Firm registrations surge, thanks to online systemThe number of company registrations has grown significantly over the last two years following the introduction of the online registration system.
The number of company registrations has grown significantly over the last two years following the introduction of the online registration system.
Office of Company Registrar (OCR) officially launched the online registration system on Feb 8, 2013, and online registration was made mandatory from October 2013.
In the last fiscal year, a total of 14,921 companies were registered, up 18 percent year-on-year, despite prolonged Indian blockade and Tarai unrest creating difficulties in doing business.
In 2014-15, a total of 12,626 companies had been registered, up from the previous year’s 10, 194.
Prem Kumar Shrestha, registrar at OCR, attributed the surge in the number of company registrations to the introduction of the online registration system. “Even the blockade didn’t affect the registrations last fiscal year, suggesting the online system has helped,” he said.
Shrestha said the OCR has also eased the registration process. “One can prepare the article of association and memorandum of article without taking help of lawyers because we have posted their formats on the web,” he said.
Under the online registration system, people can get tasks such as registration, dissolution and other administrative work done through the internet.
In order to complete the registration process, company representatives need to make a one-time visit to the OCR office in Tripureshwor, Kathmandu, or the Lalitpur district office of the Department of Cottage and Small Industries to pay registration charges and register their official signatures.
Although the registrations of private, public and non-profit organisations rose last year, those of companies having foreign investment decreased.
Meanwhile, the last fiscal year saw 626 company annulments, while 42 firms went for merger — the largest in the last four years.
A total of 939 companies changed their names and 1,811 changed their office locations, according to OCR. Shares of 7,347 companies were either bought or sold — which is also the largest number in the last four years.
A total of 408 companies went from single ownership to multiple ownership, while 1,713 companies changed share structure and 1,182 changed their objectives.
Source: Office of Company Registrar