Updated on: January 1, 2026 | Drafted by- FDI Team of Nepal | Reviewed by- Department of Industry Expert
Business Process Outsourcing Company Registration in Nepal has become increasingly important as Nepal emerges as a competitive destination for global outsourcing services. This comprehensive guide provides detailed information about the legal process, costs, and requirements for establishing a BPO company in Nepal.
What is Business Process Outsourcing Company Registration in Nepal?
Business Process Outsourcing Company Registration in Nepal is the formal legal procedure through which companies providing outsourced business services are established and recognized by government authorities. BPO companies in Nepal typically offer customer support, data entry, IT technical support, finance and accounting services, and human resources outsourcing to both domestic and international clients.
The registration process is governed by multiple legal frameworks, including the Companies Act 2063 (2006), the Industrial Enterprises Act 2076 (2020), and the Foreign Investment and Technology Transfer Act 2075 (2019). These laws ensure that BPO operations comply with national regulations regarding taxation, employment, and foreign exchange.
Why Nepal for BPO Company Registration?
Nepal has been recognized as an emerging hub for outsourcing services. Several factors make Nepal attractive for BPO company registration:
- Cost-effective operations with competitive labor costs
- Skilled English-speaking workforce with growing technical expertise
- 100% foreign ownership permitted in most BPO services
- Government incentives for IT and service exports under the Income Tax Act 2058
- Strategic time zone for serving European and Asian markets
- Improving digital infrastructure and internet connectivity
The government has actively encouraged foreign direct investment in BPO sector through legislative reforms and simplified registration procedures.
Legal Framework for BPO Company Registration in Nepal
Understanding the legal framework is essential before initiating BPO company registration in Nepal. The process involves compliance with several key laws:
Primary Governing Laws
- Companies Act 2063 (2006): Regulates company formation, governance, and dissolution. Administered by the Office of Company Registrar (OCR).
- Industrial Enterprises Act 2076 (2020): Classifies BPO services under Schedule-7 as IT sector industry. Requires registration with the Department of Industry (DOI).
- Foreign Investment and Technology Transfer Act 2075 (2019): Governs foreign investment in BPO companies, including minimum capital requirements and approval procedures.
- Income Tax Act 2058 (2002): Specifies tax obligations, incentives, and compliance requirements for BPO operations.
- Value Added Tax Act 2052 (1996): Regulates VAT registration and compliance for services provided within Nepal.
Regulatory Authorities
Multiple government agencies are involved in BPO company registration in Nepal:
|
Authority |
Responsibility |
Website |
|
Office of Company Registrar (OCR) |
Company incorporation and compliance |
|
|
Department of Industry (DOI) |
Foreign investment approval and industry registration |
|
|
Inland Revenue Department (IRD) |
Tax registration (PAN/VAT) |
|
|
Nepal Rastra Bank (NRB) |
Foreign exchange regulation |
|
|
Local Municipality |
Business operating license |
Varies by location |
Types of BPO Companies in Nepal
Different business structures can be chosen for BPO company registration in Nepal. The selection depends on ownership, capital, and operational scale.
Company Structures Comparison
|
Company Type |
Minimum Capital |
Foreign Ownership |
Liability |
Best For |
|
Private Limited Company |
NPR 100,000 |
Up to 100% |
Limited to shares |
Small to medium BPOs |
|
Public Limited Company |
NPR 10,000,000 |
Up to 100% |
Limited to shares |
Large-scale operations |
|
Branch Office |
No minimum |
100% |
Unlimited (parent liable) |
Existing foreign companies |
|
Joint Venture |
As agreed |
0-100% |
Limited to shares |
Partnership with locals |
Private Limited Companies are most commonly used for BPO company registration in Nepal due to lower capital requirements and operational flexibility.
Step-by-Step Process for BPO Company Registration in Nepal
The complete process for Business Process Outsourcing Company Registration in Nepal involves several sequential steps. Each step must be completed properly to avoid delays.
