Jewelry Company Registration in Nepal

24 Mar

Table of Contents

Overview of Jewelry Business in Nepal

The jewelry industry in Nepal represents a significant economic sector combining traditional craftsmanship with modern retail. Nepal has a deep cultural affinity for gold and silver jewelry, with demand driven by weddings, festivals (especially Teej and Dashain), and daily wear . The sector includes:

Traditional gold and silver ornament manufacturing
Gemstone and diamond jewelry
Fashion and contemporary jewelry
Jewelry export and import trading
Hallmarking and certification services

Legal Structure Options for Jewelry Business

Business Type	Legal Basis	Best For	Minimum Capital
Private Limited Company	Companies Act, 2063	Medium to large jewelry manufacturing/trading	NPR 100,000
Public Limited Company	Companies Act, 2063	Large-scale jewelry chains, NEPSE listing	NPR 10 million
Partnership Firm	Partnership Act, 1932	Family jewelry businesses	No minimum
Sole Proprietorship	Private Firm Registration Act, 2014	Small retail jewelry shops	No minimum
Branch Office	Companies Act, 2063	Foreign jewelry brands	No minimum

Step-by-Step Jewelry Company Registration Process

Phase 1: Basic Company Registration

Step	Action	Timeline	Cost (NPR)
1	Name reservation at OCR	1-2 days	100
2	Prepare MOA and AOA	3-5 days	5,000-15,000 (professional)
3	Company registration at OCR	7-15 days	16,000+ (based on capital)
4	PAN registration at IRD	3-5 days	Free
5	VAT registration (if turnover NPR 5M)	5-7 days	Free
6	Ward office business registration	2-3 days	1,000-5,000

Total Basic Registration: NPR 25,000-50,000 (excluding professional fees)

Phase 2: Industry-Specific Licenses

For Gold/Silver Trading and Manufacturing:

License	Authority	Requirement	Timeline
Department of Mines and Geology Permit	DMG, Ministry of Industry	For dealing in precious metals and gemstones	2-4 weeks
Nepal Rastra Bank Approval	NRB	For gold/silver import/export activities	4-6 weeks
Hallmarking License (if applicable)	Nepal Bureau of Standards and Metrology	For certified jewelry manufacturing	4-8 weeks
Weights and Measures License	Department of Commerce	For using weighing scales in trade	1-2 weeks

For Jewelry Export Business:

Step	Authority	Details
EXIM Code Registration	Department of Customs	Import-export license
Bank Guarantee (NPR 300,000)	Commercial Bank	Required for EXIM code
Certificate of Origin	Federation of Nepalese Chambers of Commerce and Industry (FNCCI)	For export documentation
Customs Registration	Department of Customs	For clearance procedures

Special Requirements for Precious Metals

Gold and Silver Import/Export Regulations:

Aspect	Requirement	Notes
Import License	Required from DMG and NRB	For bulk gold/silver import
Customs Declaration	Mandatory for all shipments	CDF, commercial invoice, certificate of origin
Purity Standards	Must meet NBSM standards	22K, 24K gold; 925 silver
Hallmarking	Recommended for consumer trust	BIS-style system under development
Foreign Exchange	NRB approval required	For international payments

Restricted Items:

Item	Status	Notes
Rough diamonds	Quantitatively restricted	Kimberley Process compliance required
Gold bullion (large quantities)	NRB approval required	Central bank monitoring
Antique jewelry (cultural heritage)	Export restricted	Archaeological clearance required

Taxation for Jewelry Business

Direct Taxes:

Tax Type	Rate	Applicability
Corporate Income Tax	25% (standard), 20% (manufacturing)	On net profit
TDS on Gold/Silver Purchases	1.5%	If supplier is VAT registered
TDS on Services	15%	Professional fees, design services
Capital Gains Tax	5-10%	Sale of jewelry investment

Indirect Taxes:

Tax Type	Rate	Notes
Value Added Tax (VAT)	13%	If turnover exceeds NPR 5 million
Customs Duty	0-30%	On imported jewelry, gold, silver
Excise Duty	Varies	On luxury jewelry items

Special Provisions:

Export Incentives: Duty drawback, cash incentives for jewelry exports
Small Industry Benefits: If registered under DCSI, eligible for tax holidays
VAT Exemption: Handmade jewelry by cottage industries may qualify

Hallmarking and Quality Certification

Current Status in Nepal:

Nepal is developing a comprehensive hallmarking system similar to India's BIS-HUID model . Current practices include:

Certification	Authority	Status
NBSM Hallmark	Nepal Bureau of Standards and Metrology	Voluntary but recommended
Laboratory Testing	Private/NGO labs	Available in Kathmandu
Artisan Certification	Handicraft associations	For traditional craftsmanship

Recommended Quality Standards:

Metal	Standard Purity	Market Practice
Gold (Traditional)	22K (91.6%)	Most common for ornaments
Gold (Investment)	24K (99.9%)	Bullion, coins
Silver	925 (92.5%)	Standard for jewelry
Silver (Traditional)	999 (99.9%)	Religious items, fine silver

