Liaison Office Registration of Foreign Company in Nepal

Liaison office, also known as the contact office or contact point, for a foreign company in Nepal. The liaison office coordinates in establishing relationships with local businesses or parties where it is established.

Existing governing Laws for liaison office registration of foreign companies in Nepal are governed by Section 154 of the Companies Act of Nepal.

The Office of the Company Register (OCR) is the governing authority to register a liaison office in Nepal.

Approval of government authority is not required; however, the Office of the Company Registrar (OCR) can ask for approval from the relevant authority for registration of a liaison office as per the nature of the business activities to be conducted.

Below in the steps of the Liaison Office Registration Process in Nepal: 

Step 1: Submission of Liaison Office Registration Application and the required documents on the official site of OCR.

Step 2: OCR verify all the documents and provide the Registration Certificate

Step 3: Business registration in the local authority i.e., Ward office, where the office will be operated

Tax Registration (VAT/PAN) in the Inland Revenue office and opening a bank account

1.  The liaison office registered in Nepal do not have a separate legal status and legal personality; it is taken as part of a foreign company operating in Nepal.
2. The liaison office of a foreign company registered in Nepal cannot be engaged in any kind of income-generating activities in Nepal.
3. No advertising activities can be undertaken

1. Market research and information gathering about the market trends, consumer behaviour,
2. Liaison office can provide information of the parent company’s product and service to the customers and suppliers,
3.  Promotion of Parent Company
4.  Facilitates trade between the Parent company and local business,
5. Coordinates  with Agent in Nepal if appointed by foreign company.
6. Ensuring regulatory compliance and project monitoring, assist agents to import and use of products of foreign company without remuneration.

The time required for registration of a liaison office in Nepal tentatively takes 2 to 3 weeks. 

Following are the post-compliance requirements of the branch office in Nepal:

1. To be registered at the local authority and the Inland Revenue Department for tax purposes to pay income tax in Nepal.
2. Submit a 3-month compliance document before OCR.
3. Information to be updated to the concerned authority if any changes or amendments are made.
4. Submission of the balance sheet of its parent company within 3 months from its preparation date.
5. Appoint an auditor to prepare the annual financial statement (audit report) of the branch office
6. Annual filing each year.

• The Liaison Office are contact point for foreign companies to communicate and coordinate establishing relationships with local businesses or parties but Branch office can do business activities.
• Liaison offices are not permitted to generate income activities, whereas branch offices can earn.
• No any approval form from the government authority is required for liaison office establishment but for a branch office, approvals are required as per the nature of business.
• The liaison office cannot do any contract for business or transaction, advertisement and marketing for products of a foreign company, whereas a branch office can do.

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