Sole trading concerns are registered under private firm registration act 2014.
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 owner including father’s and grandfather’s name.
- Other particular things.
Rs. 5 and attached citizenship are required.
2. Deposit registration fee:
Registration fee may or may not be deposited in the Nepal Rastra Bank. Voucher is needed for the deposit of registration fee. It should be enclosed in application form.
|Capital||Registration fee||Renewal fee||Registration fee|
|Up to 1,00,000||Rs 700||Rs 100||Rs 700|
|From 1,00,001 to 3,00,000||Rs 2100||Rs 125||Rs 2100|
|From 3,00,001 to 5,00,000||Rs 4100||Rs 150||Rs 4100|
|From 5,00,001 to 10,00,000||Rs 7600||Rs 200||Registration fee|
|Up to 10.00,001 to 50,00,000||Rs 10100||Rs 250||Rs 700|
|Above 50,00.000||Rs 15100||Rs 300||Rs 2100|
3. Receiving the certificate of registration
Concerned department receive the application. Then an authorized officer will examine. It satisfied then the form is approved and 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 sole trading concern 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 it is not registered and renewed then fee is charged. If same crime is done for 3 times, additional rs 10 is to be paid. If it is committed again then sole trading concern is closed and no any concern can be established under his name.