Suman had been selling handmade lokta paper products from his small workshop in Bhaktapur for four years. Most of his buyers were tourists and a few export buyers who found him through Instagram. Then one buyer in Germany asked a question that changed everything: "Can you send me an official company invoice?"
He could not. He was operating as an individual, not as a registered business. No company name. No PAN under a business entity. No ability to sign export contracts properly.
He opened the OCR (Office of Company Registrar) website. The homepage looked straightforward. He clicked "Online Company Registration." The system asked for things he had never heard of. Prabandhapatra. Niyamawali. Authorized capital versus paid-up capital. Share structure. He closed the tab and called a CA friend.
The CA friend gave him two options: pay NRS 25,000 to 40,000 and let a firm handle everything, or spend one weekend learning the process and do it himself for the government fee only.
Suman spent that weekend. This guide is the organized version of what he figured out.
Government fee for a typical startup: NRS 9,000 to NRS 25,000 depending on authorized capital.
Can you do it without a CA? Yes, for a straightforward 2-shareholder Pvt Ltd with Nepali shareholders only.
OCR portal address: ocr.gov.np (use Chrome or Firefox, not Safari on older iOS).
What you get at the end: Company Registration Certificate (digital PDF + physical copy from OCR office).
Before You Open the OCR Portal: Three Decisions to Make First
The OCR online form has no "save and continue later" feature. If you close it mid-way, you may need to start over. So before you touch the portal, make these decisions on paper.
Decision 1: Company Name
Your company name must end with "Private Limited" in English or "प्राइभेट लिमिटेड" in Nepali. You need at least two name options ready because your first choice may already be taken or too similar to an existing registered company.
Avoid names that include words like "Nepal," "National," "Royal," "Government," or "Rastriya" without specific approval. Names that imply banking, insurance, or financial services need sector-specific clearance.
Good practice: search the OCR company search at ocr.gov.np/search before reserving. Type your preferred name and see if similar names already exist.
Decision 2: Authorized Capital and Paid-Up Capital
This is where most first-timers get confused. These are two different numbers.
Authorized capital is the maximum total value of shares your company is permitted to issue, as stated in your Prabandhapatra. You do not need to deposit this full amount upfront. It is a ceiling set in your founding documents.
Paid-up capital is the actual amount shareholders have paid in against shares issued so far. This is the real money deposited in the company bank account.
For a startup, NRS 1,00,000 (one lakh) authorized capital with NRS 1,00,000 paid-up is the most common and practical choice. It keeps your registration fee low and gives you room to operate. You can increase authorized capital later through a formal amendment process.
Decision 3: Who Are the Shareholders and Directors
A Pvt Ltd needs at least 2 shareholders and at least 1 director. The same person can be both a shareholder and a director. You need the full legal name, citizenship certificate number, address, and contact number of every shareholder and director ready before starting the form.
Documents You Need Before Touching the Portal
This is the list the OCR official website gives you. But there are important format details the official site leaves out, which is why documents get rejected after submission.
| Document | Who Provides It | Format Required | What OCR Checks |
|---|---|---|---|
| Citizenship certificates of all shareholders | Each shareholder personally | Scanned PDF or JPG, both front and back, under 2MB per file | Name match with form entry, citizenship number readability |
| Citizenship certificates of all directors | Each director personally | Same as shareholders. If director is also a shareholder, one copy is enough but must be uploaded in both fields | Director must be at least 18 years old, no criminal disqualification |
| Prabandhapatra (Memorandum of Association) | You draft it; all shareholders sign it | PDF, typed in Nepali or English, notarized signature pages, under 5MB | Objects clause must match company activity; capital figures must match form; signatures and dates required |
| Niyamawali (Articles of Association) | You draft it or use OCR's model template | PDF, signed by all shareholders or their authorized representative | Internal governance rules must comply with the Companies Act 2063 |
| Registered office address proof | Property owner or your lease agreement | Scanned rental agreement or land ownership document, PDF under 2MB | Address must include ward number, municipality/metropolitan name, and district |
| Passport-size photos of directors | Each director | JPG or PNG, white background preferred, under 500KB each | Clear face photo; used for director registry record |
| Company seal design (optional at registration) | You create or get from a rubber stamp shop | JPG upload or physical submission later | Some companies submit this after registration when they get their physical seal made |
Phase 1: Company Name Reservation on the OCR Portal
Name reservation is separate from the main registration application. It is a short process but it has a time limit: once your name is reserved, you have 30 days to complete the full registration application. If you miss that window, the name reservation expires and you start over.
