Are you planning to register an IT company in Nepal? With a growing tech ecosystem, affordable operational costs, and government incentives, Nepal is an attractive destination for IT entrepreneurs.
In this guide, we’ll walk you through how to register an IT company in Nepal and break down how much it costs to register a company in Nepal. Whether you’re a local startup founder or a foreign investor, this article has everything you need to get started.
Why Start an IT Company in Nepal?
Nepal offers unique advantages for IT businesses:
- Growing Market: Access to a population of over 30 million and proximity to India and China.
- Affordable Operations: Lower costs for talent and infrastructure compared to regional competitors.
- Skilled Talent Pool: A rising number of IT graduates and professionals.
- Government Support: Tax benefits and incentives for IT and foreign investments.
Registering an IT company in Nepal unlocks these opportunities while ensuring legal compliance and credibility.
Types of IT Companies in Nepal
Most IT businesses in Nepal register as a Private Limited Company due to its simplicity and liability protection. Other options include:
- Public Limited Company: For larger firms aiming to raise public capital.
- Profit Not Distributing Company: For non-profit IT ventures.
- Foreign Company Branch: For businesses incorporated abroad but operating in Nepal.
For startups and small-to-medium IT company, a Private Limited Company is the most practical choice.
Step-by-Step Process to Register an IT Company in Nepal
Follow these steps to legally establish your IT company in Nepal:
Choose and Reserve a Company Name
Pick a unique name that reflects your IT business. It must not match or closely resemble existing company names.
- How to Reserve:
- Visit the Office of the Company Registrar (OCR) portal.
- Submit your proposed name in English and Nepali.
- Approval takes 2-4 days.
Prepare Essential Documents
Gather these documents for registration:
- Memorandum of Association (MOA): States your company’s purpose and scope.
- Articles of Association (AOA): Details internal rules and governance.
- Identification: Citizenship certificates or passports for shareholders and directors.
- Office Address Proof: Rental agreement or property ownership papers.
Foreign investors need additional documents like passport copies and Department of Industry (DOI) approval.
Submit Application to the OCR
File your application online or in person at the OCR with:
- Application form.
- Two copies each of MOA and AOA.
- Attested ID copies.
- Office address proof.
Pay Registration Fees
Fees depend on your authorized capital (see cost section below). Pay at the OCR during submission.
Receive Registration Certificate
After approval (3-7 days), the OCR issues a Certificate of Incorporation, marking your company’s legal existence.
Register for Tax (PAN/VAT)
Visit the Inland Revenue Department (IRD) to get a Permanent Account Number (PAN). If your turnover exceeds NPR 5 million annually, register for VAT.
- Required Documents:
- Registration Certificate.
- MOA and AOA.
- Address proof.
Open a Company Bank Account
Set up a business bank account with:
- Registration Certificate.
- PAN Certificate.
- MOA and AOA.
- IDs of signatories.
Obtain Licenses (If Needed)
Depending on your IT services, secure additional permits, such as an IT service license or local ward registration.
How Much Does It Cost to Register a Company in Nepal?
Here’s a detailed breakdown of costs for registering an IT company in Nepal:
Government Fees
Based on authorized capital:
| Cost Component | Details | Amount (NPR) |
|---|---|---|
| Government Registration Fee | Based on authorized capital; for minimum NPR 100,000 (private limited) | 1,000 |
| Professional Fees | Hiring lawyers or consultants for assistance | 10,000 – 30,000 |
| Local Ward Registration | Varies by municipality, mandatory for legal operation | 1,000 – 5,000 |
| Company Stamp | Required for official documentation | 500 – 1,000 |
| PAN/VAT Registration | Free, but mandatory for tax compliance | 0 |
Total Estimated Cost: For a private limited IT company with minimum capital, expect to spend NPR 12,000 to 35,000, depending on professional assistance and local fees. Higher authorized capital will increase the government registration fee, as shown in the table below for reference:
| Authorized Capital Range (NPR) | Registration Fee (NPR) |
| 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 | Up to 43,000 (varies) |
Why Hire a Law Firm?
Hiring a law firm ensures:
Accuracy: Proper drafting of MOA/AOA and compliance with the Companies Act 2063.
Speed: Faster processing through expert follow-ups with the OCR.
Risk Reduction: Avoidance of legal errors that could delay registration or cause penalties.
Custom Advice: Tailored guidance for IT-specific needs, such as intellectual property or export compliance.
For IT companies, firms with expertise in technology law, like Onesphere Law Associates or Moksha Legal Group, are particularly effective due to their understanding of the sector’s unique legal requirements.
How Long Does It Take?
The entire process takes 7-15 days:
Name reservation: 2-4 days.
Document preparation: 2-3 days.
Application processing: 3-7 days.
Certificate issuance: 1-2 days.
Foreign investors may face delays due to extra approvals.
Conclusion
Registering an IT company in Nepal is a cost-effective and straightforward process. Partnering with a top law firm in Nepal can ensures a seamless legal process, compliance with Nepal’s regulations, and tailored support for IT businesses. These firms offer expertise, efficiency, and a proven track record, making them ideal for registering your IT company. Start your tech venture in Nepal with confidence and legal clarity.
