Branch Office Registration in Nepal for Foreign Companies

A foreign company that wins a contract or wants a direct presence in Nepal can register a branch office rather than incorporating a separate Nepali company. The distinction matters: a branch is the same legal entity as its parent, not a new one.

When a branch is allowed

A branch is typically permitted where the foreign company has a contract to perform in Nepal or specific authorisation to operate. It is registered with the Office of the Company Registrar, which records it as a foreign company doing business in Nepal, and it must appoint a local representative.

Branch versus subsidiary

Because a branch is the parent itself, the parent carries the branch’s liabilities directly. A subsidiary, by contrast, is a separate Nepali company that limits the parent’s exposure. The right choice depends on the nature of the work, its expected duration, and the appetite for risk.

Ongoing obligations

A registered branch files with the Company Registrar, registers for tax, and reports like other entities doing business in Nepal. Foreign-exchange and repatriation rules apply to moving profits out, so the tax and remittance position is worth planning before, not after, the work begins.