Private Firms Registration Act, 2014

Analysis drawn from official reports, court rulings and published research, each cited. Figures are being double-checked against the source documents; corrections are welcome.

What does it do?

A 'private firm' is a sole-proprietor business (under a personal or trade name) in industry, trade, export or import. No one may open a private firm without registering it under this Act. Applications, with the prescribed fee, go to the department concerned — the Department of Commerce, Supply and Consumer Protection for trading firms, or the relevant department for other industries — giving the firm's name, address, objectives and goods or services, and the owner's name, address and family details.'प्राइभेट फर्म' भन्नाले निजी वा कुनै नामबाट एक व्यक्तिले उद्योग, व्यवसाय, निकासी वा पैठारीको व्यापार गर्ने फर्म हो। यस ऐनबमोजिम दर्ता नगरी कसैले प्राइभेट फर्म खोल्न पाउँदैन। दर्ताका लागि तोकिएको दस्तुरसहित सम्बन्धित विभाग (वाणिज्य फर्मका लागि वाणिज्य, आपूर्ति तथा उपभोक्ता संरक्षण विभाग, अन्य उद्योगका लागि सम्बन्धित विभाग) मा फर्मको नाम, ठेगाना, उद्देश्य र कारोबार गर्ने वस्तु वा कामको विवरण तथा धनीको नाम, ठेगाना र तीन पुस्ते विवरणसहित निवेदन दिनुपर्छ। Nepal Law Commission Sections 2–4, pp. 2–4
Registration certificates must be renewed as prescribed, and changes to registered details need approval. Since the 2075 amendment, registration and renewal of private firms at the provincial level follow provincial law within this Act's framework. Transactions in the name of an unregistered private firm have no legal recognition, and the department may ask a registered firm for information.दर्ता प्रमाणपत्र तोकिएबमोजिम नवीकरण गर्नुपर्छ र दर्ता विवरणमा हेरफेर गर्न स्वीकृति चाहिन्छ। २०७५ को संशोधनपछि प्रदेशस्तरमा प्राइभेट फर्मको दर्ता, नवीकरण र अन्य व्यवस्था यस ऐनको अधीनमा रही प्रदेश कानूनबमोजिम हुन्छ। दर्ता नभएको प्राइभेट फर्मको नामबाट गरेको लेनदेन वा कारोबारलाई कानूनी मान्यता दिइँदैन, र विभागले दर्ता भएका फर्मसँग विवरण माग्न सक्छ। Nepal Law Commission Sections 5–7A, pp. 4–6
Penalties set in the Act are very small: operating an unregistered firm draws a fine of Rs 5 to Rs 50 per owner, with Rs 10 more for each repeat up to three times, after which the person can never register a firm; giving false details draws Rs 25 to Rs 50. The Act repealed the private company law of 2000 BS.ऐनमा तोकिएको सजाय निकै थोरै छ: दर्ता नगरी फर्म खोलेमा प्रत्येक धनीलाई पाँचदेखि पचास रुपैयाँसम्म जरिवाना र दोहोर्‍याएमा तीन पटकसम्म हरेकपटक दश रुपैयाँ थप, चौथोपटक गरेमा उसको नाममा कहिल्यै फर्म दर्ता हुँदैन; झुटो विवरण दिएमा पच्चीसदेखि पचास रुपैयाँसम्म जरिवाना हुन्छ। यस ऐनले २००० सालको प्राइभेट कम्पनी कानून खारेज गरेको थियो। Nepal Law Commission Sections 8, 10, p. 6

Gaps, loopholes and improvement ideas

Not enforced Many registrations have not been renewed: the Auditor General found that of 30,943 business firms registered at various dates under the Private Firm Registration Act 2014, the Companies Act 2063 and the Partnership Act 2020, according to the Department of Commerce, Supply and Consumer Protection's online system, 5,969 had not renewed their registration (the figure covers all three laws together).धेरै दर्ता नवीकरण हुन बाँकी छन्: वाणिज्य, आपूर्ति तथा उपभोक्ता संरक्षण विभागको अनलाइन प्रणालीअनुसार प्राइभेट फर्म रजिष्ट्रेशन ऐन, २०१४, कम्पनी ऐन, २०६३ र साझेदारी ऐन, २०२० बमोजिम विभिन्न मितिमा दर्ता भएका ३०,९४३ व्यावसायिक फर्ममध्ये ५,९६९ ले नवीकरण नगराएको महालेखापरीक्षकले उल्लेख गरेको छ (यो सङ्ख्या तीनै कानूनको संयुक्त हो)। Office of the Auditor General, Nepal · Nepal Law Commission OAG 63rd report, Ministry of Industry, Commerce and Supplies chapter para 28, PDF p. 221 (printed p. 189); Act Section 5, p. 4

Where does it conflict with other laws?

No conflict with another law is documented in the sources we have reviewed so far.

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Regulations and rules made under it

प्राइभेट फर्म रजिष्ट्रेशन (पन्ध्रौँ संशोधन) नियमावली, २०८० Status not yet confirmed

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