Are you unaware about the legal proceedings on registering your trading business? A trading business can be registered as a company, partnership firm and sole proprietor. As a business person you want to register your trading business as a company then you can read our blog on the “<a href="https://www.biznestbazaar.com/blog/company-registration-process-in-nepal.">Company Registration Process of Nepal</a>”.&nbsp;Partnership firm is a business having two or more than two partners. The business is owned and operated by the partners of the firm. If you want to register your trading business (Partnership firm) in Nepal and search for the guidance then this blog will help you to gain knowledge and will provide extensive guidance through registration. Before indulging yourself into the business you need to understand the basic concept of trading business, the type of trading business and governing laws for the registration of trading business.&nbsp;<h2>What is Trading Business?</h2>&nbsp;The business that sells and buys goods to make profit. Example: Ram and Shyam are two friends. They decide to start a clothing store together while sharing profit and loss.Trading business has three forms:&nbsp;a) Business to Business (B2B)b) Business to Consumer (B2C)c) Direct to Consumer (D2C)&nbsp;<h3>Business to Business (B2B)</h3>&nbsp;The business where the transaction is done between one business to another. Example:&nbsp; Stationery Wholesalers sell stationary items in bulk to wholesalers or retailers.&nbsp;<h3>Business to Consumer (B2C)</h3>&nbsp;The business where the business sells products directly to the consumer. Example: Sales Berry a retail store sells goods to the consumer.&nbsp;<h3>Direct to Consumer (D2C)</h3>&nbsp;The business where manufacturers sell their products directly to the consumer. Example: BZY bag Manufacturer Company sells their product directly to the customers.&nbsp;You may also like: <a href="https://www.biznestbazaar.com/blog/education-consultancy-business-registration-process-in-nepal">Education Consultancy Business Registration Process in Nepal</a>&nbsp;<h2>Types of Trading Business</h2>&nbsp;<h3>&nbsp;Import/Export Trading Business</h3>&nbsp;The trading business that imports goods from the foreign market (Import) and sells those goods domestically or vice versa (Export).Example: ZXY Partnership Firm imports Samsung mobiles and distributes them within the Nepalese market for sale.&nbsp;<h3>Local Trading Business:&nbsp;</h3>&nbsp;The purchase and sale of products domestically.Example: ABC, a partnership firm, purchases goods from manufacturers of Nepal and distributes them within the Nepalese Market.&nbsp;Also read: <a href="https://www.biznestbazaar.com/blog/how-to-register-a-private-firm-in-the-department-of-small-and-cottage-industry-in-nepal">How to register a Private Firm in the Department of Cottage and Small Industry in Nepal?</a>&nbsp;<h2>Categories of Trading Business</h2>&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/Categories_of_Trading_Business.png"></figure><h3>&nbsp;</h3><h3>Distributor</h3>&nbsp;Distributors are those who buy products from the manufacturer and resell them to wholesalers, retailers, or the end customer. They act as intermediates between the producer, wholesaler, retailers, or the end customer.&nbsp;<h3>Wholesaler</h3>&nbsp;They buy goods from producers or distributors in bulk and sell it to consumers or the retailer.&nbsp;<h3>Retailer</h3>&nbsp;They purchase goods from a wholesaler and sell them to customers. The retailer may operate it in various forms such as physical stores, and online shops.&nbsp;<h2>Governing Authority</h2>&nbsp;<h3>Register Business related to import, export or Import/export</h3>&nbsp;<ol><li>Department of Commerce, Supply and Consumer Protection (वाणिज्य, आपूर्ति तथा उपभोक्ता संरक्षण विभाग) (Babarmahal, Kathmandu) for Bagmati and Gandaki Province. &nbsp;</li><li>Office of Commerce, Supply and Consumer Protection (वाणिज्य, आपूर्ति&nbsp;वाणिज्य, आपूर्ति&nbsp;कार्यलय)&nbsp;(Biratnagar) for Koshi Province &nbsp;</li><li>Office of Commerce, Supply and Consumer Protection (वाणिज्य, आपूर्ति&nbsp;वाणिज्य, आपूर्ति&nbsp;कार्यलय)&nbsp;(Birgunj) for Madesh Province &nbsp;</li><li>Office of Commerce, Supply and Consumer Protection (वाणिज्य, आपूर्ति&nbsp;वाणिज्य, आपूर्ति&nbsp;कार्यलय)&nbsp;(Bhairawa and Nepalgunj) for Lumbini Province. &nbsp;</li><li>Office of Commerce, Supply and Consumer Protection (वाणिज्य, आपूर्ति&nbsp;वाणिज्य, आपूर्ति&nbsp;कार्यलय)&nbsp;( Nepalgunj) for Karnali Province &nbsp;</li><li>Office of Commerce, Supply and Consumer Protection (वाणिज्य, आपूर्ति&nbsp;वाणिज्य, आपूर्ति&nbsp;कार्यलय)&nbsp;(Dhangadi) for Sudurpaschim Province</li></ol>&nbsp;<h3>Small and Cottage Industries in the concerned district</h3>&nbsp;<h4>Register local trading businesses</h4>(The name of the office may vary depending on the province. In Bagmati province, it is named as&nbsp;उद्योग तथा वाणिज्य कार्यलायLocal Government: If the capital is less than 5 lakhs for Local Trading BusinessGoverning Law<ul><li>Partnership Firm Act, 2020 B.S.