A profit-not-distributing company is a special type of organization formed with the clear commitment that profits earned or savings made will not be distributed as dividends to its members.
In Nepal, this type of company is registered under the Companies Act, 2006.
Registration Process:
| Step 1 | Reservation of Company Name |
| Step 2 | Drafting and Submission of MoA and AoA |
| Step 3 | Registration of Company at OCR |
| Step 4 | Tax Registration at Inland Revenue Office |
| Step 5 | Business Registration at Local Level Ward Office |
| Step 6 | Enlisting the Company at Social Welfare Council (If the company is receiving grant from foreign countries or entities) |
Promoters Requirements
- At least five promoters are required for registration.
Documents required:
- Application for Registration
- Memorandum of Association (MoA) and Articles of Association (AoA) of the company
- Citizenship certificates of promoters and witnesses
- Copy of certificate of registration, MoA, AoA and Board resolution of the promoter, if the promoter is a company
- Power of Attorney authorising the Registration
Key Facts:
- Government Fees: NPR 15,000/-
- Share Capital: Not required
- Dividend Distribution: Not allowed
Vimarsha Law Associates handles every step from name reservation to final registration, ensuring accuracy. With our expertise, you can focus on your mission while we handle the legal complexities.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice. For personalized assistance or legal interpretation, please consult Vimarsha Law Associates.