Firm / Proprietorship Registration in Nepal
A sole proprietorship (Ekla Byakti Byabastha) is the simplest form of business in Nepal. You can register a firm at your local ward office or municipality and get a business name, PAN, and ward-level license — typically within 1–3 days.
What is a Sole Proprietorship / Firm?
A sole proprietorship is a one-person business that is not legally separate from its owner. It is the most common form of small business in Nepal — used by traders, shopkeepers, freelancers, and small service providers.
Unlike a Private Limited Company, a firm does not require OCR (Office of the Company Registrar) registration. Instead, it is registered at the local ward office and IRD.
Step-by-Step Process
- 1
Choose a business name
Select a unique business name. Search the OCR CAMIS portal to ensure it does not conflict with registered company names.
- 2
Ward office registration
Visit your local ward office with citizenship and passport photo. Fill the application form and receive your firm registration certificate.
- 3
PAN registration at IRD
Register for a Permanent Account Number (PAN) at the nearest IRD office. Required for all business transactions and tax filing.
- 4
VAT registration (if applicable)
If your annual sales exceed NPR 50 lakh (goods) or NPR 30 lakh (services), or if you choose to register voluntarily, apply for VAT at IRD.
- 5
Bank account opening
Open a business bank account in the firm's name using your registration certificate and PAN card.
Government Registration Fees
These are mandatory fees payable directly to government authorities only. Service charges are separate.
| Item | Fee |
|---|---|
Ward office registration fee Varies by municipality | NPR 500 – 2,000 |
PAN registration No government fee | Free |
VAT registration No government fee | Free |
Required Documents
- Citizenship certificate of the owner
- Passport-size photograph (2 copies)
- Business address proof (rental agreement or ownership document)
- Proposed business name
- Business description / nature of work
Sole Proprietorship vs Private Limited Company
A sole proprietorship is faster and cheaper to set up, but you bear unlimited personal liability. A Pvt Ltd company protects your personal assets. If you plan to scale, hire staff, or seek investment, a Pvt Ltd company is recommended from the start.Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.