Effect of non registration of firm | Business Law | BBA Notes
The agency must be registered to operate the business of agency in Nepal. The transaction without having registration is not only illegal but also creates a number of difficulties as well as makes liable for the punishment to the agent. According to the Nepalese Agency Act, 2014 and Rule, 2019 the effects of the non-registration of the agency pursuant to the following consequences: –
- Govt. of Nepal can punish the agent working without registration with the punishment of a fine up to Rs. 1000.
- Govt. of Nepal may also punish the agent and any other person working contrary to the legal provision of the Act with fine Rs. 200 or prohibits to work as an agent for two years.
- The agent violating the contract which has been made the time of registration with essential terms is subject to punishment of a fine up to Rs. 500 or restriction to work as an agent for up to five years.
As mentioned above, the effects of non-registration of agency make one punishable for fine and make him disqualified from the business of agency for a certain period.