Opening a cafe in Nepal can be a fulfilling business venture—especially with the booming urban food culture. Whether you’re planning a cozy coffee corner or a trendy bistro, understanding the legal process, financial costs, and government requirements is the first step toward success.
In this blog, we provide a complete, up-to-date, insider guide on how to register a cafe in Nepal in 2025.
Why Registering Your Cafe Properly Matters
Legal registration protects your business, builds trust with customers, enables access to loans, and prevents fines or shutdowns. A registered cafe also gains credibility with delivery platforms, suppliers, and local agencies.
Step-by-Step Guide to Register a Cafe in Nepal
1. Business Name Reservation
- Apply via the Office of the Company Registrar (OCR) or DAO (for sole proprietorships).
- Submit: Name application, citizenship copy, address proof.
- Timeline: 2–3 working days
2. Company Registration
- Recommended structure: Private Limited
- Submit: MOA, AOA, lease agreement, board resolution, share subscription, and director details.
- Timeline: 5–7 working days
- Fee: NPR 5,000–25,000 (based on capital)
3. PAN Registration
- Visit IRD office
- Submit: Company certificate, citizenship, director photo
- Timeline: 1–2 days
- Cost: Free
4. Municipality Operating License
- Apply at your local municipality or ward office
- Submit: Lease, citizenship, site layout, NOC, and photos
- Timeline: 2–4 weeks
- Fee: NPR 1,000–10,000
5. Food & Beverage License
- Obtain from DFTQC
- Requirements: Water test, kitchen inspection, staff health check, waste management plan
- Timeline: 3–4 weeks
- Fee: NPR 2,000–8,000
6. Other Permits (If Applicable)
- Alcohol License: District Administration Office
- Tourism License: Nepal Tourism Board
- Fire/Health Safety: Local authority certificates
Required Documents Checklist
- MOA & AOA
- Citizenship copy of directors
- PAN certificate
- Lease agreement or land ownership proof
- Business location layout
- Staff health certificates
- Menu and kitchen plan
Cost Breakdown for Starting a Cafe
| Category | Small Cafe | Medium Cafe | Large Cafe |
|---|---|---|---|
| Legal Registration | NPR 10k–30k | NPR 20k–50k | NPR 50k+ |
| Equipment Setup | NPR 500k–1.5M | NPR 2M–3M | NPR 5M+ |
| Rent & Interior | NPR 200k–500k | NPR 800k–1.2M | NPR 2M+ |
| Misc. & Working Cap. | NPR 300k–500k | NPR 1M–2M | NPR 3M+ |
Opening a Bank Account
Banks require:
- Company registration certificate
- PAN certificate
- Citizenship of authorized signatories
- Board resolution
Deposit requirements: NPR 5,000–25,000 depending on bank.
Access to Startup Loans in Nepal (2025)
- Government Startup Loan:
- Up to NPR 2.5M
- Interest: 3%
- Collateral-free for eligible businesses
- Private Bank SME Loans:
- Interest: 8.25% – 13.5% p.a.
- Collateral may be required
Pro Tip: Many cafe owners bundle registration with loan processing using business consultants.
Common Delays & How to Avoid Them
- Missing health certificates – get staff checked early
- Incomplete layout – hire an architect or kitchen planner
- Lease not notarized – always get a legally binding lease
- Overlooked local fees – consult your ward office
Renewal Requirements
| License Type | Renewal Frequency | Where to Renew |
|---|---|---|
| Municipality License | Annually | Ward/Municipal Office |
| Food License | Annually | DFTQC |
| PAN/VAT | Ongoing | Inland Revenue Department |
FAQs
Q: Can I open a cafe in a rented property?
A: Yes, but you need a lease agreement and landlord’s NOC.
Q: Do I need VAT registration?
A: Only if your annual turnover exceeds NPR 5 million.
Q: What permits are required to sell alcohol?
A: You need a special license from the District Administration Office.
Q: Can foreigners register a cafe in Nepal?
A: Yes, through foreign investment procedures and FITTA registration.
Pro Tips from Successful Cafe Owners
- Invest in professional kitchen design to pass inspections faster.
- Use QR-code payment systems like eSewa and Khalti.
- Attend food expos to connect with suppliers and attract customers.
Final Thoughts
Registering a cafe in Nepal requires careful planning, legal compliance, and financial management. But with the right roadmap, you can turn your cafe dream into a thriving reality.
Need help getting started? Download our FREE Cafe Registration Checklist PDF to stay ahead.
Disclaimer: This guide reflects information accurate as of 2025. For real-time updates, always consult the official websites of OCR, IRD, DFTQC, and your local municipality.
Leave a Reply