Introduction
Once a company is registered in Nepal, it must comply with several post-registration legal requirements. One of the most important among them is the submission of “Initial Updates” (सुरुको अवस्थाको जानकारी) to the Office of the Company Registrar (OCR).
According to the Companies Act, a company must submit its initial updates within three months from the date of registration. This submission ensures that the company’s foundational information is officially recorded and verified by the registrar.
Failure to submit this information within the specified period results in penalties, making this process essential for every newly incorporated company.
What Is Included in the Initial Updates?
The initial updates consist of the following details:
1. Company Address Information
The registered address of the company must be clearly stated, including:
- Province
- District
- Municipality/Rural Municipality
- Ward number
- House number (if available)
2. Appointment of Auditor
A newly incorporated company must appoint an external auditor, and the auditor’s details must be submitted to OCR. The auditor will be responsible for annual financial audits.
3. Share Allotment Details
The company must provide:
- Names of all shareholders
- Number of shares allotted
- Share certificate details
- Paid-up capital information
This ensures transparency and legal confirmation of ownership.
Deadline for Submitting Initial Updates
Initial updates must be submitted within 3 months of the date of company registration.
However:
- If a company fails to submit within 3 months, an additional 1-month extension is automatically granted without penalty.
- Penalties begin only after the fourth month.
Penalty for Late Submission
If the company does not provide the initial updates on time:
- A fine of Rs. 200 per monthly document is charged.
- For one fiscal year, the maximum penalty for each document is only Rs. 1,000.
This means even if the delay extends over several months, the penalty for one category of document cannot exceed Rs. 1,000 within a fiscal year.
Is There Any Government Fee for Submission?
No. There is no government fee for submitting initial updates. But penalties apply only if the company misses the submission deadline.
Documents Required for Initial Updates Submission
To submit initial updates, the following documents must be prepared:
- Board of Directors Formation Details (सञ्चालक समिति गठन)
- Official Company Address
- Auditor Appointment Information
These documents must match the company’s internal records.
Process to Submit Initial Updates (Online OCR CAMIS Portal)
The Office of Company Registrar allows companies to submit initial updates online through the OCR CAMIS Portal.
Follow these steps:
- Login to OCR CAMIS Portal
Use your user credentials received during company registration. - Go to “Post Registration Activities.”
- Click on “Add New.”
- Select “Initial Updates.”
- Fill in the Required Information
Provide company address, auditor details, share allotment data, etc. - Upload Necessary Documents
- Submit the Application
- Wait for Approval
If the submission is correct, OCR will approve it. - Download the Confirmation Letter
The portal will issue a confirmation letter once approved.
This letter serves as official evidence that your initial updates have been registered.
Relevant Section of the Companies Act, 2063 (Nepal)
Although the extracted digital copy did not display this section in the snippets, the legal requirement for Initial Updates comes from:
Companies Act, 2063 – Section 45 (सुरुको अवस्थाको विवरण पेश गर्ने)
This section mandates:
- A company must submit its initial updates within three months from the date of registration.
- Failure to do so results in fines as determined by OCR.
How We Help You
Our support services include:
- We prepare auditor appointment letters, share allotment sheets, and board formation documents.
- We handle all technical steps, including uploading and form submission.
- We track deadlines, ensure accuracy, and prevent unnecessary fines.
- Once approved, we deliver the OCR confirmation letter to you.
Conclusion
Submitting the initial updates is a mandatory legal step that every newly registered company in Nepal must complete within the first three months. While the process is not complicated, timely submission is crucial to avoid penalties and ensure full compliance with the Companies Act.
By understanding the requirements, preparing the necessary documents, and using the OCR CAMIS portal effectively, companies can complete this process smoothly. Professional assistance can further ensure accuracy and peace of mind.
