Registration and Renewal of sole Trading Concern in Nepal
Sole trading concerns are registered under the private firm registration act 2014. An interested person who is willing to establish sole trading concern must follow the following steps to register in Nepal.
Procedures of registration
Apply for registration (Submission of Application form).
There are different concern department to give application for registration as per nature, level of the business. The application form is needed to be filled up and apply for registration. The application must include the following things:
- Name of firm
- Address of the firm
- Objective of the firm
- Name and address of owner including father’s and grandfather’s name.
- Other particular things.
After filling the above detail in the application form, it should be submitted to the concerned department or office along with the specified fee.
Deposit registration fee:
The registration fees may or may not be deposited in the Nepal Rastra Bank. A voucher is needed for the deposit of the registration fee. It should be enclosed in the 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|
Receiving the certificate of registration
After the concerned department receives the application, an authorized officer will examine it for verification/approval. If It satisfied all the requirements 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 the time period. He should fill the application for renewal with a renewal fee to the concerned department. This amount is dependent upon the capital invested. For renewal of sole trading concern, it is necessary to submit a duly filled renewal form at the concerned department along with the required fees and documents like tax clearance, audit report, etc.
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 a loan from any financial institution. This department will charge from Rs 5 to Rs 50 as a fee. The effect of non-registration and non-renewal is if the is not registered and renewed then a fee is charged. If the same crime is done 3 times, an additional r 10 is to be paid. If it is committed to gain hen sole trading concern is closed and no any concern can be established under his name.