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Forms of Business Registration Sec 1 2
Forms of Business Registration Sec 1 2
Session-1
Nature of Business
Capital requirement for Business
Number of investors in Business
Legal Compulsion
Bases to differentiate among
Business
Institutional Status- Separate Legal entity or not
Promoter Governmental or Private
Limited Liability
Legal Compulsion
Process of Registration
Require Documents
Number of Promoters, Transferable share,
Liquidation etc.
Session- 2
Incorporation / registration
Commencement of Business
What is Company ?
Company means:
• A Business Vehicle
• Association of a number of People for economic
purpose.
• Legal person: Created and dissolved through legal
process.
• Generally endowed with the benefit of Limited
Liability.
Contd:
But (Exceptions)...
Basis of Classification:
• Objective: Investment Return Motive or Not ? : e.g. public
company/private company and company not distributing
profit
• Mode of Capital Raising: public or private ?
• Number of Shareholder: Public company, private company
or company not distributing profit
• Country of Incorporation: Foreign Company and Non-
foreign company
• Investor: government or private?:
• Mode of Control: Holding Company and Subsidiary
company
Contd...
• Number of Promoters
• Incorporation Documents
• Private Firm
• Partnership Firm
Number of Promoters
• Note that
• Name of the proposed company should not be identical
or similar to other existing company.
• Industrial Enterprises Act, 2020 (2076 BS) (the "Act") has been
introduced repealing the Industrial Enterprises Act, 2016 (2073 BS)
(the "Previous Act"). The Act has been authenticated by the President
on February 11, 2020 (2076/10/28). The Act is in effect since the date
of authentication.
• The Act is a principal legislation for registration, establishment and
pre/post operational compliances of industry.
• No person (either natural or legal) is permitted to operate its business
without establishing industry under this Act.
• Company registered under the Companies Act at the Office of
Company Registrar (the “OCR”) is not allowed to operate business
transaction without registering its industry under the Act.
• Department of Industry: Company acting as agent under the Nepal
Agency Act, 2014 only
• Registering with the Local Bodies
PAN registration for income Tax: Every company is
required to be registered.