Nepalese Investor

How To Register A Company In Nepal ?

Register a Company in Nepal
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 :

  1. Private Limited
  2. Public Limited 
  3. 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 NoPrivate LimitedPublic Limited
1Rs 1000 for Authorized Capital Up to Rs 1,00,000Rs 15,000 for Authorized Capital Up to Rs 1,00,00,000
2Rs 4500 for Authorized Capital Up to Rs 5,00,000Rs 40,000 for Authorized Capital Up to Rs 10,00,00,000
3Rs 9500 for Authorized Capital Up to Rs 25,00,000Rs 70,000 for Authorized Capital Up to Rs 20,00,00,000
4Rs 16,000 for Authorized Capital Up to Rs 1,00,00,000Rs 1,00,000 for Authorized Capital Up to Rs 30,00,00,000
5Rs 19,000 for Authorized Capital Up to Rs 2,00,00,000Rs 1,30,000 for Authorized Capital Up to Rs 40,00,00,000
6Rs 22,000 for Authorized Capital Up to Rs 3,00,00,000Rs 1,60,000 for Authorized Capital Up to Rs 50,00,00,000
7Rs 25,000 for Authorized Capital Up to Rs 4,00,00,000Rs 3000 Per Core for Authorized Capital above Rs 50,00,00,000
8Rs 28,000 for Authorized Capital Up to Rs 5,00,00,000 
9Rs 31,000 for Authorized Capital Up to Rs 6,00,00,000 
10Rs 34,000 for Authorized Capital Up to Rs 7,00,00,000 
11Rs 37,000 for Authorized Capital Up to Rs 8,00,00,000 
12Rs 40,000 for Authorized Capital Up to Rs 9,00,00,000 
13Rs 43,000 for Authorized Capital Up to Rs 10,00,00,000 
14Rs 30 Per Lakh for Authorized Capital above Rs 10,00,00,000 
Fee Charged for Registration of Company

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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