Introduction: Why Korean Citizens Are Choosing Nepal for Business
Nepal is rapidly becoming a hotspot for foreign investors—especially those from South Korea—due to its growing economy, strategic location between India and China, young workforce, and increasing government focus on digital transformation and foreign investment.
As a Korean citizen, you can legally register a company in Nepal, invest in promising sectors like tourism, hydropower, manufacturing, and agriculture, and even repatriate profits lawfully. In this detailed guide, you’ll learn how to register a business in Nepal as a Korean citizen, including all steps involved in the FDI (Foreign Direct Investment) process.
Whether you’re an entrepreneur, a company looking to expand, or an individual investor based in Korea, this article gives you everything you need to know for a successful company setup in Nepal.
✅ Is It Legal for a Korean Citizen to Open a Company in Nepal?
Yes, the Nepalese government welcomes foreign investment, including from Korean individuals and companies. Korean citizens can register:
- A private limited company
- A joint venture with a Nepali partner
- A branch or liaison office
- 100% foreign-owned companies (in permitted sectors)
You’ll need to go through Nepal’s Foreign Direct Investment (FDI) approval process, which we’ll explain in detail below.
🏢 Popular Business Sectors in Nepal for Korean Investors
Korean citizens have shown growing interest in these promising industries:
- ✅ Hydropower and Renewable Energy
- ✅ Tourism and Hospitality
- ✅ Agriculture and Agro-Processing
- ✅ IT and Software Development
- ✅ Import-Export of Korean goods
- ✅ Korean Language & Culture Institutes
- ✅ Cosmetic, K-pop, and Fashion Products
📄 Company Types You Can Register as a Korean Citizen
Here are the main types of companies that a Korean national can legally register in Nepal:
1. Private Limited Company
Best for startups and SMEs. Requires at least one shareholder and one director.
2. Public Limited Company
Ideal for large businesses intending to raise public funds. Minimum 7 shareholders.
3. Joint Venture Company
A partnership between Korean and Nepali shareholders, common in tourism and energy.
4. 100% Foreign-Owned Company
Allowed in most sectors. Requires approval under Nepal’s FDI framework.
5. Branch Office / Liaison Office
For Korean companies looking to operate in Nepal under their original name.
🌐 Step-by-Step: How Korean Citizens Can Register a Company in Nepal
Step 1: Prepare Necessary Documents
You will need:
- Valid Korean passport (notarized)
- Passport-sized photos
- Company name proposals (at least 3)
- Power of Attorney (if appointing a legal representative in Nepal)
- FDI proposal
- Project report
- Financial credibility documents (bank statement, company profile, etc.)
- Memorandum and Articles of Association (MoA and AoA)
- Company registration application form
📌 All documents must be notarized in Korea and authenticated by the Nepali Embassy in Seoul.
Step 2: FDI Application Submission
As a Korean national, you must submit a Foreign Direct Investment (FDI) proposal to Nepal’s Department of Industry (DOI).
Your application should include:
- Business plan
- Ownership structure
- Capital to be invested (minimum USD 50,000)
- Technology transfer details (if any)
- Financial capacity evidence
You can apply in person (through a representative) or via authorized business consultants in Nepal.
Step 3: Receive FDI Approval and Investment Permit
Once the Department of Industry reviews and approves your proposal, they will issue an:
- FDI Approval Letter
- Investment Permit (grants you legal rights to invest in Nepal)
These documents are essential to proceed with company registration.
⏱ Processing time: 4–6 weeks, depending on the nature of your business.
Step 4: Register the Company at OCR
With your FDI permit, you can now register your company at the Office of the Company Registrar (OCR).
Online Procedure:
- Go to https://ocr.gov.np
- Create an account
- Fill in the registration form
- Upload your documents (MoA, AoA, passport, FDI approval, etc.)
- Submit for review
After verification, you will receive:
- Certificate of Incorporation
- Company Registration Number
✅ This process can be completed by a lawyer or authorized person in Nepal through Power of Attorney.
