How to Start a Fish Farming Company in Nepal

Introduction to Fish Farming Business in Nepal

How to Start a Fish Farming Company in Nepal. Fish farming (aquaculture) in Nepal has become a growing commercial sector due to rising demand for local fish and government incentives. The fisheries sector contributes significantly to Nepal’s GDP under the agriculture category. According to the Department of Fisheries Development (DOFD), fish farming is practiced in more than 70 districts across Nepal.

Nepal’s climatic diversity and availability of freshwater resources make it suitable for various types of aquaculture, including pond, cage, and enclosure farming. However, to operate legally and avoid penalties, setting up a fish farming company requires registration, licensing, and compliance with government regulations and environmental standards. Medha Law and Partners Is a leading corporate law firm in Nepal.

Legal Requirements to Start Fish Farming Company

Starting a fish farming business in Nepal requires incorporation as per the Companies Act, 2063. The firm must also obtain specific approvals related to land use, water access, and fisheries operations from relevant agencies. The Aquaculture Development Plan (under Ministry of Agriculture and Livestock Development) outlines strategic objectives and the regulatory environment for the sector.

Some essential legal requirements include:

Registering the business as a private limited company at the Office of Company Registrar (OCR)
Acquiring a PAN from Inland Revenue Office
Applying for local-level approval for pond construction or land use
Getting aquaculture approval from Department of Fisheries Development
Complying with the Environment Protection Act, 2076 for medium or large-scale operations

Where to Register a Fish Farming Business

How to Start a Fish Farming Company in Nepal. Fish farming companies must be registered at the Office of the Company Registrar (OCR), under the Ministry of Industry, Commerce and Supplies. The registration process is centralized in Tripureshwor, Kathmandu, but available online through the OCR e-service portal (www.ocr.gov.np).

Other registrations include:

Local ward office for location-specific approval
Department of Small and Cottage Industries (optional)
Inland Revenue Department (IRD) for PAN and VAT

The chosen registration depends on the size, location, and scope of your aquaculture operations.

What Documents Are Needed to Get Started

You need to prepare several documents before initiating the registration process:

Proposed company name and its Nepali translation
Memorandum of Association (MOA) and Articles of Association (AOA)
Copies of citizenship certificates of shareholders
Signed application form for company registration
Passport-size photos of directors and shareholders
PAN registration application form
Lease or ownership documents of the land
Land use clearance or Lalpurja
Project proposal and layout plan (if required by DOFD)
Consent letter from local ward office (for site approval)

How Long Does Company Registration Take

How to Start a Fish Farming Company in Nepal. The company registration process at OCR typically takes between 3 to 7 working days, provided that all documents are complete and correct. PAN registration from the Inland Revenue Office generally requires 1 to 2 working days.

For the aquaculture license, processing time varies depending on location and project scale. It can range from 1 to 4 weeks, especially if site inspections or environment-related assessments are required.

Overall, setting up a fish farming company may take 2 to 4 weeks from initiation to final approval.

Cost Breakdown for Fish Farm Registration

Here is a general breakdown of the costs involved:

Company Registration Fee: NPR 1,000 to NPR 15,000 depending on authorized capital
PAN Registration: Free of charge
Aquaculture License Fee: NPR 1,000 to NPR 5,000 (varies by district)
Local Ward Office Approval: NPR 500 to NPR 2,000
Legal/Consultancy Fee: NPR 20,000 to NPR 30,000 (variable)

These costs are exclusive of operational investment such as pond construction, fish feed, and stock purchases.

Government Taxes and Fees You Must Pay

After registration, your company must comply with regular tax filings. The key tax obligations include:

Value Added Tax (VAT) (if applicable): 13%
Income Tax: As per Income Tax Act, 2058 – usually 20% for companies
Local Business Tax: Payable to respective municipality or rural municipality
Annual Renewal Fees: Payable at OCR and IRD
Employee Tax Withholding: If the company hires full-time staff

Failure to submit returns on time may lead to penalties under tax laws.

Required Licenses and Approvals for Operation

You will need the following licenses to legally operate a fish farming business:

Aquaculture Operation Approval from the Department of Fisheries
Environmental Clearance if land exceeds a certain size (as per Environment Protection Rules, 2077)
Water Use Consent from the local authority
Business Operation Permit from the municipality or rural municipality
VAT Certificate (if applicable)

These ensure the company is recognized as a compliant, regulated aquaculture entity under Nepali law.

