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What is Company Registration in Nepal ?
Company Registration also known as Company Incorporation is a process through which a business is legally recognized and established as a legal entity by the Government of Nepal.
The Companies Act 2063 and its regulations are the primary legal provisions that govern company registration in Nepal. One can Register their company in the Office of Company Registrar which is located in Tripureshwor, Kathmandu.
It is absolutely important for any business, especially large scale to be registered in Nepal. As leading legal experts of Nepal in Corporate Law, we would suggest you incorporate your Company as soon as possible to ensure legality, prevent inconsistency, and comply with rules to prevent legal proceedings against you.
Types of Registrable Companies
Three Major Types of Companies can be registered in Nepal:
1. Private Company
Private Companies are the most common type of companies that are held privately and owned by private stakeholders with the word Pvt. Ltd. Attached to the end of their name. Its share cannot be offered to the general public.
2. Public Company
Public Companies are those companies that can raise funds from the general public by issuing shares, bonds, etc. It requires a capital of NPR 1 Crore.
3. Profit Not Distributing Company
Profit Not Distributing Companies are those registered companies that don’t distribute their members out of profits or savings and are reserved for Special cases only.
Should I register a Company in Nepal?
Yes, if you desire to start a legitimate Business in Nepal, then, you must register a Company. Company Registration brings with it a plethora of benefits that can upscale your business. You as an Individual need to bear limited Liability and the company shall be established as a separate legal entity after registration.
Moreover, your business will be legally recognized in Nepal and less liable to fraud, loan and debt problems, and other illegal practices. As registering a company is quite an easy process with legal assistance in Nepal, you should register your business.
Our Firm has written a comprehensive article on Company Registration Process in Nepal to assist individuals like you in your endeavor.
How Can I register a company in Nepal?
The Process of Company Registration in Nepal is a simple process through the rightful legal aid. It involves several procedures:
- Reserve the Name of Your Company at the Office of the Company Registrar
- Provide the Office of the Company Registrar with all required documents.
- Pay the Company Registration Fee after authentication
- Finish all the Processes after Company Registration.
Name Reservation
Initially, you must reserve your name which must be unique for company registration. To complete this, you must reserve your name at the online portal of the Office of Company Registrar Online Portal of Company registrar
Submission of Documents
After the name reservation has been validated, you must travel to the Office of Company Registration with several documents which have been listed in one of our articles on The Process of Company Registration.
Fee Payment
Company Registration is a relatively cheap endeavor in Nepal which doesn’t cost you as much. For Companies up to Rs. 1 Lakhs Authorized Capital, the registration fee is Rs. 100.
For Authorized Capital of Rs. 1 to 5 Lakhs, it is Rs. 4,500. For Public Companies up to an Authorized Capital of Rs. 1 Crore, it is Rs. 15,000.
Completion of Other Processes
After the fee has been paid and the documents have been authenticated, the Office of Company Registrar provides you with the certificate of Company Registration.
After that you must register your business in the Ward Office, obtain a Permanent Account Number (PAN) and open a bank account and ensure compliance with Nepalese Rules and Regulations.
How much does it cost to register a company in Nepal?
To register a relatively average company that handles the Capital of NPR 1 Lakhs to NPR 5 Lakhs, it costs Rs. 4, 500. For Companies that handle the Capital of NPR 5 Lakhs to NPR 25 Lakhs, it costs around Rs. 9, 500 to register a company in Nepal. However, for simple business entities under NPR 1 Lakhs authorized Capital, it costs around Rs. 1, 000.
How can I register my business in Nepal?
You can register your business in the Local Ward Office in Nepal. If you plan to register a company in Nepal, you must reserve a name from the online portal of the Office of Company Registrar and submit the necessary documents.
However, if you plan to start a shop or a minor online business in Nepal, it is an easy process and doesn’t require much money or effort. Companies can be registered Online in Nepal.
What is the time to Register Company in Nepal?
According to our expert legal professionals with practical experience in registering hundreds of companies in Nepal, it takes around 7 – 10 Days on average to register a company.
However, if issues arise with the name of the Company or the lack of required documents, it becomes a lengthier process taking over One Month.
Should I choose a Law Firm to register my Company?
If you have some form of legal experience one way or another, it mayn’t be necessary to choose a Law Firm or Lawyer to register your company in Nepal. Hundreds of Companies have chosen Lawneeti Associates as their best choice for incorporating their Company and we suggest you choose a Law Firm.
In most cases, it is advisable to have a lawyer or law firm register your company. It saves you a lot of valuable time and decreases your stress. Moreover, a law firm is regularly involved in company registration which adds efficiency, expediency, and perfection to their registration.
If any issue arises in Document Submission or Name Reservation, the Law Firm can easily handle it. Also, You can face several procedural challenges while registering a company while the lawyers can expertly handle them.
Benefits of Having a Lawyer register a company
There are several benefits of having a Lawyer or Law Firm Register your company. As our Law Firm is a leading Full Service Law Firm in Nepal with a high reputation and professional image, we can assist or consult you in registering your company.
We have incorporated or registered 100’s of Companies to date and therefore, our Firm could be a great choice. Here are the rest of the benefits:
- Law Firms have lawyers that specialize in Company Registration and therefore, you will face zero to no challenges in registering a company.
- Law Firms and Lawyers can provide custom advice on your company registration based on your choice and easily draft required documents.
- Lawyers can also decrease legal risks and impediments that can happen during the process of Business Registration.
- As Lawyers have registered multiple Law Firms throughout their tenure, they can efficiently register your company without any challenges.
- You, as an Individual, can focus on the Business instead of its technical aspects such as Company Registration providing an edge over your competition.