Phase 2: Writing the Prabandhapatra (Memorandum of Association)
The Prabandhapatra is the founding document of your company. It is the document that tells OCR, the government, your bank, and your future partners what your company is, what it does, and how it is structured.
Most rejection letters from OCR cite problems with the Prabandhapatra. Not because founders are dishonest, but because they write it too vaguely, too broadly, or copy-paste an old template that does not match their actual business.
What Every Prabandhapatra Must Contain
| Section | What to Write | Common Mistake |
|---|---|---|
| Company Name | Exact name as approved in name reservation, including "Private Limited" | Typos that do not match the reservation letter exactly |
| Registered Office Address | Full address: Ward No., Street, Municipality or Metropolitan city, District, Province, Nepal | Writing only "Kathmandu" without ward number and municipality name |
| Objectives (Company Objects) | Specific list of business activities your company will carry out | Writing "all lawful business activities" or a list of 50 unrelated things |
| Authorized Capital | Total authorized capital amount in words and figures, divided into shares of specified face value | Stating authorized capital in the document but a different figure in the online form |
| Shareholder Details | Full name, citizenship number, address, and number of shares taken by each founder shareholder | Shares listed in Prabandhapatra do not add up to paid-up capital stated |
| Signatures | Original wet signatures of all founder shareholders, with date | Digital signatures without notarization, or unsigned pages in the scan |
How to Write the Objects Clause Without Getting Rejected
The objects clause is where most people go wrong. OCR reviewers check whether your stated objects make sense together and whether any of them require a separate license.
If you are registering a tech company that builds software, your objects clause might read:
2. To provide information technology consulting, system integration, and technical support services.
3. To engage in e-commerce services and digital marketplace operations.
4. To import and export technology products and related equipment as permitted by applicable Nepal laws.
5. To carry out any other business activity incidental or ancillary to the above objectives.
Notice what that sample does: it is specific about the core activity, covers related activities, mentions import/export if relevant, and includes the standard catch-all at the end. It does not claim to be a bank, insurance company, airline, or any other regulated sector.
The Niyamawali: Can You Use OCR's Template?
Yes, and for most startups this is the right choice. OCR has a model Niyamawali (Articles of Association) on its website that complies with the Companies Act 2063 and its 2080 amendments. You can adopt it wholesale by referencing it in your application, or download it, fill in your company-specific details (name, capital structure, share classes), and upload it as your Niyamawali.
Writing a fully custom Niyamawali only makes sense if you have complex governance needs: multiple share classes, specific voting rights structures, drag-along or tag-along clauses for investor arrangements. For a standard 2-person startup, use the OCR model.
Phase 3: Filling the OCR Online Registration Form
This is the longest part of the process. The OCR online form has multiple sections and the session can time out. Before starting, open a separate browser tab with all your details ready: shareholder names, citizenship numbers, address details, capital figures, and share breakdown.
