Registration and renewal of sole trading concern in Nepal



Registration and renewal of sole trading concern in Nepal

 

Sole trading concerns are registered under private firm registration act 2014.

 

 

Procedures of registration

 

1. Apply for registration.

Application form is needed to be filled up and apply for registration. The application must include the following things

A. Name of firm

B. Address of the firm

C. Objective of the firm

D. Name and address of owner including father’s and grandfather’s name.

E. Other particular things.

 

Rs. 5 and attached citizenship are required.

 

2. Deposit registration fee:

Registration fee may or may not be deposited in the Nepal Rastra Bank. Voucher is needed for the deposit of registration fee. It should be enclosed in application form.

Capital Registration fee Renewal fee Registration fee
Up to 1,00,000 Rs 700 Rs 100 Rs 700
From 1,00,001 to 3,00,000 Rs 2100 Rs 125 Rs 2100
From 3,00,001 to 5,00,000 Rs 4100 Rs 150 Rs 4100
From 5,00,001 to 10,00,000 Rs 7600 Rs 200 Registration fee
Up to 10.00,001 to 50,00,000 Rs 10100 Rs 250 Rs 700
Above 50,00.000 Rs 15100  Rs 300 Rs 2100

3. Receiving the certificate of registration

Concerned department receive the application. Then an authorized officer will examine. It satisfied then the form is approved and legal business can be operated.

 

 

Procedure of renewal

 

The entire registered firm should be renewed each year within 35 days of time period. He should fill application for renewal with renewal fee to the concerned department. This amount is dependant upon the capital invested.

 

Effect of non-registration and non renewal

If the sole trading concern is operated without registration and renewal then it is considered illegal. It can’t get loan from any financial institution. This department will charge from rs 5 to rs 50 as fee. The effect of non-registration and non renewal is if the is not registered and renewed then fee is charged. If same crime is done for 3 times, additional r 10 is to be paid. If it is committed gain hen sol trading concern is closed and no any concern can be established under his name.