Key takeaways
5Starting a business in India or Nepal doesn't require an MBA or a massive investment. What it does require is getting the paperwork right from day one, so you can focus on building your business instead of dealing with compliance issues later.
This guide covers the practical steps for both countries, side by side.
India offers several business structures, each with different compliance requirements:
Sole Proprietorship
One Person Company (OPC)
Private Limited Company (Pvt Ltd)
LLP (Limited Liability Partnership)
Nepal's business registration process:
Sole Proprietorship (Ekal Swamitva)
Partnership
Private Limited Company (Pvt Ltd)
Key requirement: All businesses in Nepal need a PAN (Permanent Account Number) from the Inland Revenue Department (IRD) for tax purposes.
India's Goods and Services Tax replaced multiple indirect taxes in 2017. It's a destination-based tax with multiple rate slabs.
GST Registration is mandatory if:
GST Rates:
| Rate | Typical Items |
|---|---|
| 0% | Essential food items, healthcare, education |
| 5% | Packaged food, transport, small restaurants |
| 12% | Processed food, business class air tickets |
| 18% | Most services, electronics, restaurant dining |
| 28% | Luxury items, automobiles, tobacco |
GST Return Filing:
Composition Scheme: For small businesses with turnover up to ₹1.5 crore, pay GST at a flat rate (1–6% depending on business type) with simplified quarterly returns.
Nepal uses a Value Added Tax (VAT) system.
VAT Registration is mandatory if:
VAT Rate: 13% (single rate, much simpler than India's multiple slabs)
Filing: Monthly VAT returns due by the 25th of the following month.
A GST tax invoice must include:
E-invoicing: Mandatory for businesses with turnover above ₹5 crore, invoices must be registered on the Invoice Registration Portal (IRP) and include a QR code.
A VAT invoice must include:
Gone are the days of ledger books and carbon-copy invoices. Digital tools save time, reduce errors, and keep you compliant.
OneBookPlus supports businesses across multiple countries with:
Whether you're a freelance developer in Bangalore, a restaurant owner in Kathmandu, or a consulting firm in Delhi, OneBookPlus gives you the tools to run your business professionally from day one.
Sign up free at onebookplus.com.au.
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