Company Conversion Process in Nepal

In Nepal, the Companies Act, 2063, has mentioned about Process of Company Conversion (private to public; public to private) in Nepal.

The process of Company Conversion in Nepal is: 

1. Conversion of Private Company into Public Company:

The process of conversion of a Private Company into a Public Company is mentioned below:

If the General Meeting of the Private Company adopts a special resolution to convert into a public company.

Process of Conversion:

Step 1: Make an application accompanied by a copy of the resolution and fees within 30 days of the resolution
Step 2: OCR examines and evaluates the application and documents submitted
Step 3: OCR provides a conversion certificate within 60 days
 

If a private company subscribes 25% or more of the shares of a public company
Process of Conversion:

Step 1: Make an application setting out all details, accompanied by the fee to the OCR, within seven days after the date of occurrence of the circumstances
Step 2: OCR examines and evaluates the application and documents submitted
Step 3: Issuance of the conversion certificate by OCR

2. Conversion of Public Company into Private Company

The process of conversion of a public company into a private company is as follows:

If the number of shareholders becomes less than seven
If the public company fails to maintain its minimum paid-up capital

Process of Conversion:

Step 1: Make necessary amendments in the MOA and AOA and convert it into a Private Company within 30 days
Step 2: Make an application to OCR, accompanied by copies of the amended MOA and AOA, along with the prescribed fee within 30 days of the amendment
Step 3: By mentioning the content of the conversion of such a company into a private company, OCR shall issue a conversion certificate within 60 days.

The aforementioned is the Process of Company Conversion (private to public; public to private) in Nepal.

Disclaimer: All content available here is for general information purposes. A proper legal solution always depends on your particular circumstances thus seek advice from an attorney who can provide assurances of the information contained herein and its interpretation.  All liability with respect to actions taken on the basis of the site’s information is hereby expressly disclaimed.