Which Business Structure Should I Register in Nepal?
Answer six questions to see whether a firm, a Pvt. Ltd., a public company or an NGO fits your plan.
How it works
Nepal's main business types are the sole proprietorship, partnership firm, private limited company, public limited company and not-for-profit organisation. Most founders who want limited liability or partners choose a Pvt. Ltd.; foreign owners must use a company; social purposes suit an NGO or not-for-profit company.
Suggested structure
Private limited company (Pvt. Ltd.)
Limited liability protects your personal assets, and shares make it easy to add partners or investors.
Company registration service →A starting point, not legal advice. Sector licences, tax and investment plans can change the answer — book a free consultation to confirm.
The main types of business in Nepal
| Type | Registered with | Key feature |
|---|---|---|
| Sole proprietorship | Department of Commerce / municipality / small industry office | One owner, no separation from the business, unlimited liability |
| Partnership (साझेदारी) firm | Department of Commerce / municipality | Two or more partners sharing profit and liability |
| Private limited company | Office of Company Registrar | Separate legal entity, limited liability, 1–101 shareholders, “Private Limited” in the name |
| Public limited company | Office of Company Registrar | At least 7 shareholders, no maximum, NPR 1 crore capital, can raise public funds, “Limited” in the name |
| Not-for-profit organisation | District Administration Office (NGO) or OCR (not-for-profit company) | Charitable, educational, religious, scientific or social purpose; funded by donations, grants and corporate gifts |
Compare them in depth in our guides to business registration and the private limited company.
Questions about this tool
What is the most common business structure in Nepal?
The private limited company, because it gives limited liability and is easy to grow with new shareholders.
Can a foreigner open a sole proprietorship in Nepal?
No. Foreign investors register a company after foreign investment approval.
Is an NGO a business?
No — an NGO is a non-profit organisation. If you want a non-profit with company governance, consider a not-for-profit company.
Related guides and services
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