How to Start a Startup in Nepal: Complete 2025/2026 Guide
Are you thinking about launching a startup in Nepal? Perhaps you've noticed friends succeeding with their online ventures, or you're frustrated with job opportunities offering modest salaries. There's encouraging news: 2025/2026 presents an exceptional opportunity to begin. With widespread internet access, increasing government support, and growing investor interest in Nepal, the timing couldn't be better. This comprehensive guide breaks down everything you need to know—no business degree required.
Understanding What a Startup Really Is
A startup differs fundamentally from a traditional small business. While your relative's new retail shop in Satdobato qualifies as a small business, a digital platform enabling 100,000 Nepalis to pay electricity bills from home represents a genuine startup.
The key distinction lies in scale and innovation. Startups leverage technology or innovative business models to address problems affecting thousands of people, extending far beyond local neighborhoods.
Notable Nepali Examples
eSewa and Khalti revolutionized bill payments by eliminating hours-long queues. Foodmandu addressed the convenience of food delivery directly to customers. CloudFactory connected skilled Nepali workers with global technology companies.
Official Government Definition
According to Nepal's National Startup Policy 2080 (updated by Ordinance No. 01 of 2081), qualifying startups must meet specific criteria:
Age: Less than 10 years since registration
Structure: Private firm, partnership, or company
Innovation: Must demonstrate genuine technological or business model innovation
Annual Turnover: Less than NPR 15 Crores
Origin: Newly established business, not derived from existing operations
Meeting these requirements unlocks significant government benefits and support programs.
Why 2025 Represents a Golden Opportunity
Recent data from the Beams Consulting Nepal Startup Ecosystem Report 2025 reveals compelling statistics:
- 79% internet penetration across Nepal
- 3,963 active startups currently operating
- $267 million in total venture capital funding
- 205 companies successfully funded
These numbers demonstrate that capital, market readiness, and infrastructure are aligning favorably.
Four Compelling Reasons to Start Now
1. Affordable and Ubiquitous Internet Access
Mobile data costs have dropped dramatically. With smartphones widespread even in remote areas, entrepreneurs in Kathmandu can now reach customers in Dhankuta seamlessly.
2. Meaningful Government Support
The National Startup Policy 2080 provides substantial benefits including 10 years of income tax exemption for qualifying startups, loans up to NPR 20 lakh at 3% interest without collateral requirements, NPR 1 billion dedicated startup fund, and streamlined online company registration completing in 3-7 days.
3. Young, Tech-Savvy Population
With 68% of Nepal's population under 35, there's a massive demographic actively using social media and willing to adopt new applications. Additionally, skilled developers can be hired for NPR 40,000-60,000 monthly—significantly more cost-effective than neighboring markets.
4. Growing Investor Interest
Local venture capital firms like Dolma Impact Fund and Team Ventures are actively seeking investment opportunities. International investors are increasingly noticing Nepal, especially following Khalti's achievement of $1 billion in transactions.
Identifying Your Startup Idea
Rather than attempting to replicate global giants, focus on solving problems specific to Nepal.
Idea Generation Methods
Consider what frustrates you in daily life—long queues at government offices, unreliable service providers, or gaps in online shopping options. Ask friends about their recurring complaints. Examine existing services that could be improved—Tootle identified taxi service issues and created a bike-sharing alternative.
High-Potential Sectors for 2025
Fintech and Digital Payments
Despite existing players like eSewa and Khalti, opportunities remain in micro-loans for small businesses, digital insurance for farmers, and investment applications for young professionals. Nepal Rastra Bank continues gradually opening regulations, supporting a market exceeding $1 billion in annual transactions.
E-commerce and Direct-to-Consumer Brands
Instead of competing with established platforms like Daraz, build distinctive brands. Consider premium Nepali coffee for international markets, organic honey from Ilam, handicrafts including Thangka and Pashmina marketed through Instagram, or sustainable fashion utilizing Dhaka fabric.
