I know you want to start your online business in Nepal in any field like clothing, eCommerce, foods etc and the hurdle is how do I start any business in Nepal and do it from scratch to development to official registrations?
In this article, I have shared my complete process from scratch to development business to finding teams to official companies registrations.
Everyone can start an online business but only a few of them works get success and out of them are fail not because of their ideas its because of their mindset and not investing the business on online advertisements. The thing is no one fail in this universe its the next step to not make the same mistake.
I am happy to see you reading the articlr and taking the first step to starting your online startups business in nepal.
Before starting ….
First i would like you to say one who is reading our article:
स्वागतम् hearty congratulation to you for taking this life-changing decision and don’t lose hope things take time may your business get success in 1yr or more than that just never quit.
I will make sure your business get started though my this article and help you to make revenue and help in avoiding startup an online business in Nepal
If you could tweet this and do me on favour so i can know this article helped you ?
Converting the large article into simple one sentence –Starting successful online business in Nepal is easy as making a cup of coffee and to make coffee it takes time and same applies for your business. The more bigger goal the more time it takes.
Its all about mindset ,business ideas and team work and the passion you have on it.
OverView: Online Business In Nepal 2021
You can run an online business on your personal name, paying no registration fees or hiring a chartered accountant you don’t need any collages degrees to start anything in the universe related to online but your must-have skill first of all.
You should track the business expenses and income, to help you file an income tax at the end of each financial year.
You need to pay taxes only on the profits, that is the difference between annual revenue and expenses.
There are five types of legal entities that can be formed in Nepal to start online business in Nepal.
- Sole Proprietorship
- Limited Liability Company (LLP)
- Private Limited Company
- One Person Company (OPC)
Before letting you know step by step- you should just know types of legal entities in Nepal.
Types of legal entities in Nepal
Lets us know what is legal entities definition in Nepal?
A legal entity is an individual or group that has legal rights and duties related to contracts, agreements, payments, transactions, obligations, penalties and sues. The term applies to any kind of organization formally made up according to the particular set of laws governing the country.
Some examples of Nepal legal entities include
- Sole proprietorships.
- Non-profit organizations and charities.
- Limited liability companies.
- Various other types of business forms.
01. Sole Proprietorship entities Nepal
Sole Proprietorship Business in Nepal something like there is no registration required to start a business as a sole proprietorship. You can give any name to your business and print letterhead, visiting card and start a website.
You don’t have to think more for the business name in sole proprietorship you can establish any name which pop-outs in your brain. Exmaple
Our 1st brand name is linko and we can put any name on it like linko traders, linko learners etc .‘Startup Consultants’, ‘Brilliant Solutions’ or anything that reflects the nature of my business.You can add anything.. but it must should be related to your business term.
You can use your home address as your business address, but it’s always better to have a separate address for long-term benefits. You will need address proof to open a bank account and register for GST.
You can get yourself registered with the “Shop and Establishment Act License” also known as a license in many states.
The registration at the local municipal office by submitting an application.This would become the address proof of your business to apply for a bank account and GST.
The income from your sole proprietorship business would be added to your personal income for tax. At the end of the financial year, pay income tax using your personal number.
02. Partnership Firm
Creating a partnership is helpful when the other partner brings in a different skill set which can be combined with your existing skills and is beneficial for the business.
It really helps you to divide your work into differnet parts .
You might have heard this sentence..
A single piece of stick can be broken by a single person but a bundle of stick cannot be broken by single person, well it can be broken by a single person but.
It will take much more time.
So you need a group or partnership to build sucessful online business.
For example, suppose you have content creation skills but do not have marketing skills then you can form a partnership with a person having marketing skills.
Both of you can communique an online business in partnership.
Related – Lockdown had made someone poor in altering someone rich by the internet and business opportunity. Check out this article: Best Profitable Business To Right After Lockdown 2021.
For forming a partnership you need to clearly define the job roles, responsibilities, profit ratio and obligations of each partner in a written partnership deed.
A written partnership deed is helpful to avoid any future conflicts.
