |
| 2 | Work Experience |
|
| 3 | Human Resources | Must employ full-time:
|
| 4 | Machinery & Equipment | Must own at least:
Optional Equipment (At least 4 items required):
|
Class “B” Construction License
| S.No. | Area | Requirement |
|---|---|---|
| 1 | Financial Capacity | Minimum running capital of NPR 50,00,000 (5 million). |
| 2 | Work Experience |
|
| 3 | Human Resources | Must employ at least:
|
| 4 | Machinery & Equipment | Must own at least:
Optional Equipment (Any 2 items required):
|
Class “C” Construction License
| S.No. | Area | Requirement |
|---|---|---|
| 1 | Financial Capacity | Minimum running capital of NPR 10,00,000 (1 million). |
| 2 | Work Experience |
|
| 3 | Human Resources | Must employ full-time at least:
|
| 4 | Machinery & Equipment | Must own at least:
Optional Equipment (At least 1 required):
|
Class “D” Construction License
| S.No. | Area | Requirement |
|---|---|---|
| 1 | Financial Capacity | Minimum running capital of NPR 1,00,000 (1 hundred thousand). |
| 2 | Work Experience | Not Required |
| 3 | Human Resources | Must employ full-time:
|
| 4 | Machinery & Equipment | Must own at least:
|
08. Key points related to Machinery
The following documents are to be submitted and complied for applying for all category of construction license.
-
Ownership Certificate
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Insurance of equipment
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Certification by mechanical engineer (graduate and NEA member) confirming equipment is in good condition
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Equipment must not be sold or disposed of for at least 2 years from the date of registration.
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Machineries and equipment should not be more than 15 years old.
09. Foreign Participation in Nepal’s Construction Sector
The foreign direct investment in the Construction company is allowed in full capacity. If any foreigner company wants to operate the through international competitive bidding, they can obtain temporary permits when partnering with local contractors on domestic bids for projects valued over NPR 60 million.
Date of Publication: 18 August 2025
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