FAQ on Company Registration in Nepal by Nepali Citizens

FAQ on Company Registration in Nepal by Nepali Citizens

01. Is it compulsory to register a business in Nepal to operate legally?

Yes. To legally operate any business in Nepal, you must register it under the appropriate law.

 

You can choose among different business entities options such as a sole proprietorship, partnership, limited liability company, or local business registration.

 

02. What are the different types of business entities (business vehicles) available in Nepal for operation of business?

  Nepal recognizes the following main business forms:

 

  1. Sole Proprietorship Firm
  2. Partnership Firm
  3. Limited Liability Company (Private or Public)
  4. Local Business (registered at the ward office)

Types of business in Nepal

 

03. Which type of business entity is most recommended?

A Limited Liability Company is recommended because it provides limited liability, a distinct legal identity, and perpetual succession.

 

04. What are the prerequisites before registering a company in Nepal?

You need to confirm the following before registration:

 

  1. Company Name – Must be unique and approved by OCR .
  2. Registered Address – Official address for correspondence.
  3. Capital – Amount shareholders will invest.
  4. Business Objectives – Clearly defined, related business goals.

 

 

05. How should I choose a company name?

  • The name must consist of at least two words.

  • It must not be identical to an existing company.

  • Check domain name availability for website purposes.

  • Perform a trademark search at the Department of Industry (DOI) to avoid the conflicting name with trademark in days to come.

 

06. What is the minimum capital requirement for company registration?

  • Private Limited Company: No statutory minimum; typically NPR 100,000.

  • Public Limited Company: Minimum NPR 1,00,00,000.

 

07. What documents are required for company registration in Nepal?

  1. Application in the standard format

  2. Memorandum of Association (MOA)

  3. Articles of Association (AOA)

  4. Citizenship/Passport/PAN of shareholders (in case investor is individual)

  5. Corporate registration documents of investor (if investor is a company)

 

08. What is the process for registering a company in Nepal?

  • Step 1: Reserve company name at OCR (takes 3–5 working days)
  • Step 2:Submit all documents (MOA, AOA, etc.) to OCR
  • Step 3: OCR verifies submitted documents
  • Step 4: Pay registration fee and OCR issues Certificate of Incorporation
  • Step 5: Execute House Rent Agreement for office space
  • Step 6: Register for tax at the Inland Revenue Office (biometric required)
  • Step 7: Register at the local Ward Office

 

For detail registration process you can check the following article : https://lawbhandari.com/publication/company-registration-process-in-nepal

 

09. Do all companies need a license to operate after registration in Nepal?

No, not all companies require a separate license to operate after company registration. However, certain types of businesses in regulated sectors must obtain a license from the relevant government authority before commencing operations. The type of license and the issuing authority depend on the nature of the business which are mentioned on below table : 

S.N.BusinessLicense Authority
1Banking and Financial InstitutionsNepal Rastra Bank
2Insurance CompaniesInsurance Board
3Tourism and Trekking CompaniesDepartment of Tourism
4Hydropower CompanyDepartment of Electricity Development
5Pharmaceutical CompaniesDepartment of Drug Administration
6Seeds and Fertilizer Importing CompanyMinistry of Agriculture and Livestock Development
7Data Centers and Cloud Service CompanyDepartment of Information and Technology
8Business Related to TelecomNepal Telecom Authority

 

10. How long does the company registration process take?

Tentatively 10–15 working days.

 

11. What post-registration compliances are required?

After incorporation, companies must complete:

  1. Bank Account Opening

  2. Capital Injection by Shareholders

  3. Initial Compliance (within 3 months):

    • Register office address

    • Appoint auditor

    • Form board of directors

  4. Share Distribution and Shareholder Registry

  5. Annual Compliances:

    • Conduct AGM within 1 year of incorporation

    • Submit audited financial statements to OCR annually

 

12. What happens if post-registration compliances are not fulfilled?

Failure to comply with post-registration obligations (AGM, auditor appointment, etc.), it shall result in penalties and late fees by OCR.

 

13. Is there a need to renew a Limited Liability Company each year?

Unlike sole proprietorships and partnerships, Limited Liability Companies do not require renewal every year. However, annual reporting and AGM compliance are mandatory.

 

14. How can a company protect its brand name?

Registering a company name with OCR does not provide trademark protection. To secure exclusive rights, you must apply for trademark registration at the Department of Industry (DOI).

 

Check the detail article for trademark registration process in Nepal on the following link : Trademark Registration in Nepal

 

 

Date of Publication: October 29 , 2025 

 

Disclaimer: . This article published on website of the law firm 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 or 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

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