NPR 5 Crore+ Business Registration in Nepal

What is the process for NPR 5 Crore+ Business Registration?

The process for NPR 5 Crore+ Business Registration in Nepal involves several steps. First, the company must choose a unique name and obtain name approval from the Company Registrar’s Office. Next, the company needs to prepare and submit necessary documents, including Memorandum of Association and Articles of Association. The company must then deposit the required capital in a bank account. After that, the registration application is submitted to the Company Registrar’s Office along with all required documents and fees. The office reviews the application and, if approved, issues a Certificate of Incorporation. Finally, the company must register with the Inland Revenue Department for tax purposes and obtain any additional licenses or permits specific to its industry.

Where to register NPR 5 Crore+ Business in Nepal?

NPR 5 Crore+ Businesses in Nepal are registered at the Office of Company Registrar (OCR), which falls under the Ministry of Industry, Commerce, and Supplies. The OCR is located in Tripureshwor, Kathmandu. However, the registration process can also be initiated online through the OCR’s official website. For businesses outside Kathmandu, registration can be done through the Department of Industry’s branch offices in various districts. It’s essential to note that while initial registration can be done online or at branch offices, final approval and issuance of the Certificate of Incorporation are handled by the central OCR in Kathmandu.

How to start NPR 5 Crore+ Business in Nepal?

Starting an NPR 5 Crore+ Business in Nepal begins with thorough market research and a solid business plan. Once the business idea is finalized, the following steps are taken:

1. Choose a unique company name
2. Obtain name approval from the Company Registrar’s Office
3. Prepare Memorandum and Articles of Association
4. Deposit the required capital in a bank account
5. Submit registration application to the Company Registrar’s Office
6. Obtain Certificate of Incorporation
7. Register for PAN (Permanent Account Number) with the Inland Revenue Department
8. Obtain industry-specific licenses and permits
9. Register with the Department of Industry
10. Set up business operations and infrastructure

What are the requirements for NPR 5 Crore+ Registration?

The requirements for NPR 5 Crore+ Registration in Nepal include:

• Minimum paid-up capital of NPR 5 Crore (50 million)
• At least 7 promoters/shareholders for public limited companies
• Unique company name
• Memorandum of Association and Articles of Association
• Proof of capital deposit in a Nepali bank
• Citizenship certificates or passport copies of promoters/shareholders
• Photographs of promoters/shareholders
• Tax clearance certificates of promoters/shareholders
• Board resolution for company formation
• Power of Attorney for authorized representatives
• Compliance with sector-specific regulations and requirements

What documents are needed for NPR 5 Crore+ Registration?

The documents needed for NPR 5 Crore+ Registration in Nepal include:

• Application form for company registration
• Memorandum of Association
• Articles of Association
• Bank deposit slip showing capital deposit
• Citizenship certificates or passport copies of promoters/shareholders
• Photographs of promoters/shareholders
• Tax clearance certificates of promoters/shareholders
• Board resolution for company formation
• Power of Attorney for authorized representatives
• Lease agreement or ownership document for company address
• No Objection Letters from relevant authorities (if applicable)
• Industry-specific licenses or permits (if applicable)
• Foreign Investment Approval (for companies with foreign investment)

What is the cost of NPR 5 Crore+ Registration?

The cost of NPR 5 Crore+ Registration in Nepal varies depending on the exact amount of authorized capital. The registration fee is calculated based on the authorized capital of the company. For companies with authorized capital between NPR 5 Crore to NPR 10 Crore, the registration fee is NPR 40,000. For every additional NPR 10 Crore of authorized capital, an additional fee of NPR 30,000 is charged. Other costs include name reservation fee (NPR 100), stamp duty (0.5% of authorized capital), and lawyer fees for document preparation. Additional costs may include notary fees, translation costs (if documents are in foreign languages), and fees for industry-specific licenses or permits.

How long does NPR 5 Crore+ Registration take in Nepal?

The duration for NPR 5 Crore+ Registration in Nepal can vary depending on the completeness of documents and the workload of the Company Registrar’s Office. Typically, the process takes between 2 to 4 weeks from the submission of all required documents. Name approval usually takes 1-2 days. Document verification and processing by the Company Registrar’s Office can take 7-10 working days. If any corrections or additional documents are required, this may extend the timeline. After approval, the Certificate of Incorporation is usually issued within 2-3 working days. Subsequent registrations with other authorities, such as the Inland Revenue Department and Department of Industry, may take additional time.

What laws govern NPR 5 Crore+ Business Registration in Nepal?

NPR 5 Crore+ Business Registration in Nepal is governed by several laws and regulations:

• Companies Act, 2063 (2006): This is the primary law governing company formation, registration, and operation in Nepal.
• Industrial Enterprises Act, 2076 (2020): Regulates industrial enterprises and their registration process.
• Foreign Investment and Technology Transfer Act, 2075 (2019): Governs foreign investment in Nepali companies.
• Income Tax Act, 2058 (2002): Outlines tax obligations for businesses.
• Labor Act, 2074 (2017): Regulates employment practices and labor relations.
• Banks and Financial Institutions Act, 2073 (2017): Governs banking and financial sector regulations.
• Electronic Transactions Act, 2063 (2006): Regulates electronic transactions and digital signatures.

These laws provide the legal framework for business registration, operation, and compliance in Nepal.

Which authorities oversee NPR 5 Crore+ Business Registration in Nepal?

