The ease of doing business as measured by the World Bank Group all over the world points out ‘simplified incorporation process’ as one of the key features to promoting private entrepreneurs to enter the economy. In Nepal, the registration of a company falls under the jurisdiction of Company Act 2063 (2006). The Government of Nepal has taken a proactive role in identifying issues under the current Company Act, 2063 and reviewing it accordingly. Starting a business regulations and legislations have progressively been eased up by the Government of Nepal over the last two decades. Nepal stands at 108th rank out of 186 countries in the World Bank ‘Doing Business’ survey.
Samriddhi Foundation has prepared a paper on necessary changes required in the Company Act 2063 (2006). Following are some of the key issues that needs to be reviewed under the current Company Act, 2063:
- Incorporation process simplification
- Restructuring of Office of the Company Registrar (OCR)
- Restructuring the Board of Directors
- Company structures and conversion
- Inter company lending and investment
- Exit Procedures
- Rationalization of fines, punishments and appeals
- Compliance and Certification and Transparency
- IT related provisions
- Corporate Social Responsibility (CSR)
- Avoiding irrational and inconsistent provisions
Download the full paper on “Recommendations from Samriddhi Foundation in the new draft Act replacing the Company Act, 2063 (2006)” here!
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