Phase 4: Registration Fee Structure and Payment Methods
The registration fee is calculated based on your authorized capital. It is not a fixed amount. The table below reflects the current fee structure as per OCR's published schedule.
| Authorized Capital (NPR) | Registration Fee (NPR) | Notes |
|---|---|---|
| Up to NRS 1,00,000 | NRS 9,000 | Most common choice for early-stage startups |
| NRS 1,00,001 to NRS 5,00,000 | NRS 14,000 | For businesses needing a bit more capital headroom |
| NRS 5,00,001 to NRS 25,00,000 | NRS 25,000 | Mid-size operations, trading companies |
| NRS 25,00,001 to NRS 1,00,00,000 | NRS 50,000 | Larger operations |
| Above NRS 1,00,00,000 | NRS 50,000 plus NRS 5,000 per additional NRS 10 lakh | Contact OCR directly for exact calculation |
Source: Office of Company Registrar fee schedule. Always verify current fees at ocr.gov.np before submitting payment.
How to Pay the Registration Fee
Phase 5: After You Get the Registration Certificate
Getting the registration certificate is not the finish line. It is the starting gate. Here is what has to happen next to make your company legally operational.
Calculate your business loan EMI
Once your company is registered and you are ready to approach a bank for a business loan, use the Nepal EMI Calculator to plan your monthly repayment before signing anything.
Common OCR Application Rejections and How to Fix Them
OCR sends rejection notices via email and through the portal dashboard. The notice usually has a reason code, but the reason code is often vague. Here are the most frequent rejections and the actual fix for each.
| Rejection Reason | What Actually Happened | How to Fix It |
|---|---|---|
| Document not readable / poor quality | Citizenship scan was taken at an angle, in poor lighting, or with shadows across the text | Re-scan on a flat white surface in natural daylight. Use A4 orientation. Run through Adobe Scan for auto-enhancement. Both sides must be fully visible with no cutoff edges. |
| Capital mismatch | The authorized capital in the Prabandhapatra does not match what was entered in the online form | Check both documents side by side. Figures must match in both the document and the form. Correct the form entry or amend the Prabandhapatra to match, re-sign, and re-upload. |
| Objects clause too vague or too broad | Objects clause says "all kinds of business" or includes regulated sector activities without the appropriate license | Rewrite the objects clause to be specific to your actual business. Remove any regulated sector activities. Re-draft the Prabandhapatra, get fresh signatures, and re-upload. |
| Address incomplete | Registered office address missing ward number, or municipality name written as abbreviation | Write the full address consistently: Ward No. [X], [Street Name], [Municipality/Metropolitan] [City], [District], [Province], Nepal. |
| Shareholder percentage does not total 100% | Arithmetic error in share distribution. Common in three-shareholder companies where percentages are split into thirds. | Work in share units, not percentages. If 1,000 shares total, allocate 333, 333, 334 shares respectively. |
| Name in form differs from reservation | Typo in company name field, or "Pvt. Ltd." vs "Private Limited" inconsistency | Copy-paste the exact name from your name reservation approval letter into the form. Do not retype it manually. |
| Prabandhapatra missing signatures | Scan missed the signature page, or the signature page was not included in the PDF | Merge all pages of the Prabandhapatra including the signature page into a single PDF before uploading. Verify the merged PDF shows all pages before uploading. |
OCR Portal Technical Tips (From Real Experience)
Session timeout is 30 minutes: If you leave the form open without interacting, you will be logged out. Your progress up to the last saved section may be lost. Keep a separate document with all your details ready to re-paste quickly.
Upload one file at a time: The system allows one document upload per field. Do not try to upload multiple files into a single field. If a field requires both front and back of citizenship, merge them into one PDF first.
Do not use VPN: Some applicants report that VPN usage causes payment gateway issues and form submission errors on the OCR portal. Disable VPN before accessing the site.
Internet stability matters: OCR's form submission is a single POST request. If your connection drops mid-submission, the application may submit partially or fail silently. Use a stable connection, not mobile data on the street.
