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|
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||5 days||NPR 10,000 depending on the professional's charges|
|3||Buy a stamp to be attached to registration form||1 day||NPR 5|
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.
|15 days||NPR 4,500|
|5||Make a company rubber stamp||1 day||NPR 275|
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|
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|
More Details: http://www.doingbusiness.org/data/exploreeconomies/nepal/starting-a-business
[Source:World Bank & IFC]
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