Agricultural Technology
While Geokrishi assists farmers with crop tracking, opportunities exist for weather advisory applications in Nepali, marketplaces for authentic seeds and fertilizers, and cold storage rental platforms to reduce waste. Agricultural ventures often receive favorable consideration for government loans.
Education Technology
Online coaching for SEE, IELTS, and IOE entrance examinations, skill-based courses in coding, graphic design, and digital marketing, and platforms connecting students with qualified tutors all represent viable opportunities.
Healthcare Technology
Telemedicine services for remote villages address genuine doctor shortages. Online medicine delivery and mental health applications, though still developing markets, show growing demand.
Tourism Technology
Booking platforms for homestays in less-traveled locations, trekking route trackers with offline map capabilities, and services connecting tourists with local guides all address real market needs.
Company Registration Process
Nepal has significantly streamlined business registration, moving most processes online.
Choosing Your Business Structure
Sole Proprietorship should be avoided as personal assets remain at risk if the business encounters difficulties.
Partnership works only with complete trust and comprehensive written agreements.
Private Limited Company (Pvt. Ltd.) represents the optimal choice, offering personal asset protection, professional credibility with investors, ability to issue shares for fundraising, and capacity for up to 101 shareholders.
Step-by-Step Registration
Step 1: Name Reservation
Visit the official portal at camis.ocr.gov.np, create an account, and submit three name options ending with "Private Limited." Approval typically takes 1-2 days.
Step 2: Document Preparation
Gather your Memorandum of Association (defining company purpose), Articles of Association (establishing internal operations), citizenship copies of all founders, office rent agreement (home offices require agreements with property owners), and board resolution formally establishing the company.
Step 3: Online Submission and Fee Payment
Upload all documents through the portal. Fees vary by authorized capital:
- Up to NPR 100,000: NPR 9,500
- NPR 100,001-500,000: NPR 13,500
- NPR 500,001-2,500,000: NPR 18,500
- Above NPR 2,500,000: 0.1% of capital
Step 4: Certificate Receipt
With complete and accurate documentation, your Certificate of Incorporation arrives within 3-7 days, establishing legal company status.
Essential Post-Registration Tasks
PAN Registration through ird.gov.np is mandatory for all companies.
VAT Registration becomes necessary when annual turnover exceeds NPR 5 million.
Corporate Bank Account should be opened immediately at banks like Nabil, NIC Asia, or RBB. Bring your certificate, PAN, and board resolution. Maintain strict separation between personal and business finances.
Ward Office Registration typically takes one day and costs NPR 500-2,000, providing necessary local business licensing.
Startup Status Application at the Department of Industries (DOI) requires your certificate, PAN, and proof of innovation. Processing takes 20-30 days but unlocks valuable tax benefits.
Funding Your Startup
Securing capital remains challenging but 2025 offers multiple pathways.
Government Funding Programs
The 3% Interest Startup Loan
Recent 2025 updates reduced the maximum loan from NPR 25 lakh to NPR 20 lakh. Despite receiving 10,244 applications, this program remains highly valuable.
Loan Specifications:
- Amount: NPR 5 lakh to 20 lakh
- Interest Rate: 3% annually (fixed)
- Collateral: None required
- Repayment Period: Up to 5 years
- Provider: Rastriya Banijya Bank (RBB)
- Administrator: Industrial Enterprise Development Institute (IEDI)
- Total Budget: NPR 73 crore for approximately 400 startups
Eligibility Requirements
Applicants must satisfy 5 of 7 conditions: registration before notice publication with less than 7 years operation, paid-up capital below NPR 5 million, annual income below NPR 5 million, fixed capital under NPR 20 million (excluding land and buildings), fewer than 10 employees, demonstrated use of technology or innovation, and operation in priority sectors including IT, agriculture, tourism, health, education, or energy.
Application Process
Monitor iedi.gov.np weekly for announcements, typically occurring in Kartik/Mangsir (October/November). Prepare comprehensive documentation including company registration certificate, detailed project report, three-year financial projections, and proof of innovation. Submit applications online—8,203 of 10,244 recent applications were digital. Applications require minimum 50% scores based on innovation, market potential, and team evaluation. Selected applicants receive RBB contact within 45 days, followed by site verification and disbursement in 2-3 installments.
