Industry Registration in Nepal

What is Industry Registration in Nepal?

Industry registration in Nepal is a mandatory legal process through which businesses are officially recognized by the government. Under the Industrial Enterprises Act 2076 (2020), any manufacturing, production, or service-oriented business must obtain registration before commencing operations.

The Department of Industry (DOI) under the Ministry of Industry, Commerce and Supplies regulates this process. Registration provides legal status, access to government incentives, and eligibility for loans and foreign investment.

Why is Industry Registration Required in Nepal?

Legal recognition is essential for businesses to operate within Nepal's regulatory framework. Industry registration ensures:

• Legal protection under Nepali law
• Access to government subsidies and incentives
• Eligibility for bank loans and financial services
• Permission to participate in public procurement
• Framework for foreign investment approval
• Intellectual property protection rights

Without proper registration, businesses face penalties, operational restrictions, and inability to access formal financial systems.

Who Needs to Register as an Industry in Nepal?

Any business entity engaged in manufacturing, production, processing, or service activities must register. This includes:

• Manufacturing units (textile, food processing, electronics)
• Service industries (IT services, consultancy, healthcare)
• Energy sector (hydropower, solar, renewable energy)
• Agro-based industries (dairy, poultry, agricultural processing)
• Construction materials (cement, steel, bricks)

Both domestic and foreign-owned enterprises require registration before commencing commercial operations.

Types of Industries in Nepal (Classification System)

Industries are classified based on fixed capital investment under the Industrial Enterprises Act 2076:

Industry Type	Fixed Capital Range	Worker Limit
Micro Industry	Up to NPR 2 million	Maximum 9 workers
Cottage Industry	Traditional/handicraft	Family-based
Small Industry	NPR 2-150 million	As per requirement
Medium Industry	NPR 150-500 million	As per requirement
Large Industry	Above NPR 500 million	As per requirement

 

Note: Fixed capital includes land, building, machinery, and equipment

Where to Register Industry in Nepal?

Registration authority depends on industry type and investment scale:

• Department of Industry (DOI) - Kathmandu: Large industries, foreign investment, multi-province operations
• Cottage and Small Industry Offices - District level: Micro, cottage, and small industries
• Provincial Industry Offices: Medium industries within single province

Contact Details:

• Website: doind.gov.np
• Address: Tripureshwor, Kathmandu
• Phone: 01-5361302, 01-5361168

Documents Required for Industry Registration

Basic Documents (All Categories):

• Application form (Schedule 1)
• Project details (Schedule 2)
• Citizenship certificate (Nepali nationals)
• Passport (foreign nationals)
• Company registration certificate (if applicable)
• Memorandum and Articles of Association
• Land ownership/rent agreement
• Industry location map
• Bank statement (source verification)
• Self-declaration letter
• Photographs (white background)
• Local authority recommendation letter

Additional Documents (Large Industries):

• Detailed Project Report (DPR)
• Environmental Impact Assessment (EIA) or Initial Environmental Examination (IEE)
• Foreign Investment Approval (for FDI projects)
• Joint venture agreement (if applicable)
• Technical feasibility study

Industry Registration Process Step-by-Step

Step 1: Document Preparation

All required documents must be prepared, attested, and organized. Digital copies should be scanned in high resolution for online submission.

Step 2: Online Application

Create account at doind.gov.np and submit application with digital copies of all documents. Each phone number can register only one account.

Step 3: Physical Document Submission

Submit original documents to DOI or relevant office within 7 days of online application. Incomplete submissions are rejected.

Step 4: Document Verification

Authorities examine documents for compliance. Additional information may be requested within 90 days.

Step 5: Fee Payment

Registration fees are paid based on capital investment. Payment must be made through designated bank vouchers.

Step 6: Certificate Issuance

Registration certificate is issued within 5 working days after fee payment and document approval.

Industry Registration Fees in Nepal (2026)

Capital Investment (NPR)	Registration Fee (NPR)
0 - 100,000	1,000
100,001 - 500,000	4,500
500,001 - 2,500,000	9,500
2,500,001 - 10,000,000	16,000
10,000,001 - 20,000,000	19,000
20,000,001 - 30,000,000	22,000
30,000,001 - 40,000,000	25,000
40,000,001 - 50,000,000	28,000
50,000,001 - 60,000,000	31,000
60,000,001 - 70,000,000	34,000
70,000,001 - 80,000,000	37,000
80,000,001 - 90,000,000	40,000
90,000,001 - 100,000,000	43,000
Above 100,000,000	43,000 + NPR 30 per additional 100,000

 

Additional application fee: NPR 100

Timeline for Industry Registration

Processing time varies by industry complexity:

• Small/Cottage Industries: 2-4 weeks
• Medium Industries: 4-8 weeks
• Large Industries: 3-6 months
• Foreign Investment Projects: 4-8 months

Delays occur due to incomplete documents, environmental clearances, or inter-departmental coordination requirements.

Industries Requiring Special Permission

Certain industries need approval from Industrial and Investment Promotion Board before registration:

1. Arms, ammunition, explosives manufacturing
2. Security printing, currency production
3. Tobacco products (cigarettes, bidi, cigar)
4. Alcohol production and microbreweries
5. Stone, ballast, sand excavation
6. Radio communication equipment
7. Precious minerals and petroleum products
8. LPG refilling industries
9. Drone manufacturing and services
10. Industries affecting national security

Post-Registration Compliance Requirements

Immediate Requirements:

• PAN Registration: Within 30 days at Inland Revenue Department
• Local Ward Registration: Municipal approval for business location
• Tax Registration: VAT registration if applicable
• Bank Account: Business account opening

Annual Compliance:

• Operation details submission within 6 months of fiscal year-end
• Financial statement filing
• Environmental compliance reports
• Labor law compliance verification
• Renewal fee payment

Operational Reporting:

Commercial production must commence within the timeframe specified in registration certificate. Extensions require prior approval with delay fees.

Foreign Investment in Industry Registration

Foreign investors follow additional procedures under Foreign Investment and Technology Transfer Act 2075 (2019):

Key Provisions:

• 100% foreign ownership allowed (except negative list industries)
• National treatment guaranteed
• Repatriation of profits permitted
• Business visas for investors
• Technology transfer facilitation

Additional Documents Required:

• Foreign Investment Approval from DOI
• Nepal Rastra Bank approval for capital transfer
• Board resolution from foreign company
• Auditor's certificate for investment amount
• Source of funds declaration

Common Mistakes to Avoid During Registration

Documentation Errors:

• Incomplete application forms
• Missing notarized copies
• Expired citizenship/business certificates
• Inconsistent information across documents

Procedural Mistakes:

• Wrong industry classification
• Insufficient capital verification
• Missing environmental clearances
• Late submission deadlines

Compliance Failures:

• Delayed PAN registration
• Non-compliance with local ward requirements
• Missing renewal deadlines
• Inadequate record maintenance

Benefits of Proper Industry Registration

Legal Benefits:

• Official government recognition
• Protection under Industrial Enterprises Act
• Dispute resolution mechanism access
• Intellectual property safeguards

Financial Benefits:

• Bank loan eligibility
• Government subsidy access
• Tax incentive qualification
• Foreign investment approval

Operational Benefits:

• Public procurement participation
• Export-import license eligibility
• Business expansion facilitation
• Industry association membership

Renewal and Amendment Procedures

Industry Renewal Process:

1. Application submission before expiry
2. Updated documentation provision
3. Renewal fee payment
4. Compliance verification
5. New certificate issuance

Amendment Procedures:

• Capital Increase: Board resolution, auditor certificate, additional fee payment
• Location Change: New land documents, local authority approval, updated registration
• Ownership Transfer: Share transfer documents, board resolution, government approval

Penalties for Non-Compliance

Registration Violations:

• Late registration: NPR 5,000-50,000 fine
• Operating without registration: Business closure and penalties
• False information: Registration cancellation and legal action

Compliance Failures:

• Late renewal: 25% additional fee
• Non-submission of reports: NPR 10,000-100,000 penalty
• Environmental violations: Project closure and cleanup orders

Frequently Asked Questions (FAQs)

What is the difference between company registration and industry registration in Nepal?

Company registration creates legal entity status through Office of Company Registrar. Industry registration provides operational license through Department of Industry for manufacturing/production activities.

How long does industry registration take in Nepal?

Processing time ranges from 2-4 weeks for small industries to 3-6 months for large industries. Foreign investment projects require 4-8 months due to additional approvals.

What are the fees for industry registration in Nepal?

Registration fees range from NPR 1,000 for micro industries to NPR 43,000+ for large industries, based on capital investment. Additional fees apply for amendments and renewals.

Can foreign nationals register industry in Nepal?

Yes, foreign nationals can register industries with 100% foreign ownership permitted. Additional approvals required from Department of Industry and Nepal Rastra Bank.

What documents are needed for industry registration?

Essential documents include citizenship certificate, company registration, land ownership proof, project details, environmental clearance, and local authority recommendation.

Where to apply for industry registration in Nepal?

Applications submitted to Department of Industry (Kathmandu) for large/foreign industries or District Cottage and Small Industry Office for small/cottage industries.

Is environmental clearance mandatory for all industries?

Environmental Impact Assessment (EIA) required for large industries. Initial Environmental Examination (IEE) needed for medium industries. Small industries require basic environmental compliance.

What happens if industry registration expires?

Expired registrations result in operational restrictions, penalty imposition, and loss of government benefits. Renewal must be completed within 6 months of expiry.

Can industry registration be transferred?

Transfer permitted through share transfer procedures, board resolutions, and government approval. New owner must meet eligibility criteria.

Are there tax benefits for registered industries?

Registered industries qualify for tax holidays, duty exemptions, export incentives, and depreciation allowances under government industrial promotion policies.

Recent Legal Updates (2025-2026)

Digital Registration System:

Online application portal enhanced with digital signature integration and real-time tracking capabilities.

One-Stop Service Center:

Foreign investment projects processed through single-window facility at Department of Industry.

Environmental Compliance:

Stricter environmental assessment requirements implemented for manufacturing industries.

Startup Enterprise Framework:

New provisions for startup registration with simplified procedures and tax incentives.

Professional Assistance for Industry Registration

Legal professionals provide comprehensive services including:

• Document preparation and verification
• Government liaison and follow-up
• Compliance management
• Renewal and amendment services
• Dispute resolution support

Government Authorities and References

Primary Sources:

• Department of Industry Nepal
• Office of Company Registrar
• Inland Revenue Department
• Nepal Rastra Bank

Legal Framework:

• Industrial Enterprises Act 2076 (2020)
• Foreign Investment and Technology Transfer Act 2075 (2019)
• Environment Protection Act 2076 (2019)
• Company Act 2063 (2006)

Legal Disclaimer: This guide provides general information about industry registration in Nepal. Specific requirements may vary based on individual circumstances. Professional legal consultation recommended for complex cases.

Next Steps: Contact qualified legal professionals for personalized assistance with industry registration process and compliance management.