Procedure of registration of agency in Nepal – Business Law | BBA Notes
Procedure of registration of agency in Nepal | Business Law | BBA Notes
In Nepal, registration of agency is compulsory without registration, agency business is not allowed to run. If run, it is not valid.
The agency Act, 2014 was introduced with the object to restrict the agent from taking unfair advantage. The Agency Rule, 219 is made for obtaining the objectives of the Act.
According to both the Act & Rule, the procedure of registration of agency is given below: –
1. Application: – The person who wants to operate the business of the agency, he has to apply for the registration of agency to the Director-General of the Department of Commerce of Government of Nepal. He has to mention the name and address of the principal in the application. Further, he has to commit to providing a description of transactions every three months. He is restricted to make any undue profit other than prescribed commission.
2. Registration: – After the application is registered it has to be checked by the concerned authority. If it is found that the applicant is eligible, the concerned authority will give permission after taking the necessary deposit and agreement.
3. Renewal: – Registration of agency is not forever. So its registration has to be renewed before the expiry of the month Chaitra every year.
4. Submission of account: – Every registered agent has to submit an account or transaction undertaken every three months before the Director cum Controller. The account has to include a description of goods, fare, profit, sale rate, and so on.
5. Transfer of agency: – The registered agent can transfer agency to another. For this purpose, the person willing to be a new agent has to submit the letter of consent of the principal as well as the original agent and application with the required amount (Rs. 25) at the Department of Commerce. The amount is refundable in case of a non-transfer of the agency. The Director cum Controller if finds appropriate transfers agency to the applicant.