Business Compliance Checklist

Essential compliance requirements for Small & Medium Enterprises (SMEs) in Nepal

Registration & Setup (One-Time)

Company Registration

  • Register with Office of Company Registrar (OCR)
  • Obtain Company Registration Certificate
  • Get company seal made
  • Open company bank account

PAN Registration

  • Apply for Permanent Account Number (PAN) at IRD
  • Submit required documents (citizenship, company registration)
  • Obtain PAN certificate within 7 days
  • Display PAN in all official documents

VAT Registration

  • Register for VAT if annual turnover exceeds NPR 20 lakh (optional below)
  • Submit application at local IRD office
  • Provide business location verification
  • Obtain VAT registration certificate
  • Start issuing VAT-compliant invoices

Business License & Permits

  • Obtain municipality/municipal business license
  • Get industry-specific permits (if applicable)
  • Register for excise duty (if selling excise goods)
  • Obtain fire safety certificate
  • Get environmental clearance (if required)

Ongoing Compliance Requirements

Monthly

  • File VAT returns by 25th of following month
  • Deposit TDS collected within 25 days
  • Maintain proper accounting books
  • Issue VAT-compliant invoices

Quarterly

  • File TDS returns (within 25 days of quarter-end)
  • Review financial statements
  • Reconcile bank statements
  • Update inventory records

Annually

  • File income tax returns by Poush End (mid-January)
  • Submit audited financial statements (if turnover > NPR 20 lakh)
  • Renew business licenses and permits
  • Conduct annual general meeting (for companies)
  • File annual returns with OCR

Documents to Maintain

Purchase and sales invoices (VAT bills)
Bank statements and cash books
TDS certificates issued and received
Employee attendance and payroll records
Fixed asset registers
Stock/inventory records
Audit reports (if applicable)
Tax payment receipts

Software & Technology Requirements

Accounting Software

IRD-compliant software for maintaining books of accounts

VAT Invoicing

System to generate VAT-compliant invoices with sequential numbering

TDS Calculation

Automated TDS calculation and reporting

Financial Reporting

Balance sheet, P&L, cash flow statements

Backup & Security

Regular data backup and secure storage

How Visma ERP Helps

Visma ERP Solution provides complete compliance support:

  • ✓ Automated VAT calculation and invoice generation
  • ✓ TDS calculation and return filing support
  • ✓ IRD-compliant financial reports
  • ✓ Reminder system for tax deadlines
  • ✓ Digital record keeping and audit trail
  • ✓ 24/7 support for compliance queries
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⚠️ Important Note

This checklist provides general guidance. Requirements may vary based on business type, size, and location. Please consult with a qualified chartered accountant or visit your local Inland Revenue Department (IRD) office for specific compliance requirements applicable to your business.

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