Company registration

Starting a company in Nepal might seem daunting, but it's a vital step to establish a legal and credible business. Whether you’re an aspiring entrepreneur or an experienced business owner, understanding the registration process is crucial for long-term success. In Nepal, registering your business not only ensures compliance with local laws but also opens the door to numerous benefits like access to financial services and legal protection.

The Companies Act 2006 governs company registration in Nepal. It outlines the procedures, rights, and obligations of registered businesses.

Types of Companies in Nepal

1. Private Limited Company: Ideal for small to medium businesses. It requires at least one director and one shareholder.

2. Public Company: Suitable for larger enterprises planning to raise capital from the public. A minimum of seven shareholders is required. Partnership Firm: Best for professionals or small groups working together. Partners share profits, losses, and liabilities. Sole Proprietorship: The simplest structure for single-owner businesses. However, it doesn't provide liability protection.

3. Profit not distributing company:

 Profit not distributing companies can be incorporated for the following objectives:

(a) Development and promotion of any profession;

(b) Protection of collective rights and interests of the persons engaged in a specific profession or occupation; and

 (c) For the attainment of any scientific, academic, social, benevolent or public utility or welfare objective on the condition of not distributing dividends.

Eligibility Criteria

To register a company in Nepal:

  • The founder must be at least 18 years old.
  • There must be at least one shareholder and one director.
  • The business name must be unique and not conflict with existing registered names.

Tax Registration

After incorporation, you must register for a Permanent Account Number (PAN) and Value Added Tax (VAT) to comply with taxation laws.

Documents Needed for Company Registration

Essential Documents Checklist

Here’s what you need:

  • Copies of national ID or passport of shareholders and directors.
  • Proof of address for the business location.
  • Memorandum of Association (MOA).
  • Articles of Association (AOA).

Additional Documents for Foreign Investors

Foreign nationals need to provide:

  • A valid visa and passport.
  • Approval from the Department of Industry for foreign investments.

Process of Company Registration in Nepal

1. Reserving a Company Name

The first step is to ensure your business name is unique. Submit an application to the Office of the Company Registrar (OCR).

2. Preparing the Memorandum and Articles of Association

These documents outline the company’s objectives, structure, and operating rules. Professional help is recommended to draft them accurately.

3. Submitting an Application

Once the paperwork is ready, file an application with the OCR. Ensure you include all required documents.

4. Receiving the Certificate of Incorporation

After verification, the OCR will issue a Certificate of Incorporation. This certifies that your company is legally registered.

Conclusion

Registering a company in Nepal may involve some initial effort, but the rewards are worth it. By formalizing your business, you pave the way for growth, stability, and opportunities. So take the plunge and make your entrepreneurial dreams a reality.