Project Approval Conditions/Requirements – Social Welfare Council – 3 Mins Exclusive Read

Project Approval Conditions/Requirements – Social Welfare Council – 3 Mins Exclusive Read

Project Approval Conditions/Requirements – Social Welfare Council

All the non-profit organizations or NGOs willing to obtain approval from the Social Welfare Council for a project must satisfy the following conditions (requirements). All such organizations must obtain prior approval from the SWC before receiving grants or donations from the foreign donors.

  • Shall follow the provision mentioned in the Social Welfare Act, Regulation and Directives.
  • Project shall not be operated with the activities prohibited by the prevailing law.
  • Project shall not be operated by receiving fund out of the prescribed amount allocated by the international non-governmental social organization working under the agreement with the Council.
  • While submitting an application for the approval without any Project Approval, the local level’s monitoring/ supervision/ work completion report/ recommendation or action consent letter must be submitted.
  • Foreign Aid shall only be received in a way that is not contrary to the Anti-Money Laundering Act.
  • If any further clarification is required in the Project Proposal submitted to the Council, the planning section shall ask the organization to present the project and proceed with the approval process with necessary modifications.
  • Prior to the expenditure of the funds received by the organization pursuant to Social Welfare Act, it has to be spent only with the approval of the Council.
  • The organization shall have to make and implement regulations relating to administration and finance.
  • The organization shall comply with the institutional and project related court orders, government decisions and suggestions out of the investigation report, if any.
  • The provisions relating to purchase/maintenance of house, land and property shall be incorporated in the Constitution or Regulations of the organization.
  • The physical property purchased with the foreign aid shall not be sold or title be transferred without the approval of the Council. The approved past project shall be monitored and evaluated, and the action plan regarding the implementation of the suggestions mentioned in the report shall be made and submitted.
  • The coordination shall be made with the concerned local body while selecting the target group to be included in the project.
  • Foreign grants received for the project shall be included in the data of the Government of Nepal Ministry of Finance.
  • The project completion certificate shall be obtained from the local body after the completion of the project.
  • The Council is not obliged to approve the proposal received without fulfilling the above mentioned conditions and procedures.
    Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship.  No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this website. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

 

 

Divorce in Nepal – Exclusive 3 Mins Read

Divorce in Nepal – Exclusive 3 Mins Read

Divorce in Nepal – Exclusive 3 Mins Read

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Divorce means a legal dissolution of the marriage, and results in the legal separation of husband and wife. Divorce in Nepal is governed by the Muluki Civil Code 2017. This article provides a summary of the divorce laws in Nepal.
Divorce between the husband and wife is connected to various legal issues and shall be considered together. For instance, matters relating to property rights, and child custody are major legal issues faced by the husband and wife during the termination process.
The laws and procedures relating to a Divorce in Nepal are:
Who may file for Divorce in Nepal:- Husband OR wife OR Both may file the case before the district court of their jurisdiction.
Grounds for a Husband to file a Divorce case against wife:-
S.N.
Grounds for Divorce in Nepal
1.    
If the wife lives separately without the consent of husband for 3 consecutive years or more than that.
2.    
 If the wife didn’t provide basic needs to the husband and abandons him from home.
3. 
 If the wife does any work or do any conspiracy that may cause grievous hurt or any other physical or mental harm to the husband.
4.    
If it is proved that the wife is engaged in sexual activities with other people.
Grounds for a Wife to file a Divorce case against husband:-
S.N.
Grounds
1.    
If the husband lives separately without the consent of husband for 3 consecutive years or more than that.
2.  
If the husband didn’t provide basic needs to the husband and abandons him from home.
3.    
 If the husband does any work or do any conspiracy that may cause grievous hurt or any other physical or mental harm to the wife.
4.    
If the husband solemnizes another marriage.
5.   
 If it is proved that the husband is engaged in sexual activities with another woman..
6.    
 Marital rape.
Time Required for divorce: The court shall finalize the case of divorce within one year of the application filed.
Procedure that needs to be followed for divorce:
1.     The party who wants to file for divorce must file an application in the District Court of the District where the applicant resides.
2.     The court through the help of its officers shall then give notice (summons) of Divorce petition to the other party.
3.     The other party attends the court and submit their written reply.
4.     The court then convinces both the parties for mediation.
5.     If mediation fails, the court will rule on divorce.
Things that need to be carried out before divorce:-
  • Partition of property: Partition of common property in the joint name, or any one’s name among husband and wife is to be done, and if it is found that the partition of the property takes long time then the husband has to provide monthly expenses to the wife as per his property and income.
  • However, if the Divorce is filed by the wife, the husband is not obliged for that.
Condition in which the wife can get lump sum amount rather than Partition of property
The court can order the husband to provide lump sum amount or annually or monthly expenses on the basis of his income if the wife desired so but if the wife conducts another marriage then the husband is not liable to pay.
Documents Required for divorce: The following documents are required along with application for the divorce:
  • Marriage Registration Certificate
  • Notarized copy of Citizenship certificate of husband and wife
  • Name and address of one witness each
  • Other evidences/documents, if any.
For more information on Divorce in Nepal please contact us at info@lawchintan.com or call us at +977 9866556697.