Total Cost Breakdown for a Typical Nepal Pvt Ltd Registration
| Item | Cost (NPR) | Notes |
|---|---|---|
| Name reservation fee | NRS 200 | Paid online at OCR portal |
| Company registration fee | NRS 9,000 | For NRS 1 lakh authorized capital |
| Notary for Prabandhapatra signatures | NRS 500 to NRS 1,500 | Varies by notary. Some lawyers near Singha Durbar charge NRS 500 per page |
| Company seal | NRS 800 to NRS 1,500 | Rubber stamp shops near New Road or Bhadrakali |
| Document scanning and printing | NRS 200 to NRS 500 | If you do not have access to a scanner at home |
| PAN registration | Free | No fee at IRD. Bring originals. |
| Municipality business registration | NRS 2,000 to NRS 5,000 | Varies by ward and business type |
| Total (DIY, no CA) | NRS 12,700 to NRS 17,700 | If everything goes smoothly on first submission |
| Total (with CA or agent) | NRS 30,000 to NRS 55,000 | Includes CA professional fee |
When to Do It Yourself and When to Hire a CA
This guide is written to help you do it yourself. But there are situations where hiring a CA or legal firm is genuinely the right call.
Do it yourself if: you have 2 to 3 Nepali shareholders, simple business activities, no foreign investment, and an authorized capital under NRS 25 lakh. The process is manageable and the learning is valuable.
Hire a CA or legal firm if: any shareholder is a foreign national or foreign entity, your business requires a sector-specific license (finance, media, education institution, hydropower), your share structure has multiple classes of shares, or you are registering as part of a larger transaction like an acquisition or joint venture.
A practical middle path: prepare all your documents and fill the form yourself, but pay a CA NRS 3,000 to NRS 5,000 to review your Prabandhapatra before you submit. One hour of their time reviewing your objects clause and capital structure saves you rejection cycles that cost more in time than the review fee.
FAQ: Nepal Private Limited Company Registration
The Part Nobody Tells You About Starting a Nepal Company
Suman got his certificate within nine days of submitting his clean application. He went to IRD the next morning for PAN registration. He had his company bank account at Nepal Investment Mega Bank open three days after that.
Two weeks after starting the process, he sent the German buyer an official company invoice on letterhead with his company seal and PAN number. The buyer placed an order three times larger than the previous informal transaction.
The registration itself is not the hard part. The hard part is understanding what each document field is actually asking for. The OCR portal assumes you already know Nepali company law. This guide fills that gap.
One thing worth knowing before you finish: company registration is the beginning of a compliance relationship with the government, not a one-time transaction. OCR, IRD, and your municipality will expect annual returns, tax filings, and renewed licenses every year. Building those habits from year one keeps your company in good standing and prevents the headaches that come from lapsed compliance.
☐ Decide authorized capital and share structure
☐ Confirm all shareholders and directors (minimum 2 shareholders)
☐ Collect citizenship certificates of all shareholders and directors
☐ Prepare office address proof (rental agreement or ownership document)
☐ Draft Prabandhapatra with correct objects clause and capital figures
☐ Sign Prabandhapatra (all shareholders) in front of notary
☐ Adopt or customize Niyamawali
☐ Create OCR account at ocr.gov.np
☐ Reserve company name (NRS 200 fee)
☐ Fill online registration form within 30 days of name approval
☐ Upload all documents in correct format and order
☐ Pay registration fee via Connect IPS or e-banking
☐ Monitor OCR dashboard for approval or correction notice
☐ Register for PAN at IRD after certificate received
☐ Open company bank account
☐ Register with municipality for local business tax
☐ Get company seal made
☐ Set calendar reminder for annual OCR return (next Ashad)
Disclaimer: This guide is based on the OCR online portal workflow, Nepal Companies Act 2063 (as amended), and IRD registration procedures as understood in 2026. Government portal interfaces and fee structures are subject to change. Always verify current requirements at ocr.gov.np and ird.gov.np before submitting your application. For complex ownership structures or foreign investment, consult a licensed Chartered Accountant or legal professional registered with ICAN Nepal.
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