Professional application review services cost NPR 5,000-10,000 but can significantly improve success rates.
Private Investment Sources
Angel Investors
Nepal Angel Investors Network (NAIN) remains most active, typically investing NPR 5 lakh to 50 lakh. Connect through startup events at Ncell Innovation Center and Antarprerana meetups.
Venture Capital Firms
Dolma Impact Fund focuses on ICT, health, and energy with investments ranging $100K-$2M.
Team Ventures targets consumer and fintech sectors with $50K-$500K investments.
Himalayan Capital supports early-stage technology companies with $25K-$200K funding.
Next Venture emphasizes agri-tech and ed-tech with $10K-$100K investments.
Accelerator Programs
Antarprerana provides NPR 5-15 lakh plus office space in Kathmandu. Glocal operates national startup competitions. NIC Asia Accelerator specializes in fintech ventures.
Effective Pitch Deck Components
Clearly define the Nepali problem using photographs and stories. Explain your Nepal-specific solution. Quantify market size with accurate local data. Detail your revenue model in NPR. Demonstrate traction through user numbers, revenue, or partnerships. Highlight why your team can execute, emphasizing local knowledge. Present realistic three-year financial projections. Specify exact funding requirements and planned expenditures.
Building Your Minimum Viable Product
Focus on creating a functional version addressing one core problem rather than pursuing perfection.
Understanding MVP
An MVP represents the simplest working version that tests whether people actually want your solution. It serves as a learning tool, not a final product.
Cost-Effective Development Options
Website: WordPress with free themes costs approximately NPR 5,000 annually.
Mobile App Mockups: Figma offers free design tools.
No-Code Applications: Bubble.io or Glide cost NPR 2,000-5,000 monthly.
Payment Integration: eSewa and Khalti offer free setup.
Email Marketing: Mailchimp provides free tier service.
Testing with Nepali Users
Share in Facebook groups like "Startups Nepal," "Entrepreneurs of Nepal," and "Patan Entrepreneurship Club." Offer free trials to first 50 users. Implement Google Analytics tracking. Conduct phone interviews with 10-15 users about product shortcomings. Release improvements every two weeks based on feedback.
Deciding to Pivot or Persevere
Consider Pivoting When:
Less than 10% of trial users continue using the product, nobody expresses willingness to pay, or technical limitations in Nepal make execution impossible.
Continue Persevering When:
Users request specific feature additions, over 50% express payment willingness, or customer acquisition costs remain below lifetime customer value.
Marketing Strategy
Understanding Nepali Consumer Behavior
Price sensitivity dominates purchasing decisions—always demonstrate value. Trust supersedes everything—Nepali consumers require testimonials, reviews, and media coverage before purchasing from unknown entities. Word-of-mouth recommendations drive adoption more effectively than any other channel.
Digital Marketing Channels
With over 12 million Nepali users, Facebook remains dominant. Create a business page, join relevant groups where customers congregate, and run targeted advertising starting at NPR 500 daily.
Perfect for reaching 18-30 demographic with fashion, food, and lifestyle brands. Post daily stories with polls and questions. Utilize reels for 10x greater reach. Collaborate with micro-influencers (5,000-20,000 followers) for NPR 5,000-15,000 per post.
TikTok
Rapidly growing platform where educational and entertaining product videos can achieve viral reach without advertising costs.
Search Engine Optimization
Create blog content targeting keywords like "authentic pashmina online Nepal," "best digital wallet students Kathmandu," and "online doctor consultation Nepal price." Write in both English and romanized Nepali.
Offline Marketing Approaches
Sponsor college technical festivals at Pulchowk, Kathmandu University, and Pokhara University for NPR 10,000-25,000. Host free workshops at venues like Bikalpa Art Center or NIC Lab. Email press releases to Kathmandu Post, The Himalayan Times, and OnlineKhabar. Consider Kantipur FM radio advertising for NPR 25,000 monthly with sufficient budget.
