Short answer
Small businesses, workshops, shops with production and many service units in Nepal register as a cottage or small industry (घरेलु तथा साना उद्योग) under the Industrial Enterprises Act 2076. In Kathmandu the Cottage and Small Industry Office charged from NPR 1,000 (capital up to NPR 1 lakh) to NPR 60,000 (above NPR 10 crore) in FY 2080/81. Registration is followed by ward registration and PAN/VAT.
| Law | Industrial Enterprises Act 2076 (2020) |
|---|---|
| Office (Kathmandu) | Cottage and Small Industry Office, Kathmandu (घरेलु तथा साना उद्योग कार्यालय) |
| Form | Registration application in the prescribed schedule (अनुसूची २) |
| Lowest fee | NPR 1,000 for capital up to NPR 1 lakh (FY 2080/81) |
| Small capital | Capital up to NPR 5 lakh may be registered at local (ward/municipality) level |
| Discount | 50% for women, Dalit and persons with disability (conditions apply) |
How industries are classified by size (Industrial Enterprises Act 2076)
The Act classifies industries mainly by fixed capital — machinery, equipment and other fixed assets, excluding land and buildings. The class decides which office registers the industry and which incentives apply. Use our industry registration fee and class calculator to check your own figures.
| Class | Criteria |
|---|---|
| Micro enterprise (लघु उद्यम) | Fixed capital up to NPR 20 lakh (excluding land and building), up to 9 workers including the entrepreneur, annual transactions under NPR 1 crore, machinery up to 20 kW |
| Cottage industry (घरेलु उद्योग) | Based on traditional skills and local resources, labour-intensive, machinery within the limit set by the Act (up to 50 kW) |
| Small industry (साना उद्योग) | Fixed capital up to NPR 15 crore (other than micro and cottage) |
| Medium industry (मझौला उद्योग) | Fixed capital above NPR 15 crore up to NPR 50 crore |
| Large industry (ठूला उद्योग) | Fixed capital above NPR 50 crore |
Micro, cottage and small industries are regulated by local and provincial bodies under provincial law; the Department of Industry handles foreign-invested, prior-approval and multi-province industries.
Types of industry in Nepal by the nature of goods and services
| Type (Nepali) | Examples |
|---|---|
| Energy-based (ऊर्जामूलक) | Hydropower (water), wind, solar, oil, coal, gas and biogas |
| Manufacturing (उत्पादनमूलक) | Factories and workshops that produce goods |
| Agro and forest-based (कृषि तथा वन पैदावारमा आधारित) | Fruit farming, agricultural production, livestock, wood-based industry, agro-forestry |
| Mineral (खनिज) | Mining and quarrying |
| Infrastructure (पूर्वाधार) | Roads, bridges, ropeways, railways |
| Tourism (पर्यटन) | Hotels, motels, resorts, bars and restaurants; travel agencies, tour operators, spas; trekking, paragliding, rafting, mountaineering and other adventure sports |
| Service (सेवामूलक) | Workshops, research and development, management, engineering and design, auditing, construction, photography, entertainment |
| Information and communication technology (सूचना प्रविधि) | IT parks, computer services, data and software, digital management, software development, web portals and web design |
Registration fees: Cottage and Small Industry Office, Kathmandu (FY 2080/81)
The same schedule covers companies, private firms and partnership firms registered with the office. Registration fees depend on capital:
| Capital | Registration fee |
|---|---|
| Up to NPR 1 lakh | NPR 1,000 |
| NPR 1 – 3 lakh | NPR 3,000 |
| NPR 3 – 5 lakh | NPR 6,000 |
| NPR 5 – 20 lakh | NPR 12,000 |
| NPR 20 – 50 lakh | NPR 20,000 |
| NPR 50 lakh – 1 crore | NPR 28,000 |
| NPR 1 – 3 crore | NPR 36,000 |
| NPR 3 – 5 crore | NPR 44,000 |
| NPR 5 – 10 crore | NPR 52,000 |
| Above NPR 10 crore | NPR 60,000 |
Source: Cottage and Small Industry Office, Kathmandu, fee and fine schedule for FY 2080/81 (Bagmati Province). Provincial finance acts revise these amounts — confirm the current year's schedule before paying. Capital up to NPR 5 lakh can be registered at local level.
Renewal fees and late fines
Registrations must be renewed when their term ends. Renewing within 35 days is cheapest; the fee rises if you renew within 90 days or within a year, and after a year an additional fine is charged for every year of delay.
