Private Firm registration under

PFR ACT
Saroj Ghimire
For BBA KUSOM
 Reason to open door for Private Firm
• ‘to maintain the convenience and economic interests of
the public by providing for registration and other
matters relating to private firms engaged in commerce
and industry’
• To maintain economic interest
• To provide convenience to the business transaction.
• To make public involvement in investment
• To determine the procedure of registration
• To enhance private engagement in commerce and
industry
 Definition of Private Firm.
• "Private Firm" means any firm, company or
concern set up by a person for carrying on
industry or commerce, or export or import
trade, under a personal or impersonal name.
[Section 2(a)]
 Registration of Firm.
• Registration is compulsory to carry business
under a Firm.
• Section 3 of the Act says, , ‘no person shall
establish a private firm without having it
registered’.
 Application for Registration [Section 4]

• Any person desirous of having a private firm

registered may submit an application to the
appropriate department along with the
prescribed fees.
• Such applications shall contain the following
particulars:
• (a) Name of the private firm,
• (b) Address of the private firm,
• "Appropriate Department" means the
Commerce Department in matters relating to
commercial firms, the Cottage and Rural
Industries Department in matters relating to
cottage and rural industries, and the Industry
Department for industrial matters other than
those mentioned above.
• Objects of the private firms, and description of
commodities to be dealt in, or business to be
conducted,
• Name and address of the proprietor of the
private firm, and the names of his father and
grandfather, and
• Other particulars prescribed by the
Government from time to time by notified
orders.
• Investigation and inquiry by Department
• After an application is filed by any person to
register, the appropriate/concerned department
shall conduct necessary inquiries in the prescribed
manner,
• Issues of Registration Certificate
• Upon satisfaction by inquiring the submitted
particulars and their correctness and finding it to
be proper to permit the establishment of a private
firm, the Department shall register the application
according to the prescribed procedure and then
issue a certificate to the applicant.
Not to have same name of registration:

• Incase there is a firm already registered having

same name and have similar objectives, the
department shall not registered in the name
of the same person.
 Terms to be applied
• The Department while issuing certificate of registration
may mention the term of the certificate, procedures for
renewal, and the fees payable.
• Change of things
• In case it becomes necessary to make any changes in the
particulars submitted to the appropriate department for
registration the concern person shall furnish to the
appropriate department information as prescribed within
the prescribed time – limit to make changes.
• Submission of documents: [7(a)]
• If the department demands any documents, account, the
Firm has to submit such documents
 Cancellation of Firm [7]
• Registration of a private firm may be cancelled by the appropriate
department in the following circumstances:
• In case a private firm does not renew its certificate within the
prescribed time – limit. NON RENEWAL
• In case the proprietor of the private firm requests the appropriate
department for permission to dissolve his private firm along with
appropriate reasons for doing so. VOLUNTARY DISSOLUTION
• In case it is determined that the private firm has been registered
by presenting false particulars.
• In case the concerned private firm does not present the particulars
demanded by the appropriate department within the prescribed
time – limit.
• In case a private firm relating to industry crloