Can another company become a shareholder of a Nepali company?

Corporate & Company Law

Yes. A Nepali legal entity can generally act as a founder or shareholder of another company, subject to its own constitutional authority, board approval and any sector-specific restrictions.

What OCR generally requires

Where a Nepali company is a founder, OCR's registration guidance calls for documents including:

  • a copy of the founder company's registration certificate;
  • a board decision explaining the investment;
  • the amount and manner of investment;
  • the name of the person representing the founder company;
  • identification of the authorized representative.

Corporate authority matters

The investing company should have legal and constitutional authority to make the investment, and the decision should be properly approved and recorded.

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