How to register a company in Nepal: A guide for employers

Think of Nepal as your Himalayan launchpad to business growth — where ancient wisdom meets modern ambition.

Nepal is an exciting landscape for businesses seeking expansion. Positioned between India and China, it offers access to a burgeoning market, an ambitious young workforce, and a cost-effective operational base.

Nepal is an emerging hub for diverse industries from tourism to hydropower. In 2025, its economy is projected to grow by 5%, driven by growth in tourism and tech. Establishing your presence here will position your business at the forefront of South Asia’s dynamic economic development. This guide explores the company registration process, associated costs, and how an EOR can simplify expansion into Nepal.

The business benefits of registering your company in Nepal

Expanding into Nepal unlocks several advantages, including market access to South Asia, cost-effective operations, and government-backed investment incentives. Registering your company builds legal credibility while offering tax benefits, trade opportunities, and access to a growing pool of skilled professionals.

Key benefits of company registration in Nepal:

• Gain access to Nepal’s expanding consumer market and South Asian trade opportunities.
• Optimize costs through tax incentives, exemptions, and reduced tariffs.
• Lower expenses with affordable labor and pro-business policies.
• Simplify entry with streamlined company registration and investment-friendly regulations.
• Enhance credibility by establishing a legal presence in Nepal.
• Diversify revenue in a rapidly growing economy.
• Access skilled talent with a young and cost-effective workforce.
• Build local trust with customers, suppliers, and partners.
• Leverage trade agreements with India, China, and SAARC nations for seamless cross-border business.
• Benefit from government support, including SEZ perks, investment incentives, and tax holidays.

Registering your company in Nepal provides a strong foundation for business growth and international expansion. But company registration is not your only option for expansion. In the next section, we compare company registration to Employer of Record (EOR) services—so you can select the best approach to meet your business goals.

What is the difference between standard company registration and using an EOR?

When expanding into Nepal, businesses have two primary options: registering a local entity or using an Employer of Record (EOR). While traditional registration provides complete operational control, an EOR simplifies market entry. With an EOR, you can legally hire and manage your employees in Nepal without establishing an entity here. The EOR will manage payroll and adhering to Nepal’s labor and tax laws.

Below is a comparison of both approaches:

Aspect	Standard company registration	Employer of Record (EOR)
Purpose	Establishes a legal entity in Nepal, granting full control over operations.	Allows hiring in Nepal without setting up a local entity.
Control	Complete control over financial and operational decisions.	Maintains operational control while outsourcing HR, payroll, and legal compliance to the EOR.
Cost	Requires upfront investment, including incorporation fees, office setup, and maintenance.	Fixed, predictable fees without the costs of entity registration and administration.
Compliance	The company is responsible for adhering to Nepal’s labor laws, tax regulations, and reporting requirements.	The EOR ensures full legal and tax compliance, reducing risk and administrative burden.
Setup time	A lengthy process that can take weeks to months to complete.	Fast-track entry, with operations starting within days or weeks.
Scalability	Best for businesses planning long-term operations and a significant presence in Nepal.	Ideal for flexible expansion, allowing businesses to scale without entity setup.

For companies seeking a low-risk, cost-effective way to enter the Nepalese market, an EOR is an excellent alternative—enabling swift hiring, effortless compliance, and reduced administrative burden.

How EOR simplifies Nepal company registration

Setting up operations in Nepal doesn’t need to be complicated. Partnering with an Employer of Record (EOR) streamlines the process, enabling you to hire talent and ensure compliance.

Here’s how an EOR can benefit your business in Nepal:

• You can begin hiring employees in Nepal within weeks, not months
• We manage salary payments, tax filings, and social security contributions in compliance with Nepal’s labor laws.
• Reduce compliance costs like high legal fees and administrative expenses. Pay a simple, predictable fee instead.
• Scale your team easily without long-term commitments or regulatory burdens.
• We draft compliant contracts, onboard employees, and manage benefits so you can focus on your core business.

However, EORs cannot issue invoices or sign commercial contracts on your company’s behalf. If you need to bill customers directly, a company registration is essential. Let’s unpack Nepal’s company registration process, step-by-step.

A step-by-step guide to registering a company in Nepal

The Office of the Company Registrar (OCR) manages company registration in Nepal through its online portal.

Follow these steps to complete the process efficiently.

Step 1: Reserve your company name

• Check name availability on the OCR e-Services Portal.
• Submit a name reservation request Form online.
• Await approval or rejection notification via email.

Step 2: Create an OCR portal account

• Register on the OCR New Registration Portal.
• Provide your name, email, citizenship/passport number, and contact details.
• Verify your account via email confirmation.

Step 3: Prepare the required documents

• Application for registration (as per OCR format).
• Memorandum of Association (MOA) & Articles of Association (AOA).
• Promoters’ IDs: Citizenship (for Nepali) or passport (for foreign promoters).
• Promoters’ agreement (if applicable).
• Foreign investment approval (if applicable).

Refer to the OCR New Registration Guide for detailed requirements.

Step 4: Submit your application online

• Log in to your OCR e-Services account.
• Fill out the company registration form and upload documents.
• Submit for review.

