If you are planning to start a company in Nepal or already run one, you’ve probably heard the term shareholder. But what does it mean, and why is it important for your business?
In this guide, we explain shareholders in simple words and why understanding them is important when registering, updating, or closing a company in Nepal.
Who is a Shareholder?
A shareholder is a person or organization that owns a part of a company by holding its shares.
- When someone buys shares, they become a part-owner of the company.
- Shareholders may receive profits (dividends) and can vote on company decisions.
In Nepal, shareholders are important for both Private Limited Companies (Pvt. Ltd.) and Public Limited Companies (Ltd.).
Types of Shareholders
There are two main types:
- Individual Shareholders
- A single person who owns shares.
- Common in private companies.
- Institutional Shareholders
- Organizations like banks, investment firms, or other companies that buy shares.
- More common in public companies.
Rights of a Shareholder in Nepal
According to the Companies Act of Nepal, shareholders have these rights:
- Vote in general meetings.
- Receive dividends if the company earns profits.
- Inspect company documents.
- Transfer shares (based on company rules).
- Take legal action if their rights are violated.
Responsibilities of a Shareholder
Shareholders also have responsibilities:
- Pay for the shares they buy.
- Follow company rules (Articles of Association).
- Protect confidential information and not misuse it.
Why Shareholders Matter During Company Registration & Closure
Understanding shareholders is important when:
- Registering a company: List all shareholders and their shareholdings.
- Transferring shares: Officially record any changes with the Office of Company Registrar (OCR).
- Closing a company: Get shareholder approval and settle all share-related matters.
Need Help With Shareholder Updates or Transfers?
Whether you want to:
- Add a new shareholder
- Transfer shares
- Remove an existing shareholder
Company Sewa can guide you through the process. Our team ensures full compliance with Nepal’s company laws and handles all paperwork smoothly.
