To set up a coffee shop in Nepal, lock in compliance and location in this order: register your entity (sole proprietorship or Pvt. Ltd.) then obtain PAN at the Inland Revenue Department, a municipal trade permit, and a Food Establishment/Food Hygiene License from DFTQC; add VAT registration if projected annual sales exceed NPR 5 million (VAT 13%) and use IRD‑approved e‑billing; secure fire clearance. Budget NPR 2–5 million to launch a 25–40 seat café in Kathmandu/Pokhara: espresso machine NPR 300k–800k, grinder 60k–200k, water filtration 40k–120k, refrigeration 100k–250k, furniture/fit‑out 800k–2m, POS and QR 30k–80k; prime‑street rent typically NPR 80k–250k/month. Specify 5–10 kW electric load and LPG backup; target water TDS 50–150 ppm for espresso. Source beans from reputable Nepali roasters (cup cost ~NPR 35–60); price espresso NPR 150–250 and milk drinks NPR 200–350 to hold beverage COGS at 20–25% and food cost under 30%. Staff 5–8, enroll in SSF. Aim for 90–140 transactions/day at NPR 300–380 average ticket to reach NPR 0.8–1.4m monthly revenue; after 60–70% gross margin, fixed costs (rent 120–180k, labor 180–300k, utilities/other 60–100k) yield break‑even near 70–90 cups/day. Choose high‑footfall corridors (Thamel, Durbar Marg, Lakeside), invest in barista training and hygiene SOPs, and optimize Google Maps reviews actively.
