Online Company Registration in Nepal

Can a company be registered online in Nepal?

The Company Registration System (CRS), which is offered by the Office of the Company Registrar, enables for online company registration in Nepal. Electronic submission of required documents and information is required in accordance with the regulatory framework.

Which categories of Companies are eligible for online registration?

Through the Company Registration System (CRS), a variety of companies can be registered online. Public Companies, Private Companies, and Not-for-Profit Companies are the three primary classifications. The Companies Act and other pertinent regulations in Nepal must be followed by all of these categories of companies.

1. Private Company:

In Nepal, a business entity known as a private company is established by a consortium of individuals who own share capital. A certain number of shareholders are permitted ownership, and the company’s shares are not publicly traded.

• Limited liability for shareholders, which means that their personal assets are typically protected from the debts of the company.
• A restricted number of individuals (a maximum of 50 shareholders) are permitted ownership.
• There is no public trading of shares on a stock exchange.

2. Public Company:

In Nepal, a company that can raise capital through the issuance of shares on a stock exchange is considered public. Its shares are freely transferable.

• The public may purchase and sell shares on the stock exchange without restriction;
• The utmost number of shareholders is not capped at one.
• The public nature of the shares typically results in more stringent compliance requirements in comparison to private companies.

3. Not-for-Profit Company:

Often referred to as charitable or non-profit entities, not-for-profit companies are established with objectives beyond mere financial gain. These organizations are devoted to a particular cause or mission.

• The principal aim is to engage in endeavors that contribute to the betterment of the community or a particular cohort, with any earnings being reinvested in the organization’s mission.
• As a result of their non-profit status, these entities may be eligible for specific tax exemptions and advantages.
• Neither members nor shareholders are entitled to dividends; rather, the funds are allocated towards the charitable endeavors of the organization.

What are the Requirements to be fulfilled before Registering a Company in Nepal?

There are a number of requirements that must be met in order to register a company in Nepal. Key requirements are as follows, according to the text provided:

Minimum Shareholders

A minimum of seven shareholders must be arranged for by each applicant company. Preparation for company registration in Nepal is as follows.

Limit on Shareholders for Private Company

The maximum number of shareholders may be restricted if the applicant intends to register the company as a Private Company in Nepal. Private companies are limited to a maximum of 101 shareholders.

Documentation of Citizenship for International Applicants

When registering a company in Nepal, foreign applicants are required to provide evidence of their citizenship in their home country.

Memorandum and Articles of Association

Each applicant is required to compose and prepare the proposed company’s Memorandum and Articles of Association. They must be submitted during the registration process.

Proposed Company Name

It is mandatory for the applicant to select a name that is distinct and exclusive to their proposed company.

What is the online company registration procedure in Nepal?

The online company registration process in Nepal via application.ocr.gov.np is described in detail below:

Step 1: User Registration

In order to commence the online company registration procedure, potential applicants must initially visit the official website of the OCR. During this phase, users are obligated to establish a user account through the provision of mandatory details. After the successful creation of the account, applicants may proceed with the registration procedure by logging in with their credentials.

Step 2: Submission of Application Forms

Applicants should access the portal’s company registration section after registering in. They are subsequently required to choose the particular service category associated with the registration of the company. Their active participation is required in completing a thorough online application form.

Step 3: Upload of Documents

Prospective candidates are obligated to adequately prepare and digitally scan all mandatory documents, such as the memorandum and articles of association, directors’ details, and any other relevant documentation. Scan copies may be submitted through the secure document upload section that is typically available on the portal.

Step 4: Fee Payment

After the application and document submission are complete, the applicant navigates to the online payment gateway accessible through the portal. Users are obligated to remit the designated registration fees in a secure manner through one of the accepted payment methods.

Step 5: Approval and Certificate Issuance

Regulatory authorities conduct a comprehensive examination of the information and documents submitted with the application and payment of fees. The applicant is notified and the certificate of incorporation is issued upon approval of the application, provided that it satisfies the necessary criteria. This certificate, along with other pertinent documents, is typically made accessible via the online portal certificate or as directed by the authorities.

Which Documents Are Essential for the Process of Online Company Registration?

The following documents are mandatory for the registration of a company in Nepal:

1. Application for Registration of a Company
2. The proposed company’s articles of association and memorandum of association
3. Passport or citizenship certificate for foreign promoters or Nepalese promoters, respectively.
4. Approval of shareholders (if applicable)
5. If the shareholder is a company, a copy of the certificate of registration as well as any other registration documents (such as the memorandum of association and the articles of association).
6. License or prior sanction from the appropriate authority (if necessary)
7. A duplicate of the prior DOI certification in the event that the shareholder is a foreign investor

How much does it cost to Register a Company in Nepal?

Conclusion on Online Company Registration in Nepal

Various types of companies, including Private, Public, and Not-for-Profit Companies, can be registered online. In contrast to private companies, which have limited shareholders, public companies permit the trading of their shares. User registration, submission of the application form, uploading of documents, payment of fees, and subsequent certificate approval comprise the online company registration process. These stages are accessible to applicants via the application website (application.ocr.gov.np). The application form, Memorandum of Association, Articles of Association, citizenship certificate or passport, shareholder’s agreement (if applicable), and any other pertinent documents are required for online company registration.