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πŸ‡³πŸ‡΅ Nepal Specialist Practice

Accounting & Compliance for Nepal's Business Environment

End-to-end CA services built around Nepal's regulatory framework β€” from IRD filing and Companies Act compliance to statutory audit, payroll under SSF, and ESG advisory for exporters.

Companies Act 2063 Income Tax Act 2058 VAT Act 2052 Labor Act 2074 SSF Β· CIT NAS / NFRS
Nepal Practice Areas

Eight Practice Areas.
One Integrated Team.

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Statutory Audit

Independent audit of financial statements as required under Nepal's Companies Act 2063 and applicable standards. From planning through final opinion.

Companies Act 2063 IAASB ISAs NAS / NFRS Standards
Statutory Audit β€” Private CompaniesFull audit under Companies Act 2063. Planning, fieldwork, management letter, and auditor's report with unqualified, qualified, or adverse opinion as appropriate.
NGO / INGO AuditSocial Welfare Council-compliant audit for registered NGOs and INGOs. Donor reporting schedules, fund utilization verification, and SWC reporting requirements.
Bank & Financial Institution AuditAudit support for BFI-licensed entities under NRB directives. Loan portfolio review, provisioning adequacy, and regulatory compliance checks.
Special Purpose AuditForensic accounting, investment due diligence, and special purpose audit engagements for specific regulatory or investor requirements.
Internal AuditProcess reviews, internal control assessment, risk identification across business cycles, and a management recommendations report with prioritised actions.
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Tax Consulting & IRD Filing

Corporate and individual income tax, VAT, TDS, and advance tax. Filing, compliance, and representation before Nepal's Inland Revenue Department.

Income Tax Act 2058 VAT Act 2052 IRD Nepal
Corporate Income TaxTax computation under ITA 2058. Allowable and disallowable expenses, depreciation schedules, advance tax instalments, and annual return filing with IRD.
VAT Registration & ReturnsVAT Act 2052 compliance. Monthly or quarterly return filing, input credit reconciliation, reverse charge accounting, and VAT audit preparation.
TDS β€” Tax Deducted at SourceDeduction rate application across payment types, timely deposit to IRD, TDS certificates for vendors, and annual TDS reconciliation.
Advance Tax ManagementQuarterly advance tax calculation, deposit tracking, and shortfall risk management to avoid penalty interest under ITA 2058.
Tax Assessment & Dispute ResolutionRepresentation during IRD scrutiny assessments, objection filings, and coordination through the administrative review process.
CSR Reserve β€” Section 12Gha AdvisoryTax deductibility analysis for CSR reserves under ITA 2058 Section 12Gha, including documentation requirements and IRD compliance.
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Company Registration & Secretarial

Business formation and ongoing corporate secretarial compliance under the Office of the Company Registrar and Companies Act 2063.

Companies Act 2063 OCR Nepal FITTA (Foreign Investment)
Private Limited Company RegistrationName reservation, MOA/AOA preparation, OCR filing, PAN/VAT registration, and bank account setup β€” end-to-end company formation.
Foreign-Invested Company SetupFITTA-compliant registration, investment approval from DOI, NRB foreign investment registration, and ongoing repatriation compliance.
AGM & Board ComplianceAnnual general meeting notices, minutes preparation, board resolutions, and all OCR filings required after each AGM cycle.
Annual Return Filing (OCR)OCR annual return preparation and submission within the statutory deadline. Director changes, capital amendments, and share register updates.
Share Transfer & Capital ChangesShare transfer documentation, stamp duty calculation, OCR filing for capital increases, and updated share register maintenance.
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Payroll & SSF Compliance

Complete payroll management aligned with Nepal's Social Security Fund framework, CIT contributions, and the Labor Act 2074.

