&nbsp;Starting a business in Nepal is a rigorous journey. Understanding the registration process is important if you're considering a Private Firm. But don't worry! If you're planning an open business and want to keep things simple by operating under your name, without any complicated partnerships or setups, this blog is for you.&nbsp; But if you are willing to operate your business by registering a company then you can read our blog on <a href="https://www.biznestbazaar.com/blog/company-registration-process-in-nepal">company registration process</a>. It will guide you through the registration process.&nbsp;&nbsp;Before digging into the registration process it is important to know the meaning of Private Firm, and Governing Law.&nbsp;&nbsp;<h2>What is a Private Firm?</h2><h2>&nbsp;</h2>In Nepal, sole proprietorships are referred to as <a href="https://www.biznestbazaar.com/blog/how-to-register-a-trading-business-private-firm-in-nepal">private firms</a>. A sole propriewtorship is a business fully owned and managed by a single person. A person who owns such a type of business is known as a proprietor. It is the simplest business structure to run a business.&nbsp; A sole proprietorship is not a Limited Liability Company or entity with a separate legal entity from the owner. Business owner or proprietor had to pay business debts with his or her own money.&nbsp;&nbsp;&nbsp;A private firm that is based on traditional skills and technologies, labor-intensive, based on specific skills or local raw materials, local technologies, arts, and culture, and uses an engine, equipment, or machine that consumes up to fifty kilowatts of electrical energy are register in <a href="https://dcsi.gov.np/en">Department of Cottage and Small Industry</a>.&nbsp;&nbsp;<h3>Governing law for the registration of Private Firms in the Department of Cottage and Small Industry</h3>&nbsp;<ul><li>Private Firm Registration Act, 2014 B.S&nbsp; &nbsp;</li><li>Private Firm Registration Regulation, 2034 B.S &nbsp;</li><li>Industrial Enterprise Act, 2076 B.S.&nbsp; &nbsp;</li><li>Industrial Enterprise Regulation, 2078 B.S.&nbsp; &nbsp;</li><li>Province Law&nbsp;</li></ul><h3>&nbsp;</h3><h3>&nbsp;Governing Authority&nbsp;</h3><ul><li>Office of Cottage and Small Industry (Nepali: घरेलु तथा साना उद्योग कार्यलय)&nbsp; &nbsp;</li><li>List of Cottage and Small Industry are as follow:&nbsp;</li></ul> Office of Cottage and Small Industry, Jhapa &nbsp;Office of Cottage and Small Industry, Morang &nbsp;Office of Cottage and Small Industry, Sunsari &nbsp;Office of Cottage and Small Industry, Saptari &nbsp;Office of Cottage and Small Industry, Siraha &nbsp;Office of Cottage and Small Industry, Mahottari &nbsp;Office Of Cottage and Small Industry, Danusha &nbsp;Office Of Cottage and Small Industry, Sarlahi &nbsp;Office Of Industry and Commerce, Kathmandu &nbsp;Office Of Industry and Commerce, Lalitpur &nbsp;Office Of Industry and Commerce, Bhaktapur &nbsp;Office Of Industry and Commerce, Kavre &nbsp;Office Of Industry and Commerce, Makwanpur &nbsp;Office Of Cottage and Small Industry, Bara &nbsp;Office Of Cottage and Small Industry, Parsa &nbsp;Office Of Industry and Commerce, Chitwan &nbsp;Office Of Cottage and Small Industry, Rautahat &nbsp;Office Of Cottage and Small Industry, Nawalparasi &nbsp;Office Of Cottage and Small Industry, Kapilvastu &nbsp;Office Of Cottage and Small Industry, Rupandehi &nbsp;Office Of Cottage and Small Industry, Kaski &nbsp;Office Of Cottage and Small Industry, Palpa &nbsp;Office Of Cottage and Small Industry, Dang &nbsp;Office Of Cottage and Small Industry, Banke &nbsp;Office Of Cottage and Small Industry, Bardiya &nbsp;Office Of Cottage and Small Industry, Kailali &nbsp;Office Of Cottage and Small Industry, Kanchanpur &nbsp;<ul><li>Local Government (स्थानीय तह) (If the capital is less than 5 Lakh in the case of Bagmati province)&nbsp; &nbsp;</li></ul><h2>Process of Registration of Manufacturing and Service Business in the Office of Cottage and Small Industry&nbsp;</h2>&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/Registration_Process.png"></figure><h3>&nbsp;</h3><h3>What document is required to register your business in the Department of Cottage and Small Industries?</h3>&nbsp;List of Documents required to register business in the department of cottage and small industry:&nbsp;&nbsp;<ul><li>Application Form (Nepali: उद्योग दर्ता “ख” फाराम) &nbsp;</li><li>Passport-sized photos &nbsp;</li><li>Copies of Citizenship of the Proprietor and House Owner &nbsp;</li><li>Rent Agreement /Copy of Land Ownership Certificate&nbsp;(लालपूर्जा) &nbsp;</li><li>Electricity or Water Bill &nbsp;</li><li>Approval/Recommendation from the regulatory body according to the nature of industries (tourism, forestry, health, food) &nbsp;</li><li>Local site inspection (स्थानीय सर्जमिन मुचुल्का) and local level recommendation (स्थानीय तहको सिफारिस) for the business related to furniture and wood sawing, animal husbandry, plastic, dairy, workshop, mill, leather shoes, waste processing, soap, etc.) &nbsp;</li><li>Certificate of qualification for technical personnel&nbsp;&nbsp; &nbsp;</li><li>Letter of approval from the Nepal Rastra Bank for a firm engaged in money management business. &nbsp;</li><li>Recommendation letter or permission letter from the Department of Drug Administration for a firm engaged in pharmaceutical business. &nbsp;</li><li>IEE/EIA Report if deemed necessary.&nbsp; &nbsp;</li></ul><h3>What is the registration fee to register a business in the Department of Cottage and Small Industries?&nbsp;</h3>&nbsp;Registration fees depend on the provisional law of the concerned province.&nbsp;&nbsp;<h4>Registration Fee for Bagmati Province is&nbsp;&nbsp;</h4>&nbsp;<figure class="table"><table><tbody><tr><td>Capital (NRP)</td><td>Fee (NRP)</td></tr><tr><td>More than 5 Lakh to 20 lakh</td><td>12,000</td></tr><tr><td>More than 20 Lakh to 50 Lakh</td><td>20,000</td></tr><tr><td>More than 50 Lakh to 1 crore</td><td>28,000</td></tr><tr><td>More than 1 crore to 3 crore</td><td>36,000</td></tr><tr><td>More than 3 Crore to 5 crore</td><td>44,000</td></tr><tr><td>More than 5 Crore to 10 Crore</td><td>52,000</td></tr></tbody></table></figure>&nbsp;In the case of women, people with disabilities, and people who belong to Dalit or endangered communities, there will be a 50% discount on the registration fees.&nbsp;&nbsp;<h4>Registration Fee for Lumbini provience is&nbsp;</h4>&nbsp;<figure class="table"><table><tbody><tr><td>Capital (NRP)&nbsp; &nbsp; &nbsp;</td><td>Fee (NRP)&nbsp;</td></tr><tr><td>Up to 5 lakh</td><td>1,000</td></tr><tr><td>More than 5 Lakh to 20 lakh &nbsp; &nbsp;</td><td>5,000</td></tr><tr><td>More than 20 Lakh to 50 Lakh &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</td><td>15,000</td></tr><tr><td>More than 50 Lakh&nbsp;</td><td>25,000</td></tr></tbody></table></figure>&nbsp;In the case of women, people with disabilities, and people who belong to Dalit or endangered communities, there will be a 50% discount on the registration fees.