Step 1: Business Plan Preparation
Before any registration, a comprehensive business plan must be developed. This plan should include:
- Market analysis and target clients
- Service offerings (customer support, IT services, data management)
- Financial projections for 3-5 years
- Human resource requirements
- Technology infrastructure needs
The business plan is required for foreign investment approval and serves as a roadmap for operations.
Step 2: Company Name Reservation
The first formal step in BPO company registration in Nepal is name reservation with the Office of Company Registrar (OCR).
Procedure:
- Visit the OCR portal: https://application.ocr.gov.np
- Create a username and password
- Submit proposed company name (3 alternatives recommended)
- Pay reservation fee: NPR 500
Requirements:
- Name must be unique and not similar to existing companies
- Must include "Private Limited" or "Pvt. Ltd." for private companies
- Cannot contain prohibited words (Royal, National, etc.)
- Valid for 35 days from approval
Timeline: 1-2 working days
Step 3: Document Preparation
Essential documents must be prepared for BPO company registration in Nepal:
Constitutional Documents
- Memorandum of Association (MOA): States company objectives, authorized capital, and shareholder details. For BPO companies, objectives must clearly mention "business process outsourcing services".
- Articles of Association (AOA): Details internal governance, director powers, and shareholder rights.
Identity Documents
- Citizenship certificates (for Nepali nationals)
- Passport copies (for foreign nationals)
- Recent passport-sized photographs (3 each)
Office Documents
- Rental agreement or property ownership documents
- Landlord's citizenship certificate (if rented)
- Location map of registered office
Foreign Investment Documents (if applicable)
- Foreign investment approval from Department of Industry
- Bank solvency certificate from investor's home country
- Board resolution authorizing investment
- Police clearance certificate
Step 4: Company Registration with OCR
Submit all documents through the OCR online portal for BPO company registration in Nepal.
Registration Fees (based on authorized capital):
|
Capital Range (NPR) |
Registration Fee |
|
Up to 100,000 |
1,000 |
|
100,001 - 500,000 |
4,500 |
|
500,001 - 2,500,000 |
9,500 |
|
2,500,001 - 5,000,000 |
16,500 |
|
Above 5,000,000 |
21,500 + 0.2% of excess |
Timeline: 3-5 working days for verification
Upon approval, the Certificate of Incorporation is issued, containing the company registration number.
Step 5: Permanent Account Number (PAN) Registration
Within 7 days of company registration, PAN registration must be completed with the Inland Revenue Department.
Process:
- Visit IRD portal: https://ird.gov.np
- Select "Business PAN" registration
- Enter company details and upload documents
- Submit and print acknowledgment slip
- Visit tax office for verification with original documents
- Receive PAN certificate (1-2 working days)
No fee is charged for PAN registration.
Step 6: Industry Registration with Department of Industry
BPO companies must be registered as an industry under the Industrial Enterprises Act 2076 (2020). BPO services are classified under Schedule-7 as IT sector industry.
Process:
- Submit application through Industry Management Information System (IMIS)
- Attach company registration certificate and MOA/AOA
- Pay industry registration fee: NPR 1,000
- Obtain industry registration certificate
Timeline: 3-7 working days
Step 7: Local Municipality Registration
Register with the local municipality where the business operates for business operating license.
Requirements:
- Company registration certificate
- PAN certificate
- Industry registration certificate
- Application with company details
- Office location details
Fee: Varies by municipality (NPR 5,000-15,000 annually)
Step 8: Foreign Investment Approval (for Foreign Investors)
For foreign investment in BPO company registration in Nepal, approval from the Department of Industry is mandatory.
Minimum Investment: NPR 20 million (approx. USD 150,000) as per 2022 budget revision.
Required Documents:
- Project report with financial and technical aspects
- Foreign investor's company profile/bio-data
- Bank solvency certificate
- Source of funds declaration
- Power of attorney for local representative
Process:
- Submit application through IMIS portal
- DOI review and approval (7-10 working days for service sector)
- Obtain foreign investment approval letter
Step 9: Nepal Rastra Bank Registration
For foreign exchange transactions, registration with Nepal Rastra Bank is required.
