What has been waived out?
Registration Fees and Capital Increment Fees as charged by Government..
- Registration fees for New Companies
- Capital Increment Fees of existing Companies
- For both Private/Public Companies
- For Foreign Branch/Liaison Offices
- For Profit Not Distributing Companies
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In a groundbreaking move, the Government of Nepal has transformed a vision announced in the Budget Speech of Fiscal Year 2080-81 into reality. This visionary provision, aimed at empowering startups and entrepreneurs, now allows them to register their companies in Nepal without incurring any taxes or fees. Thanks to the diligent efforts of the Office of Company Register (OCR), this exciting opportunity is now within reach for all aspiring business owners.
A significant milestone in this regard was reached on September 25, 2023, when the Ministry of Industry, Commerce, and Supplies issued a gazette notification. This notification was made possible under Section 18(1) of the Finance Act, 2080, aligning with the budget speech for Fiscal Year 2080/81. It grants a temporary waiver to investors, encouraging and facilitating the registration and capital restructuring processes.
Previously, the Office of the Companies Registrar had imposed various fees based on factors such as a company’s authorized capital, nature, and investment amount. However, the newly published notification has suspended these charges for the entire duration of Fiscal Year 2080/81.
Key highlights of this notification include:
(a) The waiver of fees for incorporating both private and public companies.
(b) Fee exemptions for companies seeking to increase their authorized capital.
(c) Relief from fees for companies looking to expand by issuing new shares.
(d) No charges for companies opting to consolidate or divide their share capital.
(e) Fee exemptions extended to foreign companies registering branch or liaison offices in Nepal.
(f) The waiver of fees for the incorporation of profit-not-distributing companies.
It is crucial to note that this fee waiver is applicable exclusively for Fiscal Year 2080/81 and will not extend to subsequent fiscal years. Therefore, any company considering incorporation should take advantage of this opportunity within the fiscal year 2080/81. This initiative is expected to provide significant support to the entrepreneurial ecosystem and encourage business growth and development in Nepal.
