Free tool

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.

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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

Business types compared
TypeRegistered withKey feature
Sole proprietorshipDepartment of Commerce / municipality / small industry officeOne owner, no separation from the business, unlimited liability
Partnership (साझेदारी) firmDepartment of Commerce / municipalityTwo or more partners sharing profit and liability
Private limited companyOffice of Company RegistrarSeparate legal entity, limited liability, 1–101 shareholders, “Private Limited” in the name
Public limited companyOffice of Company RegistrarAt least 7 shareholders, no maximum, NPR 1 crore capital, can raise public funds, “Limited” in the name
Not-for-profit organisationDistrict 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.

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