Trading business registration process in Nepal typically involves the following steps:
- Choose a business name and ensure it is available for registration at OCR or DOC (we will talk about the differences later).
- Obtain any necessary licences or permits specific to the type of goods or services being traded from relevant departments.
- Register the business with the appropriate government agency, such as the Department of Commerce and Supply Management (बाणिज्य आपूर्ति तथा उपभोक्ता संरक्षण विभाग) or Office of The Company Registrar (कम्पनी रजिष्ट्रारको कार्यालय).
- Obtain any necessary tax identification numbers or register for taxes with the relevant tax authorities.
- Set up a business bank account.
- Comply with any additional regulations or requirements specific to the industry or location of the business.
- Obtain EXIM code from the Department of Customs (भन्सार विभाग) if you are planning to Import/Export goods.
How and where shall I register my Trading Business in Nepal?
Selecting a right business structure is one of the most important decisions you will have to make while starting a business. So, we advise you to talk to experts before deciding what structure to choose. For a general reference, here are a few suggested models for trading business registration in Nepal.
- For small businesses (Capital less than 5 lakhs): You can register at Ward office and tax office.
- Businesses that only do trading: You can register at Department of Commerce (as proprietor or partnership firm) and tax office
- Businesses that have various objectives: Register at OCR, DOC and tax office.
- Businesses that import/export goods frequently: Register at OCR, DOC and Department of Customs and obtain an EXIM code.
Please keep in mind that for trading certain goods, you might be required to obtain a permission from relevant licensing authority before registering at DOC or OCR. Some examples are:
- Trading Mobile Phones in Nepal: Permission required from Department of Information.
- Trading Gold: Permission form NRB
- Trading Medicines: Permission from Department of Drug Administration
Few tips for trading businesses
- Conduct thorough market research: Understand your target market, including their needs, preferences, and spending habits. Identify your competitors and learn from their strengths and weaknesses.
- Develop a business plan: A solid business plan will help you define your trading business goals and strategies, and secure funding if needed.
- Secure funding: Consider different options for funding such as personal savings, loans, or investors.
- Choose a niche: Specializing in a specific product or service can help you stand out in a crowded market. There are a lot of traders in Nepal so to withstand the fierce competition, picking a niche wisely will make your business succeed faster.
- Build a reliable supply chain: Develop relationships with suppliers and ensure that they can consistently provide the products you require at competitive prices.
- Establish a strong online presence: Create a website and social media accounts to promote your business and connect with customers. You can consider creating B2B ecommerce platform for selling your products to other businesses.
- Comply with legal and regulatory requirements: Understand and comply with all laws and regulations specific to your business and industry.
- Be prepared for challenges: Starting a trading business in Nepal can be challenging, so be prepared for setbacks and learn from them.
- Be patient and persistent: Building a successful business takes time and effort. It is necessary to be patient and persistent in your efforts to grow and improve your trading business.
- Continuously monitor and analyse your business performance: Keep track of your business performance by monitoring key indicators such as sales, profit, and customer satisfaction. Use the data to make informed decisions and adjust your strategy if needed.
