Private Firm Registration Act 2014 1958

Preamble: An Act made to provide for provisions in order to register private firms

Whereas, it is expedient to provide for provisions on registration of private  firms engaged in trade and industry and other related pro visions 

       This Act came into force on 15 Jestha 2065 and "Prasasti" and the word "Kingdom" has been deleted.there with in order to maintain the convenience and economic interest of general public. Now, therefore, be it enacted and promulgated by His Majesty King.

1.        Short Title, Extent and Commencement:

(1) This Act may be called "Private Firm Registration Act, 2014 (1958)”.
(2) This Act shall be extended throughout Nepal. (3) This Act shall come into force immediately.

2.        Definition: In this Act, unless the subject or context other wise requires;

1.       "Private  firm" means  firm  or  company  or  kothi constituted by a person   under  any  name  for  exporting  of  industrial  products  or import trade.
2.       "Export" means an act of exporting goods from Nepal to a foreign country.
3.       "Import" means an act of importing goods from a foreign country into Nepal.
4.       "Notification" means an order published in Nepal gazette.
5.      "Concerned Department" means Department of Commence  in the case of commerce related firm, Department of Cottage and Rural Industry in the case of cottage and rural industry, and Department of Industry for any other industry.
6.        "Prescribed" or as "prescribed" means prescribed or as prescribed in the Rules framed under this Act.

3.       Restriction to open a private firm without being registered:

 After the commencement of this Act, no person shall operate private firm w ithout being registered by the concerned Department pursuant to this Act.

4.        Submission of an application for the registration of a private firm and registration:

1.  A person who intends to register a private firm may submit an application in the format as prescribed to the concerned Department along with the prescribed fee. Such application shall set out the following particulars;
   1.      The name of the private firm.
   2.      The address of the private firm
   3.      Objectives, functions and the particulars of goods or commodity to be transacted by the private firm.
   4.     The name and address of the owner, and the name of his/her father, mother and grandfather, grandmother.
   5.     Other  particulars  prescribed  by  the  Government  of Nepal  by  publishing  a  Notification  in  the  Nepal gazette.
2.  After the submission of an application pursuant to Sub-section (1) the concerned Department shall hold an inquiry in to the application and if there is a reasonable reason to believe that the particulars set out in the said application are true or if the concerned Department finds reasonable reasons to operate a private firm, it shall register in the register book as prescribed and issue a certificate in such format as prescribed.
3.  Notwithstanding anything contained in Sub-section (2), no more than  one  private  firm  related  to  commerce  which  has  same/similar objectives shall be registered in the name of the same person.

5.        Validity period of the certificate of a private firm and method of renewal:

The validity period of the certificate of the firm registered under this Act, the method thereof and the fee for renewal shall be as prescribed.

6  Approval is required  to change the particulars:

If it is required to make  change  in any  particulars  provided  to  the  concerned  Department pursuant to Sub-section (1) of Section 4, a notice as prescribed shall be submitted before the concerned Department within prescribed period and the particulars may be changed only  after being approved by the concerned Department.

7.       Not to be valid any transaction carried out   in the name   of a private firm which is not registered under this Act:

No transaction shall be  valid which is carried out in the name of   a firm which is not registered under this Act.

7A.    Concerned Department may seek particulars:

1.  The Department which is concerned w ith a private firm registered under this Act, may seek the particulars of the accounts of a firm.
2.   It shall be the duty of the firm to submit the particulars sought pursuant to Sub-section (1) to the concerned Department.

7B. The registration of a private firm may be canceled:

1. (1) The concerned Department may cancel the registration of a private firm in the follow ing circumstances;
   1. (a)      If a  private  firm, w hich is related  w ith commercial business, fails  to effect renewal of the firm within a prescribed period.
   2. (b)       If the owner of a private firm submits an application to the  concerned  Department  for  the  termination  of registration of his/her firm upon setting out reasonable reason.
   3. (c)       If  it  is  found  that  a  firm  has  been  registered  by providing  false  particulars  in  contravention  of  Sub- section (3) of Section 4.
   4. (d)       If a firm fails to submit the particulars sought by the concerned  Department pursuant to Section  7a to the concerned department within prescribed period.
   5. (e)      If  an   industry   related   private   firm   closes   down operating industry whether providing information thereof to the concerned Department or not.
   6. (f)       If an industry related private firm fails  to renew the industry within a prescribed period from the expiry of validity period to renew the firm or fails to submit a written progress report on action to be taken for the construction of factory, purchase of machinery equipment or tools and other acts as may be required in order to establish and operate the industry as per the condition of the licenses despite the firm is renewed.
   7. (g)       If   a   private   firm   commits   any   other   act   in contravention of this Act or Rules framed hereunder.
2. (2) Before canceling   the registration of a private firm pursuant to Clauses (a), (c), (d), (e), (f) or (g) of Sub-section 1, the concerned Department shall pro vide a reasonable opportunity to the concerned private firm for submitting a clarification.
3. (3) If the registration of a private firm is canceled by the concerned Department pursuant to Clauses (a), (c), (d), (f) or (g) of Sub-section (1) any other private firm which carries same/similar objectives shall not be registered in the name of such owner of the firm for a period of one year.

8.        Penalty:

1. (1)The  concerned  Department  shall  ha ve  discretionary  power  to impose a fine from Five Rupees to Fifty Rupees on an owner of a private firm operated without registration and if the owner again commits the same ofence for three times he/she shall be liable to an extra Ten Rupees fine for each time in the original fine imposed on him/her. If such person commits the same act for fourth time, no private firm shall be registered in his/her name in the future
2. (2)  A  person  who  submits  false  particulars  in  the  course  of submitting an application pursuant to Section 4, the concerned Department shall, on its discretion, impose a fine from Twenty Five Rupees to Fifty Rupees on him/her.
3. (3) A private firm which fails to pro vide information to be submitted pursuant to Section 6 within the prescribed period, or provides false information shall be  liable  to a fine  from Twenty  Five  Rupees to Fifty Rupees in the discretion of the concerned Department.
4. (4) The  Government of Nepal may, by publishing a  Notification, restrict a private firm which is not registered or renewed pursuant to this Act, and the bank which transacts with such firm to export and import any goods.
5. (5)   A person who is not satisfied w ith a penalty imposed by the concerned Department may file an appeal before the Court of Appeal.

9. Power to frame Rules:

The Government of Nepal may frame Rules to carry out the objectives of this Act. The Government of Nepal may provide for the pro visions of fine in such Rules for the person who commits an act in contravention of such Rules.

10. Repeal:

Private Company Act of Wednesday 17 Chaitra 2000 is, hereby, repealed.

11. To be cancelled previous licenses:

All the licenses issued by the Government of Nepal before the commencement of this Act in connection with the operation of a  private  firm shall have to be renewed  within a period prescribed by the Go vernment of Nepal by publishing a Notification in Nepal gazette and by following the manner as referred to in Section 5. A License which is not renewed w ithin such period shall be cancelled.

Date of authentication    

2014-11-2 (13 Feb. 1958)                                             

Date of  Publication

2014-11-13 (24 Feb. 1958)

Amendments

1. Private Firm Registration (First   Amendment)   Act, 2017(1961)

   Authentication
   2018.1.14(26 April 1961)

   Publication
   2018.1.16(28 April 1961)

2. Some    Nepal    Law s   (Amendment    and   re- arrangement) Act, 2020 (1964)  2020.11.16(28 Feb. 1964)

3. Judicial      Administration      Reform     (Fourth Amendment) Act, 2043 (1986)  2043.7.24(10 Nov. 1986)

4. Private Firm Registration (Second Amendment) Act, 2044 (1987) 2044.6.9(25 Sept. 1987)

5. Administration of Justice Act, 2048 (1991) 2048.2.16(30 May 1991)

6. Amending Some Nepal Acts to Maintain Gender Equality Act, 2063 (2006) 2063.7.17(3 Nov. 2006)

7.  Republic  Strengthening  and  Some  Nepal laws Amendment Act, 2066 (2010) Act Number 20 of the Year 2014 (1958) 2066.10.7(21 Jan 2010)