Import-Export Company Registration in Nepal

Are you considering starting an import-export business in Nepal? This guide will walk you through the process of registering your company, from understanding what an import-export company is to the benefits of registration.

What is an Import-Export Company?

An import-export company is a business that specializes in buying goods from one country and selling them in another. These companies play a crucial role in international trade by:

• Facilitating the movement of goods across borders
• Connecting manufacturers with foreign markets
• Helping businesses expand their reach globally
• Managing customs procedures and documentation
• Navigating international trade regulations and tariffs

In Nepal, import-export companies are key players in the country’s economy, bringing in essential goods and helping local businesses reach international market.

Where to Register an Import-Export Company in Nepal?

Import Export Businesses in Nepal must be registered at:

Authority	Purpose	Description
Office of the Company Registrar (“OCR”)	Company Incorporation	Registers the business entity as a legal company under Nepalese law.
Inland Revenue Department (“IRD”)	Tax Registration	Issues PAN/VAT numbers for taxation and compliance.
Local Ward Office	Local Business Registration	Registers the business at the municipal level for local governance purposes.
Department of Commerce	Firm Registration	Grants legal recognition to the business for engaging in commercial activities, including import/export.
Department of Customs	EXIM Code Issuance	Issues the EXIM Code necessary for conducting import and export operations.

The main office for company registration is located in Kathmandu, but there are branch offices in other major cities. It’s advisable to start the process at the OCR and then proceed with other departments as needed.

How to Register Import Export Business in Nepal?

Import Export Company Registration

1. Step 1: Registration at OCR
2. Step 2: Tax & Ward Registration
3. Step 3: Obtaining Share Registry from OCR
4. Step 4: Registration at Commerce Department
5. Step 5: Obtaining EXIM Code

Registering an import-export company in Nepal involves several steps. Here’s a simplified overview of the process:

1. Name reservation: Submit your proposed company name to the OCR for approval.
2. Document preparation: Gather all required documents, including citizenship certificates, photographs, and business plan.
3. Company registration: Submit your application and documents to the OCR for company incorporation.
4. PAN registration: Apply for a Permanent Account Number (PAN) with the Inland Revenue Department.
5. Bank account opening: Open a corporate bank account with a local bank.
6. Import-export code: Apply for an Exim Code from the Department of Customs.
7. Industry registration: Register your business with the Department of Industry.

Each step involves specific procedures and may require additional documentation. It’s often helpful to work with a local business consultant or lawyer to navigate the process smoothly.

What Documents are Needed for Import-Export Company Registration?

To register your import-export company in Nepal, you’ll need to prepare several documents:

1. Company registration application form
2. Proposed company name (3 options)
3. Memorandum of Association (MoA)
4. Articles of Association (AoA)
5. Citizenship certificates of all promoters/directors
6. Recent passport-sized photographs of promoters/directors
7. Proof of office address (rental agreement or ownership documents)
8. Business plan or feasibility study
9. Bank statement showing minimum paid-up capital
10. Power of Attorney (if applicable)

Ensure all documents are properly filled out and notarized where required. Having these documents ready in advance can significantly speed up the registration process.

Read More:
Food and Beverage License Process in Nepal
Import Export Code Registration Process in Nepal
Tax Clearance Certificate Process in Nepal

How Long Does it Take to Register an Import-Export Company in Nepal?

The time it takes to register an import-export company in Nepal can vary depending on several factors:

• Completeness of your application and documents
• Workload of the registering authorities
• Complexity of your business structure
• Any additional approvals required for your specific industry

On average, the process can take anywhere from 7 to 15 weeks. CompanyNP provides 10 Day Import-Export Company Registration Service in Nepal.

• Name reservation: 1-2 days
• Document preparation: 3-5 days
• Company registration: 5-7 days
• PAN registration: 2-3 days
• Bank account opening: 1-2 days
• Import-export code: 3-5 days
• Industry registration: 5-7 days

To avoid delays, ensure all your documents are in order and follow up regularly with the relevant authorities. Consider hiring a local agent or lawyer to help expedite the process.

What is the Cost of Registering an Import-Export Company in Nepal?

The cost of registering an import-export company in Nepal includes various fees and charges:

1. Name reservation
2. Company registration fee: Based on authorized capital (ranges from NPR 9,500 to NPR 65,000)
3. PAN registration
4. Stamp duty
5. Lawyer or consultant fees
6. Notary charges
7. Import-export code fee
8. Industry registration fee: Varies based on investment size

Additional costs may include:

• Business operating license fee (varies by municipality)
• Bank charges for opening a corporate account
• Costs for preparing a business plan or feasibility study

The total cost can range from NPR 30,000 to NPR 100,000 or more, depending on your company’s size and structure. It’s wise to budget for unexpected expenses and factor in the cost of professional assistance if needed.

What are the Post-Registration Requirements for an Import-Export Company?

After successfully registering your import-export company in Nepal, there are several ongoing requirements to maintain your company’s good standing:

1. Annual tax filings: Submit income tax returns and financial statements to the IRD.
2. Company renewals: Renew your company registration annually with the OCR.
3. PAN renewals: Update your PAN details yearly with the IRD.
4. Customs compliance: Maintain proper records of all import-export transactions.
5. Foreign exchange reporting: Report all foreign currency transactions to Nepal Rastra Bank.
6. Employment regulations: Comply with labor laws and social security contributions.
7. Industry-specific regulations: Adhere to any sector-specific rules and standards.

Staying on top of these requirements is crucial to avoid penalties and ensure smooth operations of your import-export business.

Company Registration in Nepal

What are the Specific Requirements for Import-Export Companies in Nepal?

Import-export companies in Nepal must meet several specific requirements:

1. Minimum capital: Maintain the required paid-up capital as per government regulations.
2. Exim Code: Obtain and renew your Import-Export Code from the Department of Customs.
3. Letter of Credit (LC): Use LCs for international transactions as required by Nepal Rastra Bank.
4. Quality certifications: Obtain necessary quality certifications for goods being imported or exported.
5. Customs declarations: Accurately declare all goods and their values to customs authorities.
6. Storage facilities: Maintain appropriate warehousing for imported goods.
7. Insurance: Secure proper insurance coverage for goods in transit.

These requirements help ensure that import-export companies operate within the legal framework and contribute to Nepal’s economic growth responsibly.

Why Register an Import-Export Company in Nepal?

Registering your import-export company in Nepal offers several advantages:

1. Legal recognition: Your business becomes a separate legal entity.
2. Credibility: Registered companies are seen as more trustworthy by partners and customers.
3. Access to financing: Banks and investors prefer dealing with registered companies.
4. Government support: Registered businesses can access various government schemes and incentives.
5. Tax benefits: Properly registered companies can take advantage of tax deductions and credits.
6. Protection of business name: Registration prevents others from using your company name.
7. Limited liability: Protects personal assets from business debts and obligations.

In conclusion, while the process of registering an import-export company in Nepal may seem complex, the benefits far outweigh the challenges. With proper planning and guidance, you can navigate the registration process successfully and set your business on the path to international trade success.