Process of Company Conversion (private to public; public to private) in Nepal: Company incorporation Lawyers 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 are:
Conversion of Private Company into Public Company:
Process of conversion of Private Company into 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 conversion certificate within 60 days |
- If 25% or more shares of the Private Company are subscribed by a public company
- 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 conversion certificate by OCR
|
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 MOA and AOA and convert it into Private Company within 30 days |
| Step 2 | Make an application to OCR accompanied by copies of amended MOA and AOA along with the prescribed fee within 30 days of the amendment |
| Step 3 | By mentioning the content of 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.
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