Learn about Court Marriage or Marriage Registration instead? Click the link: Court Marriage in Nepal | Marriage Registration in Nepal: Executive Summary with Latest Updates- Exclusive 3 Mins Read – Chintan Law Associates (lawchintan.com)

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Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship. No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this site. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.
Public Company Registration in Nepal – 3 Mins Exclusive Read

Public Company Registration in Nepal – 3 Mins Exclusive Read

Public Company Registration in Nepal

Incorporation of Public Company in Nepal

Public company is that company that raises the fund from the general public. “Limited” is used after the name of the public company.

Time required for the registration of the public company:  Maximum 7 days from the date of application filed.

Number of promoters: At least 7 to unlimited. But if one public company incorporates the other public company then there is no need of seven promoters.

Number of Board of Directors: At least 3 to maximum 11, and if a woman is shareholder then at least 1 woman.

Number of shareholders: At least 7 to maximum unlimited.

Capital: Paid up capital of the public company must be at least 1 core except mentioned in Nepal Gazette or as per the Government of Nepal.

Government Revenue: The revenue is levied on the basis of the capital of the public company:

S.N. Capital Authorized in NPR Registration Fee
1. Up to 10,000,000 15,000
2. 10,000,001 to 100,000,000 40,000
3. 100,000,001 to 200,000,000 70,000
4. 200,000,001 to 300,000,000 100,000
5. 300,000,001 to 400,000,000 130,000
6. 400,000,001 to 500,000,000 160,000
7.  Above 500,000,000 160,000 + 3,000 for each 10,000,000

Required Documents:

  • Application
  • Memorandum of Association
  • Articles of Association
  • Copy of Agreement if there is an agreement between the promoters
  • Notarized copy of citizenship if promoter is a Nepali Citizen
  • Prior approval or license if required
  • Power of Attorney.

 Learn about foreign branch company registration in Nepal

https://lawchintan.com/register-branch-company-in-nepal/

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship.  No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this website. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

Registration of Company Not Distributing Profit / Non-Profit Company

Registration of Company Not Distributing Profit / Non-Profit Company

Registration of Non-Profit Company

Registration of Company Not Distributing Profit

Foundation Registration in Nepal

Company not distributing profit is a company that are not entitled to distribute or pay to its members any dividends or any other moneys out of the profits earned or savings made for the attainment of any objectives.

Objectives of the establishment of company not distributing profit:

  • To develop and promote any profession or occupation.
  • To protect the collective rights and interests of the person engaged in any specific profession or occupation.
  • To carry on any enterprise for the attainment of any scientific, academic, social benevolent or public utility or welfare objective on the condition of not distributing dividends.

Q. Where we can file the application for the registration of this type of company?

A. We can file the application in the Office of Company Registrar.

Number of promoters needed to register this type of company: At least 5 members to unlimited members.

Time required for the registration: Maximum 7 days from the date of application filed.

Q. What if we need to change the objectives of the company?

A. To change the objectives of the company, the company has to obtain prior approval from the Office of Company Registrar.

