Cost to Start a Business in Nepal 2026: Full Fee Table

How Much Does It Cost to Start a Business in Nepal in 2026?

Government fees to register a small business in Nepal usually total about Rs 3,000 to Rs 20,000, depending on your business structure, declared capital and municipality. PAN registration is free. If you use an agency, add roughly Rs 5,000 to Rs 20,000 in service charges.

Last checked: 21 October 2026. Fees change with each year's Finance Act, so confirm at the office before you pay.

Sources: UdhamSathi (firm fees, ward costs, agency estimate), Law Alpine (OCR fee schedule), Global IME Bank (PAN).

Registration is the cheapest part. Rent, equipment and working capital cost far more. For real examples, see our cafe startup cost guide and dairy business guide.

Which business structure should you register?

Most single-owner shops and service businesses start as a sole proprietorship (private firm), because it is the cheapest and simplest to register. Choose a private limited company if you have partners, outside investors or need limited liability.

Rule of thumb: if your customers will ever ask for a PAN or VAT bill, skip the ward-only route and register properly at the Department of Commerce or Cottage and Small Industries (UdhamSathi).

Sources: UdhamSathi, Law Alpine. For the full company process, read our company registration guide.

How much does private firm registration cost?

Registering a sole proprietorship costs about Rs 600 to Rs 1,000 if you declare capital of up to Rs 1 lakh, and the fee rises in steps with your declared capital. These are approximate figures; the department revises them, so confirm at the counter.

Source: UdhamSathi, 2083 guide, based on the Private Firm Registration Act, 2014 BS.

Tip: declare realistic capital, not a big number. A higher declared capital means a higher fee, and you can increase it later as the business grows.

Renewal: expect roughly Rs 500–1,000 a year at the department, plus your municipal trade licence renewal (UdhamSathi). A lapsed renewal can block the ward recommendation letters you need later.

Documents you need:

• Application form and proposed firm name (with 2–3 alternatives)

• Citizenship certificate copy and two passport-size photos

• Office address proof: land ownership certificate, or a rent agreement plus the landlord's citizenship copy

• Ward recommendation letter

• Statement of business objectives and declared capital

How much does company registration cost at OCR?

A private limited company costs Rs 1,000 to register with up to Rs 1 lakh authorised capital, paid to the Office of Company Registrar (OCR) through its CAMIS portal. The fee rises with authorised capital.

Source: Law Alpine OCR fee schedule; the fee rises by Rs 3,000 for each further crore up to Rs 10 crore.

Add small extras: stamp paper and notary costs are usually a few hundred rupees (Law Alpine). A company must also file annual returns at OCR, and late filing brings penalties. Register on the official portal at camis.ocr.gov.np.

Is PAN registration free in Nepal?

Yes, PAN registration has no government fee, for both personal and business PAN (Global IME Bank). You apply on the IRD taxpayer portal and then visit the tax office once to verify your documents.

• Business PAN is required before you operate, and you must print it on every bill.

• Company directors need a personal PAN before the company's business PAN is issued (Niti Partners).

When do you need to register for VAT?

You must register for VAT once annual turnover passes Rs 50 lakh for goods or Rs 30 lakh for services and mixed businesses. Importers must register once a single import exceeds Rs 10,000, and some other listed sectors must register regardless of turnover (Beancount, Oct 2026).

You must register within 30 days of crossing a trigger (Baker Tilly Nepal, FY 2082/83).

VAT in Nepal is 13%. Below the threshold, you issue PAN bills, not VAT bills (Omnivoo).

How much tax does a small business pay in its first year?

Very small businesses with turnover up to Rs 30 lakh and net income below Rs 3 lakh can pay a fixed presumptive tax instead of tax on profit. These are the FY 2082/83 amounts; check the FY 2083/84 Finance Act on ird.gov.np for any change.

Sources: Baker Tilly Nepal, Tax Fact 2025/26 (FY 2082/83), RSA, Natural Person Taxation FY 2082/83. Between Rs 30 lakh and Rs 1 crore turnover, a turnover-based tax applies instead: the same base amount plus 1% of turnover above Rs 30 lakh for most trading businesses, or 2% for services.

For salary or personal income tax, use our free Nepal income tax calculator.

What does ward registration cost?

Expect an annual local business tax of about Rs 1,500 to Rs 10,000, set by your ward and the type of business. If you rent your premises, you also pay house rent tax of 10% of the monthly rent, often prepaid for 4–6 months (UdhamSathi).

Some law firms quote Rs 5,000–15,000 a year for company ward registration in larger cities (Law Bhandari). The only reliable figure is your own ward's rate, so ask your ward office before you sign a lease.

What the ward usually asks for: the rent agreement, the landlord's citizenship copy and the landlord's current-year property tax receipt (UdhamSathi).

Which businesses need an extra licence?

Businesses in regulated sectors need a licence from their sector regulator on top of basic registration, and this is often the slowest and most expensive paperwork step. Fees vary by sector, so check with the regulator directly.

Food businesses: see the licensing section in our cafe cost guide.

Do online businesses pay any extra registration cost?

Online businesses need everything a normal business needs, plus a listing on the Department of Commerce e-commerce portal. Under the E-Commerce Act 2081, only a registered firm or company can sell goods or services online, and selling without being listed can bring a fine of Rs 20,000 to Rs 1,00,000.

Check your shop in two minutes with our free E-Commerce Act checker, or read the full E-Commerce Act guide.

What other costs should you budget for?

For most physical businesses, registration is the smallest startup cost; rent, equipment, stock and working capital make up the rest. Budget for these before you register.

Borrowing is expensive for small firms. ADB research cited by Karobar finds finance is a major constraint for 40.5% of small firms in Nepal, average SME interest is around 12.51% plus service charges, and banks often want collateral worth over 400% of the loan (Karobar). Plan to start with your own savings where you can, and use our EMI calculator before taking any loan.

Should you use an agency or register yourself?

Register yourself if you can visit the offices; use an agency if your time is worth more than the fee. Government fees for a small firm are low, so most of an agency quote is its service charge.

Source: UdhamSathi. Example: an agency quote of Rs 9,000 for firm registration plus PAN (ward fees extra) sits within the normal range.

Frequently asked questions

How much does it cost to register a small business in Nepal?

Government fees for a small sole proprietorship are usually about Rs 3,000 to Rs 8,000 including ward costs; a private limited company starts at Rs 1,000 at OCR plus ward and other costs.

Is PAN free in Nepal?

Yes. IRD charges no fee for personal or business PAN.

Can I register a business online in Nepal?

Partly. Companies register online through CAMIS, and firms can apply online at the Department of Commerce, but you still make at least one office visit to verify documents (UdhamSathi).

How long does business registration take?

A firm certificate usually takes 3–7 working days, and being fully ready (firm, PAN, ward and bank account) takes about 1–2 weeks. A private limited company usually takes 10–15 days (UdhamSathi).

Do I need VAT registration from day one?

No, unless you import or work in a listed sector. Register once turnover passes Rs 50 lakh (goods) or Rs 30 lakh (services or mixed).

This guide explains costs in plain language and is not legal or tax advice. Confirm current fees with the Department of Commerce, OCR, IRD or your ward office.