Registration of Company in Nepal

Registration of the Company in Nepal

The company is registered in Nepal under Section 3 of the Companies Act 2006 (2063) (hereinafter referred to as "Companies Act"). The Office of Company Registrar (hereinafter referred to as "OCR") is the regulating body. Companies Act basically deals with the structure, management, administration, and conduct of affairs of companies in Nepal. 

Companies Act provides the following three kinds of company registration in Nepal. 

Types of Companies under the Companies Act

Private Limited Company

Public Limited Company

Company Not Distributing Profit

A single person can incorporate the private limited company however the private limited company can only have a maximum of 101 shareholder

The public company should consist of a minimum of seven promoters with no limit of maximum shareholders.

Company Not Distributing Profit should have a minimum of 5 members with no limit of maximum member

The company can only raise funds from its shareholder

The company can raise funds from the general public through shares, bonds, or debentures

The Company Not Distributing Profit can raise funds through its business or various donation or support. 

Established with the profit motive

Established with the profit motive

Established to develop and promote any profession or occupation, or to protect the collective rights and interests of the persons engaged in any specific profession or occupation, or to carry on any enterprise for the attainment of any scientific, academic, social, benevolent, or public utility or welfare objective on the condition of not distributing dividends. 

No minimum capital requirement is provided to the Private Limited Company

The company should have a minimum of ten million paid-up capital

No capital requirement for the Company Not Distributing Profit


Procedure for Registration

Any person who wants to undertake any enterprise with the motive of having any benefits can establish a company with one or more objectives as incorporated in the Memorandum. However, for foreigners, separate approval should be acquired through the Department of Industry to incorporate the company in Nepal. For the purpose of the registration of the company following details should be filled in with the company Registrar's office as per Section 4 of the Companies Act. 

Section 4 of the Companies Act requires to submit of the following documents for the purpose of registration: