Step-by-Step Process for a Construction Company License in Nepal (2025 Guide)
Planning to start a construction business in Nepal? Whether you are an individual contractor or a company, obtaining a Construction Company License is a mandatory legal requirement. This license ensures that you are fully authorized to operate, bid for projects, and carry out construction-related work across Nepal.
Reliable Bizz Solutions provides end-to-end assistance for construction company registration, PAN/VAT, local approvals, and contractor licensing.
Governing Authorities
- Office of the Company Registrar (OCR) – Company Registration
- Department of Industry (DOI) – Business Registration (if needed)
- Construction Business Development Board (CBDB) – Contractor License
- Local Municipality/Rural Municipality – Local Approval
Steps to Register a Construction Company in Nepal
Follow these steps to properly establish and license your construction business:
Step 1: Reserve Your Company Name
Apply for name reservation at the Office of the Company Registrar (OCR).
Step 2: Register the Company (OCR)
Submit MOA, AOA, director details, and registration forms physically.
Step 3: Obtain a PAN Certificate
Visit the Inland Revenue Department (IRD) to apply for a PAN for your construction company.
Step 4: Register for VAT
VAT registration is mandatory for all construction companies.
Step 5: Open a Business Bank Account
Open an account in any national bank.
(You will also deposit the mandatory NPR 1,00,000 later for license purposes.)
Step 6: Register at the Local Ward Office
Secure your Ward Registration Certificate, which is required for license application.
Step 7: Apply for a “D-Class Construction License”
Submit your application to your Municipality/Rural Municipality.
Processing typically takes around 30 working days.
Document required to obtain Construction License in Nepal:
For registering a Construction company and getting a contractor license in Nepal, the following primary documentation is required:
S.N. | Documents |
| Fill up the license form first. |
1. | Company registration certificate |
2. | Tax clearance certificate( if the company is old) |
3. | Vat registration certificate |
4. | Wada registration certificate |
5. | MOA & AOA Photocopy |
6. | Company’s owner(s) citizenship |
7. | 1 lakh deposit voucher in the name of the company in a company bank account |
8. | (Machines: – water pump, level machine, vibrator, mixture, tractor, generator, tripper, etc.)( maybe own or lease these machines depending upon rules of local bodies) |
9. | Electricity bill/Water bill/ lalpurja of house owner |
10. | There should be a work agreement between the company and the civil engineer, accountant, non-accountant, and mechanical engineer. |
11. | Insurance paper of all machines & bill book of tipper/tractor |
12. | Images of the equipment with your company name clearly displayed |
13. | Machine inspection by a licensed mechanical engineer and verified |
14. | Citizenship and Academic certificates of all workers |
15. | There should be a work agreement between the company and the civil engineer, accountant, and mechanical engineer. |
16. | Recently PP sized photographs of shareholder |
17. | Company’s stamp |
Frequently Asked Questions (FAQ)
1. What is a D-Class construction license?
It is the basic level contractor license issued by local municipalities allowing companies to carry out small-scale construction works.
2. How long does it take to get the license?
Usually 30 working days, depending on municipal workload and document completeness.
3. Is VAT registration compulsory?
Yes — construction companies must register for VAT as per Nepal’s tax regulations.
4. Can leased machines be used for license application?
Yes. Leased machines are accepted if proper lease agreements and inspection certificates are provided.
5. Do I need an engineer on payroll?
Yes — a work agreement with a Civil Engineer and Mechanical Engineer is mandatory.
6. Is the NPR 1,00,000 deposit refundable?
Municipalities typically require this as a security deposit. It may be refundable depending on local rules.
7. Can Reliable Bizz Solutions help with the entire process?
Absolutely. Reliable Bizz Solutions handles:
- Company registration
- PAN/VAT
- Ward registration
- Machinery documentation
- D-Class license processing
- Engineer agreements
- Bank deposit guidance
DISCLAIMER:
“The information provided in this blog is for general informational purposes only. While we strive to keep the content accurate and up to date, procedures, requirements, and government regulations may change over time.”