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Nepal Company Formation Guide

Updated:2018-9-30 15:21:55    Source:www.tannet-group.comViews:144

Nepal company formation is one way to invest in northern Asia. Company is the legal entity that makes your aim of earning possible through business. To get legal authority anyone must register the company in Company Register office of Nepal. Nepalese citizens as well as foreign people can register any company in Nepal as per their necessity but that should bound by legal criteria of Nepal. The following is a brief introduction.

Establishing a Presence from Abroad
The most common options for foreign companies establishing a business in Nepal are:
1. Registration of local subsidiary
An overseas company can register either a joint venture company, or a fully owned subsidiary company in Nepal. A private company is the most common corporate vehicle used by foreign companies seeking to establish a business presence in Nepal.

2. Registration of a branch
The Companies Act 2006 (Companies Act) permits foreign companies to register a branch office in Nepal. The branch can carry out the business activities that the foreign company can carry out in the country of its incorporation. To register a branch office in Nepal, the company must have either (section 154(3), Companies Act):
(1) Approval from competent authorities in Nepal permitting them to carry out business activity in Nepal.
(2) An agreement with a competent authority in Nepal for the purpose of doing any business in Nepal.

3. Registration of a liaison (contact) office
Foreign companies can register a liaison office in Nepal. The liaison office, once registered with the Office of the Company Registrar, is not subject to any periodic renewal requirement and can operate for indefinite period. The liaison office cannot undertake any income generating activities in Nepal.

Relevant Requirements
1. Membership
The minimum number of members for a private company is 1 and the maximum number is 50. A single member can form a private company in Nepal. A single member company is not required to call for general meeting or board meeting and can conduct activities through the single member's written decision.

2. Minimum capital requirements
A minimum paid up capital of NPR10 million is required for the formation of a public company. There is no minimum share capital requirement for private companies. However, the minimum foreign investment requirement is NPR5 million.

Setting up a business in Nepal
Step 1: Obtain approvals
Obtain necessary approvals from the relevant ministries/departments/bodies for permit/license to conduct business. Some of the relevant departments are:
(1) Department of Industry
(2) Department of Electricity Development
(3) Nepal Rastra Bank
(4) Department of Agriculture
(5) Department of Roads

Step 2: Register a company
Investors will need to register an appropriate form of company in the company registrar's office.

Step 3: Register with the tax office
Following company registration, investors will need to obtain PAN and VAT, if applicable, registration numbers from the Inland Revenue department.

Step 4: Open a bank account
Foreign investors will need to open a foreign currency account at Nepal Rastra Bank , the central bank of Nepal.

After registering the company, the company has a number of obligations that must be met. Tannet can help you in this regard from business setup to compliance company operation and management.

Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422 or 86-755-82143181 or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen South Rd, Luohu, Shenzhen, China.

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