Business Process Outsourcing (BPO) Registration in Nepal is a legal process of establishing a company that offers outsourced services such as customer support, data entry, IT services, accounting, transcription, and back-office support to both domestic and international clients. Nepal is rapidly emerging as an attractive BPO destination due to its skilled workforce, competitive operating costs, and increasing internet connectivity.
What is Business Process Outsourcing (BPO) Registration?
BPO Registration in Nepal involves incorporating a legal entity under Nepalese law, obtaining required licenses, and ensuring compliance with multiple government authorities. BPO companies are governed by several laws, including the Companies Act 2063, Industrial Enterprises Act 2076, and Foreign Investment and Technology Transfer Act 2075.
A BPO business may operate in various sectors such as:
- Call center services
- Financial outsourcing
- Legal process outsourcing
- Human resources and payroll
- IT and software support
- E-commerce support services
Why Start a BPO Company in Nepal?
Nepal offers several advantages for starting a BPO company:
- Cost-effective labor and operational expenses
- Availability of English-speaking and tech-savvy workforce
- Government support for IT and outsourcing sectors
- 100% foreign ownership permitted
- Favorable time zone for clients in North America, Europe, and Asia
Where to Register?
To legally operate a BPO business in Nepal, you must register with the following government agencies:
- Office of the Company Registrar (OCR) – For company incorporation
- Inland Revenue Department (IRD) – For PAN and VAT registration
- Department of Industry (DOI) – For sector-specific or foreign investment approvals
- Local Municipality Office – For a business operating license
- Nepal Rastra Bank (NRB) – For foreign currency approval and remittance clearance
Step-by-Step Process Company Registration in Nepal
1. Conduct Market Research and Prepare Business Plan
Assess the BPO market potential, define your service model, and prepare a business plan outlining services, staffing, and target clients.
2. Company Name Reservation
Apply online at the Office of the Company Registrar to reserve a unique name for your company.
3. Determine Legal Structure
Choose between:
- Private Limited Company
- Public Limited Company
- Joint Venture (if with foreign partner)
4. Draft Legal Documents
Prepare:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
These must include details about capital, directors, shareholders, and scope of BPO services.
5. Company Registration with OCR
Submit registration documents to the OCR with government fees.
6. Obtain PAN and VAT Registration
Apply for a Permanent Account Number (PAN) and VAT registration from the Inland Revenue Department.
7. Industry Registration (if applicable)
Register with the Department of Industry, especially for BPO businesses with foreign investment or high investment amounts.
8. Municipality Business License
Obtain a business operation license from the local municipal office (ward office).
9. Open Corporate Bank Account
Set up a company bank account for capital injection and business transactions.
10. Foreign Investment Approval (FDI)
If applicable, apply to the Department of Industry for FDI approval
11. Register with Nepal Rastra Bank
NRB registration is mandatory for foreign remittances and profit repatriation.
Documents Required for BPO Registration in Nepal
- Company registration application form
- MOA and AOA
- Citizenship certificate of shareholders and directors
- Passport-size photographs
- Proof of registered office (rent agreement or ownership papers)
- PAN application
- Industry registration documents (if required)
- Bank deposit slip of capital contribution
- Foreign investment approval documents (for FDI)
- CV and credentials of key personnel
- NOC from landlord (for office premises)
- Sector-specific licenses (if any)
Legal Requirements for BPO Registration in Nepal
Capital Requirements
- Minimum NPR 100,000 for a Private Limited Company
- No Minimum Investment for Foreign Direct Investment (FDI) company providing BPO service under ICT.
Directors and Shareholders
- At least one Nepali director for domestic companies
- Foreign nationals can be shareholders, subject to FDI rules
Registered Address
- A physical office location is mandatory for all registrations
Compliance
- Labor Act 2074 (2017) compliance for employee rights and minimum wages
- Tax registration and periodic filing obligations
- Industry-specific and IT compliance if applicable
Timeframe
| Registration Step | Estimated Time |
|---|---|
| Name Reservation | 1–3 business days |
| Company Registration | 5-7 days |
| PAN Registration | 2–3 days |
| Municipality License | 1–2 days |
| FDI & NRB Approval | 5–7 days |
| Industry Registration | 7–14 days |
| Total Time | 3-4 weeks |
Delays may occur due to incomplete documents or regulatory procedures.
Estimated Cost
| Item | Estimated Cost (NPR) |
|---|---|
| Company Registration Fee | Link |
| PAN Registration | 500 |
| Municipality License | 1,000–5,000 |
| Legal/Consulting Fees | 20,000–200,000 |
| FDI Approval (if any) | 20,000 |
| Notary & Translation | 5,000–15,000 |
| Industry Registration Fee | Up to 30,000 |
| Miscellaneous Costs | 10,000–20,000 |
Governing Laws
- Companies Act 2063
- Foreign Investment and Technology Transfer Act 2075
- Industrial Enterprises Act 2076
- Labor Act 2074
- Income Tax Act 2058
- Value Added Tax Act 2052
- Electronic Transactions Act 2063
- Foreign Exchange Regulation Act 2019
- Bonus Act 2030
- Intellectual Property Act 2074
Foreign Direct Investment (FDI) in BPO Sector
Foreign investors are permitted to own 100% of a BPO company in Nepal, subject to:
- Minimum investment: NPR 20 million. However the threshold for BPO in ICT service is waived.
- FDI approval from DOI and NRB
- Work permits for foreign staff
- Repatriation of profits allowed
- Tax incentives available in IT-enabled sectors
- Technology Transfer Agreements must be approved
For more, see our FDI in Nepal legal guide.
Common BPO Services Allowed in Nepal
- Customer service & call centers
- Accounting & payroll
- Data entry and processing
- Software development and testing
- Medical/legal transcription
- Digital marketing and SEO
- Virtual assistance
- IT helpdesk and tech support
- E-commerce and logistics support
- Legal Process Outsourcing (LPO)
All services must be clearly outlined in the company’s MOA.
Challenges in BPO Registration in Nepal
- Multi-step registration with various authorities
- Infrastructure limitations (power, bandwidth)
- Shortage of highly trained professionals in some sectors
- Regulatory updates and delays
- Currency exchange and repatriation controls
- Bureaucratic hurdles in FDI and licensing
To navigate these challenges efficiently, consult a BPO law expert.
How to Renew Registration in Nepal?
BPO businesses must renew several licenses annually:
- File annual return with OCR
- Submit financial reports and audit statements
- Renew PAN and VAT at IRD
- Update business license at municipality
- Renew sectoral licenses (e.g., IT, education, etc.)
Failure to renew on time can result in penalties and deregistration.
Start Your Registration with Law Firm in Nepal
At Onesphere Law Associates, we help national and international entrepreneurs register companies in Nepal with ease and legal accuracy. From company registration to FDI approval, data privacy compliance, and licensing—we are your full-service legal partner.
✅ End-to-End Registration
✅ FDI Advisory & NRB Compliance
✅ Labor, Tax & Licensing Support
✅ Sector-Specific Legal Consultation
Contact us today to start your BPO business in Nepal.