Small businesses in Nepal can be registered at the ward office or the department of cottage and small industries, and then a permanent account number can be obtained. The article has provided the procedure for registering small businesses, the necessary requirements and documents for registration, as well as the length of time required to register the businesses.
1.1. What are small businesses?
Small businesses are privately owned initiatives, shops, and ventures operated in Nepal by the owner or a small number of employees and generate lower revenue. Small businesses can be registered in Nepal by applying to the ward office of the area where they operate. — Imperial Law Associates
1.5. What is the procedure for registering small businesses in Nepal?
- Step 1: Conduct a Rental Agreement
- Step 2: Submit an Application to the Ward Office
- Step 3: or, Submit an Application to the Department of Cottage and Small Industries
- Step 4: Obtain a Permanent Account Number
- Step 5: Completion and Operation of Small Businesses. — Imperial Law Associates
Ward / Local registration (small sole proprietorships)
An application may be submitted to the ward office of the business’s operation. The Ward Office must receive an application that includes the business’s location, type, and any additional information that is deemed necessary. A ward registration certificate for the business will then be issued by the ward office. — Imperial Law Associates
Office of company register
त्रिपुरेश्वर, काठमाडौं, नेपाल
- Online Company Registration (CAMIS): https://camis.ocr.gov.np/ — Office of company register
Company registration (private limited / partnership)
The registration of company in Nepal requires: Name Reservation at OCR, Submission of Documents, Examination by OCR, Issuance of Certificate of Company Registration. After incorporation, register for tax (PAN) and local ward requirements. — LawImperial overview; Office of company register
PAN (Permanent Account Number) — IRD procedure (selected steps)
Title: ITS_R001 – REGISTRATION FOR PERSONAL PAN
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To apply for Personal PAN Registration (PPAN), person must use IRD website (www.ird.gov.np) and select Taxpayer Portal.
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Click on Taxpayer Portal → Registration (PAN, VAT, EXCISE) → Application for Registration.
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It is necessary to obtain a submission number for each application. Note down submission number, username and password.
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Upload scanned documents (citizenship/passport), upload photo, complete personal and address details, then Save or Submit the application.
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Verification: All applications submitted will be displayed in Submitted List for Tax Officer verification. — Inland Revenue Department SOP (ITS-R001)
VAT registration — threshold & process
Value Added Tax (VAT) in Nepal: as per the Value Added Tax Act, businesses with an annual turnover exceeding NPR 5,000,000 (Five Million Nepali Rupees) are required to register for VAT. Certain categories (importers, construction, specified manufacturers, professionals, etc.) may require registration regardless of turnover.
Procedure overview:
- Determine VAT liability and prepare documents (PAN, company/ward registration, proof of address, MOA/AOA where applicable).
- Submit VAT registration application via IRD’s portal or nearest Inland Revenue Office.
- IRD conducts verification (document scrutiny, physical verification) and issues VAT certificate if approved. — CompanyNP / Inland Revenue references
Sector-specific licences & food / tourism compliance
Food businesses: Department of Food Technology & Quality Control (DFTQC) issues food industry / product licences and regulates food safety. DFTQC provides licensing and digital application routes (NeFFILS) for food industry permits.
Tourism: The Department of Tourism issues licences/registrations for hotels, trekking agencies, mountaineering permits, mountain guide licences and other tourism-related approvals. Use Department of Tourism online services (hotel registration, mountain permit systems) for relevant approvals. — DFTQC / Department of Tourism
Typical documents checklist (compiled from sources)
- Certificate of Citizenship / passport copies of owners/directors — Imperial Law Associates
- PAN certificate (once applied via IRD) — IRD SOP
- Rental agreement / proof of business address — Imperial Law Associates
- Company registration certificate / Memorandum & Articles of Association (for companies) — Office of company register
- Sector licences if applicable (DFTQC, Department of Tourism, Department of Industry). — DFTQC / Department of Tourism
Timelines & practical tips (from sources)
- Small business / ward registration can be completed within about a week if documents are ready. — Imperial Law Associates
- PAN registration is done via the IRD Taxpayer Portal; follow ITS-R001 steps and keep submission number and credentials for tracking. — IRD SOP
- VAT registration typically takes 7–15 working days depending on verification; ensure complete documents to avoid delays. — CompanyNP
Share Your Thoughts
- What impact could easier ward and OCR processes have on small entrepreneurs in Kathmandu?
- Which part of registration (name reservation, PAN, VAT, sector licence) do you think causes the most delays and why?
- For those who have registered recently: what practical tip would you give new business owners to speed up the process?
- How should local authorities or service providers improve digital support (CAMIS / IRD portals) for first-time registrants?