CORPORATE LAW
Company Act of Nepal, deals with the registration of a new Company by the Nepalese citizen as well as foreign citizen., transfer of shares, merger/amalgamation, liquidation, registration of branch/contact office of a foreign company and all other matter for regulation of company. Company hear means Private limited company, public limited company and Profit non sharing company.

Documents required for Company Registration
The person or people willing to register their company should present the following documents in the office of the company registrar.
  • An application as prescribed format along with a 5 rupees stamp attached to it.
  • Two copies of Memorandum of Association.
  • Two copies of Article of Association
  • Attested copies of the citizenship certificates of the founder shareholders.
  • In case of a public company, a copy of the agreement made among the founder members before the establishment of the company.( if any)
  • In case of a private company, a copy of the unanimous agreement (if any).
  • If the founder company is a Nepali registered company, a copy of the company registration certificate, and a copy of the decision of the Board of director regarding details of the investment to be made upon the aspiring company, as well as the name and a copy of the citizenship certificate of the person representing the founding company.

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Additional documents required for Company Registration by foreigner:
A foreigner can also establish a company by receiving permission according to the act for establishing a company by investing within the Nepal with the aim of profit making such a foreigner should present the following additional documents besides the ones mentioned above.
  • A copy of the permit received from the concerned body to invest within the Nepal according the existing Laws.
  • In case of Industrial Company with joint venture, a copy of the joint-venture agreement issued and registered by the department of industries.
  • In case of the foreigner being a single person, an attested copy of his passport, and in case of the foreigner being a company (legal body), an attested copy of the company registration certificate and a copy of the decision regarding details of the investment to be made upon the aspiring company by the founder and an attested copy of the passport of the person representing the founder company.

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Things to be considered while presenting the documents for company registration:
While presenting the above-mentioned documents to the office of the company registrar for the registration of the company, the following things should be considered:
  • In case of a private company, there can be at least one and at most 50 founders. In case of a public company, there should be at least seven founder shareholders. But if a public company is establishing another public company, there is no need of seven founders.
  • The Memorandum of Association and Article of Association should be prepared in clear and correct Nepali language.

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Registration of Branch/ Contract office
Company Act, 2006, has opened a room for foreign company to registration of branch/ contract office with in the Nepal. The foreign company who conducts any business transaction for a continuous period of one month from any office established in Nepal or any office or place used for that purpose or appoints any person for regular contract or obtains service from any person for regular contract, such foreign company shall be deemed to have conducted business or established liaison office in Nepal.

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Document require for Branch/ contract office:
A foreign company can registered branch/ contract office with in Nepal. To registered the branch/ contract office the following document are required -
  • The permission or license issued by the competent authority to the foreign company to operate business in Nepal.
  • Photocopies of certificate of incorporation, memorandum of association and articles of association.
  • Photocopies of translation of certificate of incorporation, memorandum of association and articles of association into Nepali language.
  • full name and address of the registered office of the company and principal place to its business, the date of incorporation of the company, its issued capital and details of the main objectives.
  • Details regarding nationality, name and address of the directors, manager, company secretary or chief officer of the company
  • Name and address of the representative of the company resident in Nepal
  • If the company intends to operate business or transaction in Nepal, details of the proposed investment and transaction or business to be carried out by the Company
  • If the company intends to operate business in Nepal, purpose Date of commencement in Nepal.
  • Declaration made by the directors or representative of directors on behalf of the company that the documents and information submitted to the Office of the company registrar are true.
  • Power of Attorney

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The firm will provided the following service
  • Incorporation of Private/ public company and Profit non sharing company
  • Drafting of Memorandum of Association and Article of Association
  • Registration of Branch/ contact office of a foreign company
  • Change of share capital
  • Amendment of Memorandum of Association and Article of Association
  • Share transfer
  • Merger/Amalgamation of company
  • Liquidation of company
  • Other matter relating to company law of Nepal.

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Government Fees for Company Registration
- For Private Company

Capital Private Limited
Form Upto
1,00,000 1,000
1,00,001 5,00,000 4,500
5,00,001 25,00,000 9,500
25,00,001 1,00,00,000 16,000
1,00,00,001 2,00,00,000 19,000
2,00,00,001 3,00,00,000 22,000
3,00,00,001 4,00,00,000 25,000
4,00,00,001 5,00,00,000 28,000
5,00,00,001 6,00,00,000 31,000
6,00,00,001 7,00,00,000 34,000
7,00,00,001 8,00,00,000 37,000
8,00,00,001 9,00,00,000 40,000
9,00,00,001 10,00,00,000 43,000
Up to 10,00,00,000 Rs 30 will be charged per 1,00,000
For Public Limited Company
1,00,00,000 15,000
1,00,00,001 10,00,00,000 40,000
10,00,00,001 20,00,00,000 70,000
20,00,00,001 30,00,00,000 1,00,000
30,00,00,001 40,00,00,000 1,30,000
40,00,00,001 50,00,00,000 1,60,000
Up to 50,00,00,000 per 1,00,00,000 Rs 3000 will be charged
For Profit Non Sharing Company Rs 15,000 will be charged

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