| Capital | Within 35 days | Within 90 days | Within 1 year | After 1 year (fee + fine per year) | Partnership firm (35 d / 90 d / 1 yr / extra per yr) |
|---|---|---|---|---|---|
| Up to NPR 1 lakh | 600 | 900 | 1,200 | 1,200 + 600 | 300 / 450 / 600 / +300 |
| NPR 1 – 3 lakh | 1,000 | 1,500 | 2,000 | 2,000 + 1,000 | 400 / 600 / 800 / +400 |
| NPR 3 – 5 lakh | 1,600 | 2,400 | 3,200 | 3,200 + 1,600 | 700 / 1,050 / 1,400 / +700 |
| NPR 5 – 20 lakh | 3,000 | 4,500 | 6,000 | 6,000 + 3,000 | 1,200 / 1,800 / 2,400 / +1,200 |
| NPR 20 – 50 lakh | 5,000 | 7,500 | 10,000 | 10,000 + 5,000 | 2,000 / 3,000 / 4,000 / +2,000 |
| NPR 50 lakh – 1 crore | 6,500 | 9,750 | 13,000 | 13,000 + 6,500 | 3,000 / 4,500 / 6,000 / +3,000 |
| NPR 1 – 3 crore | 8,000 | 12,000 | 16,000 | 16,000 + 8,000 | 4,000 / 6,000 / 8,000 / +4,000 |
| NPR 3 – 5 crore | 11,000 | 16,500 | 22,000 | 22,000 + 11,000 | 5,000 / 7,500 / 10,000 / +5,000 |
| NPR 5 – 10 crore | 15,000 | 22,500 | 30,000 | 30,000 + 15,000 | 6,000 / 9,000 / 12,000 / +6,000 |
| Above NPR 10 crore | 20,000 | 30,000 | 40,000 | 40,000 + 20,000 | 7,000 / 10,500 / 14,000 / +7,000 |
Private firms that have not renewed for more than five years pay double the fine.
Registration and renewal periods
- Application fee: NPR 100. A certified copy of a certificate: NPR 500.
- 50% discount on the firm registration fee for women, persons with disability, Dalit and marginalised communities with an identity certificate (Bagmati Province Finance Act 2080, section 15).
- 50% discount on registration when the industry or firm is solely owned by a woman, Dalit or a person with full, severe or moderate disability (Industrial Enterprises Act 2076, section 18(3)).
| Type | Registration valid for | Renewal period |
|---|---|---|
| Partnership firm (साझेदारी फर्म) | 1 year | Every 1 year |
| Private firm (प्राइभेट फर्म) | 5 years | Every 2 years |
| Company | 5 years | Every 5 years |
Documents for cottage and small industry registration
- Proposed name of the industry or firm.
- Address of the business premises.
- Decision or declaration of the capital amount.
- Application for registration (the prescribed schedule form, अनुसूची २).
- Passport-size photo of the owner.
- Owner's citizenship certificate.
- Ward approval (recommendation) for the location.
- चार किल्ला प्रमाणित — ward-certified boundary details of the property (who owns the land on all four sides).
- Where capital is more than NPR 10 lakh, a bank statement of the current month showing NPR 10 lakh.
Step-by-step registration process
- 1
Choose the name and confirm the class
Check the industry class from your fixed capital and the type of activity.
- 2
Get the ward recommendation and चार किल्ला
The ward office of the business premises certifies the location and its boundaries.
- 3
Fill the registration form
Complete the prescribed application (अनुसूची २) with the documents above.
- 4
Pay the fee by capital
Pay according to the capital band; claim the 50% discount if eligible.
- 5
Receive the industry certificate
The office issues the cottage or small industry certificate (प्रमाण-पत्र).
- 6
Register at the ward
Register the business with the ward with 2 PP photos, citizenship copy, rent agreement, landlord's citizenship and a water or electricity bill.
- 7
Register for PAN or VAT
Apply to the IRD with the owner's PAN and the registration details (name, address, date). See our PAN registration guide.
Key takeaways
- Industries are classed by fixed capital: micro (≤ NPR 20 lakh), small (≤ NPR 15 crore), medium (≤ NPR 50 crore), large (> NPR 50 crore).
- Kathmandu CSIO fees in FY 2080/81 ran from NPR 1,000 to NPR 60,000 by capital.
- Renew within 35 days to pay the least; late renewals attract growing fines.
- Women, Dalit and persons with disability can get a 50% fee discount.
Frequently asked questions
What is the fee for small industry registration in Kathmandu?
Under the FY 2080/81 schedule it was NPR 1,000 for capital up to NPR 1 lakh, NPR 3,000 up to 3 lakh, NPR 6,000 up to 5 lakh and NPR 12,000 up to 20 lakh, rising to NPR 60,000 above NPR 10 crore.
What is the difference between a micro enterprise and a small industry?
A micro enterprise has fixed capital up to NPR 20 lakh, up to 9 workers, annual transactions under NPR 1 crore and machinery up to 20 kW. A small industry can have fixed capital up to NPR 15 crore.
Is there a discount for women entrepreneurs?
Yes. Industries and firms solely owned by women (and by Dalit or persons with disability) receive a 50% discount on the registration fee under the Industrial Enterprises Act 2076 and provincial finance law.
What is चार किल्ला प्रमाणित?
A ward-certified document describing the four boundaries (east, west, north, south) of the property where the business operates. Industry offices ask for it with the ward recommendation.
Do I need PAN after small industry registration?
Yes. After ward registration, register the business with the IRD for PAN, or VAT if your turnover or activity requires it.
Should I register a small industry or a company?
A small industry registration suits owner-run local businesses. If you want limited liability, investors or foreign shareholders, register a private limited company and then register the industry under it.
Sources and official references
Government fees and rules change with each Finance Act and OCR/IRD notice. We re-check the figures on this page regularly; confirm the latest amount with the office concerned or ask our team before you pay.