Cost of Import-Export License in Nepal

The import-export business sector in Nepal requires proper licensing and registration with multiple government authorities. Understanding the complete cost structure for obtaining an import-export license is essential for entrepreneurs and businesses planning to engage in international trade. This article provides a detailed breakdown of all fees, charges, and expenses associated with obtaining an import-export license in Nepal.

Government Fees Structure

The government of Nepal has established a structured fee system for import-export license registration based on the capital investment of the business. These fees are mandatory and must be paid to various government departments during the registration process.

Office of Company Registrar (OCR) Fees

The Office of Company Registrar charges registration fees based on the authorized capital of the company. According to the Companies Act, 2063 (2006), the fee structure is as follows:

Capital Range	Registration Fee (NPR)
NPR 5 Lakhs to 25 Lakhs	9,500
NPR 25 Lakhs to 1 Crore	16,000
Every Additional 1 Crore	3,000 (Additional)

The OCR fee represents the first major expense in the import-export license acquisition process. For companies with capital between 5 lakhs and 25 lakhs, the registration fee stands at NPR 9,500. When the authorized capital ranges from 25 lakhs to 1 crore, the fee increases to NPR 16,000. For every additional crore beyond 1 crore, an additional fee of NPR 3,000 is levied on top of the base amount.

This progressive fee structure ensures that larger businesses with higher capital contribute proportionally more to the registration process. The OCR fees cover the cost of company incorporation, certificate issuance, and initial documentation processing.

Ward Registration Fee

Ward registration is a mandatory requirement under the Local Government Operation Act, 2074 (2017). The ward office where the business premises is located requires registration of all commercial entities operating within its jurisdiction.

The ward registration fee depends on the rent agreement amount and the declared capital of the business. The minimum fee starts from NPR 10,000 for businesses with the specified capital range. Different municipalities and rural municipalities may have varying fee structures based on their local regulations.

The ward registration fee typically includes:

• Business operation permit fee
• Local tax registration
• Premises verification charges
• Annual renewal base fee

The exact amount varies depending on the local body’s fee schedule and the nature of the business premises. Businesses operating in metropolitan cities may face higher ward registration fees compared to those in rural municipalities.

Department of Commerce Fees

The Department of Commerce, under the Ministry of Industry, Commerce and Supplies, is the primary authority for issuing import-export licenses in Nepal. The fee structure is regulated under the Export Import (Control) Act, 2013 (1957) and subsequent amendments.

Capital Range	Department of Commerce Fee (NPR)
Up to NPR 25 Lakhs	5,100
Above NPR 25 Lakhs	10,100
Above NPR 1 Crore	25,100

For businesses with capital up to 25 lakhs, the Department of Commerce charges NPR 5,100 for import-export license registration. This fee covers the processing of the application, verification of documents, and issuance of the EXIM code.

When the capital exceeds 25 lakhs but remains below 1 crore, the fee increases to NPR 10,100. For businesses with capital above 1 crore, the registration fee is NPR 25,100. The fee structure continues to increase proportionally for higher capital amounts.

The Department of Commerce fee includes:

• Application processing charges
• Document verification fees
• EXIM code generation
• License certificate issuance
• Database registration

Service Charge for Professional Assistance

Professional service providers offer comprehensive assistance for obtaining import-export licenses in Nepal. The standard service charge for complete import-export license acquisition, from company registration to EXIM code obtainment, is NPR 45,000.

This service charge covers professional fees for handling all documentation, liaison work with government offices, and ensuring compliance with all legal requirements. The fee represents the cost of expertise, time, and effort required to navigate the multi-step registration process efficiently.

Professional service providers handle all interactions with government departments, prepare necessary documentation, and ensure that applications are submitted correctly to avoid delays or rejections. The service charge is separate from government fees and represents the professional consultation and processing fees.

Scope of Work Covered

The complete process of obtaining an import-export license involves multiple steps across different government departments. The following sections detail each component of the registration process.

Company Registration from Office of Company Registrar

The first step involves registering the company with the Office of Company Registrar. This process includes:

• Preparation of Memorandum of Association
• Preparation of Articles of Association
• Name reservation application
• Submission of incorporation documents
• Payment of registration fees
• Obtaining Certificate of Incorporation
• Registration in the company registry

The Companies Act, 2063 (2006) governs the company registration process. The company must be registered as a private limited company or public limited company to engage in import-export business. The registration establishes the legal entity that will conduct international trade operations.

VAT Registration at Inland Revenue Department

Value Added Tax (VAT) registration is mandatory for all import-export businesses under the Value Added Tax Act, 2052 (1996). The process includes:

• Submission of VAT registration application
• Providing company registration certificate
• Submitting business premises documents
• Verification by tax officials
• Obtaining Permanent Account Number (PAN)
• Receiving VAT registration certificate

VAT registration enables the business to collect VAT on sales and claim input tax credits on purchases. For import-export businesses, VAT registration is essential for customs clearance and tax compliance.