&nbsp;&nbsp;<h4>Registration Fee for Karnali Province&nbsp;</h4>&nbsp;<figure class="table"><table><tbody><tr><td>Capital (NRP)&nbsp; &nbsp; &nbsp;</td><td>Fee (NRP)</td></tr><tr><td>Up to 5 lakh</td><td>500</td></tr><tr><td>More than 5 Lakh to 10 lakh &nbsp; &nbsp;</td><td>1,000</td></tr><tr><td>More than 10 Lakh to 25 Lakh &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</td><td>5,000</td></tr><tr><td>More than 25 Lakh to 1 Crore</td><td>10,000</td></tr><tr><td>More than 1 Crore to 5 Crore</td><td>12,000</td></tr><tr><td>More than 5 Crore to 10 Crore</td><td>17,000</td></tr><tr><td>Above 10 Crore</td><td>25,000</td></tr></tbody></table></figure>&nbsp;<h4>Registration Fee for Koshi Province&nbsp;</h4>&nbsp;<figure class="table"><table><tbody><tr><td>Capital (NRP)</td><td>Fee (NRP)</td></tr><tr><td>Up to 5 Lakh &nbsp;</td><td>2,000</td></tr><tr><td>More than 5 Lakh to 20 lakh</td><td>4,000 &nbsp;</td></tr><tr><td>More than 20 Lakh to 50 Lakh&nbsp; &nbsp; &nbsp;</td><td>7,000 &nbsp;</td></tr><tr><td>More than 50 Lakh to 1 Crore</td><td>15,000</td></tr><tr><td>More than 1 Crore to 5 Crore</td><td>25,000 &nbsp;</td></tr><tr><td>More than 5 Crore to 10 Crore</td><td>60,000</td></tr><tr><td>Above 10 Crore</td><td>&nbsp;</td></tr></tbody></table></figure>&nbsp;Registration Fee For Gandaki Province&nbsp;&nbsp;<figure class="table"><table><tbody><tr><td>Capital (NRP)</td><td>Fee (NRP)</td></tr><tr><td>Up to 10 Lakh</td><td>1,000</td></tr><tr><td>More than 10 Lakh to up to 50 Lakh</td><td>5,000</td></tr><tr><td>More than 50 Lakh up to 1 Crore</td><td>10,000</td></tr><tr><td>More than 1 crore to 10 Crore</td><td>50,000</td></tr><tr><td>More than 10 Crore</td><td>75,000&nbsp;</td></tr></tbody></table></figure>&nbsp;For women, people with disabilities, and people who belong to Dalit or endangered communities, get a 50% discount on the registration fees.&nbsp;<h4>Registration Fee for Sudurpaschim&nbsp;</h4>&nbsp;<figure class="table"><table><tbody><tr><td>Capital ( NRP)</td><td>Fee (NRP)</td></tr><tr><td>Up to 10 Lakh</td><td>4,000</td></tr><tr><td>More than 10 Lakh up to 50 Lakh</td><td>10,000&nbsp;</td></tr><tr><td>More than 50 Lakh up to 1 Crore</td><td>20,000&nbsp;</td></tr><tr><td>More than 1 Crore to 5 Crore</td><td>50,000</td></tr><tr><td>More than 5 Crore to 10 Crore</td><td>60,000&nbsp;</td></tr><tr><td>More than 10 Crore</td><td>70,000</td></tr></tbody></table></figure><h4>&nbsp;</h4><h4>Registration Fee for Madhesh Pradesh&nbsp;</h4>&nbsp;For women, individuals from the dalit community, and marginalized groups, the registration fee with a capital up to 1 Crore is Rs 100. Additionally, a 50 % discount to register a firm capital exceeds 1 Crore up to 5 crore.&nbsp;&nbsp;<figure class="table"><table><tbody><tr><td>Capital ( NRP)</td><td>Fee (NRP)</td></tr><tr><td>Up to 1 Lakh</td><td>1,000</td></tr><tr><td>More than 1 Lakh up to 3 Lakh</td><td>3,000&nbsp;</td></tr><tr><td>More than 3 Lakh up to 5 Lakh</td><td>6,000&nbsp;</td></tr><tr><td>More than 5 Lakh to 20 Lakh</td><td>12,000</td></tr><tr><td>More than 20 Lakh to 1 Crore</td><td>20,000&nbsp;</td></tr><tr><td>More than 1 Crore up to 5 Crore</td><td>30,000</td></tr><tr><td>More than 5 Crore</td><td>50,000</td></tr></tbody></table></figure>&nbsp;<h3>What documents are required to register a business in the ward?