Business Registration Nepal: Which Office?

Updated August 2026. Statutory provisions below are quoted from the Local Government Operation Act 2074 and the Companies Act 2063. Practice genuinely differs between districts — and this article explains why.

You want to start a business in Nepal and everyone gives you a different answer about where to register. They are not all wrong. The law itself overlaps — two separate statutes claim the same registrations — which is exactly why practice varies by district and why nobody has explained this clearly before.

The Overlap That Causes the Confusion

⚠ Two laws both claim micro, cottage and small industry registration.

The Local Government Operation Act 2074, section 11 gives your municipality or rural municipality express power over the “दर्ता, नवीकरण, खारेजी, नियमन” — registration, renewal, cancellation and regulation — of micro, cottage and small industries.

At the same time the Industrial Enterprises Act 2076 routes those same industries to Cottage and Small Industries offices.

Both are in force. That is the honest answer to why one person is told to go to the ward and another to the district CSI office — and why you should ask locally rather than trust a national article.

Who Registers What

Office of the Company Registrar

कम्पनी रजिस्ट्रारको कार्यालय

Companies — private limited, public limited and non-profit companies, under the Companies Act 2063. If you want limited liability and shares, this is your office.

Department of Industry

उद्योग विभाग

Industry registration, foreign investment, and larger industries. Also the office for trademarks.

Cottage & Small Industries offices

घरेलु तथा साना उद्योग

Cottage and small industries, and private firms — at district and provincial level.

Your ward and municipality

वडा / नगरपालिका

Registers new businesses and collects business tax — and, under section 11, may register and renew micro, cottage and small industries too.

The ward’s role is explicit in statute. Section 12 lists among ward duties “व्यवसाय कर… नयाँ व्यवसाय दर्ता, सिफारिस दस्तुर” — assessing and collecting business tax and registering new businesses, then remitting to the municipality. Whatever else you do, the ward is not optional.

Separately, the Inland Revenue Department issues your PAN and handles VAT. That is not a registration alternative — it comes after, and it applies to everyone.

Which Size Class Are You?

The Industrial Enterprises Act classifies industries by scale, and the class affects which office and which incentives apply:

Class	Threshold
Micro (लघु)	Fixed capital up to Rs 20 lakh, up to 9 workers, turnover under Rs 1 crore, power up to 20 KW
Small	Fixed capital up to Rs 15 crore
Medium	Fixed capital Rs 15–50 crore
Large	Above Rs 50 crore

Most Nepali businesses reading this are micro. A shop, a consultancy, a small workshop, a service business with a handful of staff — all sit inside the micro band, which is exactly the band the local level has power over.

A Recent Change Worth Knowing

Registration moved closer to you in 2083. A Department of Industry notice dated around Baisakh 24, 2083 (early May 2026) moved registration and regulation of domestic-investment industries with fixed capital up to Rs 25 crore to district-level offices, ending a dual central-and-district process. For almost every ordinary business, that means you should not need to deal with Kathmandu at all.

One claim we could not verify: reporting alongside that change suggested registration fees for these industries would be waived. We could not confirm it. Do not assume registration is free — ask, and be pleasantly surprised if it is.

🤝 Not sure which office your business belongs to?

Tell us what you plan to do, roughly how much you are investing and where you are based. Digital Solution will help you identify the right office and the right sequence before you start queuing.

📲 WhatsApp: +977 9766597181 Our Services →

The Practical Sequence for a Small Business

Decide your legal form first. Sole proprietorship or company? That single decision determines everything downstream — see our guides on sole proprietorship registration and private limited registration.
Register the entity — at the CSI office, the local level, the Department of Commerce for pure trading, or the Company Registrar for a company.
Get your PAN — and note the timing rule most people get wrong, covered in our guide on what to do after registration.
Register at your ward and settle business tax. This is the step most commonly skipped.
Open the business bank account.
Register as an employer with SSF before you hire.
Watch the VAT threshold as you grow — see our PAN vs VAT guide.

Ask These Four Questions Locally

1. Which office registers my type and size?

Given the statutory overlap, the answer genuinely depends on your district and sector.

2. What does registration cost here?

Fees differ between routes, and local charges are set locally.

3. Do I renew, and how often?

Renewal obligations differ by route — and the local level has express renewal power over micro industries.

4. What does the ward need from me?

Business registration and business tax at ward level are separate from whatever you did federally.

⚠ On local fees, one rule applies throughout this guide: business tax and licence charges at ward and municipality level are set by each of Nepal’s 753 local levels in its own annual Economic Act (आर्थिक ऐन). There is no national figure, and any article quoting one — including this one — would be misleading you. Ask your own ward or municipality office.

Frequently Asked Questions

Where do I register a small business in Nepal?

For a sole proprietorship, typically a Cottage and Small Industries office, the local level, or the Department of Commerce for pure trading. For a company, the Office of the Company Registrar. Your ward registration is required in addition.

Why do people give different answers?

Because two statutes overlap — the Local Government Operation Act gives local levels power over micro, cottage and small industry registration, while the Industrial Enterprises Act routes the same industries to CSI offices.

Do I need to register at the ward as well?

Yes. Ward-level business registration and business tax are set out in statute and are separate from federal or provincial registration.

What counts as a micro industry?

Fixed capital up to Rs 20 lakh, up to nine workers, turnover under Rs 1 crore and power use up to 20 KW.

Do I have to go to Kathmandu?

For most domestic-investment industries up to Rs 25 crore fixed capital, registration was moved to district-level offices in 2083.

Which office handles PAN?

The Inland Revenue Department. That comes after entity registration and applies regardless of which route you took.

Is registration free now?

Do not assume so. A fee waiver was reported alongside the 2083 devolution but we could not verify it.

Which office does foreign investment?

The Department of Industry, or the Investment Board for very large investments. See our foreign investment guide.

Sources

Local Government Operation Act 2074 — sections 11, 12 and 58, from the published consolidated text.
Companies Act 2063 — company registration at the Office of the Company Registrar.
Industrial Enterprises Act 2076 — industry classification thresholds.
Reporting on the Department of Industry notice devolving registration of domestic-investment industries up to Rs 25 crore.

Business Registration in Nepal: Which Office Do You Actually Go To?