If you want to register you business with single and multi partners in Nepal or want to open the joint stock business, then company registration is a important preliminary thing you have to do.
In Nepal, Office of company registrar is the governing body to do company registration.
What is a Company?
In simple language, any individual or organized firm which main aim is to do business as “private limited” or “public limited” established under Company Act 2063 known as company. Company is also known as legal person which can purchase and sale property and also have the permanent account number (PAN)
In Nepal, the company act made the provision of three types of companies
- Private Company
Under the Companies Act, 2063 those companies whose shareholders shall not exceed more than 101 for incorporation and should write “private limited” to its name as the last word is known as a private company. The paid-up capital of the private company is minimum NRs. 1,00,000
- Public Company
Under the Companies Act, 2063 those company that needs a minimum of 7 promoters for incorporation and a maximum woul be of any number is known as public company. Public Company should write “limited: to its name as the last words. The paid-up capital of the public company is minimum NRs. 1,00,00,000.
- Profit not distributing company
Profit not distributing company are those company where it shall not entitle to distribute or pay to its members any dividends or any money out of the profit earned or savings made fo the attainment of any objectives. There should be minimum 5 promoters for the incorporation of company not distributing profit.
Company Registration Process in Nepal
Step 1: Reservation of company name at the office of the Company Registar (OCR)
Step 2 : Submission of the physical copy of documents at OCR
Step 3 : Examination of submitted documents by OCR
Step 4 : Issuance of Incorporation Certificate by OCR
Step 5: Issuance of Company Registration Certificate
Step 1: Company Name Reservation & Approval
First, the company shareholders must provide a proposed name to the Firm. The Firm will search the Office of Company Registrar (OCR) website to check if their proposed company name is available and reserve the name. The Registration Page for company registration in Nepal can be accessed here.
Step 2: Drafting Documents
Once the company name is approved, the next step is to prepare the necessary legal documents. Prime Law Associates only requires the following to complete your Company registration:
1. Company Name, Location & Objective
2. Citizenship & NID of Shareholders
3. Authorized Capital
We draft the following documents for you:
1. Memorandum of Association (MOA)
2. Articles of Association (AOA)
3. Power of Attorney
4. Application Form
5. Shareholder Agreement (if required)
Step 3: Submission of Documents
Our Associates shall submit all the required documents for Company Registration to the Website of the Office of Company Registrar. Documents can be submitted online. The Fees which depends on the amount of authorized capital must be paid.
Step 4: Verification of Application
Once the documents are submitted, the OCR begins its verification process. The Firm does continuous follow-ups during the verification process. If all documents are in order and meet the legal requirements, the application moves forward for final approval.
Step 5: Company Registration Certificate
Finally, we receive a Company Registration Certificate with registration number, date of corporation, and registered address
Documents required for company registration in Nepal
The Documents required for registration of company in Nepal after recent company update are:
1. NID Number of Shareholders
2. Citizenship Certificate of Shareholders
3. Memorandum of Association
4. Articles of Association
5. Passport Sized Photographs
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