Ward Registration at Local Ward Office

Registration with the local ward office establishes the business’s presence in the municipality. The process involves:

• Submission of ward registration application
• Providing rent agreement or ownership documents
• Company registration certificate submission
• Payment of ward registration fee
• Premises inspection by ward officials
• Obtaining business operation recommendation letter

The Local Government Operation Act, 2074 (2017) mandates that all businesses operating within a local body’s jurisdiction must register with the respective ward office. This registration is required before proceeding with other licenses.

Local Bank Account Opening

Opening a bank account in the company’s name is essential for conducting business transactions. The process includes:

• Selection of a commercial bank
• Submission of company documents
• Board resolution for account opening
• Specimen signature submission
• Initial deposit as per bank requirements
• Obtaining checkbook and online banking access

A local bank account is mandatory for receiving the EXIM code and conducting import-export transactions. The bank account facilitates letter of credit operations, foreign exchange transactions, and customs duty payments.

Conducting Initial Compliance

Initial compliance involves fulfilling all statutory requirements immediately after company registration. This includes:

• Filing initial returns with OCR
• Maintaining statutory registers
• Conducting first board meeting
• Appointing company secretary (if required)
• Setting up accounting systems
• Establishing compliance calendar

Proper initial compliance ensures that the company maintains good standing with regulatory authorities and avoids penalties for non-compliance.

Obtaining Share Registry from OCR

The share registry is an official document that records the shareholding pattern of the company. The process involves:

• Application submission to OCR
• Payment of prescribed fees
• Verification of shareholder details
• Issuance of share registry certificate
• Recording in company records

The share registry is required by the Department of Commerce during the import-export license application process. It serves as proof of ownership structure and capital contribution.

Conducting Registration at Department of Commerce

Registration with the Department of Commerce is the primary step for obtaining import-export authorization. The process includes:

• Submission of application form
• Providing company registration documents
• Submitting VAT registration certificate
• Providing ward registration certificate
• Bank account verification documents
• Payment of registration fees
• Document verification by officials
• Approval and registration

The Department of Commerce verifies all submitted documents and conducts due diligence before approving the registration. The registration establishes the company as an authorized importer-exporter in Nepal.

Obtaining EXIM Code

The EXIM (Export-Import) code is the final authorization required to commence import-export operations. The process involves:

• Application submission after Department of Commerce registration
• Verification of all previous registrations
• Database entry in the EXIM system
• Generation of unique EXIM code
• Issuance of EXIM certificate

The EXIM code is a unique identifier assigned to each import-export business. This code must be quoted in all customs documents, shipping bills, and international trade correspondence. The code is linked to the company’s PAN and enables customs authorities to track all import-export transactions.

Total Cost Estimation

The total cost of obtaining an import-export license varies based on the company’s authorized capital. Below is a comprehensive cost breakdown for different capital ranges:

Capital Range	OCR Fee (NPR)	Ward Fee (NPR)	Commerce Fee (NPR)	Service Charge (NPR)	Approximate Total (NPR)
5–25 Lakhs	9,500	10,000+	5,100	45,000	69,600+
25 Lakhs – 1 Crore	16,000	10,000+	10,100	45,000	81,100+
Above 1 Crore	19,000+	10,000+	25,100	45,000	99,100+

These estimates include only the primary fees and service charges. Additional costs may include:

• Document preparation and notarization fees
• Translation charges for foreign documents
• Travel expenses for office visits
• Miscellaneous administrative expenses
• Bank account opening charges

Legal Framework

The import-export licensing system in Nepal operates under several legal provisions:

The Export Import (Control) Act, 2013 (1957) provides the primary legal framework for regulating import-export activities. This Act empowers the government to control and regulate international trade through licensing mechanisms.

The Companies Act, 2063 (2006) governs the incorporation and operation of companies in Nepal. Section 3 of the Act requires all businesses to register with the Office of Company Registrar before commencing operations.

The Value Added Tax Act, 2052 (1996) mandates VAT registration for businesses engaged in taxable transactions, including import-export activities. Section 10 of the Act specifies the registration requirements.

The Local Government Operation Act, 2074 (2017) grants local bodies the authority to regulate businesses within their jurisdiction and collect local taxes and fees.

Payment Methods

All government fees must be paid through designated channels:

• OCR fees are paid through bank vouchers at specified banks
• Department of Commerce fees are paid at the department’s cash counter or through bank deposit
• Ward registration fees are paid at the ward office or through designated bank accounts
• Service charges are paid directly to the service provider

Payment receipts must be maintained as proof of payment and submitted with respective applications.

Validity and Renewal

The import-export license and EXIM code remain valid as long as the company maintains its registration and complies with annual renewal requirements. The company must:

• File annual returns with OCR
• Renew VAT registration annually
• Renew ward registration as per local body requirements
• Maintain active bank account
• Comply with all statutory obligations

Failure to maintain compliance may result in suspension or cancellation of the import-export license.