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Starting a business in Nepal

Starting a Business in Nepal

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies.

No. Procedure Time to Complete Associated Costs
1

Verify the uniqueness of the proposed company name

To check whether the proposed company name is available and acceptable, the company must submit an application to the Office of the Registrar of Companies.

1 day NPR 5
2 A professional verifies and certifies the memorandum and articles of association 5days NPR 10,000 depending on the professional's charges
3 Buy a stamp to be attached to registration form 1 day NPR 5
4

File documents with the Company Registrar's Office, Department of Industry

To register a company, the promoter must submit an application as prescribed by the Ministry of Industry, Commerce, and Supplies. The registration fee is based on the company's authorized capital:

Up to NPR 100,000 (authorized capital): NPR 1,000.
NPR 100,001 to NPR 500,000: NPR 4,500.
NPR 500,001 to NPR 2,500,000: NPR 9,500.
NPR 2,500,001 to NPR 10,000,000: NPR 16,000.
NPR 10,000,001 to NPR 20,000,000: NPR 19,000.
NPR 20,000,001 to NPR 30,000,000: NPR 22,000.
NPR 30,000,001 to NPR 40,000,000: NPR 25,000.
NPR 40,000,001 to NPR 50,000,000: NPR 28,000.
NPR 50,000,001 to NPR 60,000,000: NPR 31,000.
NPR 60,000,001 to NPR 70,000,000: NPR 34,000.
NPR 70,000,001 to NPR 80,000,000: NPR 37,000.
NPR 80,000,001 to NPR 90,000,000: NPR 40,000.
NPR 90,000,001 to NPR 100,000,000: NPR 43,000.
Over NPR 100,000,000: NPR 43,000 + NPR 30 for each additional NPR 100,000

15 days NPR 4,500
5 Make a company rubber stamp 1 day NPR 275
6

Register for VAT and income Tax with the Inland Revenue Office, the Ministry of Finance

The company must disclose the office address and withhold 15% tax of the rent for at least 3 months and deposit it to the tax office. If the company's objectives include goods or services subject to VAT, both registrations (VAT and income tax) should be obtained simultaneously.

5 days no charge
7

Enroll the employees in the Provident Fund

From the basic salary of each employee, 10 percent is deducted each month, and a matching contribution is made by employer. The contribution is made to the provident fund and released on employee retirement. The employer also has to pay gratuity on retirement of an employee at the rate prescribed by labor regulation. Both of these rules are applicable only if the company appoints 10 or more employees.

1 day no charge

Link: http://www.doingbusiness.org/data/exploreeconomies/nepal/starting-a-business

[Source: World Bank / IFC]