In Nepal, any person desiring to conduct Sole Trading Concern should be registered under "Private firm Registration Act, 2014". According to the Act, "Private firm means any firm or company concluded by one person privately or any name doing business in industry; business of export imports trade". Hence, the act incorporates all one person's private firm, which conducts industry or business.
According to the “Private Firm Registration Act, 2014” , clause 3, “After the commencement of this Act, no one can operate private firm without registering under this act”. Hence in Nepal, registration of Sole Trading Concern is compulsory. It is illegal to conduct any business without registration. If sole trading is related to commerce, then it should be registered in Department of Commerce and if it is related to industry, then it should be registered in Department of Industry of the Government.
Procedure of Registration
In Nepal “Sole Trading Concern” is registered under the “Private Firm Registration Act, 2014”. At present following procedure is applied for registration:
(1) To Apply an Application : The person wishing to register private firm should apply in the prescribed form in the concerned department. The application form contains the following particulars:
a. Name of the private firm
b. Address of the private firm
c. Objectives of the firm and object of transactions and statement of work
d. Name and address of the owner including the names of his father and grandfather
e. Other particular as prescribed by Government.
The application form should be attested by one gazetted Government officer. An application fee of Rs.5, attested citizenship, and registration fees must accompany the application.
(2) To Deposit Registration Fees : Registration fee must be deposited in Nepal Rastra Bank and the voucher of it should be enclosed in the application. The amount of registration fees depends upon the amount of capital invested in the business. The registration fees will be in accordance with the notice published by the Government on Nepal Gazette. The registration fees according to capital invested are as follows:
a. Capital up to Rs.20,000 -Rs.60
b. Capital from Rs.20,001up to Rs.50,000 -Rs.120
c. Capital from Rs.50,001up to Rs.1,00,000 -Rs.300
d. Capital from Rs.1,00,001up to Rs.3,00,000 -Rs.1,170
e. Capital from Rs.3,00,001up to Rs.5,00,000 -Rs.1,950
f. Capital from Rs.5,00,001up to Rs.10,00,000 -Rs.3,950
g. Capital from Rs.10,00,001up to Rs.50,00,000 -Rs.850
h. Capital more than Rs.50,00,001 -Rs.7,850
(3) To Receive the Certificate of Registration : When the concerned department receives the application for registration authorized officer of the concerned department will examine and scrutinize the particulars of the application. If the concerned department is satisfied with the application, the firm will be registered. Then the Department will issue the “Certificate of Registration”. This certificate is the evidence if legal reorganization.
Procedure of Renewal
All the registered firms should be renewal each year. For renewal application for renewal with renewal fee should be submitted to the concerned department. A renewal fee of the private firm is charged according to capital. The current rates of renewal fees are as follows:
a. Capital up to Rs.50,000 - Rs.35
b. Capital from Rs.50,001 up to Rs.1,00,000 - Rs.50
c. Capital from Rs.1,00,001 up to Rs.3,00,000 - Rs.70
d. Capital from Rs.3,00,001 up to Rs.5,00,000 - Rs.100
e. Capital more than Rs.5,00,001 - Rs.160
The renewal of private firm must be done within 35 days of new fiscal year. If the firm is not renewed within the prescribed time a fine of Rs.35 will be charged up to the last date of Aswin and after that fine of Rs.150 will be charged. If the firm is not renewed Government can prohibit the export-import transactions and bank account of that firm through notice.
Effect of Non-Registration
In case private firm is operated without registration then concerned department will charge a fine of Rs.5 up to Rs.50. If the same crime is committed up to 3 times the additional fine of Rs.10 will be imposed each time in the original fine. If he does fourth time, he can never register private firm under his name. Similarly the concerned department can fine private firm from Rs.25 to Rs.50 if the firm fails to notify the changed that take place within the prescribed time which are required by act or if false statement is submitted. If the firm is not registered of renewed according to Act, Government can prohibit the export import transactions and bank account of that firm through notice.
According to the “Private Firm Registration Act, 2014” , clause 3, “After the commencement of this Act, no one can operate private firm without registering under this act”. Hence in Nepal, registration of Sole Trading Concern is compulsory. It is illegal to conduct any business without registration. If sole trading is related to commerce, then it should be registered in Department of Commerce and if it is related to industry, then it should be registered in Department of Industry of the Government.
Procedure of Registration
In Nepal “Sole Trading Concern” is registered under the “Private Firm Registration Act, 2014”. At present following procedure is applied for registration:
(1) To Apply an Application : The person wishing to register private firm should apply in the prescribed form in the concerned department. The application form contains the following particulars:
a. Name of the private firm
b. Address of the private firm
c. Objectives of the firm and object of transactions and statement of work
d. Name and address of the owner including the names of his father and grandfather
e. Other particular as prescribed by Government.
The application form should be attested by one gazetted Government officer. An application fee of Rs.5, attested citizenship, and registration fees must accompany the application.
(2) To Deposit Registration Fees : Registration fee must be deposited in Nepal Rastra Bank and the voucher of it should be enclosed in the application. The amount of registration fees depends upon the amount of capital invested in the business. The registration fees will be in accordance with the notice published by the Government on Nepal Gazette. The registration fees according to capital invested are as follows:
a. Capital up to Rs.20,000 -Rs.60
b. Capital from Rs.20,001up to Rs.50,000 -Rs.120
c. Capital from Rs.50,001up to Rs.1,00,000 -Rs.300
d. Capital from Rs.1,00,001up to Rs.3,00,000 -Rs.1,170
e. Capital from Rs.3,00,001up to Rs.5,00,000 -Rs.1,950
f. Capital from Rs.5,00,001up to Rs.10,00,000 -Rs.3,950
g. Capital from Rs.10,00,001up to Rs.50,00,000 -Rs.850
h. Capital more than Rs.50,00,001 -Rs.7,850
(3) To Receive the Certificate of Registration : When the concerned department receives the application for registration authorized officer of the concerned department will examine and scrutinize the particulars of the application. If the concerned department is satisfied with the application, the firm will be registered. Then the Department will issue the “Certificate of Registration”. This certificate is the evidence if legal reorganization.
Procedure of Renewal
All the registered firms should be renewal each year. For renewal application for renewal with renewal fee should be submitted to the concerned department. A renewal fee of the private firm is charged according to capital. The current rates of renewal fees are as follows:
a. Capital up to Rs.50,000 - Rs.35
b. Capital from Rs.50,001 up to Rs.1,00,000 - Rs.50
c. Capital from Rs.1,00,001 up to Rs.3,00,000 - Rs.70
d. Capital from Rs.3,00,001 up to Rs.5,00,000 - Rs.100
e. Capital more than Rs.5,00,001 - Rs.160
The renewal of private firm must be done within 35 days of new fiscal year. If the firm is not renewed within the prescribed time a fine of Rs.35 will be charged up to the last date of Aswin and after that fine of Rs.150 will be charged. If the firm is not renewed Government can prohibit the export-import transactions and bank account of that firm through notice.
Effect of Non-Registration
In case private firm is operated without registration then concerned department will charge a fine of Rs.5 up to Rs.50. If the same crime is committed up to 3 times the additional fine of Rs.10 will be imposed each time in the original fine. If he does fourth time, he can never register private firm under his name. Similarly the concerned department can fine private firm from Rs.25 to Rs.50 if the firm fails to notify the changed that take place within the prescribed time which are required by act or if false statement is submitted. If the firm is not registered of renewed according to Act, Government can prohibit the export import transactions and bank account of that firm through notice.
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2 comments:
this information is very efficient. thanks
thanks
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