</li><li>Provincial Law (For Local Trading Business)</li></ul><h3>&nbsp;</h3><h3>Step 1: Create Account</h3>&nbsp;In the first place, create an account from the website of Commerce and Supply Management. Visit the link;&nbsp;<a href="https://online.doc.gov.np/onlineuser/Login">https://online.doc.gov.np/onlineuser/Login</a> to register your user’s name. You will view the following page:&nbsp;Make sure to use the same phone number that you used while making the account. After using the phone number you cannot use the same number time to create another account. You will get the 4 digit code in your number, fill it.&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/fmis_login_page.png"></figure>&nbsp;<h3>Step 2: Fill the detail</h3>&nbsp;Once you register the user name, the following page will be opened:&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/doc_TewxfJ8.jpg"></figure>&nbsp;Make sure you choose a partnership firm. You need to fill in the details about your partnership firm and upload the document. The list of documents required to upload are:&nbsp;<ul><li>Citizenship</li><li>&nbsp;The signature photograph taken on a white sheet</li><li>Partnership deed</li><li>The approval certificates (for security, for pharmaceuticals, financial related business)</li><li>&nbsp;Rent Agreement</li><li>Copy of Land Ownership Certificate</li><li>&nbsp;Self- Declaration&nbsp; Letter&nbsp;&nbsp;(स्वघोषणा पत्र)</li><li>&nbsp;Bank Statement</li><li>Proof of Payment made through bank</li></ul>&nbsp;<h3>Step 3: Fill the application</h3>&nbsp;The next step is filling out the application form of the Department of Commerce and Supply Management website. Visit the link<a href="https://doc.gov.np/Downloads">&nbsp;https://doc.gov.np/Downloads</a> to download the form. Details you need to fill in the form are:a)&nbsp; &nbsp;Full name of the firmb)&nbsp; &nbsp;The principal place of business of the firmc) &nbsp; The objective of the firm including the short description of the nature of the goods or servicesd)&nbsp; &nbsp;The full name, surname and permanent address of the partnerse) &nbsp;The matter of restriction imposed on the power of a partner, if any,f)&nbsp; &nbsp;The types of partnership and the capital; subscribed by each partnersg) &nbsp;The name of a partner or partners, who represent the firm,h) &nbsp;The mode to share the profit and loss between/ among partners,i) &nbsp;The mode to calculate the profit of a firm,j) &nbsp;Any other matters, prescribed by the concerned Department stating which should be set out in the application&nbsp;<h3>Step 4 Submission of Physical Copy at Concern Department/ Office</h3>&nbsp;After the completion of the online form, upload all the documents, you will receive the message. Screenshot the message, print it, and visit the Department of Commerce and Supply Management or the concerned office designated by the government. Along with the application, you need to pay Rs. 100 as an application fee. The following document should be submitted:&nbsp;a) &nbsp; &nbsp; Application Formb)&nbsp; &nbsp; Citizenshipc) &nbsp; &nbsp; Photosd)&nbsp; &nbsp; Recommendation letter from the concerned departmente) &nbsp; &nbsp; Partnership Deedf)&nbsp; &nbsp; &nbsp; Self- Declaration (स्वघोषणा पत्र)g) &nbsp; &nbsp; Bank Statement (स्रोत पुष्टि हुने कागजात)h)&nbsp; &nbsp; Proof of Payment made through the banki) &nbsp; &nbsp; &nbsp; Recommendation/Approval according to law&nbsp;<h3>Step 5: Examination of Submitted Documents</h3>&nbsp;After submitting the documents, the Department/ office will examine them. If the documents order is in sequence, the partnership firm will be approved, and the Department will issue a certificate of incorporation. If the register detects an error in the documents, the Department will direct you to rectify or amend the mistake. After the correction, the department will issue a registration certificate.