What Laws Govern Fish Farming in Nepal

Fish farming in Nepal is governed by the following legal frameworks:

Aquaculture Development Plan (Ministry of Agriculture and Livestock Development)
Fisheries Policy, 2071
Company Act, 2063
Income Tax Act, 2058
Environment Protection Act, 2076
Consumer Protection Act, 2075 (for sale of fish produce)

These laws ensure environmental, economic, and public health safeguards are in place for fish production and trade.

Which Authorities Regulate Aquaculture in Nepal

The following government bodies regulate fish farming activities in Nepal:

Office of the Company Registrar (OCR) – for company incorporation
Department of Fisheries Development (DOFD) – for aquaculture approval
Inland Revenue Department (IRD) – for tax and PAN
Local Municipality or Ward Office – for site and business operation permit
Department of Environment – for larger projects requiring EIA or IEE

Coordination with these bodies is essential throughout the lifecycle of your business.

Land and Water Requirements for Fish Farming

How to Start a Fish Farming Company in Nepal. The land must be legally owned or leased with proper documentation. Lalpurja or land ownership certificate is mandatory. The land must be zoned for agricultural or aquacultural use. Use of public water sources like rivers or lakes may require special permission.

Key physical requirements:

Adequate size for pond setup (generally minimum 500 sq. meters)
Stable embankment and drainage facilities
Continuous water source or borewell.

Step-by-Step Process for how to Start a Fish Farming Company in Nepal.

The process to register a fish farming company includes:

Reserve Company Name via OCR online portal
Prepare MOA and AOA with company objectives
Submit Online Application for company registration
Receive Certificate of Incorporation
Apply for PAN Registration at Inland Revenue Office
Seek Ward Office Approval for farm site
Apply for Aquaculture License at DOFD
Obtain other Permits like water usage clearance, if applicable
Open Company Bank Account for transactions
Start Operations as per approved plans

How to Obtain a PAN and VAT Number

To obtain a Permanent Account Number (PAN), follow these steps:

Visit the nearest Inland Revenue Office
Submit the PAN application form with company registration documents
Attach MOA, AOA, director’s ID, and lease agreement
Receive the PAN certificate within 1–2 working days

VAT registration is mandatory only if the business crosses the annual threshold or deals in VAT-liable transactions. It requires separate application and additional documentation.

Services We Offer for How to Start a Fish Farming Company in Nepal.

At Medha Law and Partners, we provide:

Full legal consultation for fish farming startups
Company name reservation and business registration
Drafting MOA and AOA specific to aquaculture
PAN and VAT registration assistance
Documentation for land use and ward approval
Aquaculture license processing
Legal due diligence and compliance review
Ongoing legal support for tax, labor, and environmental issues

Our firm ensures that every step is legally compliant under Nepali law.

FAQs

What is the cost to register farm?

The average legal cost to register a fish farm company in Nepal ranges from NPR 10,000 to NPR 25,000, excluding government fees. These charges may vary depending on legal support, document preparation, and local approvals.

Where do I get aquaculture license?

The aquaculture license is issued by the Department of Fisheries Development (DOFD). You must submit your project plan, land documents, and proof of business registration.

Is land ownership mandatory for fish farming?

Yes. You must either own the land or have a legally notarized lease agreement. A copy of Lalpurja or lease deed is necessary for license approval.

How long does legal process take?

The entire legal process from company registration to aquaculture licensing typically takes 2 to 4 weeks, depending on document completeness and local approvals.

What documents are needed for registration?

You need citizenship certificates, MOA and AOA, land ownership/lease documents, PAN form, photos, and ward approval. For aquaculture, a project plan is also necessary.

Do I need tax registration number?

Yes, a PAN is mandatory. VAT registration is optional unless you cross a specific turnover threshold or engage in VAT-taxable services or goods.

Is fish farming legal in Nepal?

Yes, fish farming is legal under Nepali law, governed by the Fisheries Policy 2071, Aquaculture Development Plan, and Environment Protection Act.

What law applies to fish businesses?

Fish farming businesses must comply with the Company Act 2063, Fisheries Policy 2071, Income Tax Act 2058, and the Environment Protection Act 2076.

Can Medha Law assist in registration?

Yes, Medha Law and Partners provides end-to-end registration, licensing, documentation, and advisory services for fish farming companies in Nepal.

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