Import Export License in Nepal February 07, 2026 - BY Admin

Import Export License in Nepal

An import export license in Nepal is legally mandated before any cross-border trade can be initiated. Whether goods are being brought into the country or Nepali products are being shipped abroad, proper authorization must be secured through designated government channels. The process has been significantly streamlined in recent years, yet many entrepreneurs remain confused about where to begin.

This comprehensive tutorial has been prepared to eliminate uncertainty. Every step, document requirement, and associated cost has been verified against current regulations. By following this guide, costly delays and compliance issues can be avoided entirely.

Quick Answer: To obtain an import export license in Nepal, company registration must be completed first, followed by tax registration (PAN/VAT), Department of Commerce enrollment, and finally EXIM code issuance from the Department of Customs. The entire process typically requires 15-25 working days.

What Is an Import Export License in Nepal?

An import export license is official government authorization permitting businesses to engage in international trade. In Nepal, this authorization is actually delivered through two interconnected mechanisms:

  1. Department of Commerce Registration – Business enrollment for trade activities
  2. EXIM Code (Export Import Code) – The 13-digit identification number issued by the Department of Customs

Without these credentials, customs clearance cannot be obtained, banking facilities for foreign trade remain inaccessible, and legal penalties may be imposed for unauthorized trading activities.

Legal Framework Governing Import Export Licenses

The regulatory structure is established through several key legislations:

Act/RegulationYearGoverning AuthorityPrimary Function
Companies Act2063 (2006)Office of Company RegistrarCompany incorporation
Customs Act2064 (2007)Department of CustomsEXIM code issuance & customs regulation
EXIM Code Procedure2079 (2023)Department of CustomsSpecific EXIM registration rules
Value Added Tax Act2052 (1996)Inland Revenue DepartmentTax compliance for trade
Foreign Investment & Technology Transfer Act (FITTA)2019Department of IndustryForeign investor regulations

Who Needs an Import Export License in Nepal?

Any business entity intending to move goods across Nepali borders must be properly licensed. This requirement applies to:

  • Importing raw materials for manufacturing operations
  • Importing finished goods for domestic distribution
  • Exporting Nepali handicrafts, textiles, or agricultural products
  • Re-exporting goods through Nepali territory
  • E-commerce businesses shipping products internationally

Exceptions Where License Is Not Required

Limited exemptions exist under Section 6 of the EXIM Code Procedure, 2079:

  • Personal goods carried by passengers (within notified limits)
  • Single imports valued below NPR 10,000
  • Exports valued below NPR 100,000 (for specific categories)

Prerequisites Before Applying for Import Export License

Three foundational registrations must be completed before the import export license application can be submitted:

1. Company Registration at OCR

The business must be formally incorporated as:

  • Private Limited Company (most common for trade)
  • Public Limited Company (for large-scale operations)
  • Partnership Firm (less common for import-export)

Required capital: Minimum NPR 100,000 paid-up capital for private limited companies, though NPR 1,000,000 is recommended for smoother EXIM code approval.

2. PAN and VAT Registration

  • PAN (Permanent Account Number): Mandatory for all businesses
  • VAT Registration: Compulsory for import-export activities regardless of turnover threshold

3. Department of Commerce Registration

Business registration at the Department of Commerce, Supplies and Consumer Protection is required to establish trading credentials before customs registration.

Step-by-Step Import Export License Process in Nepal

The complete procedure is divided into seven sequential stages. Each stage must be completed before proceeding to the next.

Stage 1: Company Name Reservation (1-2 Days)

An application is submitted to the Office of the Company Registrar (OCR) proposing three unique company names. The first available name is reserved for 45 days.

Documents required:

  • Proposed names (3 options)
  • Citizenship copies of promoters
  • Temporary office address proof

Stage 2: Company Incorporation (5-7 Days)

Following name approval, incorporation documents are drafted and submitted.

Documents required:

  • Memorandum of Association (MOA) defining import/export objectives
  • Articles of Association (AOA) outlining governance
  • Shareholder/director details
  • Registered office lease agreement or ownership proof
  • Bank deposit certificate showing paid-up capital

Upon verification, the Certificate of Incorporation is issued by OCR.

Stage 3: Tax and Local Registration (3-5 Days)

Inland Revenue Department:

  • PAN application with company documents
  • VAT registration (mandatory for import-export)

Local Ward Office:

  • Business registration at municipal level
  • Ward recommendation letter (required for Commerce Department)

Stage 4: Department of Commerce Registration (5-10 Days)

The business is registered as a trading entity authorized to engage in import-export activities.

