Congratulations on successfully registering your company in Nepal! While securing your registration number from the Office of Company Registrar (OCR) is a major milestone, it is crucial to remember that this is just the beginning. A registered company has ongoing legal and administrative compliances that must be met to avoid penalties and ensure smooth operations.
One of the first steps after registration is to obtain a Permanent Account Number (PAN) for your company from the Inland Revenue Department (IRD). Depending on your business activities and turnover, you may also need to register for Value Added Tax (VAT). This is a fundamental requirement for all legally operating businesses in Nepal.
Every private limited company in Nepal is required to hold an Annual General Meeting (AGM) within six months of the end of its financial year. The AGM is where shareholders review financial statements, appoint auditors, and make important business decisions. It is a mandatory annual event.
Following the AGM, you must file annual returns with the Office of Company Registrar (OCR). This typically includes submitting audited financial statements, the minute of the AGM, and other prescribed forms within a specific timeframe after the financial year-end. Timely submission is critical to maintain your company’s active status.
In addition to OCR filings, regular tax compliance with the IRD is essential. This involves filing annual income tax returns, and if applicable, monthly or quarterly VAT returns. You also need to manage Advance Income Tax payments throughout the year. Staying on top of these deadlines prevents fines and legal issues.
For companies with employees, there are further compliances related to provident fund, gratuity, and the Social Security Fund (SSF). Registering employees with SSF and making regular contributions as per legal requirements is mandatory for most formal sector businesses.
Some specific industries or business activities may also require additional licenses or permits from various governmental bodies or local authorities after company registration. It is important to research and secure all necessary operational licenses relevant to your sector.
Understanding and diligently adhering to these post-registration compliances is vital for the long-term health and legality of your business. Ignorance of the law is not an excuse, and non-compliance can lead to significant fines and operational disruptions. If unsure, consulting with a legal or accounting professional is always recommended.
One of the first steps after registration is to obtain a Permanent Account Number (PAN) for your company from the Inland Revenue Department (IRD). Depending on your business activities and turnover, you may also need to register for Value Added Tax (VAT). This is a fundamental requirement for all legally operating businesses in Nepal.
Every private limited company in Nepal is required to hold an Annual General Meeting (AGM) within six months of the end of its financial year. The AGM is where shareholders review financial statements, appoint auditors, and make important business decisions. It is a mandatory annual event.
Following the AGM, you must file annual returns with the Office of Company Registrar (OCR). This typically includes submitting audited financial statements, the minute of the AGM, and other prescribed forms within a specific timeframe after the financial year-end. Timely submission is critical to maintain your company’s active status.
In addition to OCR filings, regular tax compliance with the IRD is essential. This involves filing annual income tax returns, and if applicable, monthly or quarterly VAT returns. You also need to manage Advance Income Tax payments throughout the year. Staying on top of these deadlines prevents fines and legal issues.
For companies with employees, there are further compliances related to provident fund, gratuity, and the Social Security Fund (SSF). Registering employees with SSF and making regular contributions as per legal requirements is mandatory for most formal sector businesses.
Some specific industries or business activities may also require additional licenses or permits from various governmental bodies or local authorities after company registration. It is important to research and secure all necessary operational licenses relevant to your sector.
Understanding and diligently adhering to these post-registration compliances is vital for the long-term health and legality of your business. Ignorance of the law is not an excuse, and non-compliance can lead to significant fines and operational disruptions. If unsure, consulting with a legal or accounting professional is always recommended.
