2.39 lakh Companies Registered In Nepal

September 8, 2020 | Investopaper

According to the Office of the Company Registrar, there are 238,920 companies registered in Nepal. These companies have the authorized capital of Rs 30,053 Kharba. This authorized capital is about 800 times the country’s gross domestic product. According to the Central Statistics Office, Nepal’s gross domestic product is 37.67 Kharba.

The issued capital of the company registered in Nepal so far has reached Rs. 2,534 Kharba. Although the issued and authorized capital appears to be many times larger than the size of the economy, the paid-up capital is relatively small. According to the office, the total paid-up capital of all the registered companies is only Rs 20.32 Kharba.

Authorized capital is the maximum amount of capital that a company can increase. Similarly, issued capital is the capital that the shareholders have committed to invest in the company. The paid up capital of a company is the capital paid or deposited by the shareholders.

Registration Of Companies

A total of 18,628 companies have been registered in the fiscal year 2076-77. This is a decrease of 26.9 percent compared to the previous fiscal year 2075-76. In FY 2075-76, 25,492 companies were registered. The Ministry of Finance has mentioned that the registration of the company has decreased due to the steps taken for the prevention and control of Covid-19. There were 22,250 companies registered in FY 2074/75.

Based on the province, Bagmati has the highest number of registered companies at 1,71,400. Similarly, the lowest number of registered companies is 4,400 in Karnali Province.

The registration of companies officially started in Nepal since the enactment of the Company Act, 1993. Since then, Company Act 2021, Company Act 2053, Company Ordinance 2062 and finally Company Act 2063 have regulated and facilitated the registration process. By law, the company has to submit the specified details to the Office Of Company Registrar every year.

Of the total registered companies, 233,214 are private limited and 1,608 are public limited companies. Similarly, there are 2,947 non-profit companies and 320 foreign companies. The total number of share holders of the private company is 636,781. Similarly, the non-profit company has 19,494 share members.


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