Nepal's exports grew by double digits in FY 2025/26, and government agencies from the Department of Commerce to Nepal Rastra Bank have been actively pushing exporters toward new markets. If you've been thinking about starting an export business from Nepal, the paperwork is more approachable than most people assume — provided you follow the steps in the right order. Here's the complete 2026 process, from company registration to your first shipment.
Is Export Business Profitable in Nepal Right Now?
Nepal's total exports rose to Rs 315.29 billion in FY 2025/26, up 13.81% year-on-year, and in the nine months prior, export growth touched as high as 18.46%. Categories like electricity, cardamom, carpets, pashmina, jute goods, and processed foods all recorded genuine year-on-year gains. Export-only businesses also get preferential treatment: no minimum paid-up capital requirement and no bank guarantee obligation for the EXIM Code, compared to importers who must maintain minimum capital. Combined with a weak Nepali rupee (pegged to the Indian rupee) that makes Nepali goods relatively cheaper abroad, and expanding hydropower-linked opportunities, the underlying conditions for starting an export business are more favourable than they've been in years — though margins in commoditised categories like edible oil remain thin and competitive.
Step 1 – Company Registration (Office of Company Registrar)
Every formal export business needs a registered legal entity before anything else can happen. Sole proprietorships and partnerships register at the Department of Cottage and Small Industries (DCSI) or the relevant ward-level authority, while private and public limited companies register online through the Office of Company Registrar (OCR) portal at camis.ocr.gov.np. You'll need a proposed company name, memorandum and articles of association (for companies), citizenship documents of promoters, and a registered office address. This registration is the prerequisite for every subsequent step — PAN, EXIM code, and bank account all reference this registration.
Step 2 – PAN/VAT Registration with Inland Revenue Department
Once your company is registered, apply for a Permanent Account Number (PAN) at the Inland Revenue Department (IRD). VAT registration becomes mandatory once your turnover crosses the statutory threshold, and it's required outright for most import-related activity. Your PAN number matters beyond taxation — it's structurally embedded inside your future EXIM Code, so this step has to be completed correctly before you apply for one.
Step 3 – Getting an EXIM Code (Department of Customs, via NNSW)
The Export-Import (EXIM) Code is a 13-digit identification number issued by the Department of Customs under the Ministry of Finance, and it is non-negotiable — without it, customs will not clear your consignment and your bank cannot process the foreign currency payment. The code is built from your 9-digit PAN, a digit denoting entity type, a unique identifier, and the "NP" country suffix. Applications are submitted online through the Nepal National Single Window portal (nnsw.gov.np/exim/registration) along with your company registration, PAN certificate, and supporting documents. Export-only businesses benefit from relaxed requirements — no minimum capital and no bank guarantee — while importers must maintain the prescribed minimum paid-up capital. One detail worth flagging: EXIM codes must be renewed periodically, and a code left unrenewed for five consecutive years is automatically cancelled, requiring fresh registration.
Step 4 – Product-Specific Certifications (Quality/NBSM, Phytosanitary, Etc.)
Different products need different clearances before they can legally leave the country. Processed foods, cosmetics, and many manufactured goods need a quality certification mark from the Nepal Bureau of Standards and Metrology (NBSM). Agricultural products — tea, cardamom, ginger, fresh produce — typically require a phytosanitary certificate from the Plant Quarantine division confirming the shipment is free of pests and disease. Textiles and handicrafts destined for preferential-tariff markets may also need a certificate of origin. Skipping this step is one of the most common reasons shipments get held up at the border, so it pays to identify your product's exact certification requirement early, ideally before you commit to a buyer's delivery timeline.
Step 5 – Opening a Business Bank Account for Foreign Currency
You'll need a business account with an A-grade commercial bank capable of handling foreign currency transactions — this is where your export proceeds will be credited and where any Letter of Credit (L/C) transactions will be processed. Banks typically ask for your company registration certificate, PAN certificate, EXIM code, and board resolution (for companies) before opening a forex-enabled account. It's worth comparing a few banks at this stage — L/C handling charges, forex conversion spreads, and turnaround time for repatriating export proceeds vary meaningfully between institutions.
Step 6 – Finding Buyers (Trade Fairs, B2B Platforms, Embassies)
With the paperwork in place, the real work begins: finding buyers who will actually pay you. The Nepal Chamber of Commerce, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), and Trade and Export Promotion Centre regularly organise or co-sponsor trade fairs and buyer-seller meets, both domestically and in partner markets like India. Nepali embassies and consulates abroad often maintain commercial sections that can introduce exporters to local importers. B2B platforms (Alibaba, IndiaMART, and sector-specific marketplaces) are increasingly used by Nepali carpet, handicraft, and garment exporters to reach retail and wholesale buyers directly, cutting out layers of intermediaries.
Common Mistakes First-Time Exporters Make
The most frequent error is sequencing — applying for an EXIM code before PAN registration is finalised, which causes rejected applications. The second is underestimating certification lead time; phytosanitary and NBSM approvals can take longer than expected if documentation is incomplete on the first submission. The third is signing a buyer contract before confirming HS code classification and the applicable tariff treatment in the destination market, which can quietly erase margins that looked fine on paper. And the fourth is neglecting EXIM code renewal, which can silently lapse and block a shipment at the worst possible moment.
Estimated Costs & Timeline
| Step | Issuing Authority | Typical Time |
|---|---|---|
| Company registration | Office of Company Registrar | ~5–7 working days |
| PAN/VAT registration | Inland Revenue Department | ~2–3 working days |
| EXIM Code | Department of Customs (NNSW) | ~5–7 working days |
| Product certification | NBSM / Plant Quarantine | ~10–20 working days |
| Forex bank account | A-grade commercial bank | ~3–5 working days |
Note: timelines are indicative and can vary by office workload, document completeness, and product category. Costs vary significantly by company type and product, so it's worth getting a specific quote from a registration agent or the relevant office directly before budgeting.
FAQs
Do I need a minimum capital to start an export business in Nepal?
No — businesses engaged only in exports are exempt from the minimum paid-up capital and bank guarantee requirements that apply to importers.
How long does it take to get an EXIM code?
Processing typically takes about a week once your company registration and PAN are in order and your application is submitted through the NNSW portal with complete documentation.
What happens if I don't renew my EXIM code?
An EXIM code left unrenewed for five consecutive years is automatically cancelled, and you would need to apply for fresh registration to resume import or export activity.
Which government office should I approach first?
Start with company registration (Office of Company Registrar for companies, or DCSI/ward office for sole proprietorships and partnerships) — every later step depends on this registration existing first.
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