Registration and renewal of partnership firm in Nepal

Partnership concerns are registered under partnership act 2020.

Procedures of registration

1. Apply for registration.

Application form is needed to be filled up and apply for registration. The application must include the following things

• Name of firm
• Address of the firm
• Objective of the firm
• Name and address of partners and address of the partners
• Type of partnership
• Amount of capital invested by each partner
• Method of sharing profit and loss
• Duration of business.
• Other particular things.: necessary documents, registration fees, copy of citizenship

2. Deposit registration fee

Registration fee should be deposited in the Nepal Rastra Bank. Voucher is needed for the deposit of registration fee. It should be enclosed in application form. If the firm is commercial then recommendation letter from Nepal chamber of commerce is required.

3. Receiving the certificate of registration

Concerned department receive the application. Than an authorized officer will examine. It satisfied then the form is approved and “certificate of registration” is issued and then legal business can be operated.

Procedure of renewal

The entire registered firm should be renewed each year within 35 days of time period. He should fill application for renewal with renewal fee to the concerned department. This amount is dependent upon the capital invested.

Effect of non-registration and non renewal

If the partnership firm is operated without registration and renewal then it is considered illegal. It can’t get loan from any financial institution. This department will charge from rs 5 to rs 50 as fee. The effect of non-registration and non renewal is if he is not registered and renewed then fee is charged. If same crime is done for 3 times, additional rs 10 are to be paid. If it is committed gain then partnership firm is closed and no any concern can be established under any partners’ name.