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Annual industrial compliance is a mandatory regulatory requirement in Nepal. Every industry must submit its financial and operational reports to the Department of Industry (DOI) within six months of the fiscal year end to maintain its license validity and avoid heavy progressive fines.
₨ 10,000.00
Under Rule 8 of the Industrial Enterprises Regulation, 2078, the DOI monitors whether an industry remains active and operates according to its approved “Project Report.” This annual update confirms that your production levels, employment figures, and investment status align with the legal commitments made during your initial registration.
According to Section 13 of the Industrial Enterprises Act, 2076, all industries must file their operational details along with an Audited Balance Sheet and Tax Clearance Certificate within six months of each fiscal year end (by mid-January). Furthermore, Section 54 mandates that medium and large industries, as well as small industries with an annual turnover exceeding NPR 150 million, must provide proof that they have allocated at least 1% of their annual net profit toward Corporate Social Responsibility (CSR) activities.
Failure to meet these deadlines leads to severe penalties under Section 43, including progressive monetary fines ranging from NPR 10,000 to NPR 500,000 based on the industry’s scale. Beyond financial penalties, non-compliance results in an “Operational Freeze,” where the DOI blocks essential services such as Duty Drawback claims, Foreign Exchange (Satta) recommendations for raw materials, and Expat Visa recommendations for foreign technical personnel.
