In a move that signals a major shift in Nepal’s corporate landscape, the Office of the Registrar of Companies (OCR) has announced the implementation of a mandatory digital signature system for corporate services. This initiative, spearheaded by the Government of Nepal’s Ministry of Industry, Commerce and Supply, aims to modernize business processes and enhance transparency. However, it also presents a significant change for companies operating in Nepal, who must now navigate new compliance requirements. As the business community prepares for this digital transition, questions arise about its impact on corporate governance and operational efficiency.
The key points:
- OCR introduces mandatory digital signatures for corporate document submissions
- Public companies must comply within 30 days of the notice
- New software enables remote company registration and document verification
- Radiant Infotech is the authorized issuer of digital signatures, priced at Rs. 5,200
- Digital signatures will complement, not replace, existing manual signature practices
In a significant move towards digital transformation, the Government of Nepal’s Ministry of Industry, Commerce, and Supply has announced a major overhaul in how companies interact with the Office of the Registrar of Companies (OCR) in Kathmandu. The OCR is set to implement a new digital signature system for corporate services, marking a pivotal shift in the country’s business administration landscape.
The primary objective of this initiative is to streamline processes, enhance transparency, and improve institutional governance. This digital transition is expected to significantly reduce bureaucratic hurdles and expedite various corporate procedures.
At the heart of this transformation is new software that will enable remote company registration and document verification. This technological advancement means that businesses will no longer need to be physically present at the OCR office for new company registrations. Instead, all necessary documents will be verified through digital signatures and transmitted to customers via the new system.
Public companies are at the forefront of this change. Within 30 days of the official notice, these entities will be required to use digital signatures when submitting details to the OCR. This mandate covers a wide range of corporate documents, including general meeting decisions, board resolutions, and other statutorily required information as per the Companies Act, 2063 and related laws.
The implementation process has been carefully considered ensuring a smooth transition. While the digital signature will be mandatory for submission, it doesn’t entirely replace the current system. The OCR has clarified that this digital process will complement the existing practice of manual signatures by shareholders and directors. Specifically, after all shareholders have manually signed a decision or statement, an authorized chairman, director, or official must then submit it with a digital signature.
To facilitate this transition, Radiant Infotech has been designated as the authorized issuer of digital signatures. As of the announcement date, the cost of obtaining a digital signature is set at Rs. 5,200. Companies are strongly advised to initiate the process of acquiring these digital signatures to ensure compliance with the new requirements.
The OCR emphasizes that this phased implementation is designed to make services simpler, more efficient, and more transparent for businesses operating in Nepal. By expanding the use of information technology in overall company administration, the OCR aims to enhance institutional governance while making services more accessible and cost-effective.
This move aligns with global trends towards digital governance and is expected to significantly improve Nepal’s ease of doing business rankings. It represents a major step forward in the country’s digital infrastructure and sets the stage for further modernization of corporate governance practices.
As businesses prepare for this transition, the OCR has committed to providing ongoing support and guidance. Companies are encouraged to stay informed about further announcements and deadlines related to this digital transformation initiative.
This landmark decision by the Nepalese government signifies a commitment to embracing technology for better governance and business facilitation. As the implementation unfolds, it will be crucial for all stakeholders to adapt swiftly to ensure a successful transition to this new era of digital corporate services in Nepal.
