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Starting a Construction Company or Engineering Agency in Nepal

Table of Contents

Full guide on construction company registration in Nepal | Things you need to consider before Engineering Consultancy registration

Construction and Engineering is one of the fastest-growing and high paying industries in Nepal. Investment in the construction and engineering sector is considered relatively challenging due to the unclear policies of the government and the hijacking of the market by a few big companies. However, things are getting better with more educated and capable individuals entering this sector. The pace of urbanization and investment in development activities has attracted lots of entrepreneurs to operate and invest in the construction Industry. So you might be one of them who one to start a construction company or engineering agency in Nepal and wondering about the registration process.

What do you need to start a construction company in Nepal? Where should you register a construction company or Engineering consultancy? What are the procedures for getting a license to operate take part in open tenders? What are the different types of licenses in construction?

In this article, we will answer those and other common questions and queries you might have before starting a construction or engineering agency in Nepal.

Steps for starting a construction company or Engineering consultancy in Nepal:

  1. Register a company at OCR (view full process of company registration)
  2. Obtain VAT certificate for Inland Revenue Department (IRD). Note: For a construction company, it is compulsory to be registered in VAT
  3. Registered in your ward office (woda karyalaya).   Note: After registering in OCR and IRD, you need to register in your ward office (same as your office address) by paying a fee of Nrs 10,000 (as of 22/02/2076)
  4. Apply for a licence (D class). It generally takes 30 working days to obtain the licence.

Difference between the construction company and Engineering Consultancy | Process to get License for a construction company

Construction company generally deals with the construction of buildings, infrastructure or any physical structure while engineering consultancy mainly provides engineering-related services and expertise to the construction companies and projects. However, by including construction-related objectives while registering the company, engineering companies can also apply to do construction-related activities.

If you need assistance in registering/managing construction company in Nepal, Bizsewa is always happy to guide and consult you. We will apply, prepare, upload, submit and followup your documents on your behalf. Also, you will get FREE consultation about the details to include in your documents so that you can have the strongest documents to back up your business.

Contractor License process in Nepal

After registering the company, you need to apply for “D” class contractors license in order to carry out bigger construction projects. Currently (2020 AD), various municipalities and local authorities have different rules regarding the contractor’s license. Mostly the difference is regarding the required equipment. However, for most of the authorities(Gaupalika/Nagar Palika), you need to submit the ownership documents (VAT bill) of basic construction equipment like a level machine, vibrator and mixer. Many authorities have made the possession of tractor mandatory for contractors as well.

Also, our deep understanding of the Construction industry and its regulations will be an added asset for your business. Apart from legal and statutory stuff, we also provide proposal writing, inbound marketing, outbound marketing, formulation of bidding strategies, marketing campaigns and other business and operation related activities to the construction industry and engineering realm.

Documents required to obtain a Construction Contractor License in Nepal.

  1. Company Registration documents (AOA, MOA, Certificate)
  2. VAT Registration Certificate
  3. Woda Registration Certificate
  4. Tax Clearance certificate
  5. VAT bills of these equipments/machines (this is different for different local level. Some local bodies will require you to own/lease tractor/tripper as well)),:
  • Level machine
  • Vibrator machine
  • Water pump
  1. Insurance papers of the machines
  2. Photographs of machines with your company name written clearly.
  3. Verification of machines by registered Mechanical engineer
  4. Academic certificate of one of the shareholders/ proprietors
  5. Recently snapped PP sized photographs
  6. Citizenship certificates of the shareholders/proprietors
  7. Minutes of the company on a decision to obtain a license
  8. Application to obtain the license

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