Nepal Business License Process

A business license in Nepal is mandatory before any commercial operation begins. Understanding the Nepal business license process is crucial for entrepreneurs. This guide covers every legal requirement for company registration Nepal, tourism permits, education consultancy approvals, and manpower licensing.

Table of Contents

• What is Business License in Nepal?
• Types of Business Licenses in Nepal
• Step-by-Step Process for Company Registration
• Education Consultancy License Nepal
• Travel Agency License Nepal
• Manpower License Process Nepal
• PAN & VAT Registration Requirements
• Post-License Compliance
• Fees and Timelines
• FAQs
• References

What is Business License in Nepal?

A business license in Nepal is defined as official permission granted by government authorities to conduct commercial activities. Without proper company registration in Nepal, no legal entity can be formed. The business registration process Nepal is governed by multiple statutes.

Primary Legal Framework

The business license process operates under several key legislations:

Legal Instrument	Governing Body	Application Scope
Companies Act, 2063	Office of Company Registrar (OCR)	All company formations
Industrial Enterprises Act, 2076	Department of Industry	Industrial operations
Tourism Act, 1978	Department of Tourism	Travel/trekking agencies
Foreign Employment Act, 2064	Department of Foreign Employment	Manpower agencies
Education Act, 2028	Ministry of Education	Consultancy services

Types of Business Licenses in Nepal

Different business activities require specific license types in Nepal. The main categories include:

1. Company Registration Certificate

Issued by OCR Nepal, this is the foundational document for all businesses.

2. Industry Registration Certificate

Required for manufacturing and industrial enterprises under the Department of Industry Nepal.

3. Tourism License Nepal

Mandatory for travel agency license Nepal applications and trekking operations.

4. Education Consultancy License

Granted by MoEst and MOSD Nepal or provincial ministries.

5. Manpower License Nepal

Regulated by DoFE Nepal for overseas recruitment.

6. PAN Registration Certificate

Essential tax identification from IRD Nepal.

7. VAT Registration Certificate

Required for businesses exceeding NPR 5 million turnover.

8. Money Exchange License Certificate 

Required by Money exchange company issued by NRB Nepal. 

Step-by-Step Process for Company Registration Nepal

The company registration process Nepal can be completed online through camis.ocr.gov.np.

Phase 1: Name Reservation

Step 1: Access the OCR portal at ocr.gov.np
Step 2: Create user account with mobile verification
Step 3: Submit three alternative company names
Step 4: Pay NPR 100 name reservation fee
Step 5: Wait 1-3 working days for approval

The reserved name remains valid for 35 days from approval date.

Phase 2: Document Preparation

Required Documents for Company Registration Nepal:

• Application Form (Schedule 1 format)
• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Citizenship certificates of shareholders
• Passport copies (for foreign investors)
• FDI approval letter (if applicable)
• Local authority recommendation letter
• Office location map

For Foreign Investors:

• Department of Industry approval
• Foreign Investment and Technology Transfer Act compliance

Phase 3: Capital Structure Declaration

Company Type	Minimum Authorized Capital	Minimum Paid-up Capital
Private Limited	NPR 100,000	NPR 100,000
Public Limited	NPR 10,000,000	NPR 10,000,000
Single-Person Company	NPR 100,000	NPR 100,000
Non-Profit Company	NPR 100,000	NPR 100,000

Phase 4: Fee Payment

Company Registration Fees Nepal 2026:

Authorized Capital (NPR)	Private Company Fee	Public Company Fee
Up to 100,000	NPR 1,000	NPR 15,000
100,001 - 5,00,000	NPR 4,500	NPR 40,000
5,00,001 - 25,00,000	NPR 9,500	NPR 70,000
25,00,001 - 1,00,00,000	NPR 16,000	NPR 1,00,000
Above 10,00,00,000	NPR 30 per lakh	NPR 3,000 per crore

 

Payment is accepted through online banking, mobile banking, or e-wallet services.

Phase 5: Verification & Approval

The Office of Company Registrar reviews applications within 3-7 working days. Upon approval, the Certificate of Incorporation is issued electronically.

Phase 6: Post-Registration Formalities

Within 30 days, the following must be completed:

1. PAN registration at Inland Revenue Department
2. Ward office registration at local municipality
3. Share registry filing with OCR
4. Corporate bank account opening
5. VAT registration (if applicable)

Education Consultancy License Nepal

The education consultancy license Nepal requires dual approval from MOSD Nepal and provincial ministries.

Why Education Consultancy License is Required

Without MOSD approval, education consultancies face closure and penalties. The Ministry of social development mandates strict compliance standards.

Step-by-Step Process

Step 1: Complete company registration Nepal (as described above)
Step 2: Obtain PAN certificate from IRD
Step 3: Register with local ward office
Step 4: Open corporate bank account with minimum NPR 500,000 capital
Step 5: File application at Ministry of Social Development ECIS Portal (for Bagmati Province)
Step 6: Prepare for mandatory ministry inspection
Step 7: Receive provisional approval
Step 8: Final license issuance after compliance verification

Mandatory Requirements

• Minimum two trained counselors employed
• Office space minimum 500 sq ft with designated counseling rooms
• Transparent fee structure documentation
• Language instructor certificates (if offering test prep)
• Clean police clearance for all directors
• Educational qualifications proof (minimum Bachelor's degree)

Provincial Variations

Province	Governing Body	Processing Time
Bagmati	Ministry of Social Development, Hetauda	2-3 weeks
Gandaki	Ministry of Social Development, Pokhara	3-4 weeks
Lumbini	Ministry of Social Development, Butwal	2-3 weeks
Sudurpashchim	Ministry of Social Development, Dhangadhi	3-4 weeks

Education consultancy license Hetauda applications are processed faster due to digital infrastructure.

Inspection Criteria

The ministry inspection verifies:

• Physical infrastructure adequacy
• Counselor training documentation
• Student record-keeping systems
• Fee transparency compliance
• Fire safety measures

Travel Agency License Nepal | How to open Travel Agency in Nepal? 

A travel agency license Nepal is essential for tour operators, trekking agencies, and travel consultants.

Governing Authority

The Department of Tourism (DoT Nepal) under Ministry of Culture Tourism and Civil Aviation issues all tourism permits.

License Categories

1. Travel Agency License: For ticket booking and tour packages
2. Trekking Agency License: For mountain expeditions
3. Adventure Sports License: For rafting, paragliding, etc.
4. Hotel/Lodge License: For accommodation services

Application Process

Step 1: Company registration Nepal with tourism objectives in MoA
Step 2: Deposit bank guarantee (NPR 50,000 - NPR 500,000 depending on category)
Step 3: Submit application to DoT Nepal with:

• Company registration certificate
• Tax clearance certificate
• Office lease agreement (minimum 3 years)
• Staff credentials (first aid certified for trekking)
• Insurance policies

Step 4: Physical inspection by DoT officials
Step 5: License fee payment (NPR 25,000 for standard travel agency)
Step 6: License issuance (valid for 5 years)

Special Requirements for Trekking Agencies

• Guide certification from Nepal Academy of Tourism and Hotel Management
• First aid training for at least 2 staff members
• Emergency evacuation plan documentation
• Equipment safety certificates

Renewal Process

Tourism licenses must be renewed every 5 years with:

• Updated tax clearance
• Renewal fee NPR 15,000
• Compliance audit report
• Staff training certificates

Manpower License Nepal

The manpower license Nepal is the most regulated business permit due to worker protection concerns.

Why Strict Regulation Exists

The Department of Foreign Employment (DoFE Nepal) enforces rigorous standards to prevent exploitation of Nepali workers abroad.

