- Quick and Reliable
Closing a Cottage and Small Industry (Gharelu Industry) is the legal process to formally close small-scale/ cottage industries. Under the Industrial Enterprises Act, 2076, an industry is not considered dissolved until its registration is officially cancelled at the Department of Cottage and Small Industries (DCSI) or the relevant provincial office.
₨ 20,000.00
“Gharelu” (Cottage) industries are those based on traditional skills, local resources, and labor-intensive technology. Whether registered as a proprietorship or a partnership, the closure of such an industry is a structured exit that requires clearing records with the registration authority. This process ensures that your specific “Industrial Registration” is revoked, preventing misuse of the industry name and stopping the legal obligation to file periodic industrial returns.
Under Section 14 of the Industrial Enterprises Act, 2076, an entrepreneur must notify the registration authority within 30 days of closing or suspending operations. Section 15 allows the concerned industry to submit application for cancellation of registration of industry in the industry registration body. The industry must clear all government dues and taxes and dues to creditors for its application of cancellations.
Failure to formalize this closure leads to significant legal exposure. If an industry is not renewed or formally cancelled, it remains on the “Active” list, leading to progressive fines for non-renewal. Furthermore, without a formal Cancellation Certificate, the proprietor or partners cannot deactivate their business PAN at the Inland Revenue Department (IRD).
