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Corporate LawVERIFIED NEPAL LEGAL TERM
Sanchalak Samiti (सञ्चालक समिति)
English Equivalent:Board of Directors
Definition Summary
"The governing board elected by shareholders."
Detailed Explanation
Sanchalak Samiti is the Board of Directors (BOD) elected by shareholders to govern, manage, and oversee the operations of the company.
Legal Basis in Nepal Law
Companies Act 2063, Section 86.
Practical Example
The sanchalak samiti held its quarterly meeting to review the financial audits.
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.