Bibek Jha, CA in Nepal for growing businesses

Yes. As long as a company is registered at the Office of the Company Registrar (OCR), its yearly duties continue whether it trades or not: an audit, the income tax return (D3) and the yearly update at OCR. Missed years keep adding fines, often reaching lakhs of rupees.

• Have its accounts for the fiscal year (Shrawan 1 to Asar end) audited.
• File the income tax return (D3) with the Inland Revenue Department, pay any tax due and get tax clearance.
• Update its records at OCR (adhyavadhik) by submitting the audit report, share details and auditor appointment information.

These are generally due within six months of Asar end, by Poush end.

OCR charges a fine for each late filing for each year, based on paid-up capital. For a company with paid-up capital up to Rs. 25 lakh, the first year late costs Rs. 5,000 per filing and every further year adds Rs. 5,000. On the tax side, a late return attracts a fee under section 117 of the Income Tax Act and unpaid tax carries 15% annual interest under section 119. A late VAT return is fined Rs. 1,000 per return.

Yes, until Poush end 2083 (14 January 2027). Under the Finance Act 2083, OCR waives past fines, fees and interest in full if the company files its FY 2082/83 returns by that date. On the tax side, if returns for every year up to FY 2082/83 are filed by Poush end, the company pays the base tax plus 1%, and the section 117 fees and 15% interest are waived. The same relief applies to VAT and excise.

Your company registration certificate, OCR (CAMIS) login, PAN certificate, and any bank statements or bills for the missing years. The financial statements, minutes and filing letters are prepared from those.

Yes. An e-service access application is filed online, the board passes a decision naming the authorised person, and the director verifies their identity in person (सनाखत) at OCR or the ward office. OCR then issues a new username and password.

Under current law, VAT registration is required once annual turnover exceeds NPR 50 lakh for goods, or NPR 30 lakh for services or a mix of goods and services. Some business types must register regardless of turnover. The standard VAT rate is 13%, and returns are filed monthly by the 25th of the following Nepali month, even when there were no sales.

A Virtual CFO gives you senior finance support part-time: management reports, budgets, cash flow planning, KPIs and investor or bank reporting. It suits startups and growing SMEs that need more than bookkeeping but not a full-time CFO.

Yes, in sectors open to foreign investment under the Foreign Investment and Technology Transfer Act, 2075. Under current government policy the minimum is NPR 2 crore (20 million) per investor, and there is no minimum for IT companies. The Department of Industry approves all foreign investment; the company is then registered and the investment recorded with Nepal Rastra Bank.

Use the consultation form on this website or message me on WhatsApp at +977 9761768876. Share a few details about your business and I'll get back to you.