Registering a foreigner business in Nepal involves specific government fees that differ from local company registration. These fees are mandatory and are paid to various government bodies during the incorporation process.
The primary costs include the registration fee at the Office of the Company Registrar (OCR), a deposit with the Department of Industry (DOI), and the local Ward Registration fee. The structure of these fees varies depending on the industry sector and the company’s proposed capital investment.
Understanding these distinct financial obligations is the first step for any foreign investor planning to establish a business presence in Nepal through Foreign Direct Investment (FDI).
Office of the Company Registrar (OCR) Fees
The Office of the Company Registrar (OCR) imposes a registration fee based on the company’s authorized capital. For foreign investment, the fee structure has distinct categories. Information Technology (IT) companies follow a standard tiered fee structure, while other industries are subject to a higher minimum fee. The following table outlines the OCR fees for IT companies. For all other sectors not classified as IT, the minimum government registration fee is NPR 19,000, regardless of a lower capital investment. This differential fee structure is a key consideration in the initial financial planning for a foreigner business in Nepal.
| Authorized Capital (NPR) | OCR Fee for IT Companies (NPR) |
|---|---|
| 1,00,001 – 5,00,000 | 4,500 |
| 5,00,001 – 25,00,000 | 9,500 |
| 25,00,001 – 1,00,00,000 | 16,000 |
| For every additional 1,00,00,000 | 3,000 |
Ward Registration and DOI Deposit Fees
Beyond the OCR fee, foreign investors must account for two other significant government costs. The first is the Ward Registration fee, paid to the local municipal office where the company’s physical premises are located. This fee is variable and starts from NPR 10,000. The final amount depends on the rental agreement value of the office space. Additionally, a tax equivalent to 10% of the annual rent must be paid to the ward office. The second mandatory cost is a security deposit of NPR 25,000 paid to the Department of Industry (DOI). This deposit is a prerequisite for processing the FDI application and is a standard part of the foreign company registration protocol in Nepal.
Axion Partners Professional Service Charges
Axion Partners provides specialized services for facilitating the entire Foreign Direct Investment (FDI) company registration process in Nepal. Our service charges are structured to reflect the complexity and multi-stage nature of incorporating a foreign business. We offer transparent pricing for different investment scales and industry types. Our fees are exclusive of the aforementioned government fees, providing clients with a clear separation between professional service costs and statutory payments. We handle all procedural intricacies, ensuring compliance with the regulations set by the Department of Industry, Office of the Company Registrar, and other relevant authorities.
Service Charges for IT Company FDI
For foreign investors establishing an IT company in Nepal through FDI, our professional service charge is NPR 1,95,000. This fee covers the comprehensive scope of work required to obtain FDI approval and complete the company registration process. This package is tailored to the specific needs of the IT sector, which often has a different regulatory pathway. The charge excludes all mandatory government fees, such as the OCR registration fee, DOI deposit, and Ward Registration costs. This service is designed for tech startups and established IT firms looking to enter the Nepalese market efficiently and in full compliance with the law.
Service Charges for Standard FDI Company
For foreign investors in other industries seeking to establish a company with a capital of NPR 2 Crore, our service charge is NPR 2,95,000. This premium service package caters to larger-scale investments that may involve more complex documentation and approval processes. The fee covers our comprehensive consultancy and procedural management services from initial application to final company incorporation. As with our IT package, this charge excludes all government fees. For industries requiring capital above this base threshold or those that need additional approvals from specific government bodies, we provide a new, updated quotation upon request.
Custom Quotations for Specialized Industries
Certain industries in Nepal, such as media, financial institutions, or heavy manufacturing, require additional clearances and have more stringent FDI protocols. For such businesses, or for any foreign investment with a capital structure significantly different from our standard packages, we offer custom quotations. These are tailored to the specific requirements of the business, including the complexity of obtaining sector-specific approvals. To receive a precise and detailed service proposal for your specialized industry, you can contact us directly via Email or WhatsApp with your business plan and investment details.
Read More:
- https://lawaxion.com/faq-for-foreign-entrepreneurs-incorporating-in-nepal/
- https://lawaxion.com/understanding-nepals-company-laws-for-foreign-investors/
- https://lawaxion.com/registering-a-bpo-outsourcing-company-in-nepal-for-foreigners/
- https://lawaxion.com/why-foreign-companies-need-a-local-partner-in-nepal/
- https://lawaxion.com/can-you-incorporate-in-nepal-without-a-local-partner/
Comprehensive Scope of Work for FDI Company Registration
Engaging Axion Partners for your FDI company registration provides a complete, end-to-end service. Our scope of work is meticulously designed to manage every step of the complex incorporation process. We handle all interactions with government bodies, preparation of legal documents, and procedural formalities. Our team ensures that your business is established in compliance with all Nepalese regulations governing foreign investment. The following steps outline the comprehensive services included in our FDI registration package, providing a clear roadmap from initial approval to final operational setup.
- Obtaining FDI Approval from the Department of Industry
- Company Registration at the Office of the Company Registrar (OCR)
- Tax Registration at the Inland Revenue Department (IRD)
- Ward Registration at the Local Ward Office
- Facilitating Local Bank Account Opening
- Obtaining a Non-Blacklisted Certificate from the Criminal Investigation Bureau (CIB)
- Conducting Final Industry Registration at the Department of Industry
- Obtaining the initial Share Registry Certificate from OCR
- Notifying the Nepal Rastra Bank about the foreign investment
- Obtaining the final Share Registry Certificate from OCR after share issuance
1. What is the estimated minimum total cost to register an IT company via FDI?
The minimum cost includes our service charge (NPR 1,95,000), the minimum OCR fee (NPR 4,500), the DOI deposit (NPR 25,000), and the starting Ward fee (NPR 10,000), totaling approximately NPR 2,34,500, excluding rent-based taxes.
2. Is the NPR 25,000 deposit with the Department of Industry refundable?
The NPR 25,000 is a mandatory security deposit required by the Department of Industry to process the FDI application. The terms of its refund are determined by the DOI’s policies at the time of company dissolution or closure.
3. Why is there a cost difference between registering an IT company and other industries?
The primary difference lies in the government fees at the Office of the Company Registrar. IT companies have a lower minimum registration fee starting at NPR 4,500, whereas other industries have a flat minimum fee of NPR 19,000.
4. Do your service charges include all applicable government fees and taxes?
No, our service charges for FDI registration are strictly for our professional consultancy and procedural services. All mandatory government fees, including OCR, DOI, Ward Registration, and associated taxes, are to be paid separately by the client.
Frequently Asked Questions (FAQs)
1. What is the estimated minimum total cost to register an IT company via FDI?
The minimum cost includes our service charge (NPR 1,95,000), the minimum OCR fee (NPR 4,500), the DOI deposit (NPR 25,000), and the starting Ward fee (NPR 10,000), totaling approximately NPR 2,34,500, excluding rent-based taxes.
2. Is the NPR 25,000 deposit with the Department of Industry refundable?
The NPR 25,000 is a mandatory security deposit required by the Department of Industry to process the FDI application. The terms of its refund are determined by the DOI’s policies at the time of company dissolution or closure.
3. Why is there a cost difference between registering an IT company and other industries?
The primary difference lies in the government fees at the Office of the Company Registrar. IT companies have a lower minimum registration fee starting at NPR 4,500, whereas other industries have a flat minimum fee of NPR 19,000.
4. Do your service charges include all applicable government fees and taxes?
No, our service charges for FDI registration are strictly for our professional consultancy and procedural services. All mandatory government fees, including OCR, DOI, Ward Registration, and associated taxes, are to be paid separately by the client.
