Setting up a business in Nepal is very simple. Below are the required documents and four steps on how to do so.

These are the required documents for setting up a sole proprietorship —

  • The name of the private firm

  • The address of the private firm

  • Objectives, functions, and the particulars of goods or commodities to be transacted by the private firm

  • The name and address of the owner and the name of their parents and grandparents

Any changes to these details are published by the Government of Nepal in the Nepal Gazette.

Depending on the capital of the firm, a registration fee needs to be paid. This fee costs between 4.70 and 117.57 USD. No more than one private firm related to the same or similar objectives can be registered under the same person's name.

After you have all of the proper documentation, please follow these steps to set up your sole proprietorship.

Step 1: Obtain Approvals

You will need to obtain necessary approvals from the relevant ministries/departments/bodies for permits/licenses to conduct business.
Some of the relevant departments are:

Step 2: Register a Company

If you are an investor, you will need to register an appropriate form of company in the company registrar's office. You can do that here.

Step 3: Register with the Tax Office

After the company registration, you will need to obtain a PAN, VAT, or/and EXCISE, if applicable, registration numbers from the Inland Revenue department. Here is where you can apply for either of them.

Step 4: Open a Bank Account

You will need to open a currency account at Nepal Rastra Bank, the central bank of Nepal.

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