Process:
- Submit foreign investment approval letter
- Bank account details where investment will be deposited
- NRB issues notification letter for investment inflow
Timeline: 5-7 working days
Step 10: Additional Licenses (if required)
Depending on service type, additional licenses may be needed:
- Voice-based services: Telecommunications license from Nepal Telecommunications Authority
- Data processing: Compliance with Electronic Transactions Act 2063
- Export services: Exporter registration with Department of Customs
Timeline and Costs Summary for BPO Company Registration in Nepal
Complete Timeline
|
Phase |
Duration |
|
Name reservation |
1-2 days |
|
Document preparation |
5-7 days |
|
OCR registration |
3-5 days |
|
PAN registration |
1-2 days |
|
Industry registration |
3-7 days |
|
Municipality license |
2-3 days |
|
Foreign investment approval (if applicable) |
7-10 days |
|
NRB registration (if applicable) |
5-7 days |
|
Total (without FDI) |
15-20 days |
|
Total (with FDI) |
30-45 days |
Cost Breakdown
|
Item |
Cost (NPR) |
|
Name reservation |
500 |
|
Company registration (minimum capital) |
1,000 |
|
PAN registration |
Free |
|
Industry registration |
1,000 |
|
Municipality license (annual) |
5,000-15,000 |
|
Foreign investment approval |
5,000 |
|
Professional fees (legal/consulting) |
25,000-50,000 |
|
Minimum Total (Nepali-owned) |
~32,500 |
|
Minimum Total (Foreign-owned) |
~37,500 |
Note: Costs exclude office setup, technology infrastructure, and working capital.
Foreign Investment Rules for BPO Company Registration in Nepal
Foreign investment in BPO sector is highly encouraged in Nepal. Key provisions include:
Permissibility
- 100% foreign ownership allowed in most BPO services
- Not listed in the Negative List of industries
- Classified as "industry" under Industrial Enterprises Act
Minimum Capital Requirements
- NPR 20 million (approx. USD 150,000) minimum foreign investment
- Must be brought through banking channels
- Converted to Nepali Rupees through authorized banks
Approval Authority
- Department of Industry: For investments below NPR 6 billion
- Investment Board of Nepal: For investments above NPR 6 billion
Repatriation Rights
Foreign investors can repatriate:
- Net profits after taxes
- Dividends
- Principal investment upon liquidation
- Proceeds from share sales
Repatriation must be through authorized banking channels with tax clearance certificates.
Taxation for BPO Companies in Nepal
Understanding tax obligations is crucial for BPO company registration in Nepal.
Corporate Income Tax
- Standard rate: 25% of taxable income
- Export services: Eligible for 50% deduction on export income
- IT companies: 5-year income tax exemption in specified areas
Value Added Tax (VAT)
- Domestic services: 13% VAT applicable
- Export services: VAT exempt (0% rate)
- Registration threshold: Mandatory for turnover above NPR 5 million
Tax Incentives for BPO Sector
|
Incentive |
Benefit |
Eligibility |
|
Income Tax Exemption |
5 years |
IT companies in specified zones |
|
Export Deduction |
50% of export income |
All export service providers |
|
Accelerated Depreciation |
Higher rates on IT equipment |
Technology companies |
|
Dividend Exemption |
No withholding on reinvestment |
All companies |
Compliance Requirements
- Annual tax returns within 3 months of fiscal year-end (mid-July)
- Quarterly advance tax for turnover above NPR 10 million
- Monthly VAT returns
- Annual audit by licensed auditor
Post-Registration Compliance for BPO Companies
After completing BPO company registration in Nepal, ongoing compliance is mandatory.
