Claim: The Shah dynasty formerly ruled Nepal.

fi     Nepal -LRB- -LSB- Nepālhelp = no -RSB- -RCB- -RCB- -LSB- neˈpal -RSB- -RRB- , officially the Federal Democratic Republic of Nepal , is a landlocked central Himalayan country in South Asia . Nepal is divided into 7 provinces and 75 districts and 744 local units including 4 metropolises , 13 sub-metropolises , 246 municipal councils and 481 villages . It has a population of 26.4 million and is the 93rd largest country by area . Bordering China in the north and India in the south , east , and west , it is the largest sovereign Himalayan state . Nepal does not border Bangladesh , which is located within only 27 km -LRB- 17 mi -RRB- of its southeastern tip . Neither does it border Bhutan due to the Indian state of Sikkim being located in between . Nepal has a diverse geography , including fertile plains , subalpine forested hills , and eight of the world 's ten tallest mountains , including Mount Everest , the highest point on Earth . Kathmandu is the nation 's capital and largest city . It is a multiethnic nation with Nepali as the official language .   The territory of Nepal has a recorded history since the Neolithic age . The name `` Nepal '' is first recorded in texts from the Vedic Age , the era which founded Hinduism , the predominant religion of the country . In the middle of the first millennium BCE , Gautama Buddha , the founder of Buddhism , was born in southern Nepal . Parts of northern Nepal were intertwined with the culture of Tibet . The Kathmandu Valley in central Nepal became known as Nepal proper because of its complex urban civilisation . It was the seat of the prosperous Newar confederacy known as Nepal Mandala . The Himalayan branch of the ancient Silk Road was dominated by the valley 's traders . The cosmopolitan region developed distinct traditional art and architecture . By the 18th century , the Gorkha Kingdom achieved the unification of Nepal . The Shah dynasty established the Kingdom of Nepal and later formed an alliance with the British Empire , under its Rana dynasty of premiers . The country was never colonised but served as a buffer state between Imperial China and Colonial India . In the 20th century , Nepal ended its isolation and forged strong ties with regional powers . Parliamentary democracy was introduced in 1951 , but was twice suspended by Nepalese monarchs in 1960 and 2005 . The Nepalese Civil War resulted in the proclamation of a republic in 2008 , ending the reign of the world 's last Hindu monarchy .   Modern Nepal is a federal secular parliamentary republic . It has seven states . Nepal is a developing nation , ranking 144th on the Human Development Index -LRB- HDI -RRB- in 2016 . The country struggles with the transition from a monarchy to a republic . It also suffers from high levels of hunger and poverty . Despite these challenges , Nepal is making steady progress , with the government declaring its commitment to elevate the nation from least developed country status by 2022 . Nepal also has a vast potential to generate hydropower for export .   Nepal 's foreign relations expanded after the Anglo-Nepal Treaty of 1923 , which was recognised by the League of Nations . After a Soviet veto in 1949 , Nepal was admitted to the United Nations in 1955 . Friendship treaties were signed with the Dominion of India in 1950 and the People 's Republic of China in 1960 . Nepal hosts the permanent secretariat of the South Asian Association for Regional Cooperation -LRB- SAARC -RRB- , of which it is a founding member . Nepal is also a member of the Non Aligned Movement and the Bay of Bengal Initiative . The military of Nepal is the fifth largest in South Asia and is notable for its Gurkha history , particularly during the world wars , and has been a significant contributor to United Nations peacekeeping operations .