Branch Office Registration for International Companies in Nepal
Foreign companies wishing to operate in Nepal without incorporating a separate local entity can register a Branch Office or Liaison Office. This requires approval from the Department of Industry (DOI) and registration at the Office of the Company Registrar (OCR).
Branch Office vs Liaison Office vs Subsidiary
Branch Office: An extension of the parent company that can conduct commercial activities, sign contracts, and earn revenue in Nepal. Taxed on Nepal-sourced income.
Liaison Office: Can only conduct coordination and communication activities — no commercial transactions or revenue generation. Used for market research and business development.
Subsidiary (Pvt Ltd Company): A separately incorporated Nepali company owned by the foreign parent. Provides full liability protection and is the most common structure for long-term operations.
Step-by-Step Process
- 1
DOI application and approval
Submit a branch/liaison office application to the Department of Industry with parent company documents, board resolution, and business plan. DOI reviews and issues approval.
- 2
OCR registration
Register the branch office at OCR using the DOI approval letter and parent company registration documents. The branch is entered in the foreign company register.
- 3
PAN and VAT registration
Register for PAN at IRD. If the branch will conduct taxable transactions, VAT registration may also be required.
- 4
NRB notification
Notify Nepal Rastra Bank about the branch establishment and any foreign currency transactions planned.
- 5
Local authorized representative
Appoint a local resident authorized representative who will be legally responsible for the branch's compliance in Nepal.
- 6
Annual compliance
File annual reports at OCR, submit income tax returns at IRD, and renew the branch registration annually.
Required Documents
- Certificate of incorporation of the parent company (notarized and apostilled)
- Memorandum and Articles of Association of parent company
- Board resolution authorizing branch establishment in Nepal
- Latest audited financial statements of parent company
- Passport of the authorized representative
- Proposed address of branch office in Nepal
- Business plan for Nepal operations
- DOI application form
Consider a Subsidiary Instead
For long-term operations, most international companies choose to incorporate a Nepali Private Limited Company (subsidiary) rather than a branch office. A subsidiary provides better liability protection, is easier to manage for banking and compliance, and is generally preferred by Nepali business partners and government entities.Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.