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In Nepal, the process of business registration is governed by the Company Act 2006 (2063 B.S.), which applies across all cities including Patan. Companies, whether they are profit-oriented private companies, public companies or not-for-profit organizations, should register themselves under the Company Register Office, a central government body. The Office of Company Registrar (OCR) also allows for online registration through its electronic portal, making the process easier and faster.
Although business registration can be done online, understanding the legal procedures and requirements can still be complex. One may encounter difficulties if all necessary documents are not adequately prepared, the name is not in compliance with required norms, or the objectives and operating territory of the business are not clearly spelled out. A lawyer with expertise in Nepalese business law can guide entrepreneurs through the legal labyrinth, helping them avoid costly mistakes and ensure that the business gets off to a solid, legally sound start.
The primary law related to business registration in Nepal is the Company Act 2006. This law states that the place of business registration shall be the main place of transaction of your company. Furthermore, companies need to maintain a registered office within the country and the address and contact details of the office must be registered with the OCR. Additionally, the company name should not contradict prevalent laws, offend good practice, and must not closely resemble an existing company's name.
The first step is to choose a unique company name and objective. You will then need to prepare necessary documents such as the memorandum of association, article of association, identification proofs of shareholders, etc. in the prescribed forms. You can then apply online for business registration with the OCR.
The registration fee depends on the type and size of the company. The exact fee schedule is listed on the OCR website.
Once all required documents are submitted, the Office of Company Registrar usually takes about 15 days to approve an application.
Yes, foreigners can register a company. However, there are certain restrictions related to the choice of industry and the minimum capital requirement.
Penalties may vary depending on the offence, ranging from fines to imprisonment. Penalties can also involve both a fine and imprisonment.
The Office of the Company Registrar and its website (www.ocr.gov.np) provide resources on business registration, downloadable forms, and fee schedules. Nepal's law commission website also includes full text of the Company Act.
If you need legal assistance with business registration, consult a lawyer specializing in business law in Nepal. They can guide you through the process, explain all legal requirements and possible implications. Upon ensuring that all requisite documents are in order, you or your legal representative can then submit your registration application online through the OCR portal.