Labor Act 2074 Social Security Act 2074 SSF Portal
Monthly Payroll ProcessingGross pay, allowances, overtime, deductions, and net pay for all employee categories β€” permanent, contract, and part-time β€” with payslip generation.
SSF Contribution Calculation & FilingEmployer (20%) and employee (11%) SSF contribution computation, monthly portal filing, and deposit receipt reconciliation.
CIT (Citizen Investment Trust)CIT contribution processing for eligible employees, deposit management, and annual CIT statement preparation.
Income Tax Withholding (Salary)Annual tax computation per the FY 2083/84 slab rates, monthly deduction scheduling, and year-end TDS certificate issuance to employees.
Gratuity & Leave EncashmentActuarial-basis gratuity provisioning per Labor Act 2074, leave encashment calculation, and fund accounting for terminal benefits.
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Bookkeeping & Financial Reporting

Day-to-day bookkeeping and period-end financial statements prepared under Nepal Accounting Standards or NFRS, for the Nepali fiscal year (Shrawan–Ashad).

NAS / NFRS QuickBooks Β· Xero Nepali Fiscal Year
General Ledger MaintenanceChart of accounts setup, transaction posting, journal entries, and month-end close for NPR-functional-currency entities.
Bank ReconciliationNPR and foreign currency bank reconciliations, outstanding cheque tracking, and bank confirmation letters for audit purposes.
Financial Statements β€” NAS / NFRSBalance sheet, profit & loss, cash flow statement, and notes to accounts prepared under applicable Nepal standards for the BS year.
Accounts Payable & ReceivableInvoice management, aged analysis, payment runs, supplier reconciliation, and debtor follow-up in both NPR and USD/other currencies.
Year-End Audit PackFull working paper file, trial balance, schedules, and reconciliations packaged and ready for external statutory auditors.
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ESG & Export Compliance

Sustainability and social compliance for Nepal's export sector β€” garments, handicrafts, felt, tea, coffee, and ethical sourcing businesses targeting international buyers.

SEDEX Β· SMETA 4-Pillar GRI Standards IFRS S1 / S2
SEDEX / SMETA 4-Pillar Audit PreparationLabour standards, health & safety, environment, and business ethics β€” gap analysis, corrective action plans, and pre-audit readiness review.
ETI Base Code ComplianceWorking hours policy (60-hour ETI cap vs Labor Act), child labour policy, grievance mechanisms, and worker welfare documentation.
Fair Trade Certification SupportDocumentation review, pricing compliance, premium fund accounting, and audit preparation for Fair Trade certification bodies.
IFRS S1 & S2 Sustainability DisclosureClimate-related financial risk assessment, governance disclosure, and ISSB-compliant sustainability report for international stakeholders.
GRI Standards ReportMateriality assessment, stakeholder mapping, GRI 2021 universal standards disclosure, and SDG impact mapping for Nepal exporters.
Buyer Compliance DocumentationResponding to buyer questionnaires, Code of Conduct requirements, supply chain transparency disclosures, and due diligence packs.
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Digital Assets (Nepal Context)

Accounting treatment, tax implications, and compliance advisory for Nepal businesses and individuals with digital asset exposure.

ITA 2058 Advisory Cross-Border Transactions NRB Guidance
Digital Asset ClassificationAccounting treatment determination for cryptocurrencies, tokens, and digital assets under current NAS guidance β€” intangible asset, inventory, or financial instrument.
Tax Treatment AdvisoryIncome characterisation, capital gains analysis, and reporting obligations under ITA 2058 for individuals and companies holding or transacting in digital assets.
Exchange & Wallet ReconciliationTransaction-level reconciliation of exchange activity and wallet balances for Nepal entities β€” cost basis, FX conversions, and NPR equivalent reporting.
Cross-Border Regulatory RiskNRB foreign exchange regulation analysis, FEMA compliance review, and advisory on permissible digital asset activities for Nepal-registered entities.
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Financial Advisory

Investment analysis, shareholder agreements, financial due diligence, and strategic advisory for Nepal-based businesses and investors.

