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Metal Manufacturing Company Registration in Nepal

Introduction to Metal Manufacturing Business in Nepal

Metal Manufacturing Company Registration in Nepal. Metal manufacturing in Nepal is an emerging industrial segment that supports construction, infrastructure, and hardware industries. The business involves processing raw metal materials into finished or semi-finished goods such as rods, sheets, fittings, and machinery components. Due to urbanization and demand for construction materials, metal-based industries have grown steadily. The establishment of a metal manufacturing company in Nepal must comply with the Companies Act, 2063 (2006), and industrial laws governed by the Ministry of Industry, Commerce and Supplies. Investors and entrepreneurs must ensure proper registration to gain legal status, operate legally, and access financing and government support. Medha Law and Partners Is a leading corporate law firm in Nepal.

Legal Structure for Starting Metal Company in Nepal

A metal manufacturing business in Nepal can be registered under various legal structures depending on ownership and liability. The most common is a Private Limited Company, registered under the Companies Act, 2063. For larger investments, a Public Limited Company may be suitable. Foreign investors can form Joint Ventures or open fully owned subsidiaries under the Foreign Investment and Technology Transfer Act (FITTA), 2019. The nature and scale of the business determine whether additional approvals from the Department of Industry (DoI) or the Investment Board of Nepal (IBN) are needed. The correct legal form ensures appropriate tax compliance and eligibility for government incentives.

Government Authorities for Metal Company Registration

The primary authority for registering a metal manufacturing company is the Office of the Company Registrar (OCR), operating under the Ministry of Industry, Commerce and Supplies. Other agencies include:

  • Department of Industry (DoI): For industry registration above NPR 100 million investment

  • Tax Office (IRD): For acquiring PAN/VAT numbers

  • Municipality or Rural Municipality: For location-based approvals

  • Department of Environment: For environmental compliance in large operations

  • Nepal Bureau of Standards and Metrology: For quality certifications (if applicable)

Registration must comply with directives from each applicable authority, based on the nature and scale of manufacturing activities.

Required Documents for Metal Company Registration

The following documents are required for company registration:

  • Application in prescribed format (as per Companies Act)

  • Memorandum of Association (MoA)

  • Articles of Association (AoA)

  • Citizenship copies of all shareholders

  • Copy of lease agreement or land ownership certificate

  • Copy of board resolution (if company invests)

  • Passport and visa (for foreign investors)

  • Power of attorney (if applying through legal representative)

  • Industry registration form (for large-scale companies)

  • Environmental clearance documents (for applicable industries)

These documents are submitted physically or via the OCR’s online portal.

Step-by-Step Process for Company Registration

The registration process for a metal manufacturing company involves:

  • Step 1: Name reservation through OCR online system

  • Step 2: Drafting and preparing MoA, AoA, and other documents

  • Step 3: Submission of application along with documents

  • Step 4: Payment of registration fee as per capital

  • Step 5: Issuance of registration certificate

  • Step 6: Tax registration (PAN/VAT) at IRD

  • Step 7: Industry registration at DoI (if required)

  • Step 8: Apply for any environmental approvals

  • Step 9: Open company bank account

  • Step 10: Begin operation and maintain compliance

This entire process typically takes one to two weeks.

Where to Register a Metal Company in Nepal

The Office of the Company Registrar (OCR) located in Tripureshwor, Kathmandu is the central agency for company registration in Nepal. Regional offices are available for provincial-level facilitation. Large-scale industries must additionally register with the Department of Industry in Tripureshwor. Tax registration must be completed at the nearest Inland Revenue Office. Municipality approval is needed from the local government office where the factory or plant will be located. Industrial estate-based companies may require coordination with the Industrial District Management Office (IDMO).

Timeframe for Metal Company Registration Process

The entire process for registering a metal manufacturing company in Nepal generally takes between 7 to 14 working days, depending on the completeness of documentation and company type. Online name reservation is completed within 2 days. Company registration takes around 5–7 days after submission. PAN/VAT registration can take an additional 2–3 days. Delays may occur if there are errors in submitted documents or additional approvals are needed. Post-registration steps such as opening a bank account and environmental clearances may add extra time.

Costs Involved in Company Registration in Nepal

The total cost of registering a metal manufacturing company depends on capital and services used. Typical costs include:

  • Company registration fee: NPR 1,000 to NPR 70,000 (based on capital)

  • Legal drafting and consultancy fees: NPR 10,000–50,000

  • PAN/VAT registration: Usually free but agent fees may apply

  • Industry registration (if required): NPR 10,000–100,000+

  • Bank account and notary charges: NPR 2,000–5,000

The estimated total cost ranges from NPR 25,000 to NPR 150,000 depending on company type and complexity.

Government Fees for Registering Metal Company

Government registration fees are fixed under the Companies Act and determined by the authorized capital of the company:

  • Up to NPR 1,00,000: NPR 1,000

  • NPR 1,00,001 to 5,00,000: NPR 4,500

  • NPR 5,00,001 to 25,00,000: NPR 9,500

  • NPR 25,00,001 to 1 crore: NPR 16,000

  • Above NPR 1 crore: Additional amounts as per OCR scale

These fees are payable at the time of document submission or online through the OCR system.

Checklist Before Starting Metal Manufacturing Business

Before starting, ensure the following checklist is complete:

  • Name reservation approved by OCR

  • Valid MoA and AoA prepared

  • Land lease or ownership certificate available

  • Tax (PAN/VAT) registration completed

  • Industry registration done (if required)

  • Environmental and safety clearance obtained

  • Required machinery and capital in place

  • Registered bank account opened

  • Employment and labor standards prepared

  • Health and safety standards followed

  • Trade license and municipal permissions obtained

A complete checklist helps prevent legal and operational delays.

Applicable Laws for Metal Business in Nepal

Several laws govern the registration and operation of metal manufacturing companies in Nepal, including:

Compliance with all applicable laws ensures business legality and sustainability.

Tax Registration for Metal Manufacturing Companies

All companies must obtain a Permanent Account Number (PAN) from the Inland Revenue Department. If turnover exceeds NPR 2 million annually, VAT registration is also required. Manufacturing businesses must maintain proper billing and accounting systems. Tax obligations include:

  • Corporate Income Tax

  • VAT (if registered)

  • Excise Duty (if applicable)

  • TDS on employee salaries and contractor payments

Timely filing of returns and maintaining records are mandatory to avoid penalties under the Income Tax Act, 2058.

Environmental and Safety Clearances Required

For medium to large-scale metal companies, environmental approval is mandatory under the Environment Protection Act, 2076. Businesses must conduct an Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA), depending on plant size. Approval must be obtained from the Ministry of Forests and Environment or delegated provincial authorities. In addition, safety measures must comply with Occupational Health and Safety regulations. Fire safety, worker insurance, and pollution control must be documented before operations begin.

Post-Registration Compliance for Metal Companies

After registration, companies must comply with annual obligations such as:

  • Renewing company details with OCR

  • Filing annual returns and audit reports

  • Submitting income tax returns

  • Updating PAN/VAT records

  • Maintaining employee records

  • Renewing trade licenses from the local government

  • Ensuring continued compliance with safety and environmental norms

Failure to comply results in fines, penalties, or cancellation of registration.

Legal Services Offered by Medha Law and Partners

Medha Law and Partners offers comprehensive support for metal company registration, including:

  • Name search and legal clearance

  • Drafting MoA, AoA, and compliance documents

  • Filing with OCR and coordinating with DoI

  • Tax and VAT registration assistance

  • Industry registration guidance

  • Environmental clearance advisory

  • Foreign investment structuring

  • Legal due diligence and advisory

  • Post-registration compliance support

  • Ongoing legal consultancy for operations

Our legal experts ensure timely, compliant, and cost-effective registration.

FAQs

1. What is the first step to register?
The first step is reserving a unique company name through the Office of the Company Registrar’s online portal. It should not match any existing name and must follow legal guidelines.

2. How long does registration take?
Company registration usually takes 7–14 working days, depending on the documents’ accuracy and if additional approvals such as industry or environmental clearance are required.

3. What are the required documents?
Essential documents include MoA, AoA, citizenship copies, land lease, PAN forms, and board resolutions. Foreign investors must submit passport, visa, and approval from DoI or IBN.

4. Where to submit registration forms?
All forms are submitted at the Office of the Company Registrar, either online through their portal or physically in Tripureshwor, Kathmandu, along with necessary supporting documents.

5. What is the total government fee?
Government fees range from NPR 1,000 to NPR 70,000 depending on the company’s authorized capital, as outlined in the Companies Act, 2063 schedule of fees.

6. Who handles the registration process?
The process is handled by the applicant or their authorized legal representative. Medha Law and Partners provides full legal support throughout the registration.

7. Can foreigners open metal companies?
Yes, foreign nationals can open metal companies under FITTA 2019. They must obtain prior approval from the Department of Industry and meet minimum investment thresholds.

8. Is VAT registration also required?
VAT registration is required if annual turnover exceeds NPR 2 million. Even below that, voluntary registration may be beneficial depending on the nature of business transactions.

9. Do I need environmental clearance?
Yes, if the factory is of large scale or pollutes the environment, clearance under the Environment Protection Act is mandatory, requiring IEE or EIA before operations.

10. What support does Medha Law provide?
Medha Law provides complete company registration services, legal drafting, approvals, tax registration, compliance advisory, and foreign investment structuring for metal businesses in Nepal.

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