How to start a construction company in Nepal?

 
Construction Company Certificate

Registration of D-Class firms in Nepal basically involves three major phases.

  1. Registration in the Office of the Company Registrar (OCR)
  2. Registration in the Inland Revenue Department (IRD) for VAT/PAN
  3. Construction License from Rural-Municipality/Municipality/Sub-Metropolitan/Metropolitan.

Office of Company Registrar (OCR)

The very first step in the registration of a construction firm begins with registration in the office of Company Registrar Tripureshwor Kathmandu. To begin with, you need to propose the unique name of the company, which gets verified within a day or two. You then have to place an application for the registration of the firm with an approved name and a Memorandom of Association (MoA) and Article of Association (AoA) (i.e., Prabanda Patra and Niyamawoli) in the given format. In the very documents, you need to specify the working capital of the company, the work area, and the scope of the company, along with details about shareholders. The shareholders can range from a minimum of 1 person to a maximum of 50 people. The Office of Company Registrar issues a company registration certificate after depositing the revenue or charge. The revenue amount varies with the working capital sum. The charge is around Rs. seven thousand. You can execute the registration process either by being physically present in the OCR office in Tripueshwor or from the OCR website, https://application.ocr.gov.np/faces/OnlineUserLogin.jsp. Once the entire registration process is complete, you need to show the bank statement of the company equivalent to working capital as mentioned in the MoA and AoA in any commercial bank to inform the start-up operation of the company on the OCR website.

Inland Revenue Department (IRD) 

After successful registration process from OCR you then have to approach for VAT/PAN certificate from IRD office. The IRD office has branches in different districts in Nepal. You can apply for the one that is accessible to you with the following documents:.

  1. Valid land ownership certificate (lal purja) and revenue receipts from the corresponding ward office (Tiro tireko rasid) or lease agreement with the owner of the office location.
  2. Citizenship of the shareholders of the company.
  3. Company registration certificate from OCR 

The entire process is free; the only payment you need to make is while you buy, sell, and purchase a book (Kharid/Bikri khata), which costs around Rs. 200.

Construction license from the municipality

This is the final step in the registration process. You can get the construction license from the respective rural municipality/municipality/sub-metropolitan/metropolitan upon submission of the respected required documents as specified by the municipality. The minimum criteria and charge may differ slightly as per municipality rules. Along with the application on the letterhead of the company and the citizenship of shareholders, you need to attach the following basic documents:.

Staff and office requirements

  • The appointment of at least one civil engineer or overseer for the company, along with his or her academic certificate.
  • The appointment of at least one accountant for the company who has completed a bachelor degree in management or commerce and a respected academic certificate.
  • The appointment of at least one office management officer who has completed +2 level and his or her respected academic certificate. 
  • Valid land ownership certificate (lal purja) and revenue receipts from the corresponding ward office (Tiro tireko rasid) or lease agreement with the owner of the office location.
 

Equipment Requirement

  • level machine 
  • Concrete Vibration Machine
  • Concrete Mixture Machine
  • Water Pump
  • Tipper/Tractor or lease agreement of the machine
You need to submit a VAT bill and third-party insurance papers for all the above-mentioned equipment. Also, the working equipment will be inspected and verified by a mechanical engineer. The total revenue you need to pay may vary according to the norms of the municipality. It's normally around Rs. five thousand. 
 

Others.

In some cases, you might be asked to be registered in the office of small and cottage industries (Gharelu Tatha Sana Udhyogh Karyalaya). The essential documents you need to place are the same as those for a license from the municipality. The total revenue you need to make is around Rs. five thousand. 

There are also many operational consulting law firms that can assist you with the documentation and registration processes. Their charge may differ depending on the service you take from them.

 



 

 


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