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Corporate LawVERIFIED NEPAL LEGAL TERM
Karobaar (कारोबार)
English Equivalent:Business / Transaction
Definition Summary
"Commercial activities and transactions."
Detailed Explanation
Karobaar refers to the business operations, sales, purchases, and commercial transactions conducted by an enterprise or individual.
Legal Basis in Nepal Law
Muluki Civil Code 2074, Contract Chapter.
Practical Example
The partners registered a firm to conduct import-export karobaar.
Company Registration and Business Regulations in Nepal
Corporate registration and compliance are managed by the Office of the Company Registrar (OCR) under the Companies Act 2063. Foreign investments are regulated under the FITTA 2075.
Key Statutory Rules:
- Company Types: Businesses can register as Private Limited, Public Limited, or Single Shareholder companies.
- Name Approval: The proposed business name must be approved online by the OCR before drafting the registration documents.
- Compliance Filings: Registered companies must file their annual audit reports, hold annual general meetings (AGM), and update share registers.
- Local Licenses: Companies must register at the local ward office and obtain a tax registration (PAN or VAT) from the Inland Revenue Office.
Required Documentation:
- Memorandum of Association (MOA) and Articles of Association (AOA) drafted in Nepali.
- Citizenship certificates of the Nepalese promoters or passport copies for foreigners.
- Declaration of shareholders agreement.
- Ward recommendation or rent agreement for the company office address.