Due Diligence Shareholder Agreements Financial Modelling
Financial Due DiligenceBuy-side and sell-side due diligence for Nepal investments β€” balance sheet quality, revenue verification, working capital analysis, and contingent liability review.
Shareholder Agreement SupportFinancial terms review, equity structure analysis, capital contribution scheduling, and valuation inputs for shareholders' agreements.
Bank Statement & Cash Flow AnalysisMulti-period bank statement analysis, cash flow pattern identification, and financial health assessment for investment or lending decisions.
Feasibility Studies & Projections3–5 year financial projections, sensitivity analysis, and feasibility reports for new ventures, expansions, and bank loan proposals.
MIS & Management ReportingMonthly management information packs, KPI dashboards, and variance commentary for business owners and boards operating in Nepal.
Regulatory Framework

Laws & Standards We Work Under

Our practice is built around Nepal's core legislative and regulatory framework.

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Companies Act 2063

Company formation, governance, annual filings, AGM compliance, and secretarial requirements.

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Income Tax Act 2058

Corporate tax, TDS, advance tax, capital gains, withholding, and penalty provisions.

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VAT Act 2052

Registration, monthly returns, input credit, reverse charge, and VAT audit requirements.

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Labor Act 2074

Employment contracts, wages, overtime, leave, gratuity, and worker welfare obligations.

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Social Security Act 2074

SSF contribution rates, registration, deposit timelines, and employee benefit fund rules.

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NAS / NFRS Standards

Financial statement preparation for SMEs (NAS) and large companies (NFRS) in Nepal.

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FITTA (Foreign Investment)

Foreign investment approvals, DOI registration, NRB foreign investment registration, and repatriation.

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BAFIA 2073

Compliance and audit support for bank and financial institution-licensed entities under NRB.

Who We Serve

Nepal Clients Across Sectors

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Export & Manufacturing

Garment, felt, pashmina, handicraft, and agro-processing businesses with international buyers requiring ESG and social compliance.

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Hospitality & Tourism

Hotels, trekking agencies, adventure operators, and travel companies with multi-currency revenue and seasonal cash flows.

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Construction & Real Estate

Contractors, property developers, and infrastructure companies with project-based revenue recognition and subcontractor compliance.

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Tech & Digital Startups

Nepal-registered tech companies, fintech startups, and digital businesses with cross-border revenue and investment structures.

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NGOs & INGOs

Social welfare organizations, development NGOs, and international organizations with SWC and donor reporting requirements.

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Foreign-Invested Companies

Joint ventures and wholly foreign-owned Nepal entities navigating FITTA, NRB, and OCR compliance simultaneously.

Why This Practice

Nepal Expertise That Goes Beyond the Filing

ICAN Qualified

Qualified through Nepal's own Institute of Chartered Accountants β€” the highest local professional standard.

Both Fiscal Year Conventions

Comfortable operating in Bikram Sambat (BS) and Gregorian years β€” critical for businesses with international reporting obligations alongside Nepal IRD compliance.

Cross-Border Fluency

With an Executive MBA (UK) and MA Economics, international regulatory standards like IFRS, SEDEX, and GRI are applied alongside Nepal-specific law β€” not instead of it.

Export Sector Specialist

Hands-on experience with Nepal's garment, handicraft, and ethical sourcing sector β€” including SMETA audits, buyer compliance packs, and labor law nuances.

CA ICAN
Qualified through Nepal's Institute of Chartered Accountants β€” rigorous three-stage professional examination
ITA 2058
Deep working knowledge of Nepal's Income Tax Act β€” including recent amendments and IRD administrative practice
BS + AD
Bikram Sambat and Gregorian fiscal year compliance β€” both Nepal IRD and international reporting simultaneously
Bilingual
English and Nepali β€” official documents, IRD correspondence, and client communication in both languages

Nepal Compliance. Handled End-to-End.

Whether you're a Nepal startup, an export business preparing for international buyers, or a foreign investor navigating FITTA β€” we have the depth to keep you compliant.

Book a Free Consultation β†’