Cooperative Registration in Nepal
Cooperatives in Nepal are registered under the Nepal Cooperative Act 2074 BS with the Department of Cooperatives or District Cooperative Office. A minimum of 25 founding members are required, and cooperatives are member-owned democratic organizations.
Types of Cooperatives in Nepal
Nepal recognizes several types of cooperatives under the Cooperative Act 2074 BS:
- Savings and Credit Cooperative: Most common — members save and borrow from a shared pool
- Agriculture Cooperative: For farming, livestock, or agro-products
- Consumer Cooperative: Members buy goods at reduced prices
- Multipurpose Cooperative: Combines savings, services, and production
- Housing Cooperative: For construction and housing projects
Step-by-Step Process
- 1
Organize founding members
Assemble at least 25 interested persons. Hold a founding (Sthapana Sabha) meeting and elect a provisional committee to draft the cooperative's bylaws.
- 2
Draft bylaws (Bidhan)
Prepare the cooperative's constitution defining objectives, membership rules, share capital, governance structure, and profit-sharing rules.
- 3
Submit to District Cooperative Office
File the application with founding meeting minutes, bylaws, member list with citizenship copies, and share capital proof.
- 4
Registration certificate issuance
Upon approval, the District Cooperative Office or DoC issues the registration certificate.
- 5
PAN and bank account
Register PAN at IRD and open a bank account in the cooperative's name.
- 6
Annual compliance
Hold mandatory annual general meetings, submit audit reports, and renew registration annually.
Government Fees
These are mandatory fees payable directly to government authorities only. Service charges are separate.
| Item | Fee |
|---|---|
Registration fee (small cooperative) Based on share capital | NPR 2,000 – 5,000 |
Annual renewal fee Paid to District Cooperative Office | NPR 1,000 – 3,000 |
Audit fee (statutory) Based on cooperative size | Variable |
Cooperatives and Tax Benefits
Cooperatives registered with social objectives may qualify for reduced tax rates. Savings and credit cooperatives are generally taxed at a lower rate than companies. Consult with Chartered Corporate to structure your cooperative for maximum tax efficiency within legal boundaries.Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.