Subject: Business Studies
Incorporation of a joint-stock company means recognition. The joint stock company must be registered in the office of the Company Registrar under the provision of the Company Act, 2063 B.S. for its legal recognition.
Incorporation of the joint-stock company means recognition. The joint stock company must be registered in the office of the Company Registrar under the provision of the Company Act, 2063 B.S. for its legal recognition. The interested people must gather and prepare a plan and concept of the business and apply to Company Registrar. The people who prepare framework and who carry the responsibility of the business is known as promoters. They decide about the activities of the business. The following things are to be observed for incorporation of a joint-stock company:
For Private Limited Company
S.N. |
Authorized Capital |
Registration fee |
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. |
Up to Rs.1,00,000 Rs.1,00,001 to Rs.5,00,000 Rs.5,00,001 to Rs.25,00,000 Rs.25,00,001 to Rs.1,00,00,000 Rs.1,00,00,001 to Rs.2,00,00,000 Rs.2,00,00,001 to Rs.3,00,00,000 Rs.3,00,00,001 to Rs.4,00,00,000 Rs.4,00,00,001 to Rs.5,00,00,000 Rs.5,00,00,001 to Rs.6,00,00,000 Rs.6,00,00,001 to Rs.7,00,00,000 Rs.7,00,00,001 to Rs.8,00,00,000 Rs.8,00,00,001 to Rs.9,00,00,000 Rs.9,00,00,001 to Rs.10,00,00,000 Above Rs.10,00,00,000 |
Rs.1,000 Rs.4,500 Rs.9,500 Rs.16,000 Rs.19,000 Rs.22,000 Rs.25,000 Rs.28,000 Rs.31,000 Rs.34,000 Rs.37,000 Rs.40,000 Rs.43,000 Rs.30 per 1 lakh |
For Public Limited Company
S.N. |
Authorized Capital |
Registration fee |
1. 2. 3. 4. 5. 6. 7. |
Up to Rs.1,00,00,000 Rs.1,00,00,001 to Rs.10,00,00,000 Rs.10,00,00,001 to Rs.20,00,00,000 Rs.20,00,00,001 to Rs.30,00,00,000 Rs.30,00,00,001 to Rs.40,00.00,000 Rs.40,00,00,001 to Rs.50,00,00,000 Above Rs.50,00,00,000 |
Rs.15,000 Rs.40,000 Rs.70,000 Rs.1,00,000 Rs.1,30,00 Rs.1,60,000 Rs.3000 per 1 crore |
The process of bringing the existence of the company to the end is known as winding up of a company. It is also called liquidation. It collects all the assets to pay the total liabilities in order to close the company permanently. If the assets of the company exceed the liabilities the shareholders share the surplus amount in the ratio of their shareholding and if the assets are not insufficient to meet the liabilities, the creditors will get in proportion to their dues in order of priority.
According to the Company Act, 2053, the joint stock company can be wind up by the following way:
Voluntary Liquidation:
The agreement of all the shareholders at a special general meeting to wind up the company is known as voluntary liquidation. A public company can liquidate itself by a special resolution under the following conditions:
A private limited company can be liquidated according to the provisions of the Memorandum and Articles of Association. The company must publish the decision of liquidation of the company in the national newspaper twice within a week from the date of such resolution. It must send its effect to the office of the Registrar. This meeting appoints the liquidator and the auditor to complete the liquidation process and to audit the accounts of the company.
Compulsory liquidation:
The liquidation of the company made by the office of the Registrar is known as compulsory liquidation. Under this , two-third part of the creditors can apply to the office of the Registrar for the liquidation of the company to recover the credit amount. When the application is received, the Registrar can place an order for the liquidation of the company. The Registrar appoints liquidate and auditor to complete the process of liquidation. Under the following conditions, the compulsory liquidation is made:
References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal.Business Studies.Kathmandu: Taleju Prakashan, 2067.
Pant, Prem R., et al.Business Studies.Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.
Describe the procedures of incorporation of a joint stock company.
The procedures of incorporation of a joint stock company are described below:
For Private Limited Company
S.N. |
Authorized Capital |
Registration fee |
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. |
Up to Rs.1,00,000 Rs.1,00,001 to Rs.5,00,000 Rs.5,00,001 to Rs.25,00,000 Rs.25,00,001 to Rs.1,00,00,000 Rs.1,00,00,001 to Rs.2,00,00,000 Rs.2,00,00,001 to Rs.3,00,00,000 Rs.3,00,00,001 to Rs.4,00,00,000 Rs.4,00,00,001 to Rs.5,00,00,000 Rs.5,00,00,001 to Rs.6,00,00,000 Rs.6,00,00,001 to Rs.7,00,00,000 Rs.7,00,00,001 to Rs.8,00,00,000 Rs.8,00,00,001 to Rs.9,00,00,000 Rs.9,00,00,001 to Rs.10,00,00,000 Above Rs.10,00,00,000 |
Rs.1,000 Rs.4,500 Rs.9,500 Rs.16,000 Rs.19,000 Rs.22,000 Rs.25,000 Rs.28,000 Rs.31,000 Rs.34,000 Rs.37,000 Rs.40,000 Rs.43,000 Rs.30 per 1 lakh |
For Public Limited Company
S.N. |
Authorized Capital |
Registration fee |
1. 2. 3. 4. 5. 6. 7. |
Up to Rs.1,00,00,000 Rs.1,00,00,001 to Rs.10,00,00,000 Rs.10,00,00,001 to Rs.20,00,00,000 Rs.20,00,00,001 to Rs.30,00,00,000 Rs.30,00,00,001 to Rs.40,00.00,000 Rs.40,00,00,001 to Rs.50,00,00,000 Above Rs.50,00,00,000 |
Rs.15,000 Rs.40,000 Rs.70,000 Rs.1,00,000 Rs.1,30,00 Rs.1,60,000 Rs.3000 per 1 crore |
After submitting the application form along with necessary documents and registration fee, the office of Registrar examine all these documents submitted by the promoters. If the office is satisfied by the documents then the office will Registrar the company name within 15 days of the receipt of the application. After registering the office, the Registrar will issue the certificate of incorporation to the company. And the company become legal.