&nbsp;<h3>Step 6: Pay the Registration Fee</h3>&nbsp;After submitting the document, you need to pay the registration fee along with the application fee of Rs 100. Registration fees vary according to the capital of your partnership firm.The fee required for register are:<figure class="table"><table class="ck-table-resized"><colgroup><col style="width:50%;"><col style="width:50%;"></colgroup><tbody><tr><td>Capital (NRP)</td><td>Fee (NRP)</td></tr><tr><td>Up to One lakh</td><td>Rs 600</td></tr><tr><td>More than 1 lakh and up to 3 lakh</td><td>Rs 2000</td></tr><tr><td>More than 3 lakh and up to 5 lakh</td><td>Rs 4000</td></tr><tr><td>More than 5 lakh and up to 10 lakh</td><td>Rs 7000</td></tr><tr><td>More than 10 lakh and up to 50 lakh</td><td>Rs 10000</td></tr><tr><td>50 lakhs and above</td><td>Rs 15000</td></tr></tbody></table></figure>&nbsp;In Bagmati, Women, Dalit community members, and those from underprivileged backgrounds are eligible for a 50% discount on the registration fee when registering a firm. The registration for local trading depends on the provincial law of the particular province.&nbsp;After the payment, the concerned department officer will issue a registration certificate.<h3>&nbsp;</h3><h3>Step 7:&nbsp; Register of Business Ward</h3>&nbsp;After you obtain the incorporation certificate, you must register the company at the local level i.e. the ward office. The documents required for the ward office are:&nbsp;a) &nbsp; &nbsp; Registration Form- Available at each ward officeb)&nbsp; &nbsp; Rent Agreementc) &nbsp; &nbsp; Copies of Land owing certificated)&nbsp; &nbsp; Partnership deede) &nbsp; &nbsp; Property tax paid receiptf)&nbsp; &nbsp; &nbsp; Passport size photographsg) &nbsp; &nbsp; Photoh)&nbsp; &nbsp; Copies of citizenship of partners and house owneri) &nbsp; &nbsp; &nbsp; Certificate of Registrationj) &nbsp; &nbsp; &nbsp; Additionally, other documents required as per ward office or regulatory authorities.<h3>&nbsp;</h3><h3>Step 8: Register on PAN</h3>&nbsp;Next step is to register the partnership firm with tax authorities, and must apply through the IRD website. The link to visit (authorities. You must apply through the IRD website. You can visit this link: (<a href="https://ird.gov.np/">https://ird.gov.np/</a>). After filling the online application, you need to visit the IRD Office.&nbsp; The required documents for PAN Registration Process in Nepal are;&nbsp;a) &nbsp; &nbsp; PAN Application Formb)&nbsp; &nbsp; Copies of citizenshipc) &nbsp; &nbsp; Partnership Deedd)&nbsp; &nbsp; Rent Agreemente) &nbsp; &nbsp; Seal of the Businessf)&nbsp; &nbsp; &nbsp; Registration Certificate at the local level&nbsp;<h3>&nbsp;Frequently Asked Questions</h3>&nbsp;Should the already registered firm under Private Firm Registration Act be registered?&nbsp;The firm shall not be required to register the firm under the act of Partnership Firm Registration which has been already registered pursuant to Private Firm Registration Act, 2014. If the registration is not as per the Section 6 (the matters that are required to set an application) not mentioned in early registration, the concerned Department may seek such particulars and the partners shall submit such particulars to the concerned department.&nbsp;Can the property of the partnership be used?&nbsp;No partners shall use or cause to use the property of the partnership firm for any other purpose other than the purpose of the partnership business.&nbsp;&nbsp;When is the partner not entitled for profit?&nbsp;If a partner fails to pay the capital to be subscribed by him/her to the firm, he/she shall not be entitled to receive his/her profit until he/she pays the said capital.&nbsp;What is the liability of the partners?&nbsp;Every partner shall be liable jointly or personally with all the other partners for all the acts of the firm done while he/she was a partner.&nbsp;&nbsp;What can be the name of the firm?&nbsp;A firm shall not be given such a name which resembles the name of any other firm which is already registered, or the name of any limited company which is already registered under Company Act.&nbsp;Is there compulsion for additional capital?&nbsp;No, there is no compulsion for additional capital, than the amount prescribed in the agreement of partnership deed despite the request of other partners.&nbsp;Can a partner be substituted?No partners shall, without the consent of all other partners, make or keep to any other person as a partner in the firm instead of him./her.&nbsp;&nbsp;Disclaimer: The information provided here is for informational purposes only and should not be considered as legal advice. Please consult with a qualified legal expert for professional legal opinions. You can also consult with our&nbsp;<a href="https://www.biznestbazaar.com/hire-professional">professionals</a>&nbsp;for further assistance.&nbsp;

Partnership Firm Registration Process: Trading Business

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