This Article provides a complete guide on Franchise, Food Chain and Restaurant Registration in Nepal including the processes, requirements & documentation. This process is governed by the Companies Act 2063 (2006) and overseen by the Office of Company Registrar (OCR).
Requirements for Restaurant Registration in Nepal
To register a restaurant company in Nepal, the following requirements must be met:
- Minimum of 1 promoter/shareholder for private company or 7 for public company
- Unique company name not already in use
- Memorandum of Association and Articles of Association
- Registered office address in Nepal
- Minimum paid-up capital of NPR 100,000 for private company
- PAN/VAT registration
- Food business license from Department of Food Technology and Quality Control (for Large Restaurants only)
- Local Ward registration and approval
- Liquor license (if serving alcohol)
Types of Restaurant Licenses
Different types of licenses are required based on the nature of the restaurant:
General Restaurant License
This is the standard license for sit-down restaurants serving food and non-alcoholic beverages. It allows operation of a full-service restaurant without alcohol sales.
Bar and Lounge License
Required for establishments serving alcoholic drinks along with food. Additional permits needed from excise department for alcohol sales and service.
Fast Food Establishment License
For quick service restaurants and takeaway outlets. Has less stringent requirements than full-service restaurants but still needs food safety compliance.
Restaurant Registration Experts in Nepal
Amit Karna
Amit Karna is a Company Registration Lawyer in Nepal with extensive experience in registering multiple companies in Nepal.
Sukra Subba
Sukra Subba has 10 Years of experience in the Corporate Sector of Nepal & facilitating company registration at the Firm.
Also Read: Company Registration in Nepal: Company Registration Lawyer
Procedure for Restaurant Registration in Nepal
The restaurant registration process involves several key steps to be completed sequentially:
Step 1: Restaurant Name Reservation & Approval
Step 2: Submission of Restaurant MOA & AOA
Step 3: Regular Follow-ups in Office of Company Registrar
Step 4: Restaurant Company Registration Certificate
Step 5: PAN Registration Certificate
Step 6: Ward Office Registration Certificate
Step 1: Restaurant Name Reservation & Approval
The first step is reserving a unique name for the restaurant company. This is done online through the OCR website. Proposed names in both English and Nepali are submitted for approval. The name should not resemble existing companies and follow naming conventions. Multiple name options can be provided. OCR typically approves or rejects names within 2-3 days. An approved name is valid for 30 days to complete registration.
Step 2: Submission of Restaurant MOA & AOA
After name approval, the Memorandum of Association (MOA) and Articles of Association (AOA) must be prepared and submitted. The MOA outlines the company’s objectives, capital structure, and shareholder details. The AOA covers internal regulations and management procedures. These documents should be drafted carefully to align with legal requirements and business goals. Professional assistance is recommended to ensure compliance. Signed copies are submitted to OCR along with other required forms.
Step 3: Regular Follow-ups in Office of Company Registrar
Once documents are submitted, regular follow-ups with OCR are necessary to track the application status. OCR officials may request clarifications or additional information during document verification. Prompt responses to queries help expedite the process. Maintaining contact with the assigned officer and providing any requested changes quickly is advisable. This stage typically takes 7-10 days but can vary based on application completeness and OCR workload.
Step 4: Restaurant Company Registration Certificate
After successful document verification, OCR issues the company registration certificate. This legal document confirms the restaurant’s incorporation as a registered entity. It includes details like company name, registration number, date of incorporation, and registered address. The certificate must be collected in person from OCR. Multiple copies should be obtained for various licensing requirements.
Step 5: PAN Registration Certificate
Following company registration, obtaining a Permanent Account Number (PAN) from the Inland Revenue Department is required. The application is submitted online with supporting documents like the company registration certificate. After verification, the PAN certificate is issued, usually within 2-3 days.
Step 6: Ward Office Registration Certificate
The final step involves registering the restaurant with the local ward office. This ensures compliance with municipal regulations and zoning laws. Documents like company registration, PAN certificate, and lease agreement are submitted. The ward office inspects the premises for compliance with local bylaws.
Documents Required for Restaurant Registration
The following documents are typically required for restaurant company registration in Nepal:
- Application form for company registration
- Memorandum of Association (2 copies)
- Articles of Association (2 copies)
- Citizenship certificates of all shareholders/directors
- NID Number of all shareholders
- Passport-sized photographs of shareholders/directors
- Lease agreement or ownership proof of Restaurants physical location
- Power of Attorney (if using a registration service)
- PAN/VAT registration application
- Local ward office registration application
- Liquor license application (if applicable)
- Foreign investment approval (for foreign-owned restaurants)
Time and Cost Associated with Restaurant Registration in Nepal
The time required for restaurant company registration typically ranges from 2-4 weeks.
Legal Framework for Restaurant Registration
Restaurant registration in Nepal is governed by several laws and regulations:
- Companies Act 2063 (2006)
- Food Act 2023 (1966) and Food Rules 2027 (1970)
- Local Government Operation Act 2074 (2017)
Governing Authorities for Restaurant Registration
Multiple government bodies are involved in restaurant registration and regulation:
- Office of Company Registrar (OCR)
- Inland Revenue Department
- Department of Food Technology and Quality Control
Restaurant Registration in Nepal: FAQs
How to register restaurants in Nepal?
Register restaurants by reserving a name, submitting MOA/AOA to OCR, obtaining company registration certificate, acquiring PAN, and registering with local authorities. Follow food safety regulations and obtain necessary licenses for legal operation.
What are the requirements for Restaurant Registration in Nepal?
Key requirements include unique company name, MOA/AOA, minimum capital, registered office, PAN/VAT registration, food business license, local municipality approval, and compliance with health and safety regulations.
Can foreigners own restaurants in Nepal?
Yes, foreigners can own restaurants in Nepal. However, they must obtain approval from the Department of Industry and invest a minimum of NPR 20 million. Partnership with Nepali citizens is often advisable.
How often must restaurant licenses be renewed?
Most restaurant licenses require annual renewal. Food business licenses are typically renewed yearly. Local business operation permits may have varying renewal periods depending on the municipality.
What is the time for restaurant registration in Nepal?
The complete restaurant registration process usually takes 2-4 weeks. This includes company registration, tax registration, and obtaining necessary licenses. Actual time may vary based on application completeness and regulatory efficiency.
Who provides restaurant registration services in Nepal?
Prime Law Associates provides the best restaurant registration services in Nepal. The firm has previous experience of registering large food chains, restaurants & franchise of Food Chains in Nepal.
Conclusion
Prime Law Associates, with its experience of over 15 Years provides the best restaurant registration & business incorporation services in Nepal. The process involves multiple steps, from name reservation to obtaining various licenses. While time-consuming, proper registration ensures legal compliance and establishes a solid foundation for business operations. Engaging professional services can streamline the process and ensure all requirements are met efficiently. With the right approach, entrepreneurs can successfully navigate the registration process and launch their restaurant ventures in Nepal.
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.
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