5 High-Profit Business Ideas in Nepal with Less than 5 Lakhs Investment (2026)

Starting a business in Nepal no longer requires huge capital or powerful connections. With less than NPR 5 lakhs, you can launch a scalable, high-profit business—if you choose the right model, location, and execution strategy.

This guide is written specifically for Nepali entrepreneurs, youth, freelancers, and returnee migrants who want realistic business ideas that actually work in Nepal’s market.

These are tested, demand-driven business ideas aligned with Nepal’s economy, digital adoption, and consumer behavior in 2026.

Why Low-Investment Businesses Are Thriving in Nepal

Several factors make low-capital businesses attractive in Nepal today:

• Growing urban population
• Rising internet and smartphone usage
• Expanding middle class
• Shift toward service-based and digital businesses
• Low operational costs compared to foreign markets

The key is not just starting cheap, but choosing businesses with high margins and repeat demand.

Business Idea #1 – Digital Marketing & IT Services Agency

Why It Works in Nepal

Thousands of Nepali businesses still depend only on Facebook pages and lack:

• Websites
• Google Maps optimization
• SEO
• Online booking systems

This creates massive demand for affordable digital services.

Initial Investment Breakdown

Item Estimated Cost (NPR)

Laptop & tools | 1,50,000
Website & branding | 30,000
Software & hosting | 20,000
Marketing & networking | 50,000
Total | ≈ 2.5–3 Lakhs

Profit Potential

• Monthly retainers: NPR 15,000–50,000 per client
• Break-even: 2–3 clients
• Scalable with freelancers

Best Cities

Kathmandu, Lalitpur, Pokhara, Biratnagar

Directory Opportunity:
List Digital Marketing Agencies in Nepal and offer Pro listings to IT firms.

Business Idea #2 – Cloud Kitchen / Home-Based Food Brand

Why It Works

• Rising food delivery culture (Pathao, Foodmandu)
• Low rent compared to full restaurants
• High demand for local, hygienic, niche food

Popular Niches

• Newari Khaja
• Healthy lunch boxes
• Momo & snacks
• Home-style Nepali meals

Initial Investment

Item Cost (NPR)

Kitchen equipment | 1,50,000
Licenses & registration | 30,000
Packaging & branding | 40,000
Marketing & apps | 50,000
Total | ≈ 2.5 Lakhs

Profit Margin

• 30–50% per order
• High repeat customers

Best Areas

Kirtipur, Baneshwor, Patan, Lakeside Pokhara

Directory Integration:
Embed Food & Cloud Kitchen listings with menus and delivery links.

Business Idea #3 – Mobile Repair & Accessories Shop

Why It Works

Nepal has millions of smartphone users, but:

• Repairs are frequent
• Accessories sell daily
• Margins are high

Investment Breakdown

Item Cost (NPR)

Tools & inventory | 1,50,000
Shop rent & setup | 1,00,000
Initial stock | 1,00,000
Total | ≈ 3.5 Lakhs

Monthly Profit

• NPR 40,000–1,00,000 (location dependent)

Best Locations

New Road, Kalanki, Boudha, Pokhara Bazaar

Monetization Angle:
Feature Mobile Repair Shops with reviews and verified badges.

Business Idea #4 – Education & Skill Training Center

Why It Works

Nepal has:

• Huge youth population
• Demand for job-oriented skills
• Growing freelancing & migration goals

Popular Courses

• Computer basics
• Graphic design
• Digital marketing
• IELTS / PTE (basic)

Investment Required

Item Cost (NPR)

Rent & setup | 1,50,000
Computers & equipment | 2,00,000
Marketing | 50,000
Total | ≈ 4 Lakhs

Revenue Model

• Course fees per student
• Monthly batches
• Certification programs

Best Cities

Lalitpur, Chitwan, Pokhara, Butwal

Platform Support:
List Training Institutes with course details and lead forms.

Business Idea #5 – E-commerce Reselling / Niche Online Store

Why It Works

Nepali consumers now trust:

• Online payments
• Home delivery
• Instagram & TikTok shops

Best Niches

• Fashion & accessories
• Beauty products
• Electronics accessories
• Home décor

Investment Breakdown

Item Cost (NPR)

Inventory | 2,00,000
Website / social shop | 50,000
Marketing | 1,00,000
Logistics & misc | 50,000
Total | ≈ 4 Lakhs

Profit Potential

• 20–40% margins
• High scalability

Directory Opportunity:
Create Verified Online Stores in Nepal section with Pro seller badges.

Comparison Table – Best Business Ideas Under 5 Lakhs

Business Idea Risk Profit Scalability

Digital Agency | Low | High | Very High
Cloud Kitchen | Medium | High | Medium
Mobile Repair | Medium | Medium | Medium
Training Center | Low | Medium | High
E-commerce Store | Medium | High | Very High

Legal & Registration Requirements (Quick Overview)

Most businesses require:

• PAN registration
• Company or sole proprietorship registration
• Local ward registration
• VAT (if applicable)

Start with PAN, upgrade to VAT when required.

Common Mistakes First-Time Entrepreneurs Make

• Spending too much on rent
• Ignoring digital marketing
• No proper bookkeeping
• Starting without market validation
• Mixing personal and business money

FAQ – Business Ideas Under 5 Lakhs in Nepal

Q: Can I start business without company registration?
Yes, as a sole proprietor with PAN.

Q: Which business is safest?
Service-based businesses like IT or training.

Q: Can I start while studying or working?
Yes, many ideas are part-time friendly.

Q: Is bank loan necessary?
No, all ideas are bootstrapped.