If you’re a business owner in Nepal, you’ve probably asked yourself: “Do I need to renew my company every year?” This is one of the most common confusions among company owners, especially new entrepreneurs. The short answer is — no, companies in Nepal do not need to be “renewed” annually in the traditional sense. However, they must fulfill annual compliance requirements to remain active and up-to-date with the Office of the Company Registrar (OCR). This process is referred to as getting the company “Adyawadik” (अद्यावधिक).
Let’s break this down and clear up the confusion.
There Is No Concept of “Company Renewal” in Nepal
Unlike business registration under local government offices (like Ward Offices for small businesses or firms), companies registered with the OCR (under the Company Act 2063) do not require yearly renewal.
Once a company is registered, it remains valid indefinitely unless it is:
- Voluntarily closed
- Struck off by the government
- Liquidated or merged
So, the term “company renewal” is actually a misunderstood term, often mistakenly used to refer to the process of annual compliance.
What You Do Need to Do Annually – Company Adyawadik
What companies must do each year is submit important documents to OCR to stay compliant and active. This process is called making the company Adyawadik (meaning “updated” or “up-to-date”).
Here’s what it involves:
Key Requirements to Get Company Adyawadik:
- Submission of Audited Financial Statements
- Holding of Annual General Meeting (AGM)
- Filing AGM Minutes to OCR
- Paying Required Government Fees (based on company capital)
After all these documents are submitted, OCR provides a formal Adyawadik Letter that confirms your company is compliant and has no dues.
Why the Confusion Happens
Here are the main reasons people confuse Adyawadik with company renewal:
| Confusion Point | Reality |
| “Do I need to renew my company registration?” | No, you don’t. Once registered, a company remains valid. |
| “Bank asked me for company renewal documents.” | Banks usually mean Adyawadik Letter + Tax Clearance Certificate. |
| “I missed the renewal; is my company closed?” | Not necessarily. But if you skip filing for many years, your company may become non-compliant or inactive. |
When You’ll Need the Adyawadik Letter
You’ll be asked for this document in various scenarios:
- Opening or renewing a bank account
- Applying for loans
- Changing company address, directors, or objectives
- Filing any major changes at the OCR
- Participating in tenders or government projects
When Should You Make Your Company Adyawadik?
You should submit your documents and apply for Adyawadik status within 6 months of the end of the fiscal year (i.e., before Poush end each year).
Final Thoughts
So, should you renew your company in Nepal every year?
No, but you must keep it compliant by making it Adyawadik.
Think of it like maintaining a passport — you don’t need a new one every year, but you do need to keep it valid and updated with necessary documents. Missing your compliance deadlines can lead to fines, restrictions, and complications in business operations.
