Company Registration in Nepal
Company registration in Nepal
The registration of company in Nepal is governed by the Companies Act 2006 (2063) (“Companies Act”) . The Office of Company Registrar (“OCR”) is the competent authority to govern the company registration.
Types of companies under Companies Act
Under the Companies Act, the following types of companies can be registered:
- Private company;
- Public company; and
- Profit not distributing company
The basic difference between public companies and private companies are the ability to raise the fund from the general public. Public companies can raise the fund from the general public by issuing securities such as shares, bonds or debentures. However, the private companies are restricted from collecting the fund by offering the shares in such a manner. Similarly, a public company should have minimum of 7 shareholders with no maximum limit. However, the maximum number of shareholders of a private company cannot exceed more than 101.
Similarly, profit not distributing companies can be incorporated for the following objectives:
- Development and promotion of any profession;
- Protection of collective rights and interests of the persons engaged in a specific profession or occupation; and
- For the attainment of any scientific, academic, social, benevolent or public utility or welfare objective on the condition of not distributing dividends.
Since the reestablishment of the multiparty democracy in 1990, the number of non-government organizations (NGOs) is steadily on the rise, and the pace has been accelerated after the 2006 people’s movement. Although many NGOs are criticized for making the country dependent on foreign aid and colluding with the donors to help them meet vested interests, there is no denying that the NGOs have also contributed to the social development in the country.
Perhaps that is why, the number of NGOs is increasing all the time, and people involved in other sectors are also interested in registering their NGOs and contribute to the development process. The registration process of NGOs in Nepal in step by step is
- Step 1: Obtaining recommendation letter from the ward office. ...
- Step 2: Obtaining recommendation letter from District Coordination Committee. ...
- Step 3: Obtaining registration certificate from District Administration Office. ...
- Step 4: Affiliation from Social Welfare Council.
- Step 5: Obtaining PAN certificate from Inland Revenue Department