Financial Requirements

Requirement	Amount (NPR)	Refund Status
Bank Guarantee	5,00,000	Refundable
Cash Deposit	1,50,00,000	Refundable
Minimum Capital	50,00,000	Non-refundable
License Fee	25,000	Non-refundable
Annual Renewal	15,000	Non-refundable

Total initial capital required: NPR 1,55,25,000

Eligibility Criteria

• Private limited company registration
• Clean criminal record of all promoters
• Minimum 5 years experience in HR or related field
• Office infrastructure meeting DoFE standards
• Dedicated grievance handling system

Documentation Checklist

1. Company registration certificate
2. MoA/AoA with foreign employment objectives
3. PAN certificate
4. Municipal business registration
5. Audited financial statements
6. Citizenship certificates (promoters)
7. Police clearance certificates
8. Bank deposit confirmations
9. Qualification certificates
10. Office ownership/lease documents

Processing Timeline

Phase	Activity	Duration
Phase I	Company incorporation	5-10 days
Phase II	Financial compliance	7 days
Phase III	Application submission	10 days
Phase IV	Verification & inspection	20-25 days
Phase V	License issuance	7 days

Total time: 49-59 days

Post-License Obligations

• Monthly recruitment reports submission
• Worker pre-departure orientation compliance
• Transparent fee structure maintenance
• Annual renewal within 3 months of fiscal year end
• Random DoFE inspections

Non-compliance penalties: Fines up to NPR 500,000, license suspension, or criminal charges.

PAN & VAT Registration Process

After company registration Nepal, tax registrations are mandatory.

PAN Registration Nepal

The Permanent Account Number (PAN) is issued by IRD Nepal for all taxpayers.

Required Documents

• Company registration certificate
• MoA/AoA copies
• Citizenship of directors
• Office address proof
• Application Form 2

Fees

• Individuals: NPR 200
• Entities: NPR 1,000

Processing Time

Online applications are processed in 1-3 days.

VAT Registration Nepal

Value Added Tax registration is compulsory when:

• Annual turnover exceeds NPR 5 million (goods) or NPR 2 million (services)
• Engaged in import/export
• Operating liquor/cigarette business

Application Process

1. Access taxpayerportal.ird.gov.np
2. Complete Form VAT 01
3. Upload PAN certificate and financial projections
4. Submit physical documents to local IRD office
5. Biometric verification of owner
6. Receive VAT certificate (7-10 days)

VAT Rate Structure

• Standard rate: 13%
• Zero-rated: Exports
• Exempt: Basic food items, education, health

Post-License Compliance Requirements

Maintaining business license Nepal validity requires ongoing compliance.

Annual Compliance Calendar

Month	Requirement	Authority
Shrawan	Annual return filing	OCR
Ashoj	License renewal (education)	MoEST and MOSD
Poush	Tax audit submission	IRD
Chaitra	Industry report filing	DOI
Ashadh	Tourism license renewal	DoT

Mandatory Filings

1. Annual returns with audited financials to OCR
2. Tax returns monthly/quarterly to IRD
3. Industry operation reports to Department of Industry
4. Worker recruitment records to DoFE (for manpower)
5. Tourism activity reports to DoT

Record Maintenance

Businesses must preserve:

• Shareholder registers (permanent)
• Financial records (7 years)
• Tax documents (7 years)
• Employment records (3 years)
• License copies (current + expired)

Fees and Timelines Summary

One-Time Costs

License Type	Government Fees	Professional Fees	Total Estimate
Company Registration	NPR 1,000-43,000	NPR 15,000-25,000	NPR 16,000-68,000
PAN Registration	NPR 1,000	NPR 2,000	NPR 3,000
Education Consultancy	NPR 5,000	NPR 20,000	NPR 25,000
Travel Agency	NPR 25,000	NPR 15,000	NPR 40,000
Manpower License	NPR 25,000	NPR 50,000	NPR 75,000

 

Recurring Annual Costs

Compliance Item	Frequency	Cost (NPR)
License renewal	Annual	3,000-15,000
Tax filing	Monthly/Annual	5,000-20,000
Audit fees	Annual	15,000-50,000
Ward renewal	Annual	1,000-5,000

 

FAQs

What is the fastest way to complete business registration in Nepal?

