Legal Due Diligence
We provide legal due diligence for companies, organisations and individuals in Nepal. Due diligence is the process of investigating the legal side of a company, business deal or financial transaction to make sure it is as safe, sound and profitable as it appears before a client commits.
The Legal Framework
Due diligence in Nepal is not governed by a single statute. It involves verifying a company’s standing across several bodies at once: corporate records at the Office of the Company Registrar under the Companies Act, 2063 (2006), including the memorandum and articles, board resolutions and shareholding history; tax registration and clearance with the Inland Revenue Department under the Income Tax Act, 2058 (2002) and VAT Act, 2052 (1996); and, depending on the sector, licences from the Department of Industry, environmental clearances and labour compliance records.
Where the official record does not match what is true on the ground, whether undisclosed liabilities, inconsistent shareholding or unresolved tax obligations, that gap is exactly what a due diligence review is designed to surface before it becomes the buyer’s problem.
What We Do
- Corporate and regulatory review: examining records, licences and regulatory standing to confirm paper matches reality.
- Contract and commercial review: reviewing commercial contracts, shareholder agreements and employment arrangements for risk and undisclosed obligations.
- Tax and financial verification: confirming registration, clearance and financial records are genuinely up to date.
- Litigation and liability check: investigating pending or past disputes that could carry into the transaction.
- Risk reporting and advisory: a clear report of the risks found, with practical advice on renegotiating terms, seeking warranties or indemnities, or walking away.
Who We Represent
Buyers and investors evaluating a target, and businesses that want to understand their own legal exposure before entering a transaction, partnership or funding round.
