Nepal (NP)
Nepal is a landlocked Himalayan nation between India and China, home to eight of the world's ten highest peaks including Mount Everest (8,849m).
Capital: Kathmandu
Region: Asia
Language: Nepali
Currency: NPR (Rs)
Cost of living: Very affordable (index 18)
Emergency: 100
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Business Setup
Start a business or go freelance in Nepal.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Confirm you hold a visa category that permits the work you plan to do — a tourist visa does not authorise Nepal-source work or consultancy.
- 2 Decide whether your work is overseas remote consultancy, Nepal-source income, local employment or a company registration route.
- 3 Register PAN with the Inland Revenue Department (ird.gov.np) before invoicing clients or receiving taxable income in Nepal.
- 4 Open a local bank account once visa, address and KYC documents are in order; foreign remittances require proper documentation.
- 5 Clarify VAT registration and withholding-tax obligations before issuing invoices — corporate clients may deduct tax at source.
- 6 Use written contracts specifying scope, currency, governing law, dispute resolution and intellectual-property clauses.
- 7 Review your home-country tax residence carefully before staying in Nepal beyond three to six months.
Tax registration
Inland Revenue Department (IRD) at ird.gov.np. PAN registration is required before invoicing or receiving taxable Nepal-source income. Businesses may additionally need OCR registration, ward registration and sector licences. Use a chartered accountant (ICAN member) for VAT, withholding and annual return filing.
VAT threshold
NPR 5,000,000 annual turnover for service businesses; NPR 10,000,000 for goods-trading businesses triggers mandatory VAT registration at 13%. Thresholds and sector exemptions are reviewed annually in the Finance Act — confirm current rates with IRD or a practitioner before invoicing.
Invoicing
Invoices must show: legal name, PAN and VAT number if registered, address, invoice number, date, description of services, amount, VAT treatment, applicable withholding-tax clause and bank details for remittance.
Social security
Employees enrolled by formal employers may contribute to the Nepal Social Security Fund (SSF) at 11% of basic salary (employer 20%). Self-employed and remote workers need private health, disability and medical-evacuation insurance as SSF does not automatically cover freelancers or foreign-remote arrangements.
💡 Nepal has no dedicated digital-nomad or freelancer visa. Do not build a local client business on tourist status. Long-stay remote work can create Nepal tax residence, banking and immigration issues requiring specialist advice.
🏢 Business Structures
Private Limited Company · Private Limited Company
Private limited company (Pvt. Ltd.)
No statutory minimum for domestic companies; foreign direct investment minimum of NPR 20,000,000 applies for most sectors under FITTA 2075 (Foreign Investment and Technology Transfer Act 2019)
Min. capital
2–8 weeks plus sector or FDI approvals where applicable
Setup time
Liability: Limited to company assets
Setup cost: NPR 50,000–300,000 in professional and Office of Company Registrar (OCR) filing costs
Best for: Most serious local businesses, tech, services, trading, and the structure required for employer-sponsored work permits.
Branch Office · Branch of Foreign Company
Registered branch
No separate capital; funded by parent company and approved by OCR and sector authorities
Min. capital
1–3 months
Setup time
Liability: Foreign parent company bears all liability
Setup cost: NPR 150,000–500,000 in adviser costs and multi-agency filings
Best for: Foreign companies executing donor-funded contracts or delivering services in Nepal without local shareholding.
Liaison Office · Representative / Liaison Office
Representative office
No trading capital; operational funding transferred from parent
Min. capital
1–3 months
Setup time
Liability: Foreign parent company bears all liability
Setup cost: NPR 100,000–400,000 in approval and filing costs
Best for: Market research, coordination and relationship-building without revenue-generating activity in Nepal.
Sole Proprietorship · Proprietorship Firm
Sole trader
None required for most sectors
Min. capital
1–3 weeks
Setup time
Liability: Unlimited personal liability
Setup cost: NPR 5,000–50,000 for ward registration, PAN, trade licence and local fees
Best for: Nepali citizens and locally permitted small businesses. Foreigners face significant visa and FDI restrictions on this structure.
NGO / INGO · Non-governmental or International Non-governmental Organisation
Non-profit entity
Project and approval dependent; no share capital
Min. capital
Several months
Setup time
Liability: Entity and project governance dependent
Setup cost: High compliance cost; multiple agency approvals including SWC, line ministry and Ministry of Home Affairs
Best for: Development, humanitarian, health, education and community projects with full Social Welfare Council and line-agency approvals.
Business Setup
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