Industry registration in Nepal is a mandatory process for businesses to operate legally. It involves registering with the appropriate government authorities, obtaining necessary licenses, and complying with regulatory requirements.
This article provides a comprehensive guide to industry registration in Nepal, covering the requirements, process, documents, timelines, costs, and post-registration compliance.
Prime Law Associates has been conducting Industry Registration in Nepal for 15 Years assisting Manufacturing, Service-Oriented & Foreign Companies obtain Industry registration certificate in more than 50 Occasions. The Firm is quite experienced in obtaining regulatory approvals & licenses associated with the registration.
What is Industry Registration?
Industry registration is the formal process of registering a business entity with the relevant government authorities in Nepal. It grants legal recognition to the industry and allows it to operate within the country’s regulatory framework. Registration is required for all types of industries, including manufacturing, service, and trading businesses.
Requirements for Industry Registration in Nepal
The key requirements for industry registration in Nepal include:
- Minimum capital investment as per industry classification
- Compliance with environmental regulations (if applicable)
- Necessary licenses and permits based on industry type
- Proper documentation including citizenship certificates, company registration documents, etc.
- Tax registration (PAN/VAT)
- Bank account in the company’s name
Also Read: Company Registration in Nepal । Company Registration Service
Process of Industry Registration in Nepal
The industry registration process in Nepal are:
- Determine the capital of your industry
- Submit B Application Form to Department of Industry (DOI)
- Prepare and submit required documents
- Obtain Industry Registration Certificate
- Acquire necessary clearances and permits
Step 1: Determine the Capital of your Industry
The capital investment of your industry determines where you need to register:
Upto 5 Cr: Office of Industry and Commerce (Each District)
Industries with capital up to 5 crore Nepali Rupees can register at the Office of Industry and Commerce in their respective district. These offices handle registration for small and medium-sized enterprises.
Above 5 Crore: Department of Industry
Industries with capital exceeding 5 crore Nepali Rupees must register directly with the Department of Industry (DOI) in Kathmandu. The DOI handles registration for large-scale industries and those requiring special approvals.
Step 2: Submit B Application Form to DOI
To initiate the registration process, submit the B Application Form to the Department of Industry. This form includes basic information about the proposed industry, including its name, type, location, and proposed capital investment. Ensure all details are accurate and complete to avoid delays in processing.
Step 3: Prepare & Submit Required Documents
Gather and submit all necessary documents as required by the DOI. These typically include:
- Company registration certificate
- Memorandum and Articles of Association
- PAN/VAT registration certificate
- Citizenship certificates of promoters
- Land ownership documents or lease agreement
- Environmental Impact Assessment (if applicable)
- Industry specific licenses (if required)
Ensure all documents are properly certified and up-to-date.
Step 4: Industry Registration Certificate
After reviewing your application and documents, the DOI will issue an Industry Registration Certificate. Keep this certificate safe as you’ll need it for various purposes in the future.
Step 5: Obtain Necessary Clearances
Depending on your industry type, you may need to obtain additional clearances and permits from various government agencies. These may include:
- Environmental clearance
- Labor permits
- Export/Import licenses
- Food and drug licenses
- Tourism-related permits
Industry Registration Service in Nepal (उद्योग दर्ता सेवा)
Prime Law Associates has a leading team of 10+ Lawyers providing legal, compliance & licensing services for Industry Registration in Nepal at the Department of Industry.
Amit Karna
Amit Karna is a Company Registration Lawyer in Nepal with extensive experience in registering Firms at the Department of Industry in Nepal.
Sukra Subba
Sukra Subba has 10 Years of experience in the Corporate Sector of Nepal & facilitating Industry Registration at the Firm.
Documents required for Industry Registration in Nepal
The following documents are typically required for industry registration in Nepal:
- Application form (Form B)
- Company Registration Certificate from Office of Company Registrar
- Memorandum of Association and Articles of Association
- PAN (Permanent Account Number) Certificate
- VAT (Value Added Tax) Registration Certificate (if applicable)
- Citizenship certificates of all promoters/directors
- Passport-sized photographs of promoters/directors
- Land ownership documents or lease agreement for the industry premises
- Environmental Impact Assessment (EIA) or Initial Environmental Examination (IEE) report (if applicable)
- Industry-specific licenses or permits (e.g., tourism license, pharmaceutical license)
- Power of attorney (if application is made through a representative)
Time Taken for Industry Registration in Nepal
The time required for industry registration in Nepal varies depending on the type and scale of the industry, as well as the completeness of the application. Generally, the process can take anywhere from 2 weeks to 3 months. Small-scale industries registered at the district level may be processed faster, while large-scale industries or those requiring special approvals may take longer.
Cost associated with Industry Registration in Nepal
The costs for industry registration in Nepal include:
- Application fee: Varies based on industry size and type
- Registration fee: Depends on the capital investment of the industry
- Environmental Impact Assessment costs (if applicable)
- Legal and consultancy fees
- Document preparation and certification costs
- Bank guarantee fees (for certain industries)
The total cost can range from a few thousand to several lakhs of Nepali Rupees, depending on the scale and nature of the industry.
Post-Industry Registration Compliance in Nepal
After obtaining the Industry Registration Certificate, businesses must comply with ongoing regulatory requirements:
- Annual renewal of the registration certificate
- Regular tax filings and payments
- Compliance with labor laws and social security regulations
- Adherence to environmental standards
- Maintenance of proper books of accounts
- Submission of annual reports to the Department of Industry
- Obtaining and renewing necessary operational licenses
- Compliance with foreign investment regulations (if applicable)
Industry Registration in Nepal: FAQs
What types of industries can be registered in Nepal?
Nepal allows registration of various industries including manufacturing, service, tourism, agriculture, energy, mining, and information technology. Both domestic and foreign investments are permitted in most sectors, with some restrictions in sensitive areas.
How long is the registration valid?
Industry registration in Nepal is typically valid for one year and must be renewed annually. The renewal process involves submitting updated documents and paying the prescribed fees to the Department of Industry or relevant district office.
Can foreigners register an industry in Nepal?
Yes, foreigners can register industries in Nepal. However, certain sectors have restrictions or require special approvals. Foreign investors must comply with the Foreign Investment and Technology Transfer Act and obtain necessary permits from the Department of Industry.
What is the capital requirement for industry in Nepal?
The minimum capital requirement varies based on the industry type and scale. Small industries may start with a few lakhs, while large industries require several crores. The exact amount is determined by the Department of Industry based on the project proposal.
What is the process of industry registration in Nepal?
The process involves determining capital, submitting an application to the Department of Industry, preparing required documents, obtaining the registration certificate, and acquiring necessary clearances. The specific steps may vary depending on the industry type and scale.
Conclusion
Industry registration in Nepal is a complex but essential process for businesses looking to operate legally in the country. It involves multiple steps, from determining the capital investment to obtaining the final registration certificate and necessary clearances.
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Disclaimer: This Article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication, solicitation, or inducement of any sort from the firm or any of its members. The firm shall not be liable for consequences arising out of any action undertaken by any person relying on the information provided herein.