What is a Share Certificate?

A share certificate is a document issued by a company that provides evidence of ownership of shares in the company. It contains details such as the shareholder’s name, the number of shares held, and other relevant information.

In the Nepali language, it’s called “Share Lagat” (शेयर लागत). If you’ve registered a private limited company, make sure to distribute the shares within one year of the company’s formation.

Key information found on a share certificate may include:

  1. Company Name: The legal name of the company issuing the shares.
  2. Shareholder’s Name: The name of the individual or entity that owns the shares.
  3. Shareholder’s Address: The address of the shareholder.
  4. Number of Shares: The quantity of shares owned by the shareholder.
  5. Class of Shares: If the company has multiple classes of shares, this information specifies the class to which the shares belong.
  6. Share Certificate Number: A unique identifier for the share certificate.
  7. Date of Issue: The date on which the share certificate is issued.
  8. Signatures: Signatures of authorized representatives of the company, such as the company’s officers or directors.

When Should the Company Issue and Certify Share Certificates?

  • Private companies are required to submit essential information to the Office of the Company Registrar (OCR) within three months of registration.
  • As part of the submission, the company must include a certificate detailing shareholding information.
  • Within the specified period, typically when shareholders commit to paying for the shares, they are required to deposit the amount or make the payment to the company for their shareholding.
  • Once a bank account is established, the company proceeds to issue the shares. During this process, founders purchase the shares, officially becoming shareholders of the company.

4 Steps to Obtain a Share Certificate in Nepal

Here is the step-by-step process to obtain a Share Certificate in Nepal. Follow these four simple steps:

  1. Payment of Paid-Up Capital: Deposit the agreed-upon total share price during the company’s incorporation for each shareholder.
  2. Auditor’s Letter: Obtain a letter from the auditor confirming the payment of paid-up capital.
  3. Submit Documents to OCR: Provide the following documents to the OCR:
    • Two copies of the share certificates.
    • Bank statement of the company.
    • A letter signed by the auditor.
  4. Certification: The OCR reviews and certifies the share certificate, issuing one copy to the company.

Share Certificate Sample In Nepali

Share Certificate (Share Lagat) Sample In Nepali