How to Register a Company in Nepal: PAN, VAT, and Office Registration
Registering a company in Nepal involves multiple government offices and each step has its own document requirements, fees, and timelines. This guide consolidates everything so you know exactly what to expect from OCR registration through to your local municipality business license.
Step 1: Reserve Your Company Name at the OCR
Before submitting your full application, you can check name availability and reserve your preferred company name at the Office of Company Registrar (OCR) website or office. A name that is identical or confusingly similar to an existing registered company will be rejected. You have 30 days to complete the full registration after reserving a name.
Step 2: Prepare Your Registration Documents
The OCR requires: a completed registration application form, a memorandum of association, articles of association, copies of citizenship certificates for all directors and shareholders, passport-sized photographs of all directors, and proof of the registered office address (a rental agreement or ownership document). If a director is a foreign national, a passport copy is required along with a visa.
Step 3: Submit and Pay at the OCR
Submit all documents at the OCR counter or through their online portal. The registration fee is calculated based on authorized capital. After payment and document verification, the OCR issues a company registration certificate, typically within 3 to 7 working days. This certificate is the foundation document for all further registrations.
Step 4: Obtain PAN at the Inland Revenue Department
Take your company registration certificate to the nearest Inland Revenue Department (IRD) office to apply for a Permanent Account Number (PAN). You will need the certificate, citizenship copies of all directors, a passport photo, and the company's memorandum of association. PAN is usually issued on the same day or within one working day. Without PAN, you cannot open a bank account or file taxes.
Step 5: Register for VAT at the IRD
If your projected annual revenue exceeds NPR 5 million (goods) or NPR 2 million (services), VAT registration is mandatory. You apply at the same IRD office using your PAN certificate, company registration documents, and a completed VAT registration form. The IRD may send an inspector to verify your office location before issuing the VAT certificate. This process takes 3 to 10 working days.
Step 6: Register at Your Local Municipality
All businesses operating in Nepal must obtain a business operation license from the municipality or rural municipality (Gaun Palika) where they are physically located. You need your company registration certificate, PAN, and a rental agreement or property ownership proof. Some municipalities also require a copy of your VAT certificate if applicable. This license must be renewed annually.
Step 7: Register with the Department of Industry (If Applicable)
Manufacturing businesses, businesses with significant capital investment, and those in regulated sectors must register with the Department of Industry (DoI). For service businesses below NPR 5 crore in fixed assets, DoI registration is optional but provides access to government schemes and export promotion support. The DoI issues an industry registration certificate valid for the life of the business.
Once all registrations are complete, open a company bank account and ensure your accounting system is set up to handle VAT filings, income tax returns, and annual OCR reporting from day one. Good record-keeping from the start prevents complications when your business grows.
Frequently Asked Questions
Can I register a company in Nepal online?
The OCR has an online portal that allows you to fill forms and submit initial documents digitally. However, physical verification and document submission at the office is still required for most steps. PAN and VAT registration at the IRD typically requires an in-person visit.
Is a physical office required to register a company in Nepal?
Yes, you must provide a registered office address when filing with the OCR. This can be a rented space, a co-working address, or even a home address in some cases. The municipality registration will also verify your operating location.
How often do I need to renew my company registrations in Nepal?
The municipality business license must be renewed every fiscal year (Ashadh end). The OCR requires private limited companies to submit annual returns and pay renewal fees. PAN and VAT registrations do not expire but require regular filing of tax returns and VAT returns (monthly or trimester).
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