Gain the Right Information Concerning Nepal Company Formation Procedures
Where do you begin when it comes to Nepal company formation? First, you have to know that under the Company Act there are mainly two types of company structure that is Private company and Public company. Take note also that the process of incorporation begins by checking the distinctiveness of the proposed company name. You do this with the Office of Company Registrar. The agency will reserve the name that best suits the requirements. You can only do the verification through an online electronic platform before granting a name reservation certificate.
Processes and Requirements for Company Incorporation in Nepal
Your company registration is conducted under the Ministry of Industry, Commerce, and Supplies the moment all the documents are in order. With that said, it’s mandatory that you register for a company stamp that would later be affixed to the NPR registration form.
Should you decide to legitimize your company, you must ensure that you fulfill some of the prerequisite requirements in the Memorandum of Association. So, if you’re going for a Public company, you must have at least seven (7) shareholders and three (3) directors from any nationality. The minimum paid-up capital required is US$100,500 which can go even higher when it’s financial services. You’ll also need to appoint a resident company secretary.
Meanwhile, the Nepal company formation for a Limited Liability Company is different. You must ensure that you have a minimum of one director and one shareholder from any nationality. Here, the minimum paid-up capital is US$1. Again, you must submit books of accounts at the Registrar offices where the books must follow Nepal Accounting Standards published by the Institute of Chartered Accountants of Nepal (ICAN). Ensure that you have copies of the following:
- Memorandum and Articles of Association
- common agreement (if available)
- verified copies of the citizenship of the owner-shareholders
How to Fully Enjoy the Privileges of Your Nepali Business
If you’re a foreigner and want to enjoy 100 percent ownership, you can formulate the Nepal Representative Office. The company registration process may take one month from the time you submit your registration forms. Again, in case you’re forming an Industrial company with Joint Investment, you’ll be, required to submit a Joint Investment agreement delivered by the Department of Industries. As a foreigner, you must verify a copy of passport, verified registration certificate and details regarding the company’s activities.
Nepal company formation calls for compliance as a taxpayer. You need to visit the Inland Revenue Office and the Ministry of Finance to register for VAT tax and income tax. The corporate income tax stands at 25 percent and the VAT tax at 13 percent.
Every company operates with a team of the workforce that assist in the running of the business. And, therefore, it’s necessary as an employer to register your employees for Employee Provident Fund. According to the Provident Act, you must regularly submit monthly remittances of 10 percent of the employee’s salary. Failure to do so may lead to a penalty. Nepal company formation can only get better if you’re complying with the stipulations and have all the valid documents.
For more information, you can contact us. Our team will guide you throughout the entire process of company registration, formation, and establishment.