An IT company in Nepal refers to a legally registered business entity engaged in information technology–related activities such as software development, IT services, digital platforms, and technology consulting. Under Nepali law, operating an IT business without formal registration is not permitted for commercial, tax, and regulatory purposes.
Registration of an IT company ensures legal recognition, enables lawful revenue generation, facilitates tax compliance, allows access to banking and payment systems, and enhances credibility with clients, investors, and government agencies. Formal registration also allows companies to benefit from incentives and policies introduced to promote Nepal’s technology sector.
IT company registration in Nepal is governed by multiple laws and policies, including:
Companies Act, 2063 (2006) – Governs incorporation, management, and compliance of companies
Industrial Enterprises Act, 2076 (2020) – Recognizes IT as a service-based industry and provides industrial benefits
Income Tax Act, 2058 (2002) – Regulates taxation, PAN/VAT, and tax compliance
Foreign Investment and Technology Transfer Act (FITTA), 2075 (2019) – Applies where foreign investment is involved
National ICT Policy and related directives – Promote and regulate IT and digital businesses
These laws collectively define the legal framework for establishing and operating IT companies in Nepal.
The following government authorities regulate IT company registration and operations:
Office of the Company Registrar (OCR) – Company incorporation and statutory records
Inland Revenue Department (IRD) – PAN, VAT, and tax administration
Department of Industry (DOI) – Industry registration and FDI approval (if applicable)
Ministry of Communication and Information Technology – Policy oversight for ICT sector
Local Ward Office – Local business registration and address verification
An IT company is a business entity primarily engaged in technology-based services or products. Permitted activities include:
Software and application development
IT consulting and system integration
Software-as-a-Service (SaaS) and cloud services
Business process outsourcing (BPO) and IT-enabled services
Digital platforms, fintech solutions, and web services
Data analytics, cybersecurity, and technology support services
The scope of activities must be clearly stated in the company’s objectives.
To register an IT company, the following eligibility criteria apply:
Company Type: Private Limited or Public Limited Company
Shareholders:
Private Limited: Minimum 1, maximum 101
Directors: Minimum 1 director
Citizenship:
Nepali citizens for domestic companies
Foreign nationals permitted under FDI laws
Capital: No mandatory minimum capital for most IT companies
Foreign Ownership: Allowed with prior FDI approval
A standard documentation checklist includes:
Application for company registration
Proposed company name(s)
Memorandum of Association (MOA)
Articles of Association (AOA)
Citizenship certificates or passports of shareholders/directors
Passport-size photographs
Registered office address proof
PAN/VAT registration application
Board resolution and sector-specific declarations (if applicable)
Step 1: Name reservation at the Office of the Company Registrar
Step 2: Submission of incorporation documents (MOA, AOA, applications)
Step 3: Issuance of Company Registration Certificate
Step 4: PAN registration at the Inland Revenue Department
Step 5: VAT registration (if applicable)
Step 6: Industry registration at DOI (if required)
Step 7: Local ward office registration
Capital: No statutory minimum capital requirement for IT companies
Office: Physical or virtual office permitted, subject to address verification
Operations: Flexible compliance framework for technology-based and remote-service companies
Registration costs typically include:
OCR registration fees (based on authorized capital)
PAN registration: No government fee
VAT registration: No government fee
Industry/FDI registration fees (if applicable)
Professional or legal service fees (variable)
Note: Government fees and charges are subject to change.
| Stage | Estimated Time |
|---|---|
| Name Reservation | 1–2 working days |
| Company Incorporation | 2–4 working days |
| PAN/VAT Registration | 1–2 working days |
| Industry/Local Registration | 2–5 working days |
Total Estimated Time: 5–10 working days (excluding FDI approval)
After registration, IT companies must comply with:
Monthly/annual tax filings
Annual return submission to OCR
Proper accounting and audit requirements
Renewal of registrations and licenses
Compliance with labor and social security laws
Foreign investors may establish IT companies under FITTA, 2075, subject to:
Prior approval from DOI or Investment Board Nepal
Minimum investment thresholds
Compliance with foreign exchange and repatriation rules
Nepal’s IT sector is considered FDI-friendly, with policy-level incentives and facilitation measures.
Company registration details can be verified through the Office of the Company Registrar’s online company search portal by searching the company name or registration number.
Attorney Nepal provides end-to-end legal and advisory services, including:
IT company incorporation and structuring
FDI approval and investment advisory
PAN/VAT and tax registration
Compliance, licensing, and regulatory support
Ongoing legal and corporate advisory services
Is IT company registration mandatory in Nepal?
Yes, registration is legally required to operate an IT business.
How long does IT company registration take?
Typically 5–10 working days for domestic companies.
Can foreigners own an IT company in Nepal?
Yes, subject to FDI approval and applicable laws.
Is there a minimum capital requirement?
Generally no minimum capital is prescribed.
What are post-registration obligations?
Tax filing, annual returns, and statutory compliance.
This article is provided for general informational purposes only and does not constitute legal advice or solicitation. Legal requirements may change, and readers should seek professional legal consultation before making business or investment decisions.
February 02, 2026 - BY Admin