Construction Company Registration in Nepal
To run a construction business in Nepal, you must first register a company at OCR and then obtain a Contractor License from the Department of Urban Development and Building Construction (DUDBC) or your local government, depending on the license class.
Understanding Contractor License Classes
The Government of Nepal classifies construction contractors into four classes based on their financial capacity, technical staff, and the size of projects they can handle:
| License Class | Contract Value | Issuing Authority |
|---|---|---|
| Class D | Up to NPR 50 Lakhs | Local Municipality / Rural Municipality |
| Class C | Up to NPR 5 Crore | DUDBC (Department of Urban Development) |
| Class B | Up to NPR 20 Crore | DUDBC |
| Class A (Special) | NPR 20 Crore and above | DUDBC |
Most new construction businesses start with D-Class or C-Class licenses and upgrade over time as they grow.
Step-by-Step Process
- 1
Register Your Company at OCR
Register a Private Limited Company at the OCR CAMIS portal. When listing company objectives, include construction-related activities such as 'civil construction', 'building construction', 'road construction', 'electrical and plumbing works', or any other type of construction your company will undertake.
- 2
Get Business PAN from IRD
After receiving your company registration certificate, apply for a Business PAN at the Inland Revenue Department (IRD). A valid and active PAN is required for the contractor license application and for tax compliance.
- 3
Complete Ward Registration
Register your company at the ward office where your office is physically located. This is required for the contractor license application to confirm your company has a real, physical presence.
- 4
Open a Company Bank Account
Open a corporate bank account using your company registration certificate and PAN. This is needed to show proof of capital — which is a key requirement for contractor licenses, especially for higher classes.
- 5
Apply for Contractor License
For D-Class: Apply at your local municipality or rural municipality office. For C, B, and A Class: Apply at the nearest DUDBC office. Submit all required documents including proof of capital, technical staff credentials, office details, and equipment list. Pay the prescribed application fee.
- 6
Document Verification and Inspection
DUDBC or the local government will verify your submitted documents and may inspect your office. Ensure all documents are genuine and up to date. Technical staff listed in your application must be verifiable.
- 7
Receive Contractor License Certificate
Upon successful verification, you will receive your Contractor License Certificate. This license must be renewed every year by submitting a tax clearance certificate and updated company details.
Required Documents
- Company Registration Certificate from OCR
- Business PAN Certificate from IRD
- Ward Registration Certificate
- Corporate bank account statement showing required capital
- Citizenship certificates of all directors
- Credentials and license of technical staff (civil engineers, sub-engineers)
- Nepal Engineering Council (NEC) registration of engineers
- Affidavit declaring accuracy of all submitted documents
- Equipment list (for higher license classes)
- Office lease agreement or ownership documents
- Passport-sized photographs of directors
- Annual tax clearance certificate (for renewal)
Technical Staff Requirements
Higher contractor license classes require qualified technical staff. Here are the general requirements:
- →Class D: At least one civil overseer or junior technical person
- →Class C: At least one Sub-Engineer (Overseer) registered with NEC
- →Class B: At least one Civil Engineer (Bachelor's level) registered with NEC
- →Class A: At least one Senior Civil Engineer with relevant experience
NEC = Nepal Engineering Council. All engineers working in Nepal must be registered with NEC.
Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.