Step 5: Pay registration fee

Fees vary based on the company’s authorized capital. You can pay via bank deposit or online banking through designated financial institutions. For a detailed breakdown, refer to the official OCR fee structure.

Step 6: Receive your registration certificate

If approved, you’ll receive the Certificate of Incorporation and a Company Registration Number. If rejected, OCR will request corrections.

Step 7: Register for PAN/VAT

Apply for a Permanent Account Number (PAN) at the Inland Revenue Department. If applicable, register for Value Added Tax (VAT).

Step 8: Register with the local ward office

• Submit your Company Incorporation Certificate and lease/rent agreement (if applicable).
• Pay business operation tax per municipal regulations.

Next steps: Explore the costs of registering a company in Nepal and see how an EOR can help you cut costs.

The real cost of registering a business in Nepal

Understanding the costs of company registration in Nepal is essential for financial planning. Below is a breakdown of key expenses involved:

1. Registration costs

Private limited company:

• Up to NPR 100,000: NPR 1,000
• NPR 100,001 – 500,000: NPR 4,500
• NPR 500,001 – 2,500,000: NPR 9,500
• NPR 2,500,001 – 10,000,000: NPR 16,000
• Above NPR 10,000,000: NPR 30 per additional NPR 100,000

Public limited company:

• Up to NPR 10,000,000: NPR 40,000
• NPR 10,000,001 – 20,000,000: NPR 70,000
• NPR 20,000,001 – 30,000,000: NPR 100,000
• NPR 30,000,001 – 40,000,000: NPR 130,000
• NPR 40,000,001 – 50,000,000: NPR 160,000
• Above NPR 50,000,000: NPR 30,000 per additional NPR 10,000,000

2. Share capital requirements

• Private limited company: Minimum NPR 100,000
• Public limited company: Minimum NPR 10,000,000

3. Legal and professional fees

• Documentation & legal services: NPR 20,000 – NPR 30,000
• Notary fee: Varies by provider

4. Annual maintenance costs

• Accounting & auditing: Cost depends on company size & transactions
• Registered office renewal: Subject to municipal regulations

5. Taxes & compliance

• Corporate income tax: 25% of net profits
• VAT: 13% on taxable goods & services
• Social Security Fund (SSF): 31% (employer + employee contributions)

Costs may vary from time to time. Notably, the minimum investment requirement for foreign investors was reduced to NPR 20 million as of May 2022. When registering a company in Nepal, it is best to consult a local expert. Legal and professional fees and annual maintenance costs can vary based on the company’s specific circumstances.

Alternatively, speak to our team. They keep in touch with the latest regulations and can guide you on whether an EOR or company registration would be more cost-effective for your business.

Cost comparison: Standard registration vs. EOR

Understanding the financial implications of traditional company registration versus partnering with an Employer of Record (EOR) can be helpful when planning your expansion into Nepal.

Here’s a side-by-side comparison for Nepal:

Aspect	Standard company registration	Employer of Record (EOR)
Entity setup	Requires local company registration	No entity setup needed
Control	Complete ownership and responsibilities	Operate under EOR framework
Compliance	Handles all legal & tax filings	EOR manages compliance
Time to start	4–6 weeks or longer	Ready in days
Costs	Share capital, legal fees & ongoing taxes	Fixed monthly service fee
Scalability	Limited to business type & legal structure	Quick expansion & exit flexibility

Traditional registration involves upfront investments and ongoing administrative responsibilities, making it a better fit for long-term, large-scale operations. In contrast, an EOR offers a streamlined, cost-effective alternative.

With predictable fees covering compliance, payroll, and other operational needs, an EOR like Multiplier is ideal for businesses looking for an efficient and scalable market entry solution in Nepal.

Take the stress out of your Nepal expansion with Multiplier

Expanding into Nepal doesn’t have to be a complex affair. With Multiplier’s Employer of Record (EOR) solution, you can focus on business growth while we handle compliance, payroll, and administrative requirements with precision.

Here’s how Multiplier can help you grow in Nepal:

Seamless hiring and onboarding
Locally compliant contracts and a hassle-free onboarding process make hiring fast and hassle-free.

Stress-free payroll management

Say goodbye to payroll headaches. Multiplier ensures accurate payroll processing, tax compliance, and social security contributions that adhere to Nepal’s labor laws.

All-in-one HR platform

Streamline HR operations with automated payroll, expense approvals, and leave management, giving you effortless control over your workforce from one dashboard.

Guaranteed compliance

Avoid the risks of legal missteps and penalties. We ensure full compliance with Nepal’s evolving labor laws and tax obligations so you don’t have to.

Competitive benefits to attract top talent

Hire and retain the top talent in Nepal with locally tailored benefits, including health insurance, statutory contributions, and more, fully managed by Multiplier.

Expert support, secure operations

From hiring to compliance, our dedicated local support team is available 24/7. Plus, our GDPR-compliant platform keeps your employee data secure at all times.

Expand into Nepal with confidence. Let Multiplier handle the heavy lifting so you can focus on growing your business instead of managing compliance. Book a demo today and learn how companies like yours have simplified their global expansion into Nepal.