Annual Compliance
- Company Registrar: File annual returns within 6 months of fiscal year-end with audited financial statements
- Tax Returns: Submit within 3 months of fiscal year-end
- Annual General Meeting: Conduct within 6 months of fiscal year-end
- Municipality License: Renew annually
- Department of Industry: Submit progress reports every 6 months
Labor Law Compliance
Under the Labor Act 2074 (2017):
- Minimum 75% Nepali employees required
- Maximum 8 hours daily, 48 hours weekly work limit
- Minimum wage: NPR 15,000/month (unskilled workers)
- Mandatory social security enrollment
- Annual leave, sick leave, and maternity leave provisions
Data Protection Requirements
- Comply with Electronic Transactions Act 2063 (2008)
- Implement reasonable security practices
- Non-disclosure agreements with employees
- Client data protection protocols
Challenges in BPO Company Registration in Nepal
Several challenges may be encountered during BPO company registration in Nepal:
- Bureaucratic Delays: Multiple agencies involved can cause processing delays
- Documentation Errors: Incomplete or improperly drafted MOA/AOA lead to rejection
- Foreign Investment Approval: Strict scrutiny of source of funds
- Local Office Requirement: Physical office space mandatory; home-based not permitted
- Banking Procedures: Strict foreign exchange regulations
- Sector-Specific Licenses: Voice services require telecommunications license (2-3 months)
Solutions:
- Engage experienced legal professionals
- Ensure all documents are properly notarized and authenticated
- Maintain clear financial records for investment source verification
- Secure office space before registration
Key Services Under BPO in Nepal
Business Process Outsourcing Company Registration in Nepal covers various service categories:
- Customer Support Services: Call centers, help desks, technical support
- Human Resources Outsourcing: Payroll processing, recruitment, training
- Finance and Accounting: Bookkeeping, tax preparation, financial analysis
- IT and Technical Support: Software development, network management
- Data Entry and Management: Data processing, digitization, database management
- Sales and Marketing Support: Lead generation, market research
- Supply Chain and Logistics: Order processing, inventory management
Frequently Asked Questions (FAQs)
What is the minimum capital for BPO company registration in Nepal?
For Nepali-owned private limited companies, the minimum capital is NPR 100,000. For foreign-owned BPO companies, the minimum foreign investment requirement is NPR 20 million (approximately USD 150,000) as per the Foreign Investment and Technology Transfer Act 2075 (2019).
How long does BPO company registration in Nepal take?
The complete process takes 15-20 days for Nepali-owned companies without foreign investment. For foreign-owned BPO companies requiring FDI approval, the timeline extends to 30-45 days including all approvals from Department of Industry and Nepal Rastra Bank.
Is 100% foreign ownership allowed in BPO companies in Nepal?
Yes, 100% foreign ownership is permitted in most BPO services under the Foreign Investment and Technology Transfer Act 2075 (2019). Foreign investors must obtain approval from the Department of Industry and meet the minimum investment threshold of NPR 20 million.
What documents are required for BPO company registration in Nepal?
Essential documents include: Memorandum of Association, Articles of Association, citizenship certificates/passports of shareholders and directors, proof of office address, bank statements, foreign investment approval (if applicable), and business plan. All foreign documents must be notarized and authenticated.
Can BPO companies operate from home in Nepal?
No, BPO companies cannot operate from home. The Companies Act 2063 requires a physical registered office address in Nepal where official communications can be received. Office lease agreements or property ownership documents must be submitted during registration.
What taxes apply to BPO companies in Nepal?
BPO companies pay 25% corporate income tax on taxable income. Export services are VAT-exempt, while domestic services attract 13% VAT. Tax incentives include 5-year income tax exemption for IT companies in specified areas and 50% deduction on export income.
Are there special licenses required for call center operations in Nepal?
Yes, voice-based BPO services require a telecommunications service license from the Nepal Telecommunications Authority under the Telecommunications Act 2053 (1997). The licensing process typically takes 2-3 months and requires technical specifications and service delivery plans.
How can foreign investors repatriate profits from Nepal?
