Understanding Commerce Registration Process in Nepal
Commerce registration in Nepal, commonly known as Banijya Darta, is the official process through which individuals or businesses register their commercial ventures with government authorities. These authorities include the Department of Commerce, Supplies and Consumer Protection (DoCSCP), local ward offices, or municipal bodies—depending on the type and scale of the business.
This process legally recognizes a business and permits it to engage in commercial activities within Nepal. Medha Law and Partners Is a Leading Corporate Law Firm in Nepal.
Why Banijya Darta is Required by Law
Under the Partnership Act 2020 B.S. (1964 A.D.), registration is mandatory for anyone involved in trade, manufacturing, or service-based businesses. Without registration:
- You cannot apply for a PAN
- Business bank accounts cannot be opened
- Formal financial or legal transactions cannot be carried out
In short, unregistered businesses are not allowed to operate within Nepal’s legal economic framework.
Benefits of Commerce Registration
Registering your business offers several legal and practical advantages:
- You can open a business bank account
- You can apply for PAN/VAT with the Inland Revenue Department
- You become eligible for business licenses
- You can legally enter into contracts
- You can participate in government or private procurement processes
Moreover, registration ensures transparency, improves credibility, and helps in maintaining regulatory compliance.
Who Needs to Register?
Banijya Darta is required for the following types of businesses:
- Sole proprietorships (trade, services, consulting)
- Partnership firms (manufacturing, trading, e-commerce)
- Local shops, micro-enterprises, service centers
- Online businesses, including those on social media
- Branches of registered companies in new regions
Exemptions May Apply
Some entities might be exempt, such as:
- Non-profits registered under other laws
- Family-run micro businesses with low turnover (varies by region)
However, urban areas like Kathmandu or Pokhara often enforce stricter rules. Always verify with the local office.
Where to Register Your Business
Choose the correct authority based on your business location and scale:
- Ward Office – For local shops and small-scale services
- Municipality or Metropolitan Office – For mid-size to large urban businesses
- Department of Commerce (DoCSCP) – For wholesalers, importers/exporters
- District Administration Office (DAO) – For rural businesses
Confirm whether online application options are available in your area.
Step-by-Step Guide to Registering Your Business
1. Collect Required Documents
- Citizenship certificate
- Two recent passport-size photographs
- Lease or land ownership documents
2. Fill Out the Application Form
- Obtainable from the authority or online (if available)
3. Submit the Application
- In person or online
4. Site Verification (if required)
- A local official may inspect the location
5. Pay the Government Fee
- Based on local rates
6. Receive Your Certificate
- Usually within 2–7 working days
Required Documents Checklist
You will typically need:
- Nepali Citizenship Certificate
- Two passport-sized photos
- Land ownership or rental agreement
- Completed registration form
- Tax clearance certificate (for renewals)
- Recommendation letter (if required by ward)
- Optional: PAN certificate copy
Ensure all documents are in Nepali or officially translated.
Commerce Registration Fees
Fees vary by office:
- Ward Office: NPR 500 – NPR 1,500
- Municipality: NPR 2,000 – NPR 5,000
- DoCSCP: NPR 5,000 and above
Renewal fees are usually similar. Additional charges may apply.
How Long Does It Take?
Average timeframes:
- Ward Office: 2–3 working days
- Municipality: 3–5 working days
- DoCSCP: 5–7 working days
Delays may occur due to document errors or verification issues.
Laws Governing Commerce Registration
The following laws regulate the process:
- Partnership Act 2020 B.S.
- Local Government Operation Act 2074 B.S.
- Consumer Protection Act 2075 B.S.
- Company Act 2063 B.S. (when transitioning to company registration)
Jurisdictions of Commerce Authorities
Each authority covers specific areas:
- Ward Office: Small-scale, local businesses
- Municipality: Urban and mid-size operations
- DAO: Rural and remote areas
- DoCSCP: National-scale businesses
Incorrect jurisdiction can cause delays.
Common Issues in the Banijya Darta Process
You may face:
- Rejection due to incomplete forms
- Delays from site verification
- Errors in business name or address
- Confusion over local rules
- Applying at the wrong office
To avoid these, consult local offices or legal experts before applying.
What Happens After Registration?
Once registered, you can:
- Register for PAN/VAT
- Open a business bank account
- Apply for loans
- Participate in procurement processes
- Apply for additional licenses
Some municipalities also offer grants, training, and digital listings.
Compliance Checklist
Stay compliant by:
- Displaying the registration certificate
- Renewing registration annually
- Updating changes in name or location
- Maintaining accurate documentation
Failure to comply may result in fines or closure.
Online vs Offline Registration: A Comparison
| Criteria | Online Registration | Offline Registration |
|---|---|---|
| Accessibility | Through municipal portals | Physical submission |
| Speed | Faster (when functional) | Slower due to manual steps |
| Document Submission | Upload online | Submit in person |
| Verification | System-based or virtual | Physical inspection |
| Availability | Limited areas only | Available nationwide |
How to Renew or Update Registration
Renewal Process:
- Submit old certificate with the renewal form
- Attach tax clearance proof
- Pay the renewal fee
- Receive updated certificate
Update Process:
- For changes in name, location, or business type, submit a modification request with supporting documents.
FAQs
What is Banijya Darta in Nepal?
Banijya Darta is the legal registration of a business, required for any profit-based activity.
Where do I register my business?
Depending on scale and location: ward office, municipality, DAO, or DoCSCP.
How long does registration take?
Typically 2–7 working days, depending on the authority.
What documents are required?
Citizenship, photos, lease or ownership paper, application form, and sometimes tax or PAN documents.
Is online registration available?
Yes, in select municipalities. Check local portals.
What are the government fees?
Between NPR 500 and NPR 5,000 depending on the office.
Who must register?
All individuals or entities involved in trade, services, or online commerce.
Can foreigners register?
Yes, with valid permits or in partnership with a Nepali citizen.
What happens after approval?
You get a certificate, which allows PAN registration, bank accounts, and licenses.
How to renew registration easily?
Visit the issuing office, submit the renewal form, and pay the fee annually.