Starting a business in Nepal can be hard, but if you have the right help, it can also be very rewarding. One of the most important steps in starting a business is registering a company.
The steps required in company registration
The following steps are taken when registering a company in Nepal:
Pick the type of business
The first step in registering a company is to decide what kind of company is best for your business. There are three kinds of businesses in Nepal:
- Private limited.
- Public limited.
- One-person businesses.
Each type has its own pros and cons, so it’s important to talk to a lawyer before making a choice.
Obtain a digital signature certificate
After deciding what kind of business you want to start, the next step is to get a Digital Signature Certificate (DSC). This certificate is used to sign and send all documents for registering a company online. It can be gotten from any certified agency in Nepal that is allowed to do so.
Book a business name
The next step is to choose a name for the business. This is done by taking an application and the DSC to the office of the company registrar. The name must be unique and not sound like that of any other business.
Make the memorandum and articles of association
The Memorandum and Articles of Association (MOA) is a document that describes the company’s goals, capital structure, and management structure. It must be made in accordance with the Company Act of Nepal and signed by all the directors and shareholders.
File the documents to start the business
The next step is to file the incorporation papers with the company registrar’s office once the MOA is ready. The MOA, the DSC, and a copy of each director’s and shareholder’s PAN card are all part of these documents.
Register for a PAN and VAT
Once the company is registered, the next step is to get a PAN (Permanent Account Number) and a VAT (Value Added Tax) registration. VAT is a tax that is put on all goods and services. PAN is a unique number that is given by the Inland Revenue Department.
Get a TIN number
In Nepal, you also need to get a Tax Identification Number (TIN) from the Inland Revenue Department in order to start a business. This number is needed for all business transactions, like filing taxes and signing up for other licenses.
Get any other licenses or permits you need
Depending on what kind of business you have, you may also need to get other licenses and permits. For example, if you want to open a restaurant or other business that deals with food, you will need a license for food and drinks. In the same way, you will need a pollution control license if you want to start a manufacturing business.
Sign up with the employees’ provident fund
Within 30 days of starting a business, all companies with more than 20 employees must sign up with the Employees’ Provident Fund (EPF). The government runs the EPF, which is a way for workers to save for retirement.
Sign up with the employees’ state insurance
All businesses with more than 10 workers must also sign up with the Employees’ State Insurance (ESI) within 30 days of starting up. The government runs the ESI and makes sure that employees get health care benefits and other benefits.
Conclusion
Starting a business in Nepal can be hard, but if you follow these steps, you can make sure that your business is registered correctly and follows all laws and rules. When starting a company, it’s important to get help from a professional. This will make sure that your company follows the laws and rules of Nepal. All the information, like the auditor’s report, the number of shareholders at the time, and the annual audited account, must be filed within six months of the end of the fiscal year.