Legal Compliance Requirements
Tax Obligations
Corporate Income Tax: 25% on profits, though certified startups receive 10-year exemptions.
VAT: 13% applies when turnover exceeds NPR 5 million annually.
Social Security Fund: 20% of salaries (11% employer contribution, 9% employee contribution).
Minimum Wage: NPR 15,000 monthly for all employees.
Employment Requirements
All hiring requires written contracts. Probation periods cannot exceed seven months. Social Security Fund registration is mandatory. Termination requires proper procedure and cannot be arbitrary.
Intellectual Property Protection
Register trademarks for names and logos through the Department of Industry (approximately NPR 10,000, 6-12 months processing). Patent registration for inventions costs approximately NPR 25,000 with 2-3 year processing times.
Annual Compliance
Arrange licensed auditor review (NPR 15,000-50,000). File tax returns by mid-January (Poush end). Submit company returns to OCR within six months of fiscal year end.
Learning from Success and Failure
Notable Success Stories
CloudFactory leveraged Nepal's skilled workforce to serve global companies, achieving over $100 million valuation.
SastoDeal persevered from 2011 despite poor internet infrastructure, eventually achieving market leadership.
eSewa focused excellently on solving one problem—bill payment—establishing market dominance.
Common Success Factors
All successful Nepali startups started small, focused on solving one Nepali problem exceptionally well, built trust gradually over time, and persisted through initial failures.
Twelve-Month Action Plan
Months 1-2: Foundation
Identify one problem you experience personally. Interview 50 people about this problem. Research competition. Write a basic business plan. Reserve social media handles.
Months 3-4: Formalization
Register Private Limited company. Obtain PAN and VAT registration. Open corporate bank account. Apply for 3% government loan if available. Draft founder agreement defining roles.
Months 5-6: Development
Build MVP. Recruit 50 beta users. Implement Google Analytics. Post daily on social media. Iterate based on user feedback.
Months 7-9: Launch
Execute public launch. Run Facebook advertising starting at NPR 500 daily. Target 1,000 users. Generate first revenue. Apply to accelerator programs.
Months 10-12: Growth
Achieve NPR 100,000 monthly revenue. Create professional pitch deck. Attend startup events at NIC Lab and Antarprerana. Hire first two employees. Apply for additional grants.
Frequently Asked Questions
How much initial capital is required?
MVP development costs range from NPR 0 (no-code solutions) to 200,000 (hiring developers). Company registration costs approximately 20,000. Minimum recommended budget: NPR 25,000-50,000.
Can students start startups?
Absolutely. Many successful founders began in college. Time management remains crucial. Maintain academic progress as a backup plan.
What if I lack technical skills?
Learn no-code tools like Bubble or Glide, or find a technical co-founder. Visit Pulchowk Engineering College to connect with final-year students interested in building projects.
How can small startups compete with large companies?
Focus on niches that large companies ignore. Rather than competing with comprehensive platforms like Daraz, specialize in specific products with unique stories—for example, organic tea exclusively from Ilam.
Is the 3% government loan legitimate?
Yes, but highly competitive. The 2025 round received 10,244 applications with approximately 400 recipients. Professional applications significantly improve chances.
When will the next loan application period open?
Typically around Kartik/Mangsir (October/November). Check iedi.gov.np weekly and set phone reminders.
Can foreign nationals start Nepali startups?
Yes, but minimum investment requirements of NPR 20 million and Department of Industry approval make this impractical for small startups.
Taking Your First Step
The truth is that you will never feel completely ready. You will never have sufficient capital. You will never identify the perfect idea.
However, waiting means missing this opportunity. Nepal's startup ecosystem is reaching a critical inflection point. Within five years, market saturation will increase dramatically. The window is open now.
Begin today with these simple steps:
- Open a new document
- List five problems you encounter daily
- Select one problem
- Message ten friends asking if they experience the same issue
That represents day one of your startup journey.
The worst outcome involves losing NPR 50,000 while gaining invaluable experience. The best outcome involves building Nepal's next major success story.
The choice to begin rests with you.
