---
title: "Short note: Consulting firm registration"
subject: "Engineering Professional Practice"
chapter: 5
key: "semester_8/engineering_professional_practice:short-note-consulting-firm-registration"
source: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/short-note-consulting-firm-registration
site: BCT Engineering
---

# Short note: Consulting firm registration

Engineering Professional Practice · Chapter 5: Regulatory Environment

- Asked in: 2073 Magh, 2 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/short-note-consulting-firm-registration
- Whole chapter: https://www.bctengineer.com/md/semester_8/engineering_professional_practice/chapter-5

## Question

Write a short note on Registration process of engineering consulting firm.

## Short answer

An engineering consulting firm must first be registered as a proprietorship, partnership or private company with the relevant office, then obtain PAN/VAT. It must employ engineers registered with the Nepal Engineering Council and register on the PPMO e-GP system to take public tenders.

## Answer

An engineering consulting firm provides services such as survey, design, estimating, supervision and project management. In Nepal it must exist as a legal entity and meet the requirements for clients to accept it as a consultant under the Public Procurement Act 2063.

**Usual process**

1. Choose the form: a sole proprietorship (Private Firm Registration Act 2014) or a partnership (Partnership Act 2020), registered at the Office of Commerce or the Cottage and Small Industries Office, or a private company (registered under the Companies Act 2063 at the Office of the Company Registrar).
2. Register the firm with its name and objectives, stating engineering consultancy services.
3. Obtain PAN and VAT registration from the Inland Revenue Office, and renew the registration every year with tax clearance.
4. Employ qualified engineers who are registered with the Nepal Engineering Council (NEC) in the relevant field and level, as the Nepal Engineering Council Act 2055 requires for engineering practice. Other professional registrations or licences are obtained as required by the concerned authority.
5. Register on the PPMO electronic procurement (e-GP) system to take part in public tenders, and keep experience certificates, audited accounts and staff records, since clients check them when prequalifying consultants. Many firms also join the Society of Consulting Architectural and Engineering Firms (SCAEF).

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which route registers a private company consultancy?
   A. Firms Registration Act
   B. Companies Act 2063 at the Office of the Company Registrar
   C. Labour Act
   D. Copyright Act
   Answer: B. Private companies register under the Companies Act; proprietorships and partnerships use the firm registration route. (Key point: Forms of firm)

2. What registration must the engineers employed have?
   A. Nepal Engineering Council registration in the relevant field and level
   B. Trade union membership
   C. No registration
   D. Only municipal licence
   Answer: A. NEC registration is required for engineering practice. (Key point: Staff requirement)

3. Why keep experience certificates, audited accounts and staff records?
   A. Clients check them when prequalifying consultants
   B. They replace PAN
   C. They are not needed
   D. Only for tax refund
   Answer: A. Clients check them when prequalifying consultants in public tenders. (Key point: Why keep records)

## Related in Engineering Professional Practice

- [Short note: Company registration process](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Ashort-note-company-registration) — Engineering Professional Practice, chapter 5
- [IPR and company registration in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aipr-company-registration-nepal) — Engineering Professional Practice, chapter 5

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