Registration and renewal of partnership firm in Nepal

Partnership concerns are registered under partnership act 2020.

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 partners and address of the partners

E. Type of partnership

F. Amount of capital invested by each partner

G. Method of sharing profit and loss

H. Duration of business.

I. Other particular things.: necessary documents, registration fees, copy of citizenship

2. Deposit registration fee

Registration fee should be deposited in the Nepal Rastra Bank. Voucher is needed for the deposit of registration fee. It should be enclosed in application form. If the firm is commercial then recommendation letter from Nepal chamber of commerce is required.

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. Than an authorized officer will examine. It satisfied then the form is approved and “certificate of registration” is issued and then 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 partnership firm 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 rs 10 are to be paid. If it is committed gain then partnership firm is closed and no any concern can be established under any partners’ name.