Choose your legal form
Decide between working as an individual freelancer, a sole proprietorship firm, or a private limited company. Freelancing alone needs only a PAN. A firm or company is needed for a business with staff, an office, or e-commerce selling. A company is the usual choice for an IT export business.
- Where
- Decide first, then register at the office in step 2
- Level
- private
- Time
- A day to think; ask an accountant if unsure
lawalpine.com (opens in a new tab)Check
Register your firm or company
A private limited company is registered online at the Office of the Company Registrar (OCR) through CAMIS: reserve a name, upload documents, pay the fee, download the certificate. A sole proprietorship (private firm) is registered with the Department of Commerce, Supplies and Consumer Protection (or its local office) using the department's online user account.
- Where
- OCR (camis.ocr.gov.np) for companies; Department of Commerce online portal (online.doc.gov.np) for firms
- Level
- federal
- Documents
- Citizenship certificate and photo of each owner or director, Proposed business name, Memorandum and Articles (companies), Office address and proof
- Fee
- NPR Companies: about 1,000 to 43,000 depending on authorised capital (law firm summary); firms: about 600 to 15,000 (blog estimates)
- Time
- About 7 to 14 days for a clean company file (law firm estimate)
Do it online (opens in a new tab)doc.gov.np (opens in a new tab)Check
Get a PAN
A Permanent Account Number from the Inland Revenue Department is required for business tax, bank accounts and for larger foreign currency use. NRB guidance reported in 2026 advises a PAN for foreign currency demand above USD 5,000.
- Where
- Inland Revenue Department, online or tax office
- Level
- federal
- Documents
- Citizenship certificate, Registration certificate (if firm or company), Address proof, Photo
- Time
- Usually same day to a few days; not confirmed
Do it online (opens in a new tab)ird.gov.np (opens in a new tab)Check
Check whether you must register for VAT
Registration is reported to be required when taxable turnover in the last 12 months crosses Rs 30 lakh for services (Rs 50 lakh for goods). Some secondary sources say software is among the sectors that must register regardless of turnover, so ask IRD. Standard VAT is 13 percent. Returns are filed monthly. Export services are normally zero-rated, confirm with IRD.
- Where
- Inland Revenue Department portal
- Level
- federal
- Documents
- PAN, Registration certificate, Premises proof, Bank details
- Time
- Register within 30 days of crossing the threshold (secondary source)
Do it online (opens in a new tab)lawalpine.com (opens in a new tab)Check
Open a business or professional bank account and update KYC
Use a Class A or national-level Class B bank that handles foreign currency. Update KYC and keep records of every foreign payment (invoices, contracts, platform statements) so you can show the source of the money and qualify for higher limits.
- Where
- A commercial bank branch
- Level
- private
- Documents
- Citizenship, PAN, Registration certificate (firm or company), Client contracts or invoices
- Time
- A few days
b360nepal.com (opens in a new tab)Check
Receive foreign payments through a legal channel
Bring earnings in through your Nepali bank (SWIFT transfer, or from platforms such as Payoneer or Wise that pay out to a bank). Do not use informal hundi or ask clients to pay a friend's account. NRB's April 2026 circular reportedly lets freelancers use up to USD 25,000 a year, IT firms more. Rules and limits change, so confirm with your bank. PayPal availability for Nepali users is unclear and not confirmed from official sources.
- Where
- Your bank's foreign exchange or IT-export desk; NRB Foreign Exchange Management Department sets the rules
- Level
- federal
- Documents
- Contract or invoice, Platform statement, PAN
- Time
- A few days per transfer
Do it online (opens in a new tab)b360nepal.com (opens in a new tab)Check
Understand income tax on foreign earnings and the IT export concession
Nepali residents are taxed on income earned abroad. Freelance and service income paid in foreign currency through a bank has been subject to 5 percent tax at source since Finance Act 2080 (secondary source). For companies, qualifying IT export income gets an income tax concession: reported as 75 percent exempt in FY 2082/83 and cut to 50 percent from 1 Shrawan 2083 (FY 2083/84). Keep export income separate from local income in your books and ask an accountant to apply the current Finance Act.
- Where
- Inland Revenue Department; a chartered accountant
- Level
- federal
- Documents
- Books of account, Foreign inward remittance records, Contracts
- Time
- Annual return plus advance tax during the year
Do it online (opens in a new tab)lawalpine.com (opens in a new tab)Check
List your online business on the Department of Commerce e-commerce portal
If you sell goods or services online (including through Facebook, Instagram, TikTok or WhatsApp) you must be registered as a firm or company and list on the Department of Commerce e-commerce listing system. The Act took effect on 15 April 2025 and the Department has repeated its listing notice in 2026. You then display your listing number, business and PAN details, and a complaint contact. Penalties for unlisted sellers are reported at different amounts (up to Rs 200,000 quoted by the Department), check the Act.
- Where
- Department of Commerce, Supplies and Consumer Protection e-commerce listing portal
- Level
- federal
- Documents
- Firm or company registration certificate, PAN or VAT certificate, Contact details, Website or social media page links, Other licences if relevant
- Time
- Not stated
Do it online (opens in a new tab)doc.gov.np (opens in a new tab)Check
Get a local business licence or ward registration if you have a shop or office
Shops, repair centres, training centres and offices usually need a business licence from the local ward or municipality, renewed every year. A home-based freelancer without customers visiting may not need one; ask your ward.
- Where
- Ward office or municipality
- Level
- local
- Documents
- Firm or company registration, PAN, Rent agreement or land papers, Citizenship
- Time
- Varies by municipality
nitipartners.com (opens in a new tab)Check
Follow data privacy and electronic transaction rules
If you collect customers' personal data, the Individual Privacy Act 2075 requires consent and notice and limits disclosure. The Electronic Transactions Act 2063 covers digital signatures, online offences such as illegal content and hacking. The E-Commerce Act adds duties to protect customers' data. Keep a short privacy notice and do not share data without consent.
- Where
- Nepal Law Commission for the texts; a lawyer for advice
- Level
- federal
- Time
- Ongoing
Do it online (opens in a new tab)lawcommission.gov.np (opens in a new tab)
File returns and keep accounts
File VAT monthly if registered (due by the 25th of the next Nepali month, per secondary source) and an annual income tax return. Keep invoices, contracts and bank records for every export payment so the concession can be claimed.
- Where
- IRD online taxpayer portal
- Level
- federal
- Documents
- Invoices, Bank statements, Books of account
- Time
- Monthly (VAT) and yearly (income tax)
Do it online (opens in a new tab)lawalpine.com (opens in a new tab)Check