How To Register A Company In Nepal ?
Having a company registered in Nepal allows you to perform business transactions to earn profit. Any Nepalese with valid citizenship can register a company in his/her name as an individual or with a group of people.
According to company registration act 2063, companies can be of three types :
- Private Limited
- Public Limited
- Profit Not Distributing
Registration of companies is done by the office of the registrar of companies under the Ministry of Industry.
Steps to Register a company in Nepal :
| Step 1 : | Create an online account on the website of Office of Company Registration (OCR). |
| Step 2 : | Choose a unique name for your company. |
| Step 3 : | Submit the name and purpose of your company for approval. |
| Step 4 : | After approval of your company name, submit a memorandum of association and articles of association at the same site. |
| Step 5 : | OCR will issue a certificate of company registration after evaluation of your documents. |
| Step 6 : | Submit documents for tax registration ( Pan/Vat) at the Inland Revenue Office after issuance. |
| Step 7 : | Enroll the Employees in Provident fund. |
You can register a private limited company with a minimum investment of 1 lakh rupees and with maximum of 50 shareholders. Public limited companies can be registered with minimum involvement of 7 shareholders and initial investment of 1 crore rupees.
Time taken to register a company in Nepal is usually 7 – 15 days depending upon the purpose of company registration. You also have to obtain the permit to run business in Nepal. Some of the relevant departments to obtain license are :
- Department of Industry
- Department of Electricity Development
- Department of Agriculture
- Department of Roads
- Nepal Rastra Bank
Fee Charged during the registration of the company.
| S No | Private Limited | Public Limited |
| 1 | Rs 1000 for Authorized Capital Up to Rs 1,00,000 | Rs 15,000 for Authorized Capital Up to Rs 1,00,00,000 |
| 2 | Rs 4500 for Authorized Capital Up to Rs 5,00,000 | Rs 40,000 for Authorized Capital Up to Rs 10,00,00,000 |
| 3 | Rs 9500 for Authorized Capital Up to Rs 25,00,000 | Rs 70,000 for Authorized Capital Up to Rs 20,00,00,000 |
| 4 | Rs 16,000 for Authorized Capital Up to Rs 1,00,00,000 | Rs 1,00,000 for Authorized Capital Up to Rs 30,00,00,000 |
| 5 | Rs 19,000 for Authorized Capital Up to Rs 2,00,00,000 | Rs 1,30,000 for Authorized Capital Up to Rs 40,00,00,000 |
| 6 | Rs 22,000 for Authorized Capital Up to Rs 3,00,00,000 | Rs 1,60,000 for Authorized Capital Up to Rs 50,00,00,000 |
| 7 | Rs 25,000 for Authorized Capital Up to Rs 4,00,00,000 | Rs 3000 Per Core for Authorized Capital above Rs 50,00,00,000 |
| 8 | Rs 28,000 for Authorized Capital Up to Rs 5,00,00,000 | |
| 9 | Rs 31,000 for Authorized Capital Up to Rs 6,00,00,000 | |
| 10 | Rs 34,000 for Authorized Capital Up to Rs 7,00,00,000 | |
| 11 | Rs 37,000 for Authorized Capital Up to Rs 8,00,00,000 | |
| 12 | Rs 40,000 for Authorized Capital Up to Rs 9,00,00,000 | |
| 13 | Rs 43,000 for Authorized Capital Up to Rs 10,00,00,000 | |
| 14 | Rs 30 Per Lakh for Authorized Capital above Rs 10,00,00,000 |
After following these process your company will be registered under the act of companies act 2063. Then You’ll be able to operate your business legally in Nepal.
Conclusion
Registering a business has many advantages for you. Your business will be acknowledged as a legal body and protection of your property are insured. It becomes easier to open bank account and obtain a loan. Investors are more likely to invest in a registered company. Trust of public towards your company increases. Fundraising for business and transfer of ownership becomes easier. So, it is best for you to register a company as soon as possible to avoid legal issues.
Do you think we missed some important process. If Yes, please mention in the comment below.
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