Sagar Mahatara

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Sagar Mahatara

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FDI Lawyer

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Cost of Registering a Company in Nepal (2025) — OCR Fees, Other Costs & Legal Checklist

September 21, 2025 Registration

Introduction

The Office of the Company Registrar (OCR) sets government registration fees according to authorised capital. This article breaks down the government fee slabs for private and public companies, explains the routine additional costs (PAN/VAT, name reservation, stamp duty, notary, bank charges and professional fees).

1. The most important cost driver: authorised capital

Nepal’s OCR charges the primary government registration fee according to the company’s authorised capital. Multiple authoritative practitioner guides and OCR-linked sources reproduce the same slab structure: for private companies, the lowest slab (up to NPR 100,000) carries a minimal fee of NPR 1,000, then increases as the authorised capital increases. Public company slabs are higher and start from larger bands.

Private Company Registration Fees

Amount of Authorized Capital (NPR)Registration Fee (NPR)
Up to 1,00,0001,000
1,00,001 to 5,00,0004,500
5,00,001 to 25,00,0009,500
25,00,001 to 1,00,00,00016,000
1,00,00,001 to 2,00,00,00019,000
2,00,00,001 to 3,00,00,00022,000
3,00,00,001 to 4,00,00,00025,000
4,00,00,001 to 5,00,00,00028,000
5,00,00,001 to 6,00,00,00031,000
6,00,00,001 to 7,00,00,00034,000
7,00,00,001 to 8,00,00,00037,000
8,00,00,001 to 9,00,00,00040,000
9,00,00,001 to 10,00,00,00043,000
10,00,00,000 above30 per 1 lakh

Public Company Registration Fees

Amount of Authorized Capital (NPR)Registration fee (NPR)
Up to 1,00,00,00015,000
1,00,00,001 to 10,00,00,00040,000
10,00,00,001 to 20,00,00,00070,000
20,00,00,001 to 30,00,00,0001,00,000
30,00,00,001 to 40,00,00,0001,30,000
40,00,00,001 to 50,00,00,0001,60,000
Above 50,00,00,0003000 per Rs. 1 crore

2. Other statutory/administrative payments you must budget for

Aside from the OCR government fee, expect the following mandatory/typical payments:

  • Name reservation fee (OCR): No such fee is required.
  • PAN (Permanent Account Number) registration (Inland Revenue Office): No such fee is required.
  • VAT registration (if turnover threshold met): registration formalities; fees are administrative.
  • Stamp duty/notary charges for documents (MOA/AOA, share subscriptions): small but cumulative — often NPR 20–1,000 depending on instrument and value.
  • Bank charges for certification of paid-up capital deposit/bank letters: NPR 500–5,000, depending on the bank.
  • Municipality trade license / local registration: varies by local body — often ten percent rent tax and business tax vary.

Practical example: a startup with authorised capital of NPR 200,000 would typically pay the OCR slab fee for the 100,001–500,000 band (e.g., NPR 4,500) + name reservation + PAN + notarisation + minor bank charges.


3. Professional fees and hidden costs (don’t ignore them)

You will likely engage a lawyer, company secretary, or registration agent. Market rates vary widely:

  • DIY / OCR online only: minimal professional cost but higher administrative burden.
  • Professional incorporation package: commonly NPR 15,000–40,000 for drafting MOA/AOA, DSCs, notarisation, document filing, and follow-up. International or boutique firms may charge more (some full-service offerings cost USD-equivalent packages, including bank-account/setup).

Note: pay for clarity — a poorly drafted MOA/AOA, ambiguous share classes, or incorrect capital wording causes downstream re-filing and additional OCR fees. The cheapest route up-front can cost multiples later.


4. Foreign investors — extra layers of cost and approvals

If foreign investment is involved, additional approvals (Investment Board/Nepal Rastra Bank or sectoral clearances) and documentation are required. FDI projects often incur professional due diligence, authorisation fees, and possible sectoral license fees. Repatriation, banking, and FX setups also carry administrative charges.


5. Timing & process costs (time is money)

OCR processing times depend on completeness and workload. Multiple rounds of corrections or queries lead to repeated visits or resubmissions, which translate to time costs for founders and consultants. If timelines are mission-critical (e.g., to secure a funding milestone), budget for express professional handling.


6. Common myths / wrong assumptions (legal pushback)

  • “Lower paid-up capital reduces fees always.” — You may minimise registration fees by choosing lower authorised capital, but under-capitalising a company has commercial and regulatory consequences (bank credibility, investor perception, sectoral minimums). Don’t game the slab system without considering business needs.
  • “Online OCR is always cheaper.” — Only in government fee terms; however, incorrect or incomplete online filings lead to resubmissions and hidden costs.
  • “One fee covers all post-registration obligations.” — No. Annual filings, audits, and tax compliance are recurring costs.

As counsel, I challenge founders: do you save a few thousand NPR now only to pay multiples later in administrative delays, re-filing, or investor distrust?


7. Practical tips from a corporate lawyer

  1. Choose an appropriate authorised capital — match your business plan, not just the cheapest OCR slab.
  2. Draft MOA/AOA with foresight — share classes, transfer restrictions, and pre-emption rights matter.
  3. Bundle registrations — get PAN and VAT sorted early to avoid delays for bank accounts and contracts.
  4. Keep evidence — bank receipts, OCR payment vouchers, and proof of submission will save time.
  5. Get a professional package for complex cases (FDI, regulated sectors). The incremental professional fee is insurance against costly mistakes.
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