The Companies Act 2063, serves as the foundation for the formation, operation, and regulation of companies in Nepal.
The legal framework that governs businesses in the country.
In this article, we will break down the key provisions of the Companies Act and explain how it impacts businesses and stakeholders alike.
Introduction to Company & Companies Act 2063 (2006)
The word company has no strictly technical or legal meaning because it was known as a group or single-business enterprise. In practice, a company means a company of certain persons registered under the Company Act. Two or more persons conducting the business to get the objective.
According to Black’s Law Dictionary, a company is a society or association of persons, in considerable number, interested in a common objective and united themselves for the prosecution usually of the commercial or industrial undertaking, or other legitimate business.
You May Like: Company Registration Process in Nepal
In the view of L.C.B. Gower, “the word company has no strictly legal meaning. The term ‘company’ implies an association of numbered people for some common objective.
The purposes for which men and women may wish to associate are multifarious, ranging from those as basic as marriage and mutual protection against the elements to those as sophisticated as the object of the confederation of British Industry or a political party.
However, in common parlance, the word company is normally reserved for those associated with economic purposes, i.e. to carry on a business for gain.
Indian Company Act 1956 states that “formed and registered under this act or an existing company is called a company”.
The Company Act 2063 establishes the management of the company and conduct realizing the established principles.
The objective and goal of the Company Act 2063, is to bring a drastic change in the administration and management of the company registered and established under it.
Companies Act 2063 in English
Companies Act 2063 in Nepali
The Companies Act 2063 is also known as the Companies Act 2006 in AD.
Company Act 2063 pdf in English
The Company Act 2063 (2006) pdf in English is available to download from the above links provided in the article.
Company Act pdf in Nepali
The Company Act 2063 (2006) pdf in Nepali is available to download from the above links provided in the article.
All Companies in Nepal are Registered under the Company Act 2063 (2006) in the Office of the Company Registrar (OCR).
Once a company is incorporated it can enjoy the rights of being a separate entity. If the procedure of registering a company is not performed according to the existing law it could not enjoy its right and cannot perform its duty.
If any problem arises then it cannot seek legal remedies, thus, incorporation of a company according to law is essential.