Tax Law
PAN vs VAT: What Does the Law Require?
Operating without registration risks severe bank account freezing under Nepal Rastra Bank AML (Anti-Money Laundering) directives. Any business entity engaging in commercial trade must obtain at least an Inland Revenue Department (IRD) Individual PAN or Proprietorship PAN.
You can operate under a standard Business PAN (Proprietorship) as long as your annual turnover stays under Rs. 50 Lakhs (for goods) or Rs. 20 Lakhs (for services). Once you breach Rs. 50 Lakhs, mandatory VAT registration (13%) is triggered.
Personal Account Freezes
Receiving 30+ daily Fonepay QR payments into a personal savings account triggers automatic suspicious activity reporting at commercial banks like Nabil, Global IME, and NIC Asia.
Core Takeaway: Register a sole proprietorship at your local Ward Office and get a dedicated Current Account.