Things to Consider Before Registering Company in Nepal

Do you want to open a business in Nepal? It can be an exciting time! But before you open your doors, there are some important legal steps you need to take. This guide will help you understand what you need to do to register a company in Nepal. By following these steps, you can make sure your business is legal and protected.

Understanding Shareholder Numbers

Starting with the foundation, understanding shareholder numbers is crucial for a successful registration process.

Private Limited Company (PL)

A PL company in Nepal requires a minimum of one shareholder and allows a maximum of 101 shareholders. This flexibility caters to businesses of varying scales, fostering a favorable environment for startups.

Public Limited Company (PLC)

For a PLC, a minimum of seven founding shareholders is necessary during initial establishment. Interestingly, subsequent PLCs established by existing ones can have fewer than seven founders, offering a unique dynamic for growth and expansion.

Crafting Clear and Comprehensive Documents

Clarity in documentation is a cornerstone of successful company registration. Pay heed to the following aspects:

Articles of Association (AoA) and Regulations

  • Use Nepali paper or durable alternatives.
  • Craft documents in clear and concise Nepali language.
  • For foreign investment involvement, provide mandatory English and Nepali translations.
  • Ensure signatures at the bottom of each page by all founding shareholders.
  • Final sections should include detailed information about each founder shareholder.

Proof of Financial Capability (Optional)

If your company allows individual share purchases, consider providing proof of the company’s financial health. While optional, this step adds credibility and transparency to your venture.

Ensuring Personal Appearance

The human touch remains integral to the registration process.

At least one founding shareholder must be physically present at the Office of the Company Registrar for identification purposes. This personal touch fosters transparency and builds confidence in the legal proceedings.

Navigating the Maze: Essential Considerations Recap

By diligently addressing these considerations, you can navigate the company registration process in Nepal with confidence. However, remember, this is a broad overview, and seeking guidance from professional legal or business advisors tailored to your unique circumstances is always recommended.


What is the maximum number of shareholders for a Private Limited Company in Nepal?

A Private Limited Company in Nepal can have a maximum of 101 shareholders.

How many founding shareholders are required for a Public Limited Company during initial establishment?

A minimum of seven founding shareholders is necessary for the initial establishment of a Public Limited Company in Nepal.

Is English documentation mandatory for Nepali companies involving foreign investment?

Yes, if your company involves foreign investment, both English and its Nepali translation are mandatory.

What is the significance of a witness signature in the Articles of Association?

Each founder shareholder’s signature, along with the witness’s details, adds legal authenticity to the Articles of Association.

Is proof of financial capability mandatory for all companies during registration?

No, proof of financial capability is optional. However, it becomes necessary if your company allows individual share purchases, showcasing the company’s financial health.

Why is personal appearance required at the Company Registrar’s Office?

At least one founding shareholder must be present for identification purposes, ensuring transparency and authenticity in the registration process.


Embarking on the journey of company registration in Nepal is exciting, but it comes with its complexities. Navigating the legal maze requires attention to detail and adherence to the outlined considerations. Seek professional guidance, ensure clear documentation, and embrace the process with confidence.