Updated August 2026. The fee table below is published by the Department of Industry but the page carries no date, so we cannot tie it to a fiscal year. Confirm current fees at the office before paying.
For most people starting out in Nepal — a shop, a consultancy, a workshop, a small service business — a sole proprietorship (एकल स्वामित्व) is the right form. It is the fastest and cheapest way to be a legitimate business, and it is what the majority of registered Nepali businesses actually are.
What It Is, and What It Costs You
✓ Why people choose it
Simple to register, cheap, minimal ongoing formality, and the profit is simply your income. No board, no shareholders, no audit requirement of the kind a company faces.
⚠ What you give up
No limited liability. The business and you are the same legal person — business debts are your debts, and your personal assets are exposed. That is the trade.
Which Office — Three Routes
A private firm is registered under the Private Firm Registration Act, and the office depends on what you do:
| If your business is… | Register at |
|---|---|
| Pure trading — buying and selling goods | Department of Commerce, Supplies and Consumer Protection |
| A cottage or small industry — making or processing something | Cottage and Small Industries office, district or provincial |
| A larger industry | Department of Industry |
The Registration Fee
Published by the Department of Industry, scaled by your declared capital:
| Declared capital | Sole proprietorship | Partnership |
|---|---|---|
| Up to Rs 1,00,000 | Rs 1,000 | Rs 600 |
| Rs 1,00,001 – 3,00,000 | Rs 3,000 | Rs 2,000 |
| Rs 3,00,001 – 5,00,000 | Rs 6,000 | Rs 4,000 |
| Rs 5,00,001 – 20,00,000 | Rs 12,000 | Rs 7,000 |
| Rs 20,00,001 – 1,00,00,000 | Rs 20,000 | Rs 10,000 |
| Rs 1,00,00,001 – 5,00,00,000 | Rs 30,000 | Rs 15,000 |
| Above Rs 5,00,00,000 | Rs 50,000 | — |
What to Bring
Identity
Your citizenship certificate and copies, plus passport-size photographs.
Business name
Have two or three options ready in case your first choice is taken or refused.
Premises
Rent agreement or ownership evidence for the business address, and often a ward recommendation.
Declared capital
The figure that determines your fee band.
🤝 Registering a sole proprietorship and want the paperwork right first time?
Tell us what your business does and where you are based. Digital Solution will tell you which office applies in your district, what to carry and what the ward will additionally want.
Do You Have to Renew?
What we can say from statute: the Local Government Operation Act expressly gives local levels the power of “नवीकरण” — renewal — over micro, cottage and small industries. So a renewal obligation may exist at local level even where there is none federally.
Ask your registering office directly: do I renew, when, and what does it cost. One phone call settles what no article can.
What Comes Immediately After
- Get your PAN — and note that the timing rule is not what most people think. Covered in our guide to the first steps after registration.
- Register at your ward and settle business tax. Separate from your firm registration.
- Open a business bank account in the firm’s name.
- Register with SSF before hiring anyone — the obligation starts from your first employee, not from some staff-count threshold.
- Watch the VAT threshold as turnover grows — Rs 50 lakh for goods, Rs 30 lakh for services.
Frequently Asked Questions
How much does it cost to register a sole proprietorship in Nepal?
From Rs 1,000 for capital up to Rs 1 lakh, rising in bands to Rs 50,000 above Rs 5 crore. Confirm the current figure at your office.
Where do I register?
Department of Commerce for trading, a Cottage and Small Industries office for a cottage or small industry, or the Department of Industry for larger industry — and possibly your local level. Ask locally.
Does a sole proprietorship have limited liability?
No. You and the business are the same legal person, so business debts are your personal debts.
Do I need to renew it?
Sources conflict and we could not resolve it. Local levels do have express renewal power over micro and small industries. Ask your registering office.
Can I register online?
The process is hybrid at best; expect at least one office visit.
Do I still need to register at the ward?
Yes — ward business registration and business tax are separate obligations.
When do I need a PAN?
Before you start earning — not on a fixed number of days after registration. See our guide on the first steps after registration.
Should I choose a company instead?
If liability exposure or outside investment matters, yes. If you are running a small operation on your own money, a proprietorship is usually the sensible choice.
Sources
- Private Firm Registration Act 2014.
- Department of Industry published registration fee schedule (page undated).
- Local Government Operation Act 2074, section 11 — local-level registration and renewal powers over micro, cottage and small industries.
Related Reading
Disclaimer: Digital Solution Nepal is an independent educational and digital-service assistance website — not a government office, not a law firm and not an audit firm. Registration procedures, fees and thresholds change through Acts, regulations and local Economic Acts, and requirements differ by office, sector and province. Nothing here is legal or professional advice — the relevant registering office and a qualified professional are final. Confirm before filing or paying anything.
Rabin Paudel
Rabin Paudel is the Founder of Digital Solution, a Content Creator, and an AI Trainer. He shares practical and easy-to-understand content on Artificial Intelligence, Digital Literacy, Online Services, FinTech, and Technology. His mission is to make technology simple, accessible, and useful for everyone.
View all posts by Rabin Paudel →