Nepal has become an increasingly attractive destination for foreign investors, offering a strategic gateway between China and India. However, navigating the legal landscape for foreign company registration in Nepal requires precision and professional legal guidance. This guide outlines the essential steps to successfully register your business in Kathmandu.
1. Legal Framework: Understanding FITTA
All foreign investments in Nepal are primarily governed by the Foreign Investment and Technology Transfer Act (FITTA), 2075 (2019). The Department of Industries (DOI) is the primary regulatory body that approves your investment proposal.
2. Step-by-Step Registration Process
Step A: Approval from Department of Industries (DOI)
Foreigners must first obtain approval from the DOI (or the Investment Board of Nepal for large projects). You must submit a detailed project report and proof of financial capability.
Step B: Name Reservation
Once DOI approval is secured, you must reserve your company name at the Office of the Company Registrar (OCR) in Kathmandu.
Step C: Registration at OCR
After name approval, you submit the Memorandum of Association (MOA) and Articles of Association (AOA). This is a critical legal step where the presence of a professional law firm is highly recommended.
Step D: Ward & Tax Registration
Post OCR registration, the company must:
- Register with the local Ward Office in Kathmandu.
- Obtain a Permanent Account Number (PAN) or Value Added Tax (VAT) certificate from the Inland Revenue Office.
3. Minimum Investment Requirements
As of 2026, the minimum investment threshold for foreign investors has been adjusted to encourage diverse industries. Generally, it is currently set at NPR 20 Million (approx. USD 150,000), though this can vary for specific sectors like Hydropower or Large-scale Manufacturing.
4. Why You Need a Local Lawyer in Kathmandu
Registering a foreign-owned entity involves complex documentation, including powers of attorney and board resolutions translated into Nepali. Small errors can lead to months of delays at the OCR.
Our Legal Team at LawyerInNepal ensures your documents are compliant, your approvals are expedited, and your business setup is legally sound from day one.
5. Contact the Expert Business Lawyer in Kathmandu
Are you planning to expand your business into Nepal? Don't navigate the bureaucracy alone.
Consult with our Legal Team:
- Office Location: Purbi Gate, Anamnagar-29, Kathmandu 44600, Nepal.
- WhatsApp/Viber: +977 9766910908
- Email: lawyerinnepal.com.np@gmail.com
Disclaimer: This article is for informational purposes only. Investment laws in Nepal are subject to frequent updates. Always consult with a licensed legal professional before making financial commitments.