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Ease of Doing Business in

Nepal

Nepal Download Profile (1694.2KB, pdf)
Region South Asia
Income Category Low income
Population 28,513,700
GNI Per Capita (US$) 730
City covered Kathmandu

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 107 100 down
7
58.88 59.36 down
0.48
Starting a Business 109 105 down
4
83.77 83.48 up
0.29
Dealing with Construction Permits 123 77 down
46
64.18 70.25 down
6.07
Getting Electricity 131 131
-
57.80 57.51 up
0.29
Registering Property 72 71 down
1
67.00 66.96 up
0.04
Getting Credit 139 134 down
5
30.00 30.00
-
Protecting Minority Investors 63 62 down
1
58.33 58.33
-
Paying Taxes 142 138 down
4
58.05 58.24 down
0.19
Trading across Borders 69 72 up
3
79.75 79.32 up
0.43
Enforcing Contracts 152 151 down
1
45.26 45.26
-
Resolving Insolvency 89 84 down
5
44.64 44.19 up
0.45

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 109

DB 2016 Rank: 105

Change in Rank: down4

DB 2017 DTF (% points): 83.77

DB 2016 DTF (% points): 83.48

Change in DTF (% points): up0.29

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: NPR 0
City: Kathmandu
Indicator Nepal South Asia OECD high income
Procedure – Men (number) info_outline 7.0 8.1 4.8
Time – Men (days) info_outline 17.0 15.4 8.3
Cost – Men (% of income per capita) info_outline 26.1 13.4 3.1
Procedure – Women (number) info_outline 7.0 8.2 4.8
Time – Women (days) info_outline 17.0 15.6 8.3
Cost – Women (% of income per capita) info_outline 26.1 13.4 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 0.2 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Verify the uniqueness of the proposed company name

    Agency: Office of the Company Registrar

    Verification of the uniqueness of a company name can now be done online. To reserve the available company name, the company must submit an application to the Office of the Company Registrar. The company name reservation can also be completed online for no charge.
    1 day no charge
    2

    A professional verifies and certifies the memorandum and articles of association

    Agency: Professional Agency

    Although professional verification or certification prior to submission to the official agency is no longer required, entrepreneurs continue to use the services of professionals in practice for verifying and drafting the memorandum and articles of association. This is mainly done to avoid mistakes since there are no standard memorandum and articles of association forms that entrepreneurs can use.
    5 days NPR 10,000 depending on the professional’s charges
    3

    Buy a stamp to be attached to registration form

    Agency: Post Office

    Company founders can buy a stamp to be attached to the registration form for NPR 5 at the Post Office.
    1 day NPR 5
    4

    Register at the Office of the Company Registrar, Department of Industry

    Agency: Office of the Company Registrar

    To register a company, the promoter must submit an application as prescribed by the Ministry of Industry, Commerce, and Supplies. Online filing of the required documents has been introduced and made mandatory. After the online filing, entrepreneurs are required to visit the Office of Company Registrar and submit all the original documents for further verification.

    The registration fee is based on the company’s authorized capital:
    - Up to NPR 100,000 (authorized capital): NPR 1,000.
    - NPR 100,001 to NPR 500,000: NPR 4,500.
    - NPR 500,001 to NPR 2,500,000: NPR 9,500.
    - NPR 2,500,001 to NPR 10,000,000: NPR 16,000.
    - NPR 10,000,001 to NPR 20,000,000: NPR 19,000.
    - NPR 20,000,001 to NPR 30,000,000: NPR 22,000.
    - NPR 30,000,001 to NPR 40,000,000: NPR 25,000.
    - NPR 40,000,001 to NPR 50,000,000: NPR 28,000.
    - NPR 50,000,001 to NPR 60,000,000: NPR 31,000.
    - NPR 60,000,001 to NPR 70,000,000: NPR 34,000.
    - NPR 70,000,001 to NPR 80,000,000: NPR 37,000.
    - NPR 80,000,001 to NPR 90,000,000: NPR 40,000.
    - NPR 90,000,001 to NPR 100,000,000: NPR 43,000.
    - More than NPR 100,000,000: NPR 43,000 plus NPR 30 for each additional NPR 100,000.
    7 days NPR 9,500
    5

    Make a company rubber stamp

    Agency: Sealmaker

    Company founders can make a company rubber stamp at the Seal maker for NPR 275.
    1 day NPR 275
    6

    Register for VAT and income Tax at the Inland Revenue Office, Ministry of Finance

    Agency: Inland Revenue Office

    According to the Value Added Tax Act 2052, of 1996, the company must disclose the office address and withhold 10% tax of the rent for at least 3 months and deposit it to the tax office. If the company’s objectives include goods or services subject to VAT, both registrations (VAT and income tax) should be obtained simultaneously.
    1 day no charge
    7

    Enroll the employees in the Provident Fund

    Agency: Provident Fund

    Every month, 10% is deducted from the basic salary of each employee, matched by a contribution from the employer. The contribution is made to the provident fund and released upon employee retirement. The employer further needs to pay gratuity at the rate prescribed by the labor regulations upon the employee's retirement. These rules are only applicable if the company appoints 10 or more employees.
    1 day no charge