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.