Broadly, there are three business vehicles to set up business in Nepal such as
(a) Sole Proprietorship, (b) Partnership firm and (c) Company. In terms of a
start-up business, a private limited company is the commonly registered business
vehicle. Companies have a distinct legal identity and are considered as separate
legal person, for example, a company can purchase and own property in its name as an individual. Companies have the feature of limited liability as a protection to their members which sole proprietorship or partnership firm lacks.
Please download the file to learn more about Company.
An entrepreneur can carry out his/her business by registering a partnership
firm after entering into a partnership deed between two or more partners. Like
Sole Proprietorships, partnership firms also do not have a separate corporate
personality and the liability of the partners is unlimited. Further, it requires periodic
renewal, and it is restricted from issuing any corporate guarantees. Apart from
that, only one partner can act on behalf of the firm.
Please download the file to learn more about Partnership Firm.
An entrepreneur can start business by registering a Sole Proprietorship which provides the firm with trading name. A Sole Proprietorship is solely owned and managed by a single entrepreneur. In comparison with other business vehicles, it is easy to establish, control, dissolve and there is room for prompt and flexible decision making as well. However, Sole Proprietorships do not have a separate corporate personality and the liability of the proprietor is unlimited. Further, it requires periodic renewal and is restricted from issuing any corporate guarantees.
Please download the file to learn more about Sole Proprietorship.