SUMMARY
An
Exim
Code in Nepal is a unique identification code issued by the
government to businesses involved in import and export activities. This code is
essential for legally conducting trade across borders and ensuring compliance
with Nepal's trade regulations. Without an Exim Code, businesses cannot
participate in international trade or benefit from the various privileges
associated with it, such as customs clearance, import and export licenses, and
access to foreign markets.
The
Exim Code is typically required for companies that import or export goods, and
obtaining it is a vital step in the process of setting up an import-export
business in Nepal. The code is part of Nepal's efforts to streamline and
regulate international trade, ensuring that businesses adhere to the country's
policies, including tariffs, taxes, and trade agreements.
To
obtain an Exim Code, a business must register with the Department of
Customs and fulfill specific requirements, which may include
submitting documents like the business registration certificate, tax clearance,
and other regulatory forms. Having this code also allows businesses to
establish relationships with banks and customs authorities to facilitate
smoother international transactions.
Thus,
obtaining an Exim Code is not just a legal necessity but also a key step
towards unlocking the full potential of the import-export market in Nepal,
which is a rapidly growing sector with numerous opportunities.
WHAT IS EXIM CODE?
The
Exim
Code in Nepal is a 13-digit code issued by the government,
acting like a "passport" for businesses involved in importing and
exporting goods or services. It serves as a unique identification for companies
that participate in international trade.
The
main purpose of the Exim Code is to track and prevent fraudulent businesses
that could harm the country's economy by avoiding taxes or regulations. It
helps the government monitor and ensure that trade activities are legitimate
and that businesses follow the law.
IS EXIM CODE IS MANDATORY?
Yes,
the Exim Code is mandatory for businesses that want to import or
export goods or services in Nepal. Without it, businesses cannot legally
conduct international trade. The Exim Code is required by the Department of
Customs under the Ministry of Finance, and it allows businesses to
buy and sell products across borders while ensuring proper data sharing with
the authorities.
The key points about the Exim Code in Nepal, explained in
simpler terms:
- The Exim Code is a
13-digit number that includes the company's PAN number (a unique
9-digit identification number for tax purposes).
- The next two digits after the PAN
number show the type of business entity.
- If the 10th and 11th digits are 01,
it means the business is a sole proprietorship (owned by one person).
- If the 10th and 11th digits are 02,
it indicates the business is a partnership.
- The last two digits are unique,
automatically generated numbers that make each Exim Code distinct.
- The Exim Code always ends
with NP, which stands for Nepal.
- A business with a minimum paid-up
capital of 10 Lakh (1 million Nepalese Rupees) is eligible to apply
for an Exim Code, if it's a company incorporated in Nepal.
- However, for businesses that are
only involved in export activities, there is no minimum paid-up
capital requirement to apply for the Exim Code.
Benefits of the Exim Code in Nepal, explained in simpler
terms:
1. Helps
in Business Expansion: With an Exim Code, businesses
can legally expand beyond Nepal and enter international markets, boosting profitability
by reaching global customers.
2. No
Complicated Processes or Return Filings: The Exim
Code doesn't require regular paperwork or return filings. You only need to
update it once a year, and this can be done easily online.
3. Keeps
Your Business Compliant with the Law: Having an
Exim Code ensures your business follows legal regulations, preventing delays,
high shipping costs, fines, and other complications. It helps avoid penalties
and keeps transactions smooth.
4. No
Need to Renew: Once you get the Exim Code, it’s valid for life, as long as your
business continues to operate. You don't need to renew it unless there are
issues like unpaid taxes or a request to cancel the registration.
5. Access
to Government Schemes: With an Exim Code, your business
can qualify for various government benefits and schemes, such as cash
incentives for exports. You'll also need it along with other documents like PAN
and VAT certificates to take advantage of these opportunities.
A simplified, step-by-step process to obtain
an Exim Code Certificate in Nepal:
- Step 1: Consultation
Seek advice from experts to understand the requirements and process for obtaining an Exim Code. - Step 2: Document Preparation and
Verification
Prepare all necessary documents and verify them to ensure everything is in order for the application. - Step 3: Submit Application
Submit the application form to the Department of Customs, Ministry of Finance, Government of Nepal. - Step 4: Receive Exim Code
After the Ministry of Finance verifies the application, your Exim Code (Registration Certificate) will be sent to your email.
The Exim Code in Nepal is valid for life as long as your business
continues to operate. It will remain valid unless you have unpaid taxes, fail to follow the rules
and regulations, or choose to cancel it
voluntarily.
List of the documents
required to apply for an Exim Code in Nepal:
1. A
copy
of citizenship for the individual or all shareholders (in case
of a partnership firm).
2. PAN/VAT
Certificate for the business.
3. Company
Registration Certificate.
4. A
passport-sized
photo of the business owner (proprietor).
5. If
the company is registered with the Department of Industry, Department of
Commerce, or Department of Small and Cottage Industry, proof of
10
lakh paid-up capital (such as a Share Certificate)
is required.
6. If
the company is registered with the Department of Small and Cottage Industry after
2074, a request
letter from the Department of Industry is needed.
7. Tax
Clearance Certificate for the previous fiscal year.
8. MAP
tracing of the office location.
9. A
recommendation
letter (Sifarish Patra) from your bank.
10. A
Bank
Guarantee Document worth NPR 300,000 (Three
Hundred Thousand).
Why
Choose US for Applying for an Exim Code in Nepal?
E-FounderIndia is
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team includes Chartered Accountants (CAs), Company Secretaries (CS),
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All our
experienced professionals are available in one place on our mobile platform and
website. If you have any questions or need assistance, feel free to contact our
experts. We’re happy to help you with a quick, hassle-free process for
obtaining your Exim Code in Nepal.