FAQ

Faq

Frequently Asked Questions
on company registration in Nepal

How many types of company are there?

According to Company Act 2063 there are three types of company. Private, Public and Non-Profit.

Difference between public, private and non-profit companies?

  1. The basic difference between public companies and private companies are the ability to raise the fund from the general public. Public companies can raise the fund from the general public by issuing securities such as shares, bonds or debentures. However, the private companies are restricted from collecting the fund by offering the shares in such a manner.
  2. A public company should have minimum of 7 shareholders with no maximum limit. However, the maximum number of shareholders of a private company cannot exceed more than 101
  3. Profit not distributing companies can be incorporated for the following objectives:
    1. development and promotion of any profession;
    2. protection of collective rights and interests of the persons engaged in a specific profession or occupation;
    3. for the attainment of any scientific, academic, social, benevolent or public utility or welfare objective on the condition of not distributing dividends.

How long does it take to register a company?

It takes min of 15 days to register a company. After name approval it usually takes 2-3 days.

What is the process to register company in Nepal?

Step 1: Reservation of company name at the OCR
Step 2: Submission of physical copy of documents at OCR
Step 3: Issuance of company registration certificate BY OCR
Step 4: Tax Registration (VAT/PAN) at the Inland Revenue Office

What are the documents required for the company registration?

Following are the documents required for the company registration:

S.N. Documents Number of Copies
1. Application for registration 1 set original
2. Memorandum of association and articles of association of the proposed company 2 sets original each
3. Citizenship certificate in case of Nepalese promoter/Password of in case of foreign promoters 1 copy
4. Shareholder’s agreement if any 1 copy
5. Copy of certificate of registration and other registration documents (memorandum of association, articles of association) if the shareholder is company. 1 copy
6. Corporate resolution of the shareholder if the shareholder is a company 1 copy
7. Copy of prior approval of the DOI in case the shareholder is a foreign investor 1 copy

What is the government fee for company registration?

Government fee is charged based on the proposed authorized capital of the company

For private company

S.N. Amount of Authorized Capital ( in NPR) Registration Fee ( in NPR)
1. Up to 1,00,000 1,000
2. 1,00,001 to 5,00,000 4,500
3. 5,00,001 to 25,00,000 9,500
4. 25,00,001 to 1,00,00,000 16,000
5. 1,00,00,001 to 2,00,00,000 19,000
6. 2,00,00,001 to 3,00,00,000 22,000
7. 3,00,00,001 to 4,00,00,000 25,000
8. 4,00,00,001 to 5,00,00,000 28,000
9. 5,00,00,001 to 6,00,00,000 31,000
10. 6,00,00,001 to 7,00,00,000 34,000
11. 7,00,00,001 to 8,00,00,000 37,000
12. 8,00,00,001 to 9,00,00,000 40,000
13. 9,00,00,001 to 10,00,00,000 43,000

For each addition of 1,00,000 Rs 30 is added

For public company

S.N. Amount of Authorized Capital (in NPR) Registration fee ( in NPR)
1. Up to 1,00,00,000 15,000
2. 1,00,00,001 to 10,00,00,000 40,000
3. 10,00,00,001 to 20,00,00,000 70,000
4. 20,00,00,001 to 30,00,00,000 1,00,000
5. 30,00,00,001 to 40,00,00,000 1,30,000
6. 40,00,00,001 to 50,00,00,000 1,60,000

Rs 3000 is added for each 1,00,000

What is the minimum investment required?

For private company min investment is NPR 1,00,000 and for public it is NPR 1,00,00,000.

Tax requirements?

Every company must obtain a PAN or VAT Registration certificate from Inland Revenue Department (IRD) prior to the commencement of its business depending on the value of the annual transaction of the business.

CRN