Roshan Bhandari
Team Lead · Software Engineer · DevOps
Available for Projects
Everything you need to know about launching a startup in Nepal — company registration, funding sources, the tax system, hiring your first team, and the ecosystems in Kathmandu and beyond.
Five years ago, "startup ecosystem" and "Nepal" rarely appeared in the same sentence unless the context was potential. Today the context is momentum. eSewa processes millions of transactions daily. Khalti, CloudFactory, and Fusemachines have put Nepali technology companies on global maps. A generation of engineers who might previously have left for Australia or the Gulf are staying — or returning — to build something here.
The environment is still difficult. Bureaucracy moves slowly. Access to venture capital is limited compared to India or Southeast Asia. Infrastructure outside the Valley remains uneven. These are real constraints, not myths.
But the fundamentals have shifted in important ways: digital payment infrastructure now exists, internet penetration is rising fast, English proficiency makes global B2B sales feasible, and the cost of building a product here — development talent, office space, operational expenses — is a fraction of what it costs in most other markets. For the right kind of startup, Nepal is not a consolation prize. It is a genuine competitive advantage.
This guide covers the practical reality: how to register, how to structure, how to fund, who to hire, and how to navigate the systems that will either help or slow you down.
Most startups in Nepal register as one of three entity types. Each has meaningful implications for taxes, liability, fundraising, and exit options.
The default choice for any startup planning to raise investment, hire employees formally, or scale. A Pvt. Ltd. company separates personal assets from business liabilities, can issue shares, and is structured in a way that sophisticated investors expect. Minimum two shareholders required; maximum 101. Registration fee is based on authorised capital.
Best for: Tech startups, service companies, any business planning to raise equity from investors or bring on co-founders with equity.
The simplest structure — you register as an individual operating a business. No separation between personal and business liability. Cannot issue shares. Straightforward for solo operators doing consulting, freelance work, or running a small service business.
Best for: Solo consultants, freelancers wanting a formal business identity, low-complexity service businesses.
Useful for two to twenty partners who want to share profits and management without forming a full company. Less formal than a Pvt. Ltd., but unlimited liability for partners is a significant downside if things go wrong.
Best for: Professional service firms (accounting, law, consulting) with trusted partners and low liability risk.
The Office of Company Registrar (OCR) manages company registration in Nepal. The process has improved significantly with online submission capabilities, but still requires in-person follow-up for several steps. Budget 2–4 weeks for the full process if you are well-prepared; longer if documents require revision.
Submit your proposed company name through the OCR online portal (ocr.gov.np). Names must be unique and cannot infringe on existing trademarks. Approval typically takes 3–5 business days. Have three name options ready; not all get approved.
The Memorandum of Association (MoA) defines the company's purpose and capital structure. The Articles of Association (AoA) define internal governance rules. Both need to be notarised. If you have foreign co-founders or plan to attract foreign investment, involve a corporate lawyer who understands Foreign Investment and Technology Transfer Act (FITTA) requirements from the start.
Required documents include the MoA, AoA, citizenship certificates of all shareholders and directors, a bank voucher showing paid-up capital deposit, and recent passport-size photos. Submit at the OCR office in Babarmahal, Kathmandu. Regional OCR offices handle registrations outside the Valley.
Immediately after company registration, register for a Permanent Account Number (PAN) at the Inland Revenue Department (IRD). This is mandatory for all formal business transactions, invoicing, and tax filing. You can now initiate PAN registration online through the IRD portal (ird.gov.np), though biometric verification still requires an in-person visit.
VAT registration is mandatory if your annual turnover exceeds NPR 5 million for services or NPR 10 million for goods. Tech companies providing software services often cross this threshold faster than expected. VAT registration enables you to reclaim input tax on business expenses — register proactively rather than reactively.
Register with your local municipality (Kathmandu Metropolitan City for most Valley businesses) to obtain a ward-level business operating licence. This is renewed annually and requires a copy of your company registration certificate and lease agreement for your registered office.
This is where Nepal's startup ecosystem has the most room to grow — and where founders spend the most time being frustrated. Understanding what exists helps you navigate it.
