Step by Step Industry Registration Procedure in Nepal

Overview of the Registration Procedure

The industry registration process in Nepal involves multiple steps, starting from document preparation to the issuance of a registration certificate. The process ensures legal recognition under the Industrial Enterprises Act, 2076. Industries must fulfill specific legal, procedural, and documentation requirements before beginning operations. Industry registration is handled by the Department of Industry (DOI) and relevant local authorities depending on the size and type of business.

Pre-Application Preparation Steps

Before applying for registration, applicants should:

  • Identify business goals and operational scope
  • Conduct feasibility studies
  • Prepare financial and technical documentation
  • Decide on business structure (sole proprietorship, partnership, company, etc.)

Preparation at this stage can reduce future delays in verification or approval. MedhaCorpLaw provides expert pre-application consulting to streamline this phase.

Choosing Industry Category and Type

Applicants must classify the business as per official categories:

  • Cottage Industry
  • Small Industry
  • Medium Industry
  • Large Industry

Industry type affects processing time, documentation, and fee structures. Industries involving foreign investment, high risk, or environmental concerns undergo additional scrutiny.

Obtaining Necessary Documents First

Essential documents include:

  • Citizenship or passport copy
  • Tax registration (PAN) certificate
  • Land ownership or lease agreement
  • Project proposal/feasibility report
  • Partnership deed or company registration (if applicable)
  • Environmental assessment (if needed)

Properly notarized and translated documents are mandatory where applicable.

Filling Out the Application Form

The application form is available from the DOI or its official portal. The form must include:

  • Applicant and business details
  • Industrial classification
  • Investment estimates
  • Employment projections

The application must be accurate and complete to avoid future rejection or queries.

Submitting Form to Correct Authority

Applicants must submit the completed application to:

  • Department of Industry (for medium/large industries)
  • Cottage and Small Industry Offices (for small/cottage industries)

Online or physical submission options are available depending on the jurisdiction. Submission at the correct authority ensures faster evaluation.

Government Verification of Submission

Upon submission, the concerned authority:

  • Verifies completeness of documents
  • Cross-checks project feasibility
  • Confirms ownership and authenticity

If any deficiencies are found, clarification is requested within a specific period. The verification process typically takes 5 to 10 working days.

Field Inspection (if applicable)

For medium and large industries, a site inspection may be conducted. This step verifies:

  • Site readiness
  • Environmental compliance
  • Infrastructure and land documentation

Inspection may be waived for virtual or service-based businesses. Inspectors prepare a report for final registration decision.

Receiving Registration Certificate

Upon successful verification, the Department of Industry issues the registration certificate. This document legally recognizes the business and includes:

  • Industry name
  • Registration number
  • Date of registration
  • Authorized activities

The certificate is typically issued within 15 working days of submission.

PAN and Tax Registration Follow-Up

After receiving the registration certificate, industries must:

  • Register with the Inland Revenue Department
  • Obtain a Permanent Account Number (PAN)
  • Apply for VAT (if applicable)

Tax registration is mandatory for financial compliance and future transactions.

Industry Classification and Listing

Industries are classified and listed in the official industry database maintained by the Department of Industry. This listing:

  • Enables government tracking
  • Helps in eligibility for subsidies and incentives
  • Facilitates foreign investment tracking

MedhaCorpLaw assists in verifying classification accuracy.

Final Legal Compliance Checks

Post-registration, businesses must fulfill legal obligations, including:

  • Labor registration
  • Social Security Fund enrollment
  • Renewal of environmental clearances
  • Municipal registration (if required)

These steps ensure full legal compliance before operations begin.

Online Registration Portal Guide

The official DOI portal allows:

  • Application form download
  • Document submission
  • Tracking application status
  • Receiving digital certificates

Applicants must create an account and follow the system-generated instructions. MedhaCorpLaw helps clients with all aspects of online filing.

Reapplication in Case of Rejection

If an application is rejected due to:

  • Incomplete documents
  • Misinformation
  • Environmental clearance denial

Applicants can reapply after addressing the issues. Reapplication must follow the same steps as the original submission with improved accuracy.

Support Services for Each Step

MedhaCorpLaw offers complete legal and procedural assistance, including:

  • Documentation support
  • Application drafting
  • Submission and liaison with government offices
  • Post-registration legal services

Professional support ensures higher success rates and minimal delays.

 

FAQs

 

What is the first registration step?

Document preparation and classification of the industry type are the first steps before application.

Where do I submit my form?

Forms must be submitted to the Department of Industry or relevant local offices depending on the industry size.

Is physical presence required?

Not always. Online filing reduces the need for physical presence in many cases.

What happens after submission?

Authorities verify documents, may conduct inspections, and issue a registration certificate if all is in order.

When do I get the certificate?

Usually within 15 working days after complete submission.

Can I skip any steps?

No, skipping steps may lead to rejection or penalties.

What if documents are missing?

You will be asked to resubmit or clarify missing or incorrect documents.

How do I correct application errors?

You can correct errors before submission or during clarification requests by the authority.

Is reapplication possible?

Yes, reapplication is allowed after correcting deficiencies from the previous attempt.

Do I need tax registration too?

Yes, PAN and VAT registration are mandatory after receiving the industry registration certificate.

 

 

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