Types of Engineering Companies in Nepal

Classification by Sector

  1. Civil Engineering Firms (Construction, Infrastructure)
  2. Electrical/Mechanical Engineering (HVAC, MEP Services)
  3. IT/Software Engineering (Development, Solutions)
  4. Environmental Engineering (Waste Management, EIA)
  5. Industrial Engineering (Manufacturing, Process Optimization)

Registration Process

1. Business Structure Selection

TypeMinimum CapitalBest For
Sole ProprietorshipNo minimumIndividual consultants
Private LimitedNPR 100,000Small-medium firms
Public LimitedNPR 500,000Large-scale projects

2. Department-Specific Licensing

Engineering FieldRegulatory BodySpecial License Required
Civil/StructuralNepal Engineering CouncilClass A/B/C License
ElectricalNepal Electricity AuthorityNEA Certification
IT/SoftwareMinistry of CommunicationNo special license
EnvironmentalMinistry of ForestsEIA Practitioner License

Step-by-Step Registration Procedure

1. Company Registration

  • Submit documents to Office of Company Registrar (OCR)
  • Required documents:
  • MOA/AOA (for companies)
  • Engineering degree copies
  • Professional license (for technical fields)
  • Office address proof

2. Professional Certification

  • For technical fields: Register with Nepal Engineering Council
  • Requirements:
  • Bachelor’s degree in engineering
  • 2 years experience (for full license)
  • License fee: NPR 25,000-100,000 (based on class)

3. Tax Registration

  • PAN from Inland Revenue Department
  • VAT (if turnover > NPR 2M/year)
  • Professional Tax (for consulting services)

Capital & Financial Requirements

Initial Investment Breakdown

ComponentEstimated Cost (NPR)
Registration/Licenses50,000-200,000
Office Setup300,000-1,000,000
Equipment/Tools500,000-5,000,000
Working Capital1,000,000+

Compliance & Regulations

Ongoing Requirements

✔ Renew engineering license every 5 years
✔ Maintain professional indemnity insurance
✔ File annual audit report with OCR
✔ Submit tax returns quarterly (if VAT registered)

Special Requirements for Construction Firms

  • Contractor Classification (A/B/C) with Ministry of Urban Development
  • Project bidding registration with concerned ministries
  • Labor compliance for site workers

Market Opportunities

Growing Sectors

  1. Hydropower Engineering (50+ projects underway)
  2. Smart City Development (Govt. priority)
  3. Renewable Energy Solutions
  4. IT Infrastructure Development

FAQs About Engineering Company Registration

1. Can foreign engineers register companies?

→ Yes, but must partner with Nepali engineers (51% local ownership required for technical fields)

2. Is work experience mandatory?

→ Yes, 2 years minimum for full engineering license

3. What’s the difference between Class A/B/C licenses?

→ Project value limits:

  • Class A: Unlimited
  • Class B: Up to NPR 500M
  • Class C: Up to NPR 100M

4. How to bid for government projects?

→ Register with Public Procurement Monitoring Office

5. Are there tax benefits?

→ Yes, 5-year tax holiday for infrastructure projects in rural areas

Pro Tips for Success

✔ Specialize in niche areas (tunnel engineering, seismic design)
✔ Get ISO certification for competitive advantage
✔ Network with construction associations
✔ Invest in modern design software (AutoCAD, Revit)

Need Assistance? Contact:

  • Nepal Engineering Council: ☎ 01-4271420
  • FNCCI Engineering Committee: ☎ 01-4262061

💡 Build your engineering venture on solid legal foundations! 🏗️