Overview of Company Registration Costs in Nepal
The total cost of registering a company in Nepal includes government fees, professional service fees, document preparation costs, and other administrative expenses. The Companies Act, 2063 governs company registration and outlines associated costs. These vary based on the type of company (private, public, or non-profit) and the authorized capital. Companies must factor in both one-time and recurring costs for accurate budgeting.
Government Fees for Company Registration
The Office of the Company Registrar (OCR) imposes registration fees depending on the proposed authorized capital. For example:
- Up to NPR 100,000: NPR 1,000
- NPR 100,001 to 500,000: NPR 4,500
- NPR 500,001 to 2,500,000: NPR 9,500
- NPR 2,500,001 to 10,000,000: NPR 16,000
- Above NPR 10,000,000: Fees increase progressively These rates are outlined in Schedule 6 of the Companies Act, 2063.
Service Provider Fees for Company Registration
Legal professionals or consultants often assist in registration. Their service fees range from NPR 10,000 to NPR 25,000, depending on the firm, complexity of the registration, and company type. These fees cover name reservation, documentation, submission, and coordination with OCR.
Cost of Business Name Approval and Documentation
Business name reservation costs NPR 100 when filed online through the OCR portal. If physical submission is done, it may incur additional administrative costs. Drafting the Memorandum and Articles of Association may cost between NPR 2,000 to NPR 5,000 if done by a legal expert.
Minimum Capital Requirements for Company Registration
The Companies Act does not specify a minimum capital for private limited companies, but public limited companies must have a minimum authorized capital of NPR 10 million. Despite this, companies should register realistic capital to avoid high registration fees. Capital affects both the registration cost and annual compliance obligations.
Additional Costs for Foreign Investors in Nepal
Foreign investors must obtain approval from the Department of Industry (DOI) under the Foreign Investment and Technology Transfer Act, 2019. Associated costs include:
- Translation and notarization of documents
- Legal consultation fees
- Foreign investment approval application (varies)
- Visa and immigration processing charges
How to Save on Company Registration Costs
To minimize costs:
- Use online systems for name reservation and form submission
- Choose experienced service providers to avoid resubmission delays
- Accurately assess capital requirements to avoid overpayment
- Use standard document templates where applicable
- Keep translations and notarizations limited to necessary documents
Cost of Post-Registration Compliance for Companies
After registration, companies must:
- Renew annually with OCR (NPR 1,000 to NPR 15,000 based on capital)
- Submit audited financial reports
- Pay tax filing fees and service charges to tax professionals These recurring costs vary depending on business operations and compliance obligations.
Hidden Costs in Company Registration
Hidden costs can include:
- Delays in document correction
- Penalties for late submission
- Notarization charges
- Translation costs for foreign documents
- Courier and administrative fees for physical filings Understanding these helps in setting a comprehensive budget.
Payment Methods for Company Registration Fees
OCR accepts:
- Online payments via bank integration for registered users
- Bank deposit slips (e.g., Rastriya Banijya Bank) for offline submissions
- Direct payments at the OCR counter (in limited cases) Receipts must be attached with the application for further processing.
Fees for Company Name Reservation and Approval
Name reservation incurs a nominal fee of NPR 100. If resubmission is required due to name duplication or inconsistency, additional charges may apply. Legal service fees for name vetting before submission range between NPR 1,000 to NPR 3,000.
Breakdown of Costs for Different Company Types
Costs differ depending on company type:
- Private Limited: Lower registration fees; capital-based charges
- Public Limited: Higher fees due to large capital base and compliance
- Non-Profit: Relatively lower fees, subject to section 166 of the Companies Act Cost estimations should be done based on the nature and scale of business.
Cost Comparison for Private vs Public Limited Companies
| Cost Head | Private Limited | Public Limited |
| Minimum Capital | No minimum | NPR 10 million |
| Government Fee Range | NPR 1,000–16,000+ | Starts from NPR 16,000 |
| Post-Registration Costs | Moderate | High |
| Compliance Requirement | Moderate | Extensive |
| Public companies face higher costs due to rigorous legal requirements.
|
How to Estimate Total Company Registration Costs
Entrepreneurs can estimate total costs by summing:
- Government registration fees (based on capital)
- Name approval and documentation expenses
- Legal or consultant service fees
- Notarization and translation costs (if needed)
- Post-registration expenses (renewals, tax filings) Creating a budget spreadsheet can help in planning.
Costs Associated with Registered Office Space and Equipment
Every registered company must have an office address. Related costs include:
- Rent for registered office space (NPR 5,000 to 50,000 monthly, location dependent)
- Office furniture and basic setup (NPR 20,000–100,000 for initial setup)
- Utilities and maintenance charges These are not registration fees but are associated startup costs.
FAQs
How much does it cost to register a company in Nepal?
Costs vary based on capital, starting at NPR 1,000. Additional costs include legal fees, documentation, and service provider charges.
What are the government fees for company registration?
Government fees range from NPR 1,000 to over NPR 16,000, depending on authorized capital.
Are there additional fees for foreign investors?
Yes, foreign investors must pay for approvals, translations, and legal services.
Is there a minimum capital requirement for company registration?
For public limited companies, it is NPR 10 million. No minimum for private companies.
What other costs should I consider when registering a company?
Include service fees, name reservation, notarization, office rent, and compliance expenses.
Do I need to pay for a business name reservation?
Yes, the name reservation fee is NPR 100.
How can I reduce the costs of company registration?
Use online portals, prepare documents correctly, and consult experienced professionals.
How are the registration fees paid in Nepal?
Fees can be paid online, via bank deposit, or directly at the OCR counter.
What is the cost difference between company types?
Public companies cost more due to higher capital and stricter compliance needs.
Are there any hidden costs in the registration process?
Yes, delays, resubmissions, notarizations, and translations can incur extra charges.