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Sole Proprietorship or Partnership (Private Firm) Registration Process in Nepal

Table of Contents

Firms are registered under the Private Firm Registration Act 1958 at the Department of Commerce and Supply Management (Banijya Bibhag). Here we will explain the whole process of Firm registration in Nepal with explanations of all the steps and documents required to register a sole proprietorship or partnership firm in Nepal.

A Bakery Shop

Sole proprietorship firms do not have a separate legal and natural person, and the liability of the owner is not limited like a company. Private firms are established to run a business with a simple and single purpose. These forms of business are mostly suitable for individuals undertaking trading activities: retailers, shops, importers of goods, restaurants, bakeries and professional service providers like designers, lawyers and accountants. Private firms are relatively easy to start and close. However, firms are permitted to conduct business with a single objective. They are also easy to control; decision-making is prompt and flexible since there is only one person operating it. Also, there are fewer compliance requirements in comparison to private limited companies.

Banijya Bibhag application form:

To register the firm, you will need to provide the documents to the concerned departments:

  • Department of Commence in the case of a commerce-related firm (Trading, Sales and purchase, shops, Import, and Export firms etc)
  • Department of Cottage and Rural Industry, in the case of the cottage and rural industry (if you produce products or services)
  • Department of Industry for any other industry (For big industries)

These are the required documents for private firm registration in Nepal:

  • The name of the private firm.
  • The address of the private firm and rent agreement letter
  • Objectives, functions, and the particulars of goods or commodities to be transacted by the private firm
  • The name and address of the owner and the name of their parents and grandparents
  • In case of partnership firm registration, partnership agreement letter.
  • Self-declaration letter stating you want to register the firm.
  • Bank statement with enough balance to cover the capital

Firstly, you should fill the online registration form and visit the DOC office with all the original documents. After that, the officers will check and approve your application if everything is good. Then you need to pay the rajaswa for registration and submit the voucher at the office. Finally, the officer will issue a certificate of firm registration.

After registering the business, you need to apply for PAN/VAT from the respective IRD office (Kar Karyalaya). In addition, you need to open a bank account if you don’t have it already.

Rajaswa (Government Charge for Registration process of Banijya Bibhag) [as of 06/09/2022]

Investment Slab (NRS)Banijya Rajaswa (NRS)
0 – 1,00,0001,100
1,00,000 – 3,00,0003,100
3,00,001 – 5,00,0006,100
5,00,001 – 20,00,00012,100
20,00,001 – 1,00,00,00020,100
1,00,00,001 – 5,00,00,00030,100
5,00,00,001 – Above50,100
Banijya Bibhag Registration Fees

No more than one private firm related to the same or similar objectives can be registered in the same person’s name. If you need a business with multiple objectives, you need to register a Private Limited or a Public Limited company instead.

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