If you’re looking to start a business in Nepal, then one of the first things you need to do is register your company. This article will walk you through registering a business in Nepal, from choosing the right type of company to filing all the necessary paperwork. So if you’re ready to get started, keep reading.
If you want to register your own business in Nepal, you need to choose the right type of company. There are four main types of companies in Nepal: sole proprietorships, partnerships, limited liability companies, and public limited companies. Each has its own benefits and drawbacks, so it’s important to choose the one that best suits your business.
Steps to Register Your Business in Nepal
If you want to start your own business or a private company in Nepal, the first step is to complete the company registration procedure. The Office of Company Registrar (OCR) in Nepal has the power to approve corporate registrations under the Companies Act, 2006.
If you’re new to the procedures of registering a business in Nepal but want to do so quickly, we’ve got you covered.
Give your company a name
First and foremost, the investor/s must reserve their company name with the OCR. It’s important to verify whether or not the proposed firm’s name is already in use or reserved while establishing a private company in Nepal.
- Investors may go to the official website of the OCR and look for the ‘eServices’ section, which includes an online packet. Click the ‘Check Name’ tab under this area.
- Then, you will be sent to a new page. In the upper left corner of the page, you’ll see “To form a new firm, click here ‘New’!” Click this choice, and you’ll be prompted to create a user ID.
- Fill out the requested information completely and then click “Generate User” to complete the process.
- After you complete the form, you will receive an email with your login information (which comprises the username and password) to the address provided. You will be sent to the login screen again with the confirmation notice.
- Use the login details provided by OCR E-services. After that, you’ll be prompted to change your password.
- The system will log you out of your ID and send you to the sign-in page with a confirmation message that the password has been changed correctly after you’ve updated it.
- Fill in the login details and press the ‘Login’ button once again. The new company registration user’s homepage will then appear (assuming that there is no problem with your internet connection).
- There, you’ll discover the ‘Name Check/Reservation’ option in the menu bar. Click the ‘Name Reservation Request Form’ option from that menu to check and reserve a company name.
- Now, type in the ‘Request Name’ and ‘Objective’ details and submit the ‘Name Reservation Request Form’ by clicking the ‘Submit’ button.
- If everything appears to be in order, you’ll receive an email notification. Following that, the optical character recognition process will begin.
- After a few days, the OCR will send you an email stating whether the firm name you have booked is accepted or denied.
- You must re-enter the previous name and try again if it is rejected. You may only submit one company name at a time, so you must check and reserve a new one in the same manner as before.
- After you’ve completed the registration process, you must submit all of the necessary paperwork and fill out the company registration form.
Prepare Required documents
You need to prepare some documents to register your business in Nepal because you need to submit those documents at the OCR.
Find the list of the required documents you need to register a business in Nepal here.
Mainly, articles of association and memorandum of the association are verified and certified by notaries. As of now, one has to only submit a hard copy of these two documents as per the notice published by the OCR on August 10. And, other documents are to be sent online.
Upload the files
After gathering all of the paperwork, they must be scanned and posted to the OCR website’s user page.
- To begin, you must fill out a company registration form. Once your requested business name is authorized, you may submit the form by logging in using your user ID and password on the site.
- On the homepage, you will find a link to the registration form. Click it, and provide all of your company’s information as well as your branch’s and objective’s information.
- Now, upload all the scanned copies of the necessary papers in the document details section.
- Click the ‘Save’ button if you’re certain of the information, or the ‘Preview’ button if you want to see all of the details. Then, if you’re sure of everything you’ve put in, click “Submit.”
When you submit the company registration form, a page will open displaying all the important information, such as revenue to be paid, temporary application ID, and confirmation message of the registration. An attachment containing the company registration details will also be delivered to your email address in this case.
If your application is rejected or accepted, OCR will notify you by mail or in your lodgement area.
You’ll be asked to present two sets of the original articles of association and memorandum of association after your application is accepted for further verification of the registration procedure. You must also pay taxes according to your authorized capital (mentioned in your email).
The OCR will now validate the information. Then, the OCR will give you a certificate of company formation and other documents, including a letter to the TAX department and a letter with a reserved PAN number.
Investors must register themselves for tax (VAT/PAN) at the relevant Inland Revenue Office after the firm has been registered with the OCR.
Obtaining a Tax Registration Certificate
The final step in registering a business in Nepal is to obtain a tax registration certificate from the Inland Revenue Department. This certificate is required in order to engage in business activities in Nepal.
After the Registration Process is Completed
Once the registration process is completed, the company will be provided with a Certificate of Registration. This certificate is proof that the company has been registered in Nepal and is in compliance with the laws of the country.
Tips to Register a Business in Nepal
The articles of association and memorandum of associations must be written on one side of a Nepali or other hard paper. And should be written in clear Nepali language.
Include every founder shareholder should sign at the bottom of each article of association and memorandum of association page. The complete names, addresses, and signatures of all founder shareholders and their fingerprints below the signature of each founder should be clearly stated in the last section of the article of association and memorandum of association. Each witness to the founding shareholders’ existence
To form a company, at least one of the founder shareholders must be present in person at the shareholder’s office.
Things to keep in mind while registering a business in Nepal
Make sure to choose the right type of company
There are different types of companies that you can register in Nepal, so make sure to choose the one that is best suited for your business.
Get the right paperwork
Make sure you have all the necessary paperwork ready before you start the registration process. This will save you time and hassle later on.
Register with the right authority
You need to register your company with different authorities, so make sure you register with the correct one.
Pay the right fees
You need to pay various fees when registering a company in Nepal, so make sure you are aware of all the fees before you start the process.
Follow the correct procedure.
You need to follow a specific procedure when registering a company in Nepal, so make sure you are aware of all the steps involved.
Get help if needed
If you are unsure of anything during the registration process, various resources are available that can help you. Make sure to take advantage of these resources if needed.
Be patient
The registration process can take some time, so make sure you are prepared for this. Once the process is completed, you will be able to start your business in Nepal.
Final Saying
There are many reasons why someone might want to register a business in Nepal. Perhaps you’re looking for an opportunity to get into the growing South Asian market. Maybe you have an excellent idea for a new business and you want to take advantage of Nepal’s low startup costs and favourable tax environment. Or maybe you just want to establish yourself as a serious player in the Nepalese business community. Whatever your reasons, registering a business in Nepal can be a great way to get started in this fascinating and rapidly-growing country.
However, if you follow these steps, you should be able to register your business in Nepal without any problems. Once you’re up and running, you can start focusing on growing your company and making it successful.
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FAQs
Why register a business in Nepal?
There are many reasons to register a business in Nepal. Some of the benefits include:
– Registering a business in Nepal provides a company with legal recognition
– It ensures that the company is following the laws of Nepal
– It can help protect the company’s ownership rights
– It can provide a company with access to government contracts
– Registering a business in Nepal can help the company to obtain loans and other financial assistance
What documents are required for registration?
In order to register a business in Nepal, the following documents are required:
– A copy of the company’s passport or citizenship certificate
– A copy of the trade license
– A copy of the registration certificate from the Office of the Company Registrar
– A copy of the tax registration certificate from the Inland Revenue Department
– A copy of the company’s Articles of Association
– A copy of the company’s Memorandum of Association
How much does it cost to register a business in Nepal?
The cost of registering a business in Nepal varies depending on the type of business and the number of shareholders. The average cost of registering a business in Nepal is between NPR 200,000 and NPR 1 million.
How long does it take to register a business in Nepal?
The length of time it takes to register a business in Nepal also varies depending on the type of business and the number of shareholders. For example, the average time it takes to register a business in Nepal is between two and six weeks.
