Nepal

Starting a Business in

Nepal

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Nepal. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2014.

Compare Nepal to 188 other economies.

  • Standardized Company

  • Legal form: Private Limited Liability Company
  • Paid in minimum capital requirement: NPR 0
  • City: Kathmandu
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

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

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