Partnership Firm Registration in Nepal
A partnership firm is a business owned by two or more people under a Partnership Deed. In Nepal, partnerships are governed by the Nepal Partnership Act 2020 BS. Registration is done at the Department of Commerce or local government, depending on the type.
What is a Partnership Firm?
A partnership firm is formed when two or more people agree to carry on business together and share profits and losses. Each partner contributes capital, skills, or labor and is jointly responsible for the firm's liabilities.
In Nepal, partnerships do not require OCR (company registrar) filing. They are registered with the relevant government department and require a legal Partnership Deed.
Step-by-Step Process
- 1
Draft the Partnership Deed
Prepare a Partnership Deed covering partner names, capital contributions, profit-sharing ratios, roles, and dispute resolution. We recommend getting this drafted by a legal professional.
- 2
Notarize the Partnership Deed
Have the deed notarized at the nearest Notary Public office. All partners must sign in the presence of the notary.
- 3
Department registration
Submit the notarized deed, citizenship copies of all partners, and address proof to the relevant Department of Commerce office.
- 4
PAN registration at IRD
Register the firm's PAN at IRD using the partnership certificate and partners' citizenships.
- 5
Ward/municipality registration
Obtain a ward-level business operating permit from the local ward office.
- 6
Bank account opening
Open a business account in the firm's name. All partners typically need to sign account-related documents.
Required Documents
- Citizenship certificates of all partners
- Passport-size photographs of all partners
- Notarized Partnership Deed
- Business address proof (rental agreement or ownership deed)
- Nature of business description
- Capital contribution details from each partner
Government Registration Fees
These are mandatory fees payable directly to government authorities only. Service charges are separate.
| Item | Fee |
|---|---|
Notarization of Partnership Deed Depends on notary and deed length | NPR 500 – 2,000 |
Department registration fee Based on capital | NPR 1,000 – 5,000 |
Ward office permit Varies by municipality | NPR 500 – 2,000 |
Important: Define Everything in Writing
Verbal partnerships are legally recognized in Nepal but extremely risky. Always have a written, notarized Partnership Deed that clearly states profit-sharing, capital contributions, and exit procedures. Disputes between partners are one of the most common causes of business failure.Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.