Business Registration Total Cost Breakdown 2026

Overview of Business Registration Costs in Nepal

Business registration in Nepal involves multiple fees and charges that entrepreneurs must pay to establish a legal entity. The total cost varies based on the business structure, capital investment, and registration type. The Office of the Company Registrar, District Administration Office, and local government bodies collect these fees. Understanding the complete cost breakdown helps entrepreneurs budget accurately and avoid unexpected expenses during the registration process.

Registration Fees by Business Structure

Sole Proprietorship Registration

Sole proprietorship registration requires minimal fees compared to other business structures. The District Administration Office charges a registration fee based on the business capital. For businesses with capital up to NPR 50,000, the fee is approximately NPR 500–1,000. Businesses with higher capital pay proportionally increased fees. Local government registration adds an additional NPR 200–500 depending on the municipality or rural municipality.

Partnership Firm Registration

Partnership firm registration involves fees for both the District Administration Office and the Company Registrar. The District Administration Office charges NPR 1,000–2,000 for initial registration. The Company Registrar charges an additional NPR 2,000–5,000 for partnership deed registration and documentation. Local government registration fees range from NPR 300–800. Total partnership registration costs typically fall between NPR 3,500–8,000.

Private Limited Company Registration

Private limited company registration requires the highest fees among business structures. The Company Registrar charges NPR 5,000–15,000 for company registration based on authorized capital. Memorandum and Articles of Association filing costs NPR 2,000–3,000. District Administration Office charges NPR 2,000–5,000. Local government registration adds NPR 500–1,000. Total costs range from NPR 10,000–25,000.

Public Limited Company Registration

Public limited company registration involves substantial fees due to regulatory requirements. The Company Registrar charges NPR 20,000–50,000 for registration based on authorized capital. Prospectus filing and approval costs NPR 5,000–10,000. District Administration Office charges NPR 5,000–10,000. Local government registration adds NPR 1,000–2,000. Total costs typically exceed NPR 30,000–70,000.

Detailed Cost Breakdown Table

Registration Type	Company Registrar Fee	District Admin Fee	Local Government Fee	Total Estimated Cost
Sole Proprietorship	N/A	NPR 500–1,000	NPR 200–500	NPR 700–1,500
Partnership Firm	NPR 2,000–5,000	NPR 1,000–2,000	NPR 300–800	NPR 3,500–8,000
Private Limited Company	NPR 5,000–15,000	NPR 2,000–5,000	NPR 500–1,000	NPR 10,000–25,000
Public Limited Company	NPR 20,000–50,000	NPR 5,000–10,000	NPR 1,000–2,000	NPR 30,000–70,000

Additional Mandatory Costs

Pan Registration Fee

Permanent Account Number (PAN) registration is mandatory for all business entities. The Inland Revenue Department charges NPR 0 for initial PAN registration. However, businesses must pay for PAN certificate issuance and documentation, which costs approximately NPR 100–200. PAN registration must be completed within 30 days of business registration.

Vat Registration Fee

Value Added Tax (VAT) registration is required for businesses with annual turnover exceeding NPR 5 million. The Inland Revenue Department charges NPR 0 for VAT registration. Businesses must submit VAT registration forms and supporting documents without additional fees. VAT registration becomes mandatory upon reaching the turnover threshold.

Trade License Renewal

Trade license renewal occurs annually and involves fees charged by local government bodies. Municipal corporations charge NPR 500–2,000 annually based on business type and location. Rural municipalities charge NPR 300–1,000 annually. Metropolitan cities charge NPR 1,000–3,000 annually. Renewal must occur within 45 days of license expiration.

Office Registration and Stamp Duty

Office registration requires payment of stamp duty on lease agreements or property documents. Stamp duty rates vary from 0.5% to 2% of property value depending on the transaction type. Registration at the District Land Revenue Office costs NPR 500–2,000. These costs apply only if the business maintains a registered office address.

Professional and Legal Service Costs

Legal Consultation Fees

Legal consultation for business registration typically costs NPR 2,000–10,000 depending on complexity. Lawyers charge hourly rates ranging from NPR 500–2,000 per hour. Document preparation and review services cost NPR 1,000–5,000. These fees are optional but recommended for complex business structures.

Chartered Accountant Fees

Chartered accountant services for financial documentation cost NPR 3,000–15,000. Accountants prepare financial statements and tax compliance documents required for registration. These services are mandatory for private and public limited companies. Sole proprietorships and partnerships may not require accountant services.

Registration Agent Fees

Registration agents charge NPR 2,000–8,000 for handling the complete registration process. Agents manage document submission, follow-up, and coordination with government offices. These fees are optional but save time and reduce administrative burden. Agents typically charge a flat fee or percentage of total registration cost.

Cost Breakdown by Registration Stage

Pre-Registration Costs

Pre-registration costs include document preparation and verification expenses. Business name availability search costs NPR 100–200 at the Company Registrar. Document photocopying and certification costs NPR 200–500. Preliminary legal consultation costs NPR 500–2,000. Total pre-registration costs range from NPR 800–2,700.

Registration Processing Costs

Registration processing involves fees paid directly to government offices. Company Registrar processing fee ranges from NPR 2,000–50,000 based on business type. District Administration Office processing fee costs NPR 500–10,000. Local government processing fee costs NPR 200–2,000. Total processing costs range from NPR 2,700–62,000.

Post-Registration Costs

Post-registration costs include certificate issuance and documentation fees. Certificate issuance costs NPR 100–500 per certificate. Certified copy preparation costs NPR 50–100 per page. PAN and VAT certificate issuance costs NPR 100–300. Total post-registration costs range from NPR 250–900.

Frequently Asked Questions

What is the minimum cost for business registration in Nepal?

The minimum cost for sole proprietorship registration is approximately NPR 700–1,500, including District Administration Office and local government fees.

Are there any hidden costs in business registration?

No hidden costs exist in official registration. However, optional professional services such as legal consultation and registration agent fees add to total expenses.

Can business registration costs be reduced?

Registration fees are fixed by government authorities and cannot be reduced. However, entrepreneurs can minimize costs by handling documentation independently without hiring agents.

What is the payment method for registration fees?

Registration fees are paid directly to respective government offices through cash, bank transfer, or official payment portals. Receipts must be retained for record-keeping.

How long does business registration take?

Business registration typically takes 7–15 days for sole proprietorships and partnerships, and 15–30 days for private limited companies, depending on document completeness.

Is VAT registration mandatory for all businesses?

VAT registration is mandatory only for businesses with annual turnover exceeding NPR 5 million. Businesses below this threshold may register voluntarily.

What documents are required for registration?

Required documents include citizenship certificate, address proof, business plan, memorandum and articles of association (for companies), and proof of office address.

Can registration fees be paid in installments?

Registration fees must be paid in full at the time of application. Government offices do not offer installment payment options.

Legal Framework and Regulations

Business registration in Nepal operates under the Company Act 2063, Partnership Act 2053, and relevant local government regulations. The Office of the Company Registrar enforces registration requirements for companies and partnerships. District Administration Offices handle sole proprietorship registration. Local government bodies issue trade licenses and collect municipal fees. The Inland Revenue Department manages PAN and VAT registration. All fees and procedures comply with these legal provisions.

Conclusion

Business registration costs in Nepal vary significantly based on business structure and complexity. Sole proprietorships incur the lowest costs, ranging from NPR 700–1,500, while public limited companies require NPR 30,000–70,000. Entrepreneurs must budget for government fees, professional services, and post-registration expenses. Understanding the complete cost breakdown enables accurate financial planning and prevents budget overruns during the registration process.