Fee structure based on capital:

Capital RangeRegistration Fee (NPR)
Up to NPR 25 Lakhs5,100
NPR 25 Lakhs – 1 Crore10,100
Above NPR 1 Crore25,100

Stage 5: EXIM Code Application (7 Days)

The EXIM code application is submitted electronically through the Department of Customs portal (http://110.34.28.82:8484/ieportal/login).

Required documents for EXIM code:

  • Company registration certificate
  • Department of Commerce registration proof
  • PAN and VAT certificates
  • Citizenship copies of all shareholders/directors
  • Passport-size photograph of authorized representative
  • Bank recommendation letter in prescribed format
  • Office location map (GPS coordinates/tracing)
  • Tax clearance certificate (previous fiscal year)

Important update for FY 2082/83: The previously required NPR 300,000 bank guarantee has been removed for exporters. Importers still require this guarantee for certain categories, though recent budget announcements indicate relaxation measures are being implemented.

Stage 6: Document Verification (3-5 Days)

Customs officials verify submitted documents against original records. Physical office inspection may be conducted to confirm business legitimacy.

Stage 7: License Issuance (2-3 Days)

Upon successful verification, the 13-digit EXIM code is issued. This code must be quoted on all customs declarations, shipping documents, and banking instruments related to international trade.

Complete Document Checklist for Import Export License

For Company Registration:

  • [ ] Name approval certificate from OCR
  • [ ] MOA and AOA (notarized)
  • [ ] Citizenship copies of all promoters/directors
  • [ ] Passport-size photos (2 copies each)
  • [ ] Office lease agreement or ownership documents
  • [ ] Bank deposit certificate for share capital

For Tax Registration:

  • [ ] Company registration certificate
  • [ ] Office address proof
  • [ ] Estimated annual turnover declaration
  • [ ] Director identification documents

For Department of Commerce:

  • [ ] Company registration certificate
  • [ ] PAN/VAT certificates
  • [ ] Ward office registration/recommendation
  • [ ] Bank statement showing operational capacity
  • [ ] Business profile describing trade activities

For EXIM Code:

  • [ ] All above documents (scanned copies)
  • [ ] Recent tax clearance certificate
  • [ ] Bank guarantee (if importing – NPR 300,000 for 1 year)
  • [ ] Precise office location map
  • [ ] Authorized signatory photograph

Costs and Fees Breakdown

Understanding the complete cost of import export license in Nepal helps in proper financial planning:

Expense CategoryCost Range (NPR)Notes
OCR Name Reservation100 – 500Online application fee
Company Registration5,000 – 50,000Based on authorized capital
PAN RegistrationFreeNo government fee
VAT RegistrationFreeNo government fee
Ward Registration500 – 2,000Varies by municipality
Commerce Dept Registration5,100 – 25,100Capital-based fee structure
EXIM Code Issuance2,000 – 5,000Customs processing fee
Bank Guarantee (Import)3,00,000Refundable deposit; not required for export-only
Professional/Legal Fees15,000 – 50,000Optional; recommended for first-time applicants

Total Estimated Cost: NPR 25,000 – 80,000 (excluding bank guarantee)

Timeline for Complete Registration

StageDurationCumulative Time
Name Reservation1-2 days1-2 days
Company Registration5-7 days6-9 days
PAN/VAT Registration2-3 days8-12 days
Ward Registration1-2 days9-14 days
Commerce Registration5-10 days14-24 days
EXIM Code Processing7 days21-31 days

Total Estimated Time: 15-25 working days (with complete documentation)

Post-License Compliance Requirements

Once the import export license in Nepal is obtained, ongoing obligations must be fulfilled:

Annual Renewals

  • EXIM Code: Must be renewed annually through the customs electronic portal; can be renewed for up to 5 fiscal years with lump-sum payment
  • Commerce Registration: Annual renewal with updated tax clearance
  • VAT Registration: Continuous compliance with monthly/quarterly returns

Operational Compliance

  • Customs Declarations: All shipments must be declared through ASYCUDA World system
  • Tax Filing: Monthly VAT returns and annual income tax submissions
  • Bank Documentation: Foreign exchange transactions must be properly documented with Nepal Rastra Bank
  • Record Maintenance: All trade documents must be preserved for minimum 5 years