03. Form a Limited Liability Partnership (LLP)
Limited liability partnerships (LLPs) allow for a partnership structure where each partner’s liabilities is limited to the amount they put into the business. Having business partners means spreading the risk, leveraging individual skills and expertise, and establishing a division of labour.
Limited Liability Partnership (LLP) combines the benefit of both a partnership firm and a company.
You can run the business as a partnership firm, but it restricts your liabilities like the company. This means that in an LLP, the partners do not have unlimited liabilities like in partnership firms.
The other advantage of LLP is less compliance and regulation as compared to a private limited company and no minimum requirement of capital contribution.
Steps for the formation of LLP are
- Get Digital Signature Certificate (DSC) for LLP
- Apply for Director Identification Number (DIN)
- Get name approval from the MCA portal
- Form of Incorporation to be filled with State LLP Registrar office along with fees
- File LLP agreement online on the MCA portal
While incorporating an LLP you will require the following documents.
|Documents of Partners||Documents of LLP|
|CitizenShip or ID proof passport in case of NPR||Digital Signature Certificate|
|Address proof of partners||Proof of registered office address|
|Scanned copy of passport-sized photograph|
This table information is source by -:legalwiz
These are things you need to start an online business in Nepal.
04. Forming a Private Limited Company
You should think of incorporating a private limited company in Nepal you should only when your online business has grown very large (revenues in crores) and you have more people working for you.
Until then, it is best to run your online business in any of the above forms.
That is because the moment you form a company, comply with various statutory obligations under the Companies Act 2013 for which you will need to hire a company secretary.
Below are the steps to incorporate a company in Nepal
- Get Digital Signature Certificate (DSC)
- Get Director Identification Number (DIN)
- Check Name availability at MCA portal
- Fill SPICE INC-32 form (simplified proforma for incorporating a company online)
- Evile AOA (Articles of association) and MOA (Memorandum of association)
- Make PAN and TAN application simultaneously
It requires following additional documents for company incorporation in Nepal
- Affidavit for willingness to become shareholders
- Proof of office address
- Copy of utility bills
- Copy of approval if the proposed name requires approval from the Govt.
- NOC from the property owner
We take the above information from an original source so we don’t get any copyright .
Let me tell you:;
Without knowing these above, never start a company in Nepal.
05. One Person Company (OPC)
How to start an online business in Nepal?
One Person Company is an unfamiliar entity, where you do not require two persons (shareholders) to form a private company. A single person can open and run the company himself.
But, I discourage you from forming an OPC because you will be purely required to comply with all the company regulations.
The tax rates on OPC is 30% like what companies pay and you lose the advantage of slab wise tax calculation as with the case of a sole proprietorship.
Further, you do not have the second person to cross-check all the business decisions and it does not allow you to start another OPC.
The 5 above terms were types of legal entities in Nepal with a full guide.
Easy Steps to: Start Any Online Business In Nepal 2021
Time starts your own online successful online business in Nepal.
You have a question which is best “legal entities in Nepal”
So, the easiest option to start an online business is to go with a sole proprietorship because you don’t have to do any paperwork or registration.
The only one reason I love these entity is because you need not apply for GST until you have crossed Rs. 20 Lakhs of revenues in a year (excluding some special states which have different limits.
Now its your choice which you want legal entities you want of it’s fully depend upon on you.
It requires no approval or registration to start a sole proprietorship business in India. You can start your business with your regular savings account till the time you get a separate business current account.
Without taking your more time lets move on how to start a successful online business in Nepal in 3 steps.
Related: Instagram has turned up as a business platform for all kinds of influencers, brands, and especially for people in the entertainment and fashion niche. Check out how to make money from Instagram in Nepal 2021
No matter what kind of online business you want to start in Nepal, you must have your presence at 3 places online.
Whenever you start any business no matter either it is small or big or online your business must be listed on these 3 teaching social media sites.
- Your Business Website/ Portfolio
- Social Media websites like Facebook, Instagram and LinkedIn
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