Compliance Requirements

Ongoing Obligations:

Compliance	Frequency	Authority
Annual financial statements	Annual	OCR
Income tax return	Annual	IRD
VAT return	Monthly/Quarterly	IRD
TDS returns	Monthly/Quarterly	IRD
Weights and measures calibration	Annual	Department of Commerce
DMG reporting	Quarterly	Department of Mines and Geology
Customs compliance (if importing)	Per shipment	Department of Customs

Record Maintenance:

Record Type	Retention Period
Purchase invoices (gold/silver)	6 years
Sales records	6 years
Hallmarking certificates	Permanent
Import/export documentation	6 years
Customer KYC (for high-value sales)	5 years

Location and Setup Considerations

Prime Locations for Jewelry Business:

Location Type	Advantages	Target Market
New Road, Kathmandu	Traditional jewelry hub, high foot traffic	Wedding, festival shoppers
Shopping Malls	Modern retail environment, security	Young professionals, fashion jewelry
Tourist Areas (Thamel, Patan)	Foreign tourist clientele	Export-quality, ethnic designs
Online/E-commerce	Pan-Nepal reach, lower overheads	Millennials, convenience seekers

Infrastructure Requirements:

Requirement	Specification
Security	CCTV, security guards, safe storage
Fire Safety	Fire extinguishers, insurance
Workshop Space	For manufacturing units (ventilation, safety)
Display Area	Well-lit, secure showcases
Storage	Vault/safe for precious metals

Cost Summary for Jewelry Company Setup

Component	Cost Range (NPR)
Company registration (OCR)	25,000-50,000
DMG/NRB permits	10,000-30,000
Hallmarking setup (if applicable)	50,000-200,000
EXIM code (for export)	5,000-10,000 + bank guarantee 300,000
Shop establishment (rent, renovation)	200,000-2,000,000
Initial inventory	500,000-5,000,000+
Security systems	50,000-200,000
Working capital	Variable
Total Initial Investment	NPR 1,000,000-10,000,000+

Frequently Asked Questions (FAQs)

Do I need special permission to sell gold jewelry in Nepal?

Yes. While basic company registration is required, dealing in gold and precious metals requires permits from the Department of Mines and Geology and potentially Nepal Rastra Bank for import/export activities .

Is hallmarking mandatory for jewelry in Nepal?

Currently voluntary but highly recommended for consumer trust and export competitiveness. A mandatory system similar to India's BIS-HUID is under development .

Can I import gold for jewelry manufacturing?

Yes, with proper licenses from DMG and NRB approval. Import duties and foreign exchange regulations apply .

What is the minimum investment to start a jewelry business?

A small retail shop can start with NPR 1-2 million, while a manufacturing unit with hallmarking may require NPR 5-10 million+ .

Can foreigners own a jewelry business in Nepal?

Yes, under FITTA 2019, foreigners can own 100% of manufacturing and trading companies, subject to minimum investment requirements (typically NPR 20-50 million for trading) .

What taxes apply to jewelry sales?

13% VAT (if turnover NPR 5 million), 25% corporate tax on profits, and customs duties on imports. Small businesses below threshold may qualify for simplified taxation .

How do I export jewelry from Nepal?

Obtain EXIM code from Department of Customs, register with FNCCI for certificate of origin, maintain bank guarantee of NPR 300,000, and comply with customs documentation requirements .

What quality standards should I maintain?

Follow NBSM standards for purity. Traditional gold jewelry is typically 22K (91.6%), while silver should be 925 (92.5%) for jewelry .

Do I need a separate license for online jewelry sales?

No separate license, but VAT registration is mandatory if online sales exceed NPR 5 million annually. E-commerce platforms may require additional agreements.

How long does the complete registration process take?

6-12 weeks for full setup: 2-3 weeks for company registration, 2-4 weeks for DMG/NRB permits, and 1-2 weeks for tax and operational licenses .

Why Choose Corporate Np for Jewelry Business Registration

Navigating jewelry company registration in Nepal requires expertise across company law, precious metals regulations, tax compliance, and export-import procedures. Corporate Np provides comprehensive services including:

Company registration (OCR) and structuring advice
DMG and NRB permit applications
Hallmarking and quality certification guidance
EXIM code and export license facilitation
Tax registration (PAN/VAT) and planning
Import-export compliance setup
Ongoing regulatory and compliance advisory

Our industry specialists ensure your jewelry business meets all statutory requirements while optimizing for tax efficiency and market competitiveness. Contact Corporate Np today for seamless jewelry company registration in Nepal.

Important Disclaimer

This content is prepared for informational and educational purposes only. It does not constitute legal or business advice. Jewelry business regulations, precious metals controls, and tax laws are subject to frequent amendments by the Department of Mines and Geology, Nepal Rastra Bank, Department of Customs, and other authorities. Hallmarking requirements are evolving. Always verify current requirements with relevant authorities or qualified legal counsel before initiating business activities. The information presented reflects regulations as of March 2026 and may not capture recent policy changes.