The company registration Nepal process can be completed in 1-5 working days if all documents are prepared correctly and submitted through the OCR online portal. However, sector-specific licenses may take additional time.

Can foreigners own 100% of a business in Nepal?

Foreign ownership is permitted in most sectors under the Foreign Investment and Technology Transfer Act, 2075. However, approval from the Department of Industry Nepal is required, and certain sectors have equity caps.

Is PAN registration mandatory before applying for other licenses?

Yes, PAN registration in Nepal must be completed immediately after company registration. Most licensing authorities require PAN as a prerequisite document.

How often must business licenses be renewed?

License Type	Validity Period	Renewal Deadline
Company Registration	Permanent	Annual returns only
Tourism License	5 years	Before expiry
Manpower License	1 year	Within 3 months of fiscal year end
Education Consultancy	1 year	Before Ashoj end
PAN	Permanent	Update changes only
VAT	Permanent	File returns regularly

 

What happens if a business operates without proper licensing?

Operating without a business license in Nepal can result in:

• Fines up to NPR 500,000
• Business closure orders
• Criminal prosecution
• Blacklisting from future registrations

Are online applications accepted for all license types?

Most licenses accept online applications through respective portals:

• OCR portal (ocr.gov.np)
• IRD portal (ird.gov.np)
• DoFE portal (dofe.gov.np)
• MoEST ECIS portal

What is the minimum capital requirement for a private limited company?

The minimum authorized capital for private limited companies is NPR 100,000 under the Company Act 2063. However, sector-specific minimums may apply.

How can license verification be done?

Official verification is available through:

• OCR verification portal (for company registration)
• IRD PAN verification system
• DoT licensee directory
• DoFE registered agency list

Which license is most difficult to obtain?

The manpower license Nepal is the most challenging due to stringent financial requirements (NPR 15.5 million deposit) and complex compliance obligations.

Is VAT registration required for service-based consultancies?

If annual turnover exceeds NPR 2 million, VAT registration Nepal becomes mandatory for education consultancies and other service providers.

Legal Sources 

For verification and detailed study, consult these official sources:

1. Office of Company Registrar Nepal: ocr.gov.np - Primary authority for company registration Nepal
2. Inland Revenue Department: ird.gov.np - Tax registration and PAN/VAT registration Nepal
3. Department of Tourism Nepal: tourismdepartment.gov.np - Travel agency license Nepal and trekking permits
4. Department of Foreign Employment: dofe.gov.np - Manpower license Nepal applications
5. Ministry of Education, Science and Technology: moe.gov.np - Education consultancy license Nepal approvals
6. Company Registration Portal: camis.ocr.gov.np - Online business registration process Nepal
7. Taxpayer Portal: taxpayerportal.ird.gov.np - Online tax registrations
8. Ministry of Industry, Commerce and Supplies: moics.gov.np - Industrial policy framework
9. Nepal Rastra Bank: nrb.org.np - Banking regulations for deposits
10. Investment Board Nepal: investmentboard.gov.np - Foreign investment approvals

Legal Framework Documents

• Companies Act, 2063 (2006)
• Industrial Enterprises Act, 2076 (2020)
• Foreign Employment Act, 2064 (2007)
• Tourism Act, 1978

Final Professional Guidance

Navigating the business license process in Nepal demands meticulous attention to legal details. While this guide provides comprehensive information, individual circumstances vary. Professional legal consultation is recommended for complex cases, foreign investment structures, and sector-specific compliance.

Call to Action: Ready to start your business? Begin with OCR portal registration today. For specialized assistance, consult licensed legal practitioners registered with the Nepal Bar Association.

Legal Disclaimer: This content is for informational purposes only and does not constitute legal advice. Regulations change frequently; always verify current requirements with official authorities before proceeding.