Starting a construction company in Nepal is a smart business idea. With rapid urban growth, new housing projects, and infrastructure development, there are many opportunities. But to run your business legally, you must register your company and get the proper construction licenses.
In this guide, we explain step-by-step how to register your construction company and apply for a construction license in Nepal.
Why Register Your Construction Company?
Registering your construction company is important because it:
- Gives your business legal recognition
- Allows you to work with government and private clients
- Lets you open a business bank account
- Helps you get construction licenses and permits
- Protects your company name and reputation
Without proper registration, your business could face fines or legal problems.
6 Steps to Register a Construction Company in Nepal
- Step 1. Choose a Company Name
- Step 2. Prepare Required Documents
- Step 3. Register Your Company with OCR
- Step 4. Get PAN and VAT Registration
- Step 5. Open a Business Bank Account
- Step 6. Apply for a Construction License
Step 1. Choose a Company Name
- Pick a unique and professional name that reflects your construction business.
- Check availability at the Office of the Company Registrar (OCR).
- Avoid names that are similar to existing companies.
Step 2. Prepare Required Documents
You need the following documents to register your company:
| Document | Description |
|---|---|
| Memorandum of Association (MoA) | Defines your company’s objectives and activities |
| Articles of Association (AoA) | Rules and regulations for running your company |
| Citizenship Certificates | Copies of all directors’ citizenship cards |
| Passport-sized Photos | Photos of all directors |
| Office Address Proof | Rental agreement or ownership documents |
Step 3. Register Your Company with OCR
- Submit your application and documents online via the OCR portal
- Pay the registration fees
- After approval, you will get a Company Registration Certificate digitally
Step 4. Get PAN and VAT Registration
- Apply for a Permanent Account Number (PAN) from the Inland Revenue Department
- If your annual turnover exceeds the VAT threshold, register for VAT
This ensures your company follows Nepal’s tax rules.
Step 5. Open a Business Bank Account
Once your company is registered:
- Open a business bank account in the company’s name
- Use it to manage project funds, pay salaries, and handle business transactions professionally
Step 6. Apply for a Construction License
Construction businesses need licenses to operate legally. Licenses are issued by the local ward office or the Department of Urban Development and Building Construction (DUDBC), depending on the license type.
How to Apply Construction License in Nepal
1. Understand the Types of Construction Licenses
| Class | Description |
|---|---|
| A Class | Large-scale national projects |
| B Class | Medium-scale projects |
| C Class | Small-scale local projects |
| D Class | Minor works, usually at the local level |
2. Prepare Required Documents
You will need:
| Document | Purpose |
|---|---|
| Application Form | Official form from the local municipality/DUDBC with company and project details |
| Company Registration Certificate | From OCR, includes MoA and AoA |
| Citizenship Certificates | Copies for all shareholders/directors |
| Passport-Size Photos | Recent photos of shareholders/proprietors |
| PAN/VAT Certificate | From Inland Revenue Department |
| Tax Clearance Certificate | Proof of no outstanding taxes |
| Ward Registration Certificate | Certificate from local ward office |
| Board Resolution/Minutes | Approval to apply for the license |
| Academic/Professional Certificates | Technical staff qualifications (at least 1 licensed engineer for D-class) |
| Proof of Machinery/Equipment | Ownership or VAT bills of tools; may require verification |
| Financial Proof | Bank statements or proof of minimum paid-up capital |
| Rental Agreement | Lease deed if office is rented |
3. Submit the Application
- D-Class: Apply at your local ward office
- A/B/C-Class: Apply at DUDBC or regional offices
- Fill out the application form, attach all documents, and pay the fee
4. Review and Inspection
- Officials will check your documents and site plans
- The municipality or DUDBC may do a site inspection to ensure compliance with zoning, safety, and building standards
5. Approval and Issuance
- Once verified and fees are paid, your construction license will be issued
- Display the license at the construction site before starting work.
- This ensures your project is legal and follows Nepalese building regulations
Need Help? Get Expert Guidance
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