Renewal Documents Required:

  • Updated tax clearance certificate
  • Bank guarantee renewal (for importers)
  • Business operation proof
  • Compliance confirmation from relevant authorities

Common Challenges and Solutions

ChallengeSolution
Document rejection due to errorsTriple-check all forms; use professional review services
Delayed capital verificationMaintain transparent bank records; avoid cash transactions
Office inspection failuresEnsure physical office matches registered address; display company signage
EXIM code suspension for non-complianceSet calendar reminders for renewal dates; maintain tax clearance proactively
Customs clearance delaysVerify correct HS code classification before shipping

Special Provisions for Foreign Investors

Foreign nationals cannot directly obtain import export licenses in Nepal as individuals. However, participation is permitted through:

  1. Joint Venture Companies: Partnering with Nepali nationals (minimum local partner holding required)
  2. Wholly Foreign-Owned Enterprises: Under FITTA 2019 provisions
  3. Branch Offices: For established international companies

Additional requirements for foreign investors:

  • Minimum foreign investment: NPR 20 million (approximately USD 150,000)
  • FDI approval from Department of Industry before company registration
  • Nepal Rastra Bank registration for capital repatriation rights
  • Restricted sectors must be avoided (check negative list under FITTA)

Why Professional Assistance Is Recommended

While the import export license process can be navigated independently, several complexities often justify professional support:

  • Regulatory Changes: Recent removal of bank guarantee requirements for exporters and other policy shifts require current knowledge
  • Documentation Precision: Minor errors cause significant delays
  • Compliance Management: Ongoing obligations are extensive
  • Time Efficiency: Professional handling reduces processing time by 30-40%

Frequently Asked Questions (FAQs)

Q1: How long does it take to get an import export license in Nepal?
The complete process requires 15-25 working days when all documents are properly prepared. Delays typically occur due to incomplete documentation or verification backlogs.

Q2: What is the minimum capital required for import export business in Nepal?
For company registration, NPR 100,000 is technically sufficient, but NPR 1,000,000 is recommended for smoother EXIM code approval. For EXIM code specifically, NPR 1,000,000 paid-up capital is required for import activities.

Q3: Is VAT registration mandatory for import export license?
Yes, VAT registration is compulsory for all import-export businesses in Nepal, regardless of annual turnover.

Q4: Can a sole proprietorship obtain an import export license?
No, only registered companies (Private Limited, Public Limited) or partnership firms can obtain EXIM codes. Sole proprietorships must convert to registered entities.

Q5: What is the validity period of the EXIM code?
The EXIM code remains valid indefinitely as long as annual renewals are completed and compliance is maintained. It can be renewed for up to 5 fiscal years at once.

Q6: Are there restrictions on what can be imported or exported?
Yes, Nepal maintains lists of restricted and prohibited items. Special permits are required for pharmaceuticals, chemicals, precious metals, and certain agricultural products.

Q7: What happens if the import export license expires?
Operations must cease immediately. Renewal applications should be submitted before expiry to avoid penalties. Operating with an expired license results in fines and potential blacklisting.

Q8: Can the EXIM code be transferred to another company?
No, EXIM codes are non-transferable. If company ownership changes, new registration applications must be submitted.

Q9: Is physical office presence mandatory for license approval?
Yes, a verified commercial office address is required. Home-based businesses generally do not qualify for import-export licensing.

Q10: What are the penalties for trading without a license?
Unauthorized import-export activities attract fines ranging from NPR 50,000 to NPR 500,000, plus potential seizure of goods and criminal prosecution under the Customs Act.

Professional Services by Attorney Nepal PVT LTD

Navigating the import export license registration in Nepal requires precision and current regulatory knowledge. At Attorney Nepal PVT LTD, comprehensive support is provided for:

  • Complete company registration and structuring
  • Department of Commerce enrollment
  • EXIM code application and renewal
  • Ongoing compliance management
  • Foreign investment structuring under FITTA

With extensive experience in trade law and regulatory procedures, businesses are guided through every stage efficiently. Documentation is prepared meticulously, government liaisons are managed professionally, and compliance calendars are maintained to prevent any lapses.

Contact Attorney Nepal PVT LTD today to initiate your import-export licensing process with confidence and legal certainty.

Related Resources:

This guide is updated as of February 2026. Regulatory requirements change periodically; consult current official sources or legal professionals for the most recent information.