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:
