If you're planning to start an import-export business in Nepal, one of the essential things you need to do is register your company.
The process of registering a company can be a bit daunting, especially if you're not familiar with the legal requirements and procedures in Nepal.
However, registering your import-export company is crucial to ensure that your business operates legally and that you're protected by the law.
This article will guide you through the process of registering an import-export company in Nepal.
Understanding Import-Export Business in Nepal
The import-export business involves the exchange of goods and services between countries.
Nepal is a landlocked country located between China and India, which makes it an ideal location for import-export business.
The country has a lot of potential for the import and export of goods, especially in the agricultural, textile, and handicraft sectors.
Legal Requirements for Registering an Import-Export Company in Nepal
To register an import-export company in Nepal, you need to fulfill the following legal requirements:
- At least one shareholder for a private limited company
- A minimum paid-up capital of NPR 100,000 for a private limited company
- A Nepali citizen as a director
- An office address in Nepal
- A name for the company that is not already taken
- An agreement among the shareholders, in the case of a private limited company
- Approval from the Department of Industry, Commerce and Supplies
Documents Required for Registering an Import-Export Company in Nepal
The following documents are required for registering an import-export company in Nepal:
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Copy of citizenship certificate or passport of Nepali director
- Copy of citizenship certificate or passport of foreign director, if applicable
- Copy of citizenship certificate or passport of shareholders
- Office rent agreement or ownership certificate
Procedure to Register an Import-Export Company in Nepal
The following is the procedure to register an import-export company in Nepal:
- Register the company with the Office of the Company Registrar (OCR)
- Tax Registration (PAN/VAT) in Inland Revenue Department
- Open Company Bank Account & Bank Guarantee NPR. 300,000
- Register with the Department of Customs.
- Obtain an Import-Export License - EXIM Code
Step 1: Register Business Name in OCR (Company Registrar Office)
The first step is to register your business in OCR (Company Registrar Office). Choose a unique company name for your business and issue company registration certificate.
If you don’t know how to register a company, please read this article: https://dipencompany.com/blog/how-to-register-company-in-nepal.php
Step 2: Tax Registration (PAN/VAT) in Inland Revenue Department
Tax registration can be categorized into two types: PAN and VAT registration. It is mandatory for an import-export company to register for VAT.
You must submit an application form and the necessary documentation to the Inland Revenue Office. Once your application is received, it will be processed and, upon approval, a Tax Registration Certificate will be issued to you.
Step 3: Open Company Bank Account & Bank Guarantee NPR. 300,000
To obtain an EXIM code, it is necessary to open a company bank account with a commercial bank in the "A" category.
You will also be required to provide a bank guarantee of NPR 300,000 as part of the process.
Step 4: Register with the Department of Customs
You will also need to register with the Department of Customs. You will need to submit the following documents:
- Company registration certificate
- PAN/ VAT registration certificate
- Tax clearance certificate
- Copy of citizenship certificate or passport of the directors
Step 5: Obtain an Import-Export License - EXIM Code
EXIM code stands for Export-Import (EXIM) Code or Import-Export (IE) Code. To import and export goods in Nepal, you will need to obtain an import-export license (EXIM Code) from the Department of Commerce.
How to register EXIM CODE in Nepal
To register for an EXIM code in Nepal, you can follow these steps:
- Visit the website of the Department of Customs, Government of Nepal, and navigate to the 'EXIM Code Registration' section.
- Fill out the online application form with all the required details, such as your personal information, company information, etc.
- Submit the application form along with the necessary documents, such as a copy of your company registration certificate, tax registration certificate, and proof of export or import activity.
- Once your application is submitted, you will receive an acknowledgment receipt, which you can use to track the status of your application.
- The Department of Customs will review your application, and if everything is in order, they will issue your EXIM code.
Why EXIM Code necessary for import and export in Nepal?
The EXIM code is necessary for import and export in Nepal for the following reasons:
- Customs Clearance: The EXIM code is required for customs clearance of goods at the border. It helps customs officials to identify the importers and exporters and to ensure that the goods being imported or exported comply with the regulations and laws of Nepal.
- Monitoring Foreign Trade: The government of Nepal uses the EXIM code to monitor foreign trade activities. It helps the government to collect data on imports and exports, analyze trends, and make policy decisions.
- Statistical Purposes: The EXIM code is also used for statistical purposes. It helps to track the volume and value of imports and exports and provides information on the types of goods being traded.
- Bank Transactions: The EXIM code is necessary for bank transactions related to imports and exports. It helps to ensure that the payments are made to the correct importers or exporters.