KATHMANDU, OCT 02 -The government has implemented a new provision on the “minimum capital requirement” for registering private firms.Under the new criteria, individuals willing to register business firms should have a minimum capital ranging from Rs 100,000 to Rs 4 million, depending on the nature of trading and geography, according to the Department of Commerce and Supply Management. Earlier, the minimum capital requirement was Rs 100,000 irrespective of business.
The new criteria has made it mandatory for traders to show a minimum capital Rs 100,000 and pay a registration fee of Rs 600 for registering businesses such as grocery shops, stationery, vegetable shops at village development committees (VDC) level of mountain and hilly districts.
For Kathmandu and Tarai district headquarters and municipalities, the minimum capital requirement has been fixed at Rs 300,000 for grocery and stationery shops. For businesses like fuel station, jewellery shop, machinery, transformer and automobile, individuals must have a minimum capital of Rs 4 million.
The department has fixed the capital, registration charge and renewal charge by categorising businesses under six categories.Department officials said the new provision was brought to discourage the trend of registering firms revealing small size of capital to avoid registration charge and renewal fee. “The new provision requires individuals registering a business to specify geography, nature of business and minimum capital accordingly,” said Binod Prakash Singh, deputy director general of the department.
Businesses related to fancy items, kitchen goods, hardware, furniture and furnishing, electronic goods and money transfer will need a minimum capital of Rs 1 million for registration in Kathmandu and Tarai district headquarters and municipalities. For traders who wish to run wholesale shops for the trading of foodstuff, vegetable and fruits, they need Rs 1 million capital.
For business related to agro, meat products, sweet shops, gift outlets, readymade garment and shoes, pashmina, silver utensils, printing press and books shops, the minimum capital has been fixed at Rs 500,000 for Kathmandu and Tarai districts. For the same nature of businesses in mountain and hilly district headquarters, the capital requirement has been set at Rs 300,000.
For the trading of surgical and medical equipment, carpet, leather goods, hospital goods, LP gas and motor spare parts, the minimum capital needed has been set at Rs 2 million for Kathmandu and Tarai districts, and Rs 700,000 for mountain and hilly districts.
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