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:
- Application in the prescribed format.
- Permission obtained by the foreign company from the competent Nepalese authority to carry out its business in Nepal.
- Notarized copy of the charter, certificate of incorporation, Memorandum and Articles of Association; including the Nepalese translation of these documents.
- Certified copy of the Board resolution of foreign company to establish branch in Nepal.
- Power of Attorney.
- Notarized copy of passport of the directors of foreign company.
- Passport or citizenship copy of local representative in Nepal.
Information required to be furnished at the time of application:
- 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.
- Name, address of directors, manage, company secretaries or main officers of the company and description of their citizenship.
- 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.
- Full address of the branch company in Nepal.
- Where the company is to carry on any transaction or business in the state of Nepal, details of the proposed investment and transaction.
- Commencement date of transaction by branch company in Nepal.
- 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:
- 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.
- 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.
- Investigation by the OCR – OCR checks the documents, and approves the foreign company to set-up branch company in Nepal.
- Certificate of registration within 30 days after the evaluation of the documents – OCR issues a registration certificate if the registration is approved.
- 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 firstname.lastname@example.org. 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.
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