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.


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