What is Company Registration in Nepal?
Company registration in Nepal is the official process of legally establishing a company before commencing operations. The process is governed by the Companies Act, 2063 (2006) and overseen by the Office of Company Registration (OCR). This guide provides a step-by-step overview of the company registration process in Nepal.
Governing Law
- Companies Act, 2063 (2006)
Types of Companies in Nepal
- Public Company
- Private Company
- Profit Non-Distributing Company
- Foreign Company
Company Registration Process in Nepal
- Reservation of Company Name at OCR
- Submission of Physical Copies of required documents to OCR
- Examination of Submitted Documents by OCR
- Issuance of Company Registration Certificate by OCR
- Tax Registration (VAT/PAN) at Inland Revenue Office
Required Documents for Company Registration in Nepal
- Application to OCR for registration
- Memorandum of Association (MOA) & Articles of Association (AOA) (2 sets)
- Copy of citizenship certificate or passport (for foreign investors)
- Shareholders’ agreement
- Copy of registration certificate (if the shareholder is a company)
- Corporate resolution of the shareholder (if the shareholder is a company)
- Prior approval from Department of Industry (DOI) (for foreign investors)
Tax Registration in Nepal
After registering a company with OCR, businesses must obtain PAN and VAT registration certificates from the Inland Revenue Department before commencing operations.
Post-Registration Compliance
- Obtain specific licenses from relevant departments (if required)
- Submit quarterly compliance documents to OCR
- Record investments at Nepal Rastra Bank (for FDI companies)
- Submit annual compliance documents to OCR
- Ensure compliance with Companies Act, Labor Act, and Tax Law
Prescribed Fees for Company Registration in Nepal
- Guarantee amount at DOI (for foreign investments): NPR 20,000
- Ward registration: NPR 5,000 to 15,000 per year (varies by local level)
- House Rent Tax: 10% of house rent per month (varies by local level)
Minimum Investment Requirements
- Public Company: NPR 1 crore
- Private Company: NPR 1 lakh
Special Provisions for License Approval
Certain industries, such as banking, hydropower, healthcare, and telecommunications, require additional licenses before commencing operations.
Timeline for Company Registration in Nepal
Company registration is typically completed within 7 to 10 working days.
Disclaimer
S & S Jurists, a leading corporate law firm in Nepal, provides this article for informational purposes only. It does not constitute legal advice. For professional legal assistance regarding company registration in Nepal, please contact us.any registration in Nepal, please contact us.