According to eyewitnesses, the plane was taking off from the southern end of the runway (Koteshwor side) after which it suddenly flipped with the wing tip hitting the ground, as reported by The Kathmandu Post.
Saurya Airlines operates domestic flights in Nepal with two Bombardier CRJ-200 regional jets, both around 20 years old, according to Flight Radar 24.
Tribhuvan International Airport, Nepal's sole international airport, has been closed as emergency crew worked.
Despite being the monsoon season in Nepal, it was not raining at the time of the crash. However, visibility was low across the Himalayan nation's capital.
Nepal, home to eight of the world's 14 highest mountain peaks, has for long faced criticism over its poor air safety record owing to small airports in remote hills and close to peaks shrouded in clouds.
Since 1990, dozens of plane and helicopter crashes in the country have claimed over 400 lives, with the deadliest one occurring in 1992 when a Pakistan International Airlines Airbus crashed into a hillside near Kathmandu, killing 167 people.
In January last year, 72 people, including five Indians, died after a Yeti Airlines flight crashed just before landing in Nepal’s tourist city of Pokhara.