Before Shah dynasty took over Nepal, Nepal was limited to Kathmandu valley and surrounding territories which consist many kingdoms. After conquering the valley in the mid-eighteenth century, King Prithvi Narayan Shah moved his ruling state to Nepal from Gorkha. He then started his conquering campaign with the banner of Nepal than Gorkha.
Establishment of expanded Gorkha kingdom
After his conquest of the Kathmandu Valley, Prithvi Narayan Shah conquered other smaller territories south of the valley to keep other smaller fiefdoms near his Gurkha state out of the influence and control of British rule. After his kingdom spread from north to south, he made Kantipur the capital of expanded country which was known as Kingdom of Gorkha (Gorkha Samrajya).