How do I register a sole proprietorship?
एकलौटी फर्म कसरी दर्ता गर्ने?
Register a sole proprietorship (private firm) in Nepal at your provincial industry and commerce office. Bagmati fees start at Rs 1,500. Steps and renewal.
- Cost
- Rs 1,500 (Bagmati)
- For capital up to Rs 3 lakh, under Bagmati's 2083/84 rates. Other provinces set their own.
- How long
- A day or two
- In-person registration for trading firms.
- Where
- Industry, Commerce and Tourism Office
- Last checked
- 8 Oct 2026
- Awaiting official confirmation
What it is
A sole proprietorship (एकलौटी फर्म) is the simplest way to run a registered business in Nepal. Legally the business and the owner are the same person, so you pay tax on its profit as your own income and you're personally liable for its debts.
Since federalism, private firms are registered by provincial offices, so the office name, process and fees depend on your province. This page uses Bagmati, where the district Industry, Commerce and Tourism Offices handle registration and the 2083/84 fees are set in the province's Economic Act.
Who needs it
- People starting a small shop, trading business or service business on their own.
- Freelancers and consultants who want a registered business name and business PAN.
- If you plan to bring in partners or investors, compare this with a private limited company first.
What you need
- Official
Application on the registering office's form
- Official
Your citizenship certificate and a photocopy
- Official
Recent passport-size photos
- Official
Proof of the business premises
A rent agreement, or land ownership papers if it's your own property.
- In practice
A recommendation from the ward where the business is located
Many offices ask for it to confirm the business address.
In practice items aren't in the official rules but are commonly asked for at the counter.
How it works
- 1
Decide whether you're a firm or an industry
Trading and most service businesses register as a private firm. Manufacturing and some service businesses register as an industry, with a different process. Ask your local industry and commerce office if you're not sure.
- 2
Register at your provincial office
In Bagmati, private firms and industries are registered at the district's Industry, Commerce and Tourism Office, which replaced the Cottage and Small Industries Office. Industries can now apply online. Trading firms still have to visit in person. Other provinces have similar offices under their own names.
- 3
Pay the registration fee
The fee depends on your declared capital. In Bagmati it starts at Rs 1,500 for capital up to Rs 3 lakh.
- 4
Register the business on your PAN
Take the firm certificate to your Inland Revenue Office or Taxpayer Service Office. One person has one PAN, so the business uses the same number as you.
- 5
Register with your municipality
Most local governments also register businesses in their area and charge a yearly business tax. Ask your ward or municipality.
- 6
Renew every year
Firm registrations have to be renewed each year. Renewing late adds a fine.
Where to go
Industry, Commerce and Tourism Office (Bagmati)
Firm and industry registration in each district
Inland Revenue Office or Taxpayer Service Office
Business PAN
Your ward or municipality
Local business registration and business tax
Cost and time
- Official fee
- Rs 1,500 (Bagmati)
- For capital up to Rs 3 lakh, under Bagmati's 2083/84 rates. Other provinces set their own.
- Processing time
- A day or two
- In-person registration for trading firms.
| Service | Fee |
|---|---|
| Capital up to Rs 3 lakhBagmati Province Economic Act 2083, private firm registration | Rs 1,500 |
| Rs 3 lakh to Rs 5 lakh | Rs 3,000 |
| Rs 5 lakh to Rs 10 lakh | Rs 3,500 |
| Rs 10 lakh to Rs 20 lakh | Rs 6,000 |
| Rs 20 lakh to Rs 50 lakh | Rs 10,000 |
| Rs 50 lakh to Rs 1 crore | Rs 14,000 |
| Yearly renewal, capital up to Rs 3 lakhRises to Rs 1,500 and then Rs 1,800 the later you renew within the year | Rs 1,200 |
Common problems
I haven't renewed my firm for years.
Bagmati's 2083 Economic Act gives a break. If you renew by paying the fees due up to 2082/83 before the end of Poush 2083, the fines for years before 2081/82 are waived.
Do I need VAT?
Only once your turnover passes Rs 50 lakh for goods or Rs 30 lakh for services, or if you choose to register. Until then a small firm may qualify for the fixed D01 presumptive tax instead of a full return.
Firm or company?
A sole proprietorship is you. You're personally liable for its debts and it ends with you. A private limited company is a separate legal person with limited liability, but it has more paperwork, including audited accounts every year.
Can I register online?
In Bagmati, industries can since Ashoj 2083. Trading firms still need an in-person visit. Check with your provincial office, as this is changing quickly.
Real experiences
Been through this recently? Tell the next person which office you went to and what they asked for. Reports are published as community notes, apart from the official information.
Share your experienceSources
- Bagmati Province Economic Act 2083: private firm registration and renewal feesgiwmscdnone.gov.np
- Kantipur: industry registration and renewal online in Bagmati (September 2026)ekantipur.com
- Inland Revenue Department: frequently asked questions (PAN, D01)ird.gov.np
- Ministry of Industry, Commerce, Land and Administration, Bagmati Provincemoicla.bagamati.gov.np
Written from the sources above and last checked on 8 Oct 2026. Some details aren't confirmed against an official page yet, so check fees and documents with the office before you go.
Spotted something out of date?Related
- ADo I need a separate PAN for my business?व्यवसायको लागि छुट्टै प्यान चाहिन्छ?Answer · Government & documents
- GWhen do I need to register for VAT in Nepal?मूल्य अभिवृद्धि करमा कहिले दर्ता हुनुपर्छ?Guide · Government & documents
- GHow to register a private limited company in Nepalप्राइभेट लिमिटेड कम्पनी कसरी दर्ता गर्नेGuide · Government & documents
- GDo I need to file an income tax return in Nepal?आयकर विवरण कसले बुझाउनुपर्छ?Guide · Government & documents