The first step towards legal recognition, credibility, and growth in Nepal is to register your enterprise. Have you heard about Department of Commerce (Banijya Bibhag) in Nepal? If so, we are going to guide you through the process of registration of firm in the department of commerce (Banijya Bibhag) If you're planning to operate as a firm, particularly in the trading sector, registering with the Department of Commerce (DoC) is an important legal requirement. This guide walks you through everything you need to know about firm registration in the Department of Commerce in Nepal.
Overview of Firm Registration in the Department of Commerce, Nepal
What Is the Role of the Department of Commerce in Nepal?
The Department of Commerce is a government body under the Ministry of Industry, Commerce, and Supplies. It regulates and facilitates trade-related activities including the registration of trading firms, licensing, and market supervision.
Why Register Your Firm with the Department of Commerce?
Firm registration is mandatory for businesses involved in wholesale, retail, export, or import. It enables firms to operate legally, apply for trade licenses, and qualify for PAN/VAT registration.
Eligibility Criteria for Firm Registration
Who Can Register a Firm in Nepal?
Any Nepali citizen above 18 years of age can register a sole proprietorship or partnership firm. Foreign nationals may register under specific conditions with approval from the concerned ministry.
Types of Firms Eligible for Registration
- Sole Proprietorship Firms
- Partnership Firms
- Joint Ventures (with approval)
- Trading Firms involved in import/export
Required Documents for Firm Registration in the Department of Commerce
Citizenship and Identity Documents
- Copy of the citizenship certificate of the owner or partners
- Passport (for foreign applicants with proper approval)
- National Identity Card is a must nowadays
Application Form and Firm Name Approval
- Duly filled application form from the Department of Commerce
- Pre-approval or clearance for the proposed firm name
Rental Agreement or Ownership Proof of Office Address
- Office space rental agreement or land ownership certificate as proof of a business address
Partnership Agreement (for Partnership Firms)
- A notarized copy of the partnership agreement including profit-sharing ratios and partner roles
Passport-Sized Photos of Proprietors/Partners
- Two recent passport-sized photographs
Step-by-Step Process of Registering a Firm in the Department of Commerce
Step 1: Name Reservation and Pre-Approval
Visit the online system to check and reserve a unique business name.
Step 2: Document Preparation and Verification
Gather and verify all required documents, ensuring they are updated, signed, and notarized if needed.
Step 3: Application Submission at the Department of Commerce
Submit your application along with the complete document set to the registration section of DoC.
Step 4: Payment of Registration Fees
Pay the applicable fees depending on your business type and capital investment.
Step 5: Receiving the Firm Registration Certificate
After verification, you will receive your official firm registration certificate from the Department of Commerce.
Fees and Timeline for Firm Registration
Registration Fee Structure by Business Category
The registration fees for registration as per the capital are as under:
Investment Slab (NRs) Banijya Rajaswa
0 – 1,00,000 Rs 1,100
1,00,001– 3,00,000 Rs 3,100
3,00,001 – 5,00,000 Rs 6,100
5,00,001 – 20,00,000 Rs 12,100
20,00,001 – 1,00,00,000 Rs 20,100
1,00,00,001 – 5,00,00,000 Rs 30,100
5,00,00,001 – Above Rs 50,100
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Expected Processing Time
If all documents are in order, the registration process usually takes 3–7 working days.
Post-Registration Compliance and Legal Obligations
PAN/VAT Registration with Inland Revenue Department
Once registered, your next step is to obtain a Permanent Account Number (PAN) or VAT number from the IRD.
Trade License and Local Authority Approvals
You may need additional municipal approvals or trade licenses depending on your business location and activity.
Annual Renewal and Reporting Requirements
Firms must renew their registration annually at the Department of Commerce and update any changes in address, ownership, or capital.
Benefits of Registering a Firm with the Department of Commerce
Legal Recognition and Business Credibility
Registered firms enjoy legal protection and can operate transparently in the eyes of customers and the government.
Access to Government Tenders and Business Opportunities
Only registered firms can apply for public procurement tenders, licenses, and funding programs.
Eligibility for Import-Export Registration
With firm registration, you can apply for an Import Export Code (EXIM Code) from the Department of Customs.
Common Challenges and How to Overcome Them
Incomplete Documentation
Many applications are delayed or rejected due to missing or incorrect documents. Double-check everything before submission.
Firm Name Rejection and How to Avoid It
Use unique, non-conflicting names. Avoid using restricted or misleading terms.
Dealing with Delays in Approval
Track your application regularly and follow up with the concerned section of the DoC if there is a delay.
Frequently Asked Questions (FAQs)
Can a Foreign National Register a Firm in the Department of Commerce?
Yes, but it requires approval from the Department of Industry and Ministry of Industry, Commerce, and Supplies.
Is Online Firm Registration Available in Nepal?
As of now, the process is largely online, but you should visit the office for verification purpose.
How to Modify or Update Firm Details After Registration?
You can apply for changes (address, owner, capital) by submitting a written request along with supporting documents to the DoC.
Conclusion
Registering a firm with the Department of Commerce in Nepal is a crucial legal step for starting a trading or business activity. With the right preparation, documents, and guidance, the process is smooth and efficient. It opens the door to formal business opportunities, banking, government tenders, and long-term growth.
If you’re a entrepreneur looking to register your business or need guidance at any step, Estartup Nepal is here to help. From paperwork to policy advice, we make the process simple, stress-free, and fully compliant. Have questions or facing any issues? Feel free to reach out—our team is always ready to support you.