Foreign investors can repatriate net profits, dividends, and capital through authorized banking channels after paying applicable taxes. The Foreign Exchange (Regulation) Act 2019 permits repatriation of legitimate investment returns. Tax clearance certificates and proper documentation are required.
What are the annual compliance requirements for BPO companies?
Annual compliance includes: filing returns with Company Registrar within 6 months of fiscal year-end, submitting tax returns within 3 months, conducting annual general meetings, renewing municipal licenses annually, and submitting progress reports to Department of Industry every 6 months.
Does Nepal offer tax incentives for BPO companies?
Yes, significant incentives are available: 5-year income tax exemption for IT companies in specified areas, 50% deduction on export income, accelerated depreciation on IT equipment, and VAT exemption on export services under the Income Tax Act 2058 and Value Added Tax Act 2052.
What is the role of Nepal Rastra Bank in BPO registration?
Nepal Rastra Bank regulates foreign exchange transactions. Foreign-invested BPO companies must register with NRB to obtain approval for investment inflow and to facilitate foreign currency transactions for international client payments and profit repatriation.
Can foreign employees work in Nepali BPO companies?
Yes, foreign employees can work in Nepal with proper work permits and visas. The company must obtain work permit approval from the Department of Labor. At least 75% of employees must be Nepali citizens under the Labor Act 2074 (2017). Work visas are typically issued for one year and are renewable.
Recent Trends and Market Insights
The BPO industry in Nepal has shown significant growth:
- Market Growth: 15-20% annual growth in BPO sector
- Employment: Over 50,000 direct jobs created in outsourcing sector
- Export Revenue: BPO services contribute significantly to Nepal's service exports
- Government Focus: Digital Nepal Framework promotes IT and BPO development
- Infrastructure: Development of IT parks in Kathmandu, Pokhara, and Biratnagar
Updated on January 1, 2026 - The government continues to simplify BPO company registration in Nepal through online systems and policy reforms.
Call to Action
Ready to start your BPO company registration in Nepal? Professional guidance ensures smooth completion of all legal requirements. Contact experienced legal consultants to navigate the registration process efficiently and ensure compliance with all applicable laws.
Legal Source
- Office of Company Registrar (OCR) - Official portal for company registration: https://ocr.gov.np
- Department of Industry (DOI) - Foreign investment approval: https://doind.gov.np
- Inland Revenue Department (IRD) - Tax registration: https://ird.gov.np
- Nepal Rastra Bank - Foreign exchange regulations: https://www.nrb.org.np
- Investment Board of Nepal - Large-scale investments: https://ibn.gov.np
- Nepal Telecommunications Authority - Telecommunications licenses: https://nta.gov.np
- Industrial Enterprises Act 2076 (2020) - Legal framework: https://lawcommission.gov.np
- Foreign Investment and Technology Transfer Act 2075 (2019): https://moics.gov.np
- Companies Act 2063 (2006): https://lawcommission.gov.np
- Income Tax Act 2058 (2002): https://ird.gov.np
- Value Added Tax Act 2052 (1996): https://ird.gov.np
- Labor Act 2074 (2017): https://dol.gov.np
- Electronic Transactions Act 2063 (2008): Data protection guidelines: https://ntc.gov.np
- Special Economic Zone Act 2073 (2016): Investment incentives: https://sez.gov.np
- UNCTAD Investment Policy Hub - FDI policy updates: https://investmentpolicy.unctad.org
- World Bank Nepal Economic Update: Market insights: https://www.worldbank.org/en/country/nepal
- Nepal Rastra Bank Foreign Exchange Regulations: https://www.nrb.org.np/forex
- Department of Labor Work Permit Guidelines: https://dol.gov.np/work-permit
Disclaimer: This guide is for informational purposes only and shall not be construed as legal advice. The registration process and requirements may change based on government policy updates. Professional legal consultation is recommended for specific cases. The firm shall not be liable for consequences arising from actions based on this information.