Most successful Nepali startups began bootstrapped, and many stayed that way by design. The low cost of building a team here means that a solo founder with savings of NPR 500,000–1,000,000 ($3,500–$7,500 USD) can build and launch a software product. This is genuinely possible in Nepal in a way that it simply is not in most other markets.
Angel investing in Nepal is small but growing. The Nepal Angel Network and informal investor communities around Kathmandu's tech scene represent the most accessible early-stage capital. Deal sizes typically range from NPR 2–20 million ($15,000–$150,000). Warm introductions matter enormously; cold outreach rarely converts.
The Government of Nepal has established several programmes worth knowing:
Several international programmes actively target Nepal and South Asia:
VC funding in Nepal is at an early stage. Dolma Impact Fund focuses on impact investments in Nepal. Bay Capital has made investments in Nepali companies. Regional South Asia funds — Sequoia Surge (India), Antler (Singapore) — occasionally back Nepali founders, but typically after seeing strong traction.
The honest advice: do not plan your business around VC funding unless you have a very specific reason to believe you can access it. Build to profitability first, then approach investors from a position of strength.
Nepal's tax system is not complex compared to many markets, but the penalties for non-compliance are real and the IRD has become significantly more enforcement-oriented in recent years.
Hire a competent Chartered Accountant from the beginning. CA fees in Nepal are reasonable (NPR 15,000–40,000/month for a small startup), and they will save you far more than they cost by keeping you compliant and helping you use available exemptions correctly.
Nepal has a deep pool of engineering talent — particularly PHP, Java, Android, and increasingly cloud and DevOps skills — that is underpriced relative to global benchmarks.
A mid-level software developer with three years of experience earns NPR 60,000–100,000/month ($450–$750 USD). Senior developers with five or more years and specialist skills command NPR 120,000–200,000/month. These are salaries that would be entry-level in Germany or Australia — which is precisely why building in Nepal and selling globally is such a powerful model.
Where to find engineers:
Employment contracts in Nepal must comply with the Labour Act 2017. Key obligations include provident fund contributions (10% employer, 10% employee), gratuity for employees after one year, and notice periods for termination. Social security fund (SSF) registration is mandatory for formal employees. Set these up correctly from the first hire — correcting them retroactively is painful.
You do not have to build alone. Nepal's startup ecosystem is small enough that the right connections are accessible, and large enough that the right people exist.
Market size is Nepal's most fundamental constraint. With a population of 30 million and GDP per capita around $1,200, consumer spending power for digital products is limited. Startups that build for the Nepali market alone face a ceiling most outgrow quickly. The ones that scale build for Nepal and then export the product to larger markets — India, Southeast Asia, the Gulf, or globally.
Foreign investment restrictions add friction for international fundraising. Under FITTA, foreign investors must repatriate dividends and capital through approved channels, and minimum foreign investment thresholds apply. These rules have been liberalised in recent years but still require careful legal structuring — particularly if you plan to raise from foreign VCs or create international holding structures.
Power and connectivity outside Kathmandu remain inconsistent. If your operations depend on reliable internet and uninterrupted power, the Valley is still the pragmatic choice. Plan for generator and UPS backup regardless of location.
Bureaucratic timelines are unpredictable. Build buffer into any process that involves government approvals — registration extensions, VAT refunds, government contracts. The system is improving but has not yet reached the reliability that most founders coming from other markets expect.
Nepal in 2025 is the right time, not the perfect time. The infrastructure is good enough, the talent pool is real, the digital payment rails are in place, and a government that has historically been ambivalent about the private sector is slowly recognising that tech-enabled businesses are one of the few structural paths out of remittance dependency.
The startups that succeed here share a pattern: they solve a problem that exists in Nepal and scales outside it, they build with Nepali talent at Nepali costs, and they sell to markets that can pay global prices. That model — build local, sell global — is not unique to Nepal, but Nepal's specific combination of talent cost, English fluency, and time zone positioning makes it unusually well-suited to it.
Register the company. Hire the first engineer. Ship the first version. The ecosystem will not hand you success — no ecosystem does — but it will not stand in your way as much as you might fear.