After receiving the certificate of incorporation, the private limited company can run its business. But in the case of a public limited company, it can run business only after receiving the certificate of commencement of business. To obtain a certificate of commencement of business, the company need to submit the report of at least 25% of issued capital already paid by the promoters with duly signed by at least one director must be filled with the Registrar. Then, the office of Registrar will examine the report. If the report satisfies the office of Registrar then, it will issue a certificate of Commencement of Business. After receiving the certificate of Commencement of Business, the public limited company can legally run its transaction and can issue prospectus also.
Explain about the winding up of a joint stock company in Nepal.
Winding up refers to the closing of the company. It is a legal process which makes an end of the life of a company. It is also called liquidation. If the assets of the company is an excess of the liabilities. The shareholders share the surplus amount in the ratio of their shareholding and if the assets are not insufficient to meet the liabilities, the creditors will get in proportion to their dues in order of priority.
The company Act, 2053, provides the following methods for liquidation of the company:
Voluntary Liquidation
The arrangement made by the shareholders at the special general meeting to wind up the company is called voluntary liquidation. A public company can liquidate itself by a special resolution under the following conditions:
A private limited company can be liquidated according to the provisions of the Memorandum and Articles of Association. The company must publish the decision of liquidation of the company in the national newspaper twice within a week from the date of such resolution. It must send its effect to the office of the Registrar. This meeting appoints the liquidator and the auditor to complete the liquidation process and to audit the accounts of the company.
Compulsory liquidation:
The liquidation of the company is made by the office of the Registrar is known as compulsory liquidation. Under this , two-third part of the creditors can apply to the office of the Registrar for the liquidation of the company to recover the credit amount. When the application is received, the Registrar can place an order for the liquidation of the company. The Registrar appoints liquidate and auditor to complete the process of liquidation. Under the following conditions, the compulsory liquidation is made:
Explain the payment of a Registration Fee.
The promoters of the proposed company must pay prescribed registration fee. The prescribed registration fee should be deposited in Nepal Rastra Bank or paid in cash or should provide the deposit voucher to the office of Company Registar. The amount of registration fee depends on the amount of authorized capital. The current amount of registration fee is presented below:
For Private Limited Company
S.N. |
Authorized Capital |
Registration fee |
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. |
Up to Rs.1,00,000 Rs.1,00,001 to Rs.5,00,000 Rs.5,00,001 to Rs.25,00,000 Rs.25,00,001 to Rs.1,00,00,000 Rs.1,00,00,001 to Rs.2,00,00,000 Rs.2,00,00,001 to Rs.3,00,00,000 Rs.3,00,00,001 to Rs.4,00,00,000 Rs.4,00,00,001 to Rs.5,00,00,000 Rs.5,00,00,001 to Rs.6,00,00,000 Rs.6,00,00,001 to Rs.7,00,00,000 Rs.7,00,00,001 to Rs.8,00,00,000 Rs.8,00,00,001 to Rs.9,00,00,000 Rs.9,00,00,001 to Rs.10,00,00,000 Above Rs.10,00,00,000 |
Rs.1,000 Rs.4,500 Rs.9,500 Rs.16,000 Rs.19,000 Rs.22,000 Rs.25,000 Rs.28,000 Rs.31,000 Rs.34,000 Rs.37,000 Rs.40,000 Rs.43,000 Rs.30 per 1 lakh |
For Public Limited Company
S.N. |
Authorized Capital |
Registration fee |
1. 2. 3. 4. 5. 6. 7. |
Up to Rs.1,00,00,000 Rs.1,00,00,001 to Rs.10,00,00,000 Rs.10,00,00,001 to Rs.20,00,00,000 Rs.20,00,00,001 to Rs.30,00,00,000 Rs.30,00,00,001 to Rs.40,00.00,000 Rs.40,00,00,001 to Rs.50,00,00,000 Above Rs.50,00,00,000 |
Rs.15,000 Rs.40,000 Rs.70,000 Rs.1,00,000 Rs.1,30,00 Rs.1,60,000 Rs.3000 per 1 crore |
Define the incorporation and winding up of joint stock company
Incorporation of a Joint stock company
Incorporation of the joint stock company means recognition. The joint stock company must be registered in the office of the Company Registrar under the provision of the company Act, 2063 B.S. for its legal recognition. The company must follow some steps to establish the company. The interested people must gather and prepare a plan and concept of the business and apply to Company Registrar. The people who prepare framework and who carry the responsibility of the business is known as promoters. They decide about the activities of the business. The following things are to be observed for incorporation of joint stock company:
Filing an Application
Payment of Registration
Certificate of incorporation
Certificate of Commencement of Business
Winding Up of Joint stock company in Nepal
Winding up refers to the closing of the company. It is a legal process which makes an end of the life of a company. It is also called liquidation. If the assets of the company is an excess of the liabilities. The shareholders share the surplus amount in the ratio of their shareholding and if the assets are not insufficient to meet the liabilities, the creditors will get in proportion to their dues in order of priority.
The company Act, 2053, provides the following methods for liquidation of the company:
Voluntary Liquidation
Compulsory Liquidation
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