Art and Craft Company Registration in Nepal: Complete 2025 Guide

Why Register an Art & Craft Business in Nepal?

Nepal’s rich cultural heritage makes it ideal for art and craft enterprises. Registration provides:
✔ Legal protection for your designs
✔ Access to government grants and export incentives
✔ Eligibility for trade fairs and exhibitions
✔ Better credibility with buyers and galleries

Step-by-Step Registration Process

1. Business Structure Selection

2. Business Name Registration

• Submit 3 name options to Company Registrar’s Office
• Fee: NPR 300 (valid for 90 days)
• Special note: Can include “Handicrafts” or “Art Studio” in name

3. Required Documents

• For Individuals:
  • Citizenship copy
  • PAN registration
  • 2 passport photos
• For Companies:
  • MOA/AOA
  • Directors’ citizenship/PAN
  • Registered office address proof

4. Special Registrations

Tax and Compliance

Tax Rates for Art Businesses

• VAT Registration: Mandatory above NPR 2M annual turnover
• Income Tax: 1% (up to NPR 500,000 profit)
• Export Tax: 0% for handicrafts

Annual Requirements

✔ Renew cottage industry registration (every 5 years)
✔ Submit annual audit report (for companies)
✔ File VAT returns (if registered)

Funding and Support

Government Schemes

• Cottage Industry Grant: Up to NPR 500,000
• Skill Development Training: Free through DCSI
• Export Subsidy: 5% of export value

Private Funding

✔ Artisan cooperatives
✔ Cultural preservation NGOs
✔ Fair trade organizations

Marketing Your Art Business

Sales Channels

• Physical stores in Thamel/Boudha
• Online platforms (Etsy, eBay, Daraz)
• Government emporiums (Yak & Yeti, Nepal Art Council)
• International trade fairs

Protecting Your Artwork

Copyright Registration

• Register with Nepal Copyright Registrar
• Protects designs for lifetime + 50 years
• Fee: NPR 2,000 per design

FAQs About Art Business Registration

1. Can foreigners register art businesses?

→ Yes, but needs local partner (except for IT/digital art)

2. Is VAT mandatory for small artisans?

→ No, only if turnover exceeds NPR 2M/year

3. How to get “Made in Nepal” certification?

→ Through Nepal Handicraft Association (NPR 5,000 fee)

4. Are there special zones for art businesses?

→ Yes, Patan Industrial Estate offers subsidized spaces

5. Can I operate from home?

→ Yes, but need municipal approval for commercial use

Pro Tips for Success

✔ Start with cottage industry registration for tax benefits
✔ Participate in Nepal Art Fair annually
✔ Use eco-friendly materials for premium pricing
✔ Get fair trade certification for export markets

Need Help? Contact:

• Cottage Industry Office: ☎ 01-4262568
• Nepal Handicraft Federation: ☎ 01-4262061

💡 Turn your creativity into a legal business today! 🎨