Starting an alcohol production venture in Nepal involves fulfilling multiple legal and tax-related requirements. Below is a clear, structured guide to help you navigate the registration and licensing process.
Step 1: Choose a Business Name
The first step is to finalize a unique and legally acceptable name for your business. Your proposed name should align with your brand identity and comply with Nepal’s business naming guidelines. Key details to prepare include:
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Proposed Business Name
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Business Location
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Authorized Capital (as per production scale)
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Nature of Business (distillery, brewery, winery, etc.)
Step 2: Register at the Company Registrar Office
To legally operate, your business must be registered with the Office of Company Registrar under Nepal’s Companies Act. Required documents include:
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Completed Application Form
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Memorandum of Association (MoA) and Articles of Association (AoA)
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Details of promoters and shareholders
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Business structure and investment plan
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Proof of registered office address
Upon approval, you will receive a Certificate of Incorporation, which legally establishes your company.
Step 3: Register at the Local Ward Office (Alternative Option)
If your business is small-scale or does not require formal company incorporation, you may register directly at your Local Ward Office. For this process, you will need:
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Citizenship Certificate of the business owner
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Proof of Residence (e.g., utility bill or land ownership certificate)
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Basic business details (name, location, capital, nature of business)
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Completed registration form and applicable fees
Step 4: Obtain a VAT Certificate
Next, apply for a Value Added Tax (VAT) Certificate from the Inland Revenue Department. This allows your business to collect and remit VAT on sales. Requirements include:
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Business Registration Documents
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Tax Identification Number (PAN)
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Financial Statements or Capital Details
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Application Form and supporting documents
Step 5: Obtain an Excise Duty Certificate (Annual Renewal Required)
Finally, secure an Excise Duty Certificate from the concerned government department. This certificate grants legal authorization to manufacture, store, and distribute alcohol products in compliance with Nepal’s Excise Duty Act. Key points:
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Submit business registration details and production information
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Provide a list of equipment and production capacity
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Pay prescribed excise duty fees
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Renew the certificate annually to continue operations
Final Note
Completing these steps ensures your alcohol production business is fully licensed, tax-compliant, and legally recognized in Nepal. Professional assistance can help streamline documentation and minimize delays in approval.