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Guide to Starting a Business in Nepal

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Nepal. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Verify the uniqueness of the proposed company name1 dayNPR 5
2A professional verifies and certifies the memorandum and articles of association5 daysNPR 10,000 depending on the professional’s charges
3Buy a stamp to be attached to registration form1 dayNPR 5
4File documents with the Company Registrar’s Office, Department of Industry15 daysNPR 4,500
5Make a company rubber stamp1 dayNPR 275
6Register for VAT and income Tax with the Inland Revenue Office, the Ministry of Finance5 daysno charge
7Enroll the employees in the Provident Fund1 dayno charge
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