Q. Can the company not distributing profit be merged with company distributing profit?

A. No, they cannot be merged.

Government Revenue for its registration: NPR 15,000/-

Other Essential Points:

  • No need to require share capital to incorporate this type of company.
  • Members of this type of the company are not liable for debts and liabilities of the company except they accept such liability in writing.
  • The dividends, bonus or other profit of the company are not distributed among their employees but that profits are used to increase the capital of the company or for the attainment of the objectives.

Document required for registration of the company:

  • Application
  • Memorandum of Association (Prabandha Patra)
  • Articles of Association (Niyamawali)
  • Notarized copy of citizenship certificates of all Promoters
  • Power of Attorney

Resource Person: Zubin Niroula Khatri, Attorney at Law (Contact Number: +977 9851133809) 

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship. No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this site. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

Register Branch Company in Nepal Easily – 3 Exclusive Details

Register Branch Company in Nepal | Set-up Branch Company in Nepal | Register Foreign Branch Company | Easy Foreign Branch Company Registration in Nepal – 3 Major Details

As per Section 154 (1) of the Nepalese Companies Act, 2006, no any foreign company can carry out its business transaction in Nepal without registration of its branch company in Nepal. Foreign branch company can only perform activities that are allowed in Nepal, similar to the objective of the foreign company.

Documents required to register branch company in Nepal:

  1. Application in the prescribed format.
  2. Permission obtained by the foreign company from the competent Nepalese authority to carry out its business in Nepal.
  3. Notarized copy of the charter, certificate of incorporation, Memorandum and Articles of Association; including the Nepalese translation of these documents.
  4. Certified copy of the Board resolution of foreign company to establish branch in Nepal.
  5. Power of Attorney.
  6. Notarized copy of passport of the directors of foreign company.
  7. Passport or citizenship copy of local representative in Nepal.

Information required to be furnished at the time of application:

  1. Full name, address of the registered office and principal place of the business, date of incorporation, description of the paid up capital and major objectives of the foreign company.
  2. Name, address of directors, manage, company secretaries or main officers of the company and description of their citizenship.
  3. Name and address of the person residing in the Nepal, who is authorized by the foreign company to receive, on its behalf, any summons, notice, etc., issued in Nepal.
  4. Full address of the branch company in Nepal.
  5. Where the company is to carry on any transaction or business in the state of Nepal, details of the proposed investment and transaction.
  6. Commencement date of transaction by branch company in Nepal.
  7. A declaration made by a director of the company or his/her representative, on the behalf of the company, that the matters contained in the returns submitted by the foreign company are true and correct.

Process of registration:

  1. Agreement/approval to carry out business in Nepal – Foreign company willing to register a branch company in Nepal must have an agreement with a government entity or authority to get involve in certain projects. Having an agreement with the Nepal Government makes it easier for branch company to repatriate income and profits to the main company.
  2. Application to the OCR – After gathering all the documents, application is filed at the Office of the Company Registrar. Firstly, application and required documents are submitted online via OCR online portal and afterwards a physical submission of documents is required.
  3. Investigation by the OCR – OCR checks the documents, and approves the foreign company to set-up branch company in Nepal.
  4. Certificate of registration within 30 days after the evaluation of the documents – OCR issues a registration certificate if the registration is approved.
  5. If can’t be registered, then information within 30 days – If in case the branch cannot be registered, OCR must notify the applicant with the reasons within 30 days of the submission of application.

Branch company registration revenue: Government revenue depends upon the capital of the foreign company. The more the Authorized capital, the more shall be the government fees. In the table below, tentative government fee for the given capital slab is indicated.

Foreign company having capital Fee in USD (approximately)
Up to USD 84,000.00 $125.00
Up to USD 800,000.00 $340.00
Up to USD 1.6 million $585.00
Up to USD 2.5 million $835.00
Up to USD 3.3 million $1085.00
If investment is not shown or no capital $835.00

For more information on branch company registration please contact us via email at info@lawchintan.com. Branch company is popular among the Indian citizens doing business in Nepal. Branch company is regulated by the Companies Act, therefore, it must follow statutory compliance and obligations set out by the Act.

Looking for setting up a new company in Nepal instead? Learn more about Foreign Direct Investment in Nepal.

Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal

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