Legal Compliance: Agency Act 2014

Agency Registration
in Nepal

The complete guide to registering, renewing, and legally managing an agency business under Nepal’s Department of Commerce regulations.

Easy Process

4-Step Registration

Yearly Renewal

Before Chaitra End

Transferable

Rights to New Agent

Protected

Full Legal Status

Registration Procedure

Step-by-step process to get your license from the Dept. of Commerce.

1

Application

Submit application with Principal’s details, commission rates, and business profile.

2

Verification

Authorities review your eligibility, commission structure, and contract validity.

3

Payment

Deposit the registration fee and sign the official agency agreement.

4

Certification

Receive your Agency Registration Certificate. You are now legal!

Post-Registration Duty

Once registered, you must submit a detailed account of transactions (goods sold, prices, profit) every 3 months to the Department.

Why Registration is Mandatory

Operating without a license carries significant risks.

Consequences of Non-Compliance
Rs. 1,000

Immediate fine for operating without registration.

5 Years

Potential ban from working as an agent for contract breaches.

Invalid

All your contracts are legally void if you aren’t registered.

Termination of Agency

How an agency relationship legally ends in Nepal.

By Act of Parties

  • Mutual Agreement: Both parties agree to end the contract.
  • Revocation: Principal cancels authority (must give notice).
  • Renunciation: Agent quits the role (must give notice).
  • Completion: The specific job/transaction is finished.

By Operation of Law

  • Expiry: The contract time period runs out.
  • Death/Insanity: Of either Principal or Agent.
  • Insolvency: If the Principal goes bankrupt.
  • Impossibility: Subject matter destroyed or law changes.

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