Business Registration Process

1. Company Formation

  • Register as Private Limited Company (minimum NPR 500,000 capital)
  • Submit documents to Office of Company Registrar (OCR)
  • Obtain PAN/VAT registration from IRD

2. Specialized Licenses

LicenseIssuing AuthorityFee (NPR)Validity
Transport Operator LicenseDepartment of Transport Management25,0005 years
Logistics Service LicenseMinistry of Industry50,0003 years
Cargo PermitCustoms Department10,000Annual

Vehicle Registration Requirements

For Transport Fleet

  • Commercial blue number plates
  • Route permits for each vehicle
  • Fitness certificate (annual renewal)
  • Third-party insurance (mandatory)

Key Operational Regulations

1. Compliance Requirements

✔ Maintain vehicle maintenance logs
✔ Obtain waybills for all shipments
✔ Follow weight restrictions (axle load limits)
✔ Adhere to driver working hour rules

2. Tax Obligations

  • VAT registration (mandatory above NPR 2M turnover)
  • Withholding tax on freight payments
  • Excise duty on fuel purchases

Infrastructure Needs

Minimum Setup Requirements

✔ Office space with parking facility
✔ GPS tracking system (for logistics companies)
✔ Warehouse license (if providing storage)
✔ Customs bonded warehouse (for international logistics)

Special Provisions for Logistics Companies

Technology Requirements

  • Freight management software
  • Electronic tracking system
  • EDI integration with customs (for import/export)

International Operations

  • Register with Trade Promotion Centre
  • Obtain FIATA certification (optional)
  • Customs clearance agent license

FAQs About Registration

1. Can foreigners own transport companies?

→ Yes, but needs 51% Nepali partnership

2. How many vehicles required to start?

→ Minimum 1 for registration

3. Is warehouse mandatory?

→ Only if offering storage services

4. What’s the penalty for unlicensed operation?

→ NPR 500,000 fine + vehicle seizure

5. How long does registration take?

→ 3-4 weeks for complete processing

Pro Tips for Success

✔ Start with niche market (e.g., perishable goods, e-commerce delivery)
✔ Invest in fuel-efficient vehicles
✔ Partner with major cargo terminals
✔ Get ISO certification for competitive edge

Need Help? Contact:

  • DoTM Helpdesk: ☎ 16600101111
  • Nepal Logistics Association: ☎ 01-4260521

💡 Keep your business moving with proper legal compliance! 🚛