&nbsp;</h3>&nbsp;<ul><li>Registration Form- Available at the ward office &nbsp;</li><li>Rent Agreement &nbsp;</li><li>Citizenship Land Owner &nbsp;</li><li>Copies of Land-Owning Certificate &nbsp;</li><li>Property Tax paid Receipt &nbsp;</li><li>Passport- Size photographs&nbsp; &nbsp;</li><li>Copies of land-owning certificate.&nbsp; &nbsp;</li><li>Photo&nbsp; &nbsp;</li><li>Copies of citizenship of proprietor and house owner &nbsp;</li><li>Certificate of Registration &nbsp;</li><li>Any additional documents or forms as required by the ward office or regulatory authorities &nbsp;</li></ul><h3>What documents are required for the PAN Registration ?&nbsp;</h3>&nbsp;<ol><li>PAN Application Form &nbsp;</li><li>Copies of Citizenship &nbsp;</li><li>Rent Agreement&nbsp; &nbsp;</li><li>Business Seal&nbsp; &nbsp;</li><li>Business Registration Certificate at the local level.</li></ol>&nbsp;<h2>Frequently Asked Question&nbsp;</h2>&nbsp;Is it necessary to renew private firms?&nbsp;&nbsp;Yes, it is necessary to renew private firms. Initially renew after 5 years of Registration and then every 2 years private firms need to renew.&nbsp;&nbsp;What are the documents required to renew private firms?&nbsp;&nbsp;The required documents are:&nbsp;&nbsp;<ul><li>Renewal application form&nbsp; &nbsp;</li><li>Self-declaration form if the firm exceeds 5 Years.&nbsp; &nbsp;</li><li>Firm Registration certificate&nbsp; &nbsp;</li><li>Tax Paid Receipt &nbsp;</li><li>Tax clearance certificate&nbsp;</li></ul>&nbsp;Is the proprietor required to be physically present during the registration of the Private Firm?&nbsp;&nbsp;Yes, the physical presence of the proprietor is necessary during the registration process.&nbsp;Can I Change the Objective of a private firm?&nbsp;Yes, you can change your objective of the firm by paying the prescribed fee in the department.&nbsp;Is it possible to change the name of a private firm after its registration?&nbsp;Yes, the private firm name can be changed after registration. You need to submit an application, accompanied by the tax-paid receipt and the original certificate of registration. However, the firm's registration must be renewed.&nbsp;How long does it take to register a private firm in Nepal?&nbsp;It can take around five days. However, the duration for registering a private firm depends on factors like document completeness and office workload.&nbsp;&nbsp;What steps should be taken if the registration certificate is misplaced or damaged?&nbsp;You can apply for a copy (प्रतिलिपि) if the registration certificate is misplaced or damaged. The following documents need to be submitted:&nbsp;&nbsp;<ul><li>Application&nbsp; &nbsp;</li><li>Document explaining the reason for applying &nbsp;</li><li>Citizenship&nbsp;</li></ul>&nbsp;The proprietor needs to be present physically in the office. Along with application and document you also need to pay a fee to apply for a copy registration certificate.&nbsp;Disclaimer: The information provided here is for informational purposes only and should not be considered as legal advice. Please consult with a qualified legal expert for professional legal opinions. You can also consult with <a href="https://www.biznestbazaar.com/hire-professional">our professionals</a> for further assistance.&nbsp;

How to register a Private Firm in the Department of Cottage and Small Industry in Nepal?

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