Overview
Who needs this?
- Shopkeepers, restaurants and small traders operating from rented premises
- Freelancers and consultants who need a PAN to invoice clients
- Home-based producers selling food, handicrafts or garments
- Existing businesses renewing an expired ward licence
Requirements
You should be able to say yes to each of these before you start.
- The owner is a Nepali citizen aged 18 or over, or a company with valid registration
- The premises are within the ward and used for a permitted activity
- Any sector-specific approval, such as food hygiene or health, is obtained where required
- Local taxes for the premises are up to date
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Stage 1 of 5 · Structure
- 1Structure
- 2Ward
- 3Tax
- 4PAN
- 5Licence
I'm at this stage:
What typically comes next: Ward — usually the step “Apply at the ward office” below.Jump to the steps
Step-by-step procedure
- 1
Step 1
1–2 daysChoose the business form
Decide whether a sole proprietorship, a registered firm or a company fits your plans. Sole proprietorships are quickest but leave the owner personally liable for debts.
Owner, with legal advice if needed
Tip: If you plan to bring in partners or investors later, consider a company from the start.
- 2
Step 2
1–5 daysApply at the ward office
Submit the form with identity, premises and tax documents at the ward where the business is located. The ward secretary may inspect the premises before issuing the certificate.
Ward Office
- 3
Step 3
1 dayPay the municipal business tax
The ward calculates an annual business tax based on the type and scale of activity. Payment is recorded on the licence, which is renewed each fiscal year.
Ward Office / Municipality
- 4
Step 4
1–2 daysRegister for PAN at the Inland Revenue Office
Take the ward certificate and identity documents to the local IRD office to obtain a PAN. This lets you issue invoices and file income tax returns.
Inland Revenue Department
Tip: PAN registration can also be started online through the IRD taxpayer portal.
- 5
Step 5
1–3 daysRegister for VAT if required
Businesses above the turnover threshold or in specified sectors must register for VAT. Voluntary registration is possible if your customers need VAT invoices.
Inland Revenue Department
- 6
Step 6
1–4 weeksObtain any sector licence and display the certificates
Cafes, pharmacies, schools and similar trades need approval from the relevant authority before opening. Display the ward licence and PAN certificate visibly at the premises as inspectors expect to see them.
Relevant sector department
Documents required
Tick items off as you gather them.
0 of 7 ready · 5 required
Estimated cost
| Item | Typical range (NPR) | Notes |
|---|---|---|
| Government fee | Rs. 500 – 10,000 | Ward registration and annual business tax vary by municipality and business type. |
| Professional fee | Rs. 5,000 – 15,000 | Guidance, form preparation and accompanying you to the offices. |
| Other expenses | Rs. 1,000 – 5,000 | Photographs, copies, signboard and travel. |
| Indicative total | Rs. 6,500 – 30,000 | Sum of the ranges above. |
Estimated timeline
1–3 weeks
Typical end-to-end duration once your documents are ready. Sector licences such as food hygiene can add several weeks.
Relevant laws
The provisions each stage of this procedure rests on.
Frequently asked questions
Related services
Need a hand?
Talk to a Legal Advisor about business license
A 30-minute consultation is usually enough to confirm your documents, spot the step most likely to delay you and agree a plan.