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Class : 11
Unit : Business

Explain the process of registration and renewal of sole trading concern in Nepal.

Ans : The process of registration and renewal of sole trading concern in Nepal are presented below: (A) Registration of Sole Trading Concern Ans:- In Nepal, there is no specific act guiding to sole trading concern. But to cover sole proprietorship business, Private Form Registration Act was passed in 2014 B.S. The Private Form Registration Act 2014 clarify that all the private firm should be registered under this act. The following procedures are completed for registration of sole trading concern in Nepal. i) Submission of application form:- It is the first step of the procedure for registration of sole trading concern. An individual who wants to register sole trading concern needs to obtain an application form from the concern department and fill the form and submit to the concern department. Generally the following information is specified in the application form:- a) Name and address of the firm b) Name and address of applicants c) Nature and objectives of business d) Amount of capital investment e) Other details as prescribed by the concern department After completion of the above details, application should be submitted in the concerned department. ii) Payment of registration fee:- Payment of registration fee is another stage of registration of sole trading concern. Generally amount of registration fee is deposited in the bank of account of the concerned department. The bank deposited voucher is submitted in the department with application form. The following are the schedule of registration fee in accordance of capital investment:- Capital Investment Registration Fee (Rs) Up to Rs.1,00,000 700 From Rs.1,00,00 to Rs.3,00,000 2,100 From Rs.3,00,0001 to Rs.5,00,000 4,100 From Rs.5,00,0001 to Rs.10,00,000 7,600 From Rs.10,00,0001 to Rs.50,00,000 10,100 Above Rs.50,00,000 15,100 iii) Obtain registration Certificate:- Registration certificate is the evidential document of registration of sole trading concern. After getting registration certificate, a sole trader can start business in formal way and can get facilities provided by the government. (B) Procedure of Renewal Ans:- Sole trading concern should renew the registration within 35 days of the beginning of every fiscal year. Application for renewal can be obtained in the concerned department and details information should be provided as specific in the form. Similarly, renewal fee is deposited in the bank of the department and bank deposited voucher should is submitted along with renewal form. The following is the schedule of renewal fee:-