Introduction to Business Incorporation
A Process after which a business entity is created and recognized by law as a separate object from its owners is the process of Business Incorporation. A Business is Incorporated through Company Registration in Nepal.
We are a leading Company Registration Law Firm in Nepal that has registered hundreds of companies in Nepal and successfully incorporated them. Our Company Registration Lawyers have been highly rated for their professional and reasonable services and client-focused approach during the Registration Process.
Company/Business Incorporation Laws in Nepal
Companies Act 2063 B.S. governs Business Incorporation in Nepal. It was promulgated to consolidate the laws relating to the company as well as ease and simplify the incorporation and operation of Companies.
The Act was also purposeful in promoting investment in various sectors of the Nepalese Economy. Section 3 of the Act has provisioned for the Incorporation of a Company in Nepal.
Types of Company Incorporation
According to the Company Act, Private Companies, Public Companies, and Profit Not-Distributing Companies are the three major types of registrable companies in Nepal.
Private Companies are unable to gain funds from the Public. However, Public Companies have the legal privilege of raising funds from the Public by issuing shares, debentures, bonds, etc.
In consideration of the Shareholders, a Private Company should have a maximum of 101 Shareholders. For Public Companies, the number of shareholders is unlimited.
Similarly, Profit Not-distributing companies are generally incorporated for the promotion of a specific profession, protection of rights and interests of persons engaged in such profession, or the attainment of utility or welfare.
Process of Business Incorporation
Because of our continuous practice of incorporating Companies, we have a separate Publication on Company Registration in Nepal which includes our expert experiences and suggestions. Here’s the link: https://www.lawimperial.com/company-registration-in-nepal/
A Summary of the Procedure is as follows:
- Reserving Company Name
- Submitting the Application along with Other Documents
- Authenticating the Company
- Issuance of Company Registration Certificate
- Registration for Taxation at the Inland Revenue Office.
In General, the Fee for Company Registration in Nepal begins from NPR 1, 000 and extends to Rs. 43, 000 for an authorized capital of NPR 10 Crores.
Imperial Law Associates has been providing an unparalleled Company Registration Service in Nepal which covers the preparation of applications, filing of the company to drafting of all required documents.
Preparation of Application
Company Act mentions that an application must be submitted to the Office of Company Registrar if a person desires to incorporate a company in Nepal. Our leading corporate firm can swiftly prepare and pair the required application with the required documents.
Draft Memorandum of Association and Articles of Association
The Memorandum of Association and Articles of Association define the charter of the company. It requires professional legal knowledge and regular practice for consistency in drafting. During the process of Company Incorporation, the Firm also drafts memorandum of association and Articles of Association for such companies as required expediently.
Draft Agreements required for Registration of Company
The Company Act has provisioned that a copy of the agreement between promoters if any or a copy of the consensus agreement is mandatorily required while an application is made for the Incorporation of the Company. Our Firm has drafted thousands of agreements covering broad categories and is therefore highly competent to draft other required documents during this process.
Applying for Company Registration at the Office of the Company Registrar
After the required documents have been compiled along with the application, they must be submitted accordingly at the Office of the Company Registrar. For such purposes, Imperial Law Associates drafts required documents, prepares the application after receiving required data from its clients, and then files the application at the Office. We ensure an effortless and facile registration of our client’s company.
Conducting Company Regulatory Compliance
A Company, either public or private must guarantee compliance with required Industry Standards and National Laws and Regulations. Therefore, during the incorporation Process, our Firm fundamentally investigates the structure of the company and checks for any errors that can cause legal liability.
Convert Private Company into Public Company and Vice Versa
The Company Act provisions for the conversion of a Private Company to be made public after a general meeting of the company and passing of the special resolution declaring so. Our Law Firm is highly qualified and adequate for acting as the Official Legal advisor of a transitioning company and facilitating professional legal services when necessary.
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Location: 4th Floor, Gravity Center (Big Mart Complex), Anamnagar-29, Kathmandu 44600, Nepal
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