Step 5: Open a Foreign Currency Account and Transfer Capital
Before investing, you must:
- Open a bank account in Nepal (FCY account)
- Get Nepal Rastra Bank (NRB) approval
- Remit the investment amount through official banking channels
Minimum Investment: USD 2,00,000
This fund becomes your company’s authorized capital and is used to run business operations.
Step 6: Post-Registration Requirements
After the company is registered:
✅ Register for PAN/VAT at the Inland Revenue Department
✅ Apply for sector-specific licenses (tourism, energy, education, etc.)
✅ Hire a chartered accountant for tax compliance
✅ Submit an audit report annually
✅ Conduct Annual General Meetings (AGMs)
💰 Estimated Cost to Register a Company in Nepal for Korean Citizens
| Item | Cost (approx.) |
|---|---|
| Government Registration Fee | USD 1,000 – 1,500+ |
| FDI Processing & Legal Fees | USD 1400 – 2700+ |
| Embassy Attestation & Notarization (Korea) | USD 100 – 300 |
| Company Bank Account Opening | Free / Minimal Charges |
| Sector-Specific Licenses (optional) | Varies |
| Total | USD 2,500 – 4,500+ |
📈 Benefits for Korean Investors in Nepal
✔ 100% Ownership
Foreigners are allowed to fully own companies in most sectors.
✔ Repatriation of Profits
Profits and dividends can be sent back to Korea with NRB approval.
✔ Tax Benefits
Investment in certain sectors like hydropower, agriculture, and tourism may qualify for tax holidays.
✔ Skilled Workforce
Nepal’s young population provides affordable and capable human resources.
🚫 Restricted Sectors for Foreign Investment
Korean investors cannot invest in the following:
- Arms and ammunition
- Cigarette or tobacco manufacturing
- Real estate business
- Banking (unless through a joint venture and approval)
- Retail business (except in specific cases)
Always check the updated Negative List for FDI from the Ministry of Industry.
📊 Timeline Summary
| Stage | Duration |
|---|---|
| FDI Approval (DOI) | 2–4 weeks |
| Company Registration (OCR) | 1 week |
| NRB Approval + Capital Remit | 2–3 weeks |
| Post-Registration Setup | 1–2 weeks |
| Total Estimated Time | 1–2 months |
🙋 Frequently Asked Questions (FAQs)
1. Can a Korean individual fully own a company in Nepal?
Yes, 100% foreign ownership is allowed in most sectors through the FDI process.
2. What is the minimum investment required?
The minimum FDI is USD 50,000 per project.
3. Can I operate the company from Korea?
Yes, you can appoint a local director and manage operations remotely through a Power of Attorney or online.
4. Is profit repatriation allowed?
Yes, subject to compliance and NRB approval.
5. Do I need to travel to Nepal to register the company?
Not necessarily. You can authorize a lawyer or consultant to handle all procedures.
🧾 Summary Checklist for Korean Citizens Registering a Company in Nepal
✅ Business plan and FDI proposal
✅ Notarized documents from Korea
✅ FDI approval from the Department of Industry
✅ Company registration at OCR
✅ NRB approval for capital transfer
✅ PAN/VAT registration
✅ Legal compliance (audit, AGM, taxes)
🌍 Conclusion: Nepal is Open for Korean Business
Nepal offers an excellent opportunity for Korean investors to explore untapped sectors with high growth potential. With low labor costs, government support for foreign investment, and easier digital procedures, the process of starting a company in Nepal has never been more investor-friendly.
By following the steps above, you can successfully register a company in Nepal from Korea and legally invest in one of South Asia’s most emerging economies.
📌 Need Help with Company Registration in Nepal?
If you’re a Korean citizen planning to register a company or need FDI support, I can help you:
- Connect with licensed legal consultants in Nepal
- Provide PDF guides and templates
- Translate documents or articles into Korean or Nepali
