Company Registration Cost in Nepal

Table of Contents

1. Why Company Registration Matters

2. Government Registration Costs — The Core Fees

3. Typical Ancillary Costs and Hidden Expenses

4. Real-Life Example of Costs

5. Cost for Different Business Types

6. Professional Support: Is It Worth It?

7. FAQs

8. Tips to Reduce Costs

9. Conclusion

1. Introduction

Starting a company in Nepal is exciting, but knowing the costs involved is crucial before you begin. From tech startups in Kathmandu to cafes in Pokhara, understanding registration fees and related expenses helps you plan effectively. This guide breaks down all the relevant fees you must know in 2025.

2. Why Company Registration Matters

Before we explore costs, let’s underline why registration is crucial:

• Legal Identity: Registered companies can enter into contracts, open business bank accounts, and hire staff.

• Tax & Compliance: You become eligible (and accountable) for tax registration (PAN/VAT) and statutory obligations.

• Credibility: Clients, partners, and financial institutions take a registered company seriously.

3. Government Registration Costs — The Core Fees

A. OCR Fees (Office of Company Registrar)

The main cost when registering a company in Nepal depends on the authorized capital of the company. This is a government fee paid to the Office of Company Registrar (OCR). 

Authorized Capital (NPR)	OCR Registration Fee (Approx)
Up to 100,000	1,000
100,001 – 500,000	4,500
500,001 – 2,500,000	9,500
2,500,001 – 10,000,000	16,000
Above 10,000,000	Extra fee per slab

Source: companynp.com

Public Limited Company Fees

Starting from NPR 15,000 and increasing with capital. (Canga Associates)

4. Typical Ancillary Costs and Hidden Expenses

While OCR fees are the main cost, several other mandatory and optional expenses affect the total budget.

A. Name Reservation

• Fee to reserve your company name before registration.

• Usually minimal, sometimes included in OCR fees.

B. Legal Document Drafting

• Memorandum of Association (MOA) and Articles of Association (AOA) must be drafted.

• Fees for legal drafting: NPR 5,000–20,000 depending on complexity.

• Notary fees: NPR 500–1,000 per document.

C. PAN & VAT Registration

• PAN (Permanent Account Number) is mandatory for all companies.

• VAT registration is required if turnover exceeds the threshold (~NPR 5 million per year).

D. Ward Business License

• Every company must obtain a local municipal business license.

• Cost: NPR 5,000–15,000 annually depending on municipality.

E. Stamp Duty & Miscellaneous

• Stamp duty on legal documents, company seal making, and bank charges.

• Minor individually (~NPR 500–3,000) but can add up.

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5. Real-Life Example of Costs

Let’s say Rahul wants to register a private limited IT company with an authorized capital of NPR 1,000,000:

Expense	Cost (NPR)
OCR Registration	9,500
Notary & Document Drafting	5,000
Ward License	7,500
PAN Registration	0–500
Legal Support / Professional Fees	20,000
Total Estimated Cost	~42,000–50,000

This example illustrates that government fees are only part of the total cost of company registration.

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6. Cost for Different Business Types

Business Type	OCR Fee (Approx)	Additional Costs	Total Estimated Cost
Private Limited	1,000 – 16,000	20,000 – 30,000	25,000 – 50,000
Public Limited	15,000+	30,000 – 50,000	45,000 – 80,000
Partnership / Sole Proprietor	500 – 2,000	5,000 – 10,000	5,500 – 12,000

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7. Professional Support: Is It Worth It?

• Avoid paperwork errors, delays, and rejections.

• Ensure compliance with PAN, VAT, and municipal requirements.

• Advisory for capital structuring and governance.

Example: A firm like Axcel Law Associates can handle everything from OCR submission to legal drafting, saving both time and money.

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8. FAQs

Q1: What is the minimum cost to register a company in Nepal?

• OCR fees start at NPR 1,000, but total practical setup cost is usually > NPR 20,000.

Q2: Do I need VAT registration immediately?

• Only if turnover exceeds NPR 5 million; PAN registration is mandatory immediately.

Q3: Can I register a company online?

• Yes, through the OCR online portal.

Q4: Are these fees fixed annually?

• OCR fees may be updated yearly.

Q5: Should I hire a lawyer?

• Recommended for first-time entrepreneurs to avoid errors and save time.

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9. Tips to Reduce Costs

1. Choose the right authorized capital for your business needs.

2. Prepare all documents in advance to avoid multiple submissions.

3. Consider professional help for efficient processing.

4. Check OCR portal for updated fees before submission.

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10. Conclusion

Company registration in Nepal can be straightforward if you plan ahead. Government fees form the core of your cost, but professional support, documentation, local licenses, and compliance expenses shape the true total cost. Whether you’re bootstrapping or scaling up, understanding the numbers and legal requirements gives you confidence as you launch your business.