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Corporate LawVERIFIED NEPAL LEGAL TERM
Sakh (साख)
English Equivalent:Goodwill
Definition Summary
"The commercial reputation and value of an operating business."
Detailed Explanation
Sakh refers to the goodwill, commercial reputation, and intangible asset value of a company, which is assessed during acquisitions or business splits.
Legal Basis in Nepal Law
Muluki Civil Code 2074.
Practical Example
The court evaluated the sakh of the family business when dividing joint marital assets.
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.