How many shareholders can a private company have in Nepal?

Corporate & Company Law

A private company can have one shareholder, and the Companies Act generally provides that the number of shareholders must not exceed 101 unless a statutory exception applies.

Single shareholder

Nepal expressly recognizes a private company with one shareholder.

Maximum number

The Companies Act provides a general maximum of 101 shareholders for a private company. There are limited statutory exceptions, so a particular company should be checked against the current law where an unusual ownership structure is proposed.

Why this matters

If a business expects a broad shareholder base or public fundraising, a private company structure may eventually become unsuitable and conversion to a public company may need to be considered.

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