Complete Guide to Registering a Startup in Nepal

Selecting the right legal entity and understanding which authority governs it is your foundational step when registering a business in Nepal. Registering at the wrong office leads to administrative delays, tax complications, and unnecessary fees.

1. Choosing Your Business Structure and Government Authority

1. • Before submitting applications, evaluate how your venture is structured, your growth strategy, ownership model, and personal financial liability.

Registration Decision Steps

1. For tech startups, scalable products, or venture-funded startups: Start at the Office of the Company Registrar (OCR) to incorporate a Private Limited Company. Then proceed to your local Ward Office for physical business registration, followed by the Inland Revenue Department (IRD) for tax registration.

2. For local service businesses, retail outlets, or sole operators: Start at your District DCSI or Provincial Industry Office to register a private firm, then proceed to the IRD.

3. For manufacturing plants or processing factories with under NPR 150M capital: Incorporate at the OCR (if running a Pvt. Ltd.) or register at the DCSI (if running a firm), and then secure an Industry Registration Certificate at the DCSI or Provincial Industry Office.

4. For startups with foreign equity or international investors: Obtain Foreign Direct Investment (FDI) approval from the Department of Industry (DoI) under FITTA. Incorporate at the OCR, complete industry registration at the DoI, and receive approval from Nepal Rastra Bank (NRB) to transfer funds into Nepal.

2. Step-by-Step Government Registration Process

Step 1: Office of the Company Registrar (OCR)

If you choose a private limited company structure, register through the OCR under the Ministry of Industry, Commerce, and Supplies.

Legal Reference

• Companies Act, 2063 (2006)

Process

1. Name Reservation: Create an account on the OCR Online Portal and submit three proposed names. Reserved names remain valid for 35 days upon approval.

2. Document Drafting: Draft your Memorandum of Association (MOA / Prabandha Patra) and Articles of Association (AOA / Niyamawali).

3. Online Application: Submit company details online and upload signed copies of your legal documents.

4. Fee Payment: Pay the registration fee online or via bank counter based on your authorized capital.

5. Certificate Issuance: Receive your digital certificate of incorporation upon verification.

Required Documents

• Citizenship certificates or passports of all founders and directors.

• Two physical sets of signed MOA and AOA.

• Shareholder agreement (if applicable).

• Passport-sized photos of shareholders.

Step 2: Department of Cottage and Small Industries (DCSI) / Provincial Office

Register here if you operate a sole proprietorship, partnership, or manufacturing facility with fixed assets below NPR 150 million.

Legal References

• Industrial Enterprises Act, 2076 (2020)

• Private Firm Registration Act, 2014

• Partnership Act, 2020

Industry Categorization

• Micro Enterprises: Fixed capital up to NPR 2 million (excluding land and buildings), up to 9 employees.

• Cottage Enterprises: Traditional, skill-based, energy consumption under 5 kW.

• Small Enterprises: Fixed capital up to NPR 150 million.

Process

1. Submit an application form to your district cottage and small industry office or provincial industry office.

2. Submit a business plan detailing machinery specifications, labor needs, raw material sources, and power requirements.

3. Pay the registration fee based on investment capital.

4. Collect the Industry Registration Certificate (Udyog Darta Praman Patra).

Required Documents

• Prescribed Firm/Industry Application Form.

• Citizenship copies of the owner or partners.

• Property ownership certificate or lease agreement for business premises.

• Environmental Assessment Report (IEE or EIA) if operations affect the environment.

Step 3: Local Government (Ward Office)

Every physical enterprise must register with the Ward Office (Wada Karyalaya) where its physical workspace resides.

Legal Reference

• Local Government Operation Act, 2074 (2017)

Process

1. Visit your local Ward Office within 35 days of company incorporation or before starting physical operations.

2. Fill out the Local Business Registration Application Form (Vyawasaya Darta).

3. Pay local business tax and rent tax (Bhada Kar). If your landlord pays rent tax directly, submit their tax receipt; otherwise, the ward collects a 10% rent tax at source on your rental agreement amount.

4. Obtain the Ward Business Registration Certificate.

Required Documents

• OCR Company Registration Certificate or DCSI Firm Certificate.

• Signed MOA and AOA (for corporate entities).

• Landlord's citizenship copy, house rent agreement, and latest property tax (Malpot) receipt.

• Passport-sized photos of the authorized applicant.

Step 4: Department of Industry (DoI)

Direct registration at the Department of Industry is mandatory for large-scale operations or ventures involving foreign capital.

Legal References

• Industrial Enterprises Act, 2076 (2020)

• Foreign Investment and Technology Transfer Act (FITTA), 2075 (2019)

Process (For Foreign Investment & Medium/Large Scale)

1. Submit an online application through the DoI Single Window Service Centre.

2. Obtain FDI approval from the DoI.

3. Incorporate at the OCR after receiving FDI clearance.

4. Register the industry entity at the DoI.

5. Secure approval from Nepal Rastra Bank (NRB) to bring foreign currency into Nepal.

Step 5: Inland Revenue Department (IRD) Tax Registration

Complete tax registration before issuing commercial invoices or collecting payments.

Legal References

• Income Tax Act, 2058 (2002)

• Value Added Tax Act, 2052 (1996)

Tax Options

• Permanent Account Number (PAN): Mandatory for all business operations in Nepal.

• Value Added Tax (VAT): Mandatory if annual turnover exceeds NPR 5 million for goods, NPR 2 million for services or mixed sales, or if operating in regulated sectors like hardware, electronics, or hospitality.

3. Official Startup Recognition and Concessional Loans

To qualify for government benefits, seed money, or subsidized funding, your startup must meet criteria managed by the Industrial Enterprise Development Institute (IEDI) under MoICS.

Eligibility Criteria

• Company age is under 10 years from registration.

• Annual turnover has never exceeded NPR 150 million in any fiscal year.

• Entity is independently established and not created by splitting or merging an existing business.

• Business model relies on creative ideas, technology, or innovative processes.

Framework and Loan Terms

• Governing Rule: Startup Enterprise Loan Operation Procedure, 2082 / National Startup Enterprise Policy, 2081.

• Loan Amount: NPR 5 lakh to NPR 20 lakh in collateral-free funding.

• Interest Rate: Fixed 3% per annum concessional rate.

• Repayment Period: Up to 5 years, including a 1-year grace period.

• Application Hub: Submit business proposals online through the official IEDI portal during open application notices.

Disclaimer: The information provided above reflects the official government fees applicable as of 16 July 2026. Government fees, charges, and registration requirements may change periodically due to amendments in laws, regulations, or administrative directives. Readers are advised to verify the latest fee schedule with the relevant authority before relying on this information.