Industry Registration in Nepal

What is Industry Registration?

Industry registration is the process of officially recording a business or industrial entity with the relevant government authorities.

This registration is required for legal recognition, enabling the business to operate lawfully, obtain necessary permits, access benefits, and comply with regulatory requirements specific to its industry.

Which authority grants Industry Registration in Nepal?

The authorities responsible for granting industry registration in Nepal includes:

  1. Department of Industry (DoI): Primarily responsible for the registration of medium and large-scale industries.

The following authorities are also related with Registration for businesses in Nepal:

  1. Office of the Company Registrar (OCR): Private Company Registration in Nepal
  2. Department of Cottage and Small Industries (DCSI): For the registration of cottage and small-scale industries.
  3. Ministry of Industry, Commerce, and Supplies: Oversees and facilitates the overall registration process for various industrial activities.

What is the process of obtaining Industry Registration in Nepal? (In 4-5 Detailed Steps)

The process of obtaining industry registration in Nepal involves several key steps:

  1. Preliminary Preparation:
    • Business Plan: Develop a detailed business plan outlining the nature of the industry, investment requirements, and projected operations.
    • Name Reservation: Reserve a unique business name through the Office of the Company Registrar (OCR).
  2. Submission of Application:
    • Application Form: Complete the industry registration application form, available from the Department of Industry (DoI) or online.
    • Required Documents: Gather necessary documents such as the business plan, name reservation certificate, copies of the national ID or passport of promoters, and articles of association and memorandum of association (for companies).
  3. Department of Industry (DoI) Review:
    • Application Submission: Submit the completed application form and supporting documents to the DoI.
    • Assessment and Verification: The DoI reviews the application for completeness and compliance with legal requirements. This may involve site visits and verification of the proposed industry location.
  4. Approval and Registration:
    • Approval Notification: If the application is approved, the DoI issues an industry registration certificate.
    • Payment of Fees: Pay the required registration fees to complete the process.
    • Publication: The registration details are published in the Nepal Gazette, providing public notice of the new industry.
  5. Post-Registration Compliance:
    • Tax Registration: Register for taxes with the Inland Revenue Department.
    • Local Permits: Obtain any additional local permits or licenses required for specific industry operations.
    • Environmental Clearance: If applicable, secure environmental clearances and comply with environmental regulations.

What are the Documents required for Industry Registration in Nepal?

Documents required for industry registration in Nepal typically include:

  1. Application Form: Completed registration application form.
  2. Company Charter: Memorandum and Articles of Association.
  3. Shareholder Details: List of shareholders and their details.
  4. Board Resolution: Resolution from the Board of Directors approving the establishment of the industry.
  5. Promoter’s Agreement: Agreement among promoters (if applicable).
  6. Investment Details: Details of capital investment and sources of funding.
  7. Proof of Identity: Copies of passports or citizenship certificates of promoters.
  8. Tax Registration: PAN/VAT registration certificate.
  9. Land Ownership Document: Proof of ownership or lease agreement for the land.
  10. Feasibility Report: Project feasibility study report (if required).

What are the requirements for Industry Registration in Nepal?

Industry registration in Nepal requires several key steps:

  1. Application Submission: Submit an application to the Department of Industry (DOI) with a completed registration form.
  2. Company Documents: Provide the company’s Memorandum of Association (MOA) and Articles of Association (AOA).
  3. Identification: Submit copies of citizenship certificates or passports of the promoters.
  4. Project Report: Include a detailed project report outlining business plans, financial projections, and feasibility studies.
  5. Land Documents: Provide proof of land ownership or lease agreement.
  6. Environmental Clearance: Obtain an environmental impact assessment (EIA) approval if required.
  7. Fee Payment: Pay the applicable registration fees.

What is the time taken for Industry Registration in Nepal?

In Nepal, industry registration typically takes about 7 to 10 working days. This period includes submitting required documents to the Department of Industry and obtaining necessary approvals.

  1. What is the cost for Industry Registration in Nepal?

The cost for industry registration in Nepal varies depending on the industry type, size, and investment scale.

For small and medium-sized industries, the registration fee typically ranges from NPR 10,000 to NPR 50,000.

For larger industries, the fee can go up to NPR 100,000 or more. Additional costs may include legal fees, documentation, and compliance with local regulations.

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What are the benefits of Industry Registration in Nepal?

Industry registration in Nepal offers several benefits:

  1. Legal Recognition: Provides legal status and protects the business under Nepalese law.
  2. Access to Government Incentives: Enables eligibility for subsidies, grants, and other government incentives.
  3. Tax Benefits: Facilitates tax registration and potential tax benefits.
  4. Banking and Financial Services: Eases access to banking services, loans, and credit facilities.
  5. Market Access: Enhances credibility and trust, aiding in market expansion.
  6. Foreign Investment: Attracts foreign investors by showcasing legitimacy and stability.
  7. Intellectual Property Protection: Secures intellectual property rights and trademarks.
  8. Trade Opportunities: Opens avenues for national and international trade opportunities.

References:

https://www.lawimperial.com/process-of-industry-registration-in-nepal/

https://nepaltradeportal.gov.np/register-company-or-firm

https://doind.gov.np/industry-registration

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