(1) A foreign company may not conduct any business or transaction within the State of Nepal without registering a branch office of such company in the office in accordance with this section or establish such an office without registering a contact office. However, investing in the shares of any company established in accordance with the law with the approval of the authorized body, lending to such company or participating in the operation or management of such company shall not be considered as business or transaction for the purposes of this paragraph. Explanation: For the purpose of this paragraph, if a foreign company conducts business regularly for a period of one month or more from an office or place used for that purpose in Nepal or appoints a person for regular contact or engages his services, then such company is carrying on business in Nepal. or shall be deemed to have established an office.
(2) A foreign company wishing to register a branch office in accordance with sub-section (1) shall submit an application for the registration of such company to the office along with the prescribed form in the prescribed format, including the approval received from the relevant body in accordance with the prevailing law.
(3) A foreign company wishing to register a liaison office in accordance with sub-section (1) shall submit an application for registration of such company to the office along with the prescribed form in the prescribed format, if the approval of any body is required in accordance with the prevailing law in order to register such an office. Clarification: If a foreign company is selected by an authorized body or enters into an agreement with an authorized body to do any work within Nepal, for the purposes of sub-section (1) and (2), such selection or agreement shall be deemed to have been approved by the relevant body. .
(4) If an application for registration of a foreign company is received in accordance with sub-section (2) or (3), the office shall carry out necessary investigations and allow such foreign company to conduct business or business within the State of Nepal.Not to do so or to set up a contact office within thirty days of filing a registration and giving a certificate of registration as prescribed.
(5) If the foreign company cannot be registered according to the application given under sub-section (2) or (3), the office shall inform the concerned applicant within thirty days of its disclosure.
(5) A foreign company registered in accordance with sub-section (4) may open its branch office within the state of Nepal and conduct related business or transactions or open a contact office. But a foreign company registered as a contact office cannot do any work that generates income within the state of Nepal.
(6) If the name of the foreign company applying under sub-section (2) or (3) or the purpose of such company is such that it cannot be registered in accordance with this Act, such foreign company cannot be registered in Nepal.
(7) A foreign company registered in accordance with sub-section (4) shall be deemed to be registered in such a way that it can only carry on business or transactions of the same nature as it is doing in the country where it has its registered office or establishment.
(8) A foreign company registered in accordance with this section shall keep a board with its name visible to all at the place of its business and the name of the country in which the company is established and the registration number of the company registered in Nepal shall be clearly displayed on such board and on the bills, receipts, invoices etc. or letterpads used by the company. It should be mentioned.
(9) For the registration of foreign companies registered in accordance with this section, the office shall establish a separate registration book and arrange for such registration book to be viewed by the general public and a copy may be obtained by paying the prescribed fee.
(10) Notwithstanding anything else written in this Act, a foreign company registered in accordance with this section cannot issue shares or debentures within the State of Nepal.
(11) Notwithstanding anything written elsewhere in this section, foreign companies operating business or dealings without registration within the State of Nepal at the time of commencement of this Act or having set up contact offices shall comply with this Act.It should be registered in the office in accordance with this Act within six months from the date of commencement.