Several authorities oversee NPR 5 Crore+ Business Registration in Nepal:

• Office of Company Registrar (OCR): Primary authority for company registration and incorporation.
• Department of Industry: Oversees industrial registration and provides industry-specific approvals.
• Inland Revenue Department: Handles tax registration and compliance.
• Nepal Rastra Bank: Regulates banking and financial institutions.
• Department of Commerce, Supplies and Consumer Protection: Oversees trade-related matters.
• Ministry of Industry, Commerce and Supplies: Formulates policies related to industry and commerce.
• Investment Board Nepal: Facilitates large-scale investments and public-private partnerships.
• Department of Immigration: Handles work permits for foreign employees.
• Department of Labor: Oversees labor-related matters and compliance.

These authorities work in coordination to ensure proper registration, regulation, and operation of large businesses in Nepal.

What services are provided during NPR 5 Crore+ Registration?

During NPR 5 Crore+ Registration in Nepal, various services are provided to facilitate the process:

• Name reservation and approval
• Document verification and processing
• Issuance of Certificate of Incorporation
• PAN (Permanent Account Number) registration
• Industry registration (if applicable)
• Foreign investment approval (if applicable)
• Guidance on compliance requirements
• Information on sector-specific regulations
• Assistance with obtaining necessary licenses and permits
• Registration of company seal
• Registration of company address
• Shareholder registration
• Director registration
• Guidance on post-registration compliance requirements

These services ensure that the company is properly registered and compliant with all relevant laws and regulations.

Is FDI allowed in NPR 5 Crore+ Business Registration?

Foreign Direct Investment (FDI) is allowed in NPR 5 Crore+ Business Registration in Nepal, subject to certain conditions and restrictions. The Foreign Investment and Technology Transfer Act, 2075 (2019) governs FDI in Nepal. FDI is permitted in most sectors, with some exceptions in industries considered sensitive or strategic. The minimum FDI amount is NPR 50 million (5 Crore). Foreign investors can own up to 100% of a company in most sectors. However, certain sectors have ownership restrictions or require joint ventures with Nepali partners. FDI proposals must be approved by the Department of Industry or Investment Board Nepal, depending on the investment amount. Foreign investors must obtain a business visa and work permit to operate in Nepal.

What is the checklist for NPR 5 Crore+ Registration?

The checklist for NPR 5 Crore+ Registration in Nepal includes:

• Unique company name approval
• Preparation of Memorandum and Articles of Association
• Capital deposit in a Nepali bank
• Shareholder and director details
• Citizenship/passport copies of shareholders and directors
• Photographs of shareholders and directors
• Tax clearance certificates of shareholders and directors
• Board resolution for company formation
• Power of Attorney for authorized representatives
• Company address proof (lease agreement or ownership document)
• Industry-specific licenses or permits (if applicable)
• Foreign Investment Approval (if applicable)
• PAN registration documents
• Industry registration documents (if applicable)
• Employee Provident Fund registration (if applicable)
• Social Security Fund registration (if applicable)
• Insurance policies (as required by law)

This checklist ensures all necessary documents and requirements are met for successful registration.

How to renew NPR 5 Crore+ Business Registration in Nepal?

Renewal of NPR 5 Crore+ Business Registration in Nepal is an annual process. The steps include:

1. Prepare annual financial statements and audit reports
2. Hold Annual General Meeting (AGM) within 6 months of fiscal year-end
3. File annual returns with the Company Registrar’s Office within 30 days of AGM
4. Pay annual renewal fees to the Company Registrar’s Office
5. Submit tax returns to the Inland Revenue Department
6. Renew industry-specific licenses and permits
7. Update any changes in company information (directors, shareholders, address)
8. Renew foreign investment approval (if applicable)
9. Renew business visas and work permits for foreign employees (if applicable)
10. Ensure compliance with all relevant laws and regulations

Timely renewal is crucial to maintain the company’s legal status and avoid penalties.

What challenges exist in NPR 5 Crore+ Business Registration?

Challenges in NPR 5 Crore+ Business Registration in Nepal include:

• Complex and time-consuming bureaucratic processes
• Frequent changes in laws and regulations
• Inconsistent interpretation of laws by different officials
• Limited online services, requiring in-person visits to multiple offices
• Language barriers for foreign investors
• High capital requirements for certain industries
• Restrictions on foreign investment in some sectors
• Limited availability of skilled labor in certain fields
• Infrastructure challenges, including power shortages and transportation issues
• Political instability affecting policy consistency
• Corruption and lack of transparency in some processes
• Difficulty in obtaining industry-specific licenses and permits
• Compliance with numerous regulations and reporting requirements
• Currency exchange restrictions for foreign investors

These challenges require careful planning and often local expertise to navigate successfully.

Read More:

1. Large Factory Registration in Nepal
2. How to Invest in Nepal from India
3. NPR 15 Crore Business Registration in Nepal

What are the benefits of NPR 5 Crore+ Registration?

NPR 5 Crore+ Registration in Nepal offers several benefits:

• Legal recognition and protection for the business entity
• Limited liability protection for shareholders
• Ability to raise capital through share issuance
• Enhanced credibility with customers, suppliers, and financial institutions
• Eligibility for government contracts and tenders
• Access to bank loans and credit facilities
• Potential tax benefits and incentives for large investments
• Ability to attract foreign investment (subject to approvals)
• Opportunity to list on the stock exchange (for public limited companies)
• Easier expansion and diversification of business activities
• Potential for economies of scale due to larger operations
• Greater negotiating power with suppliers and customers
• Ability to hire and retain skilled employees with better compensation packages
• Contribution to the national economy through job creation and tax revenue

These benefits make NPR 5 Crore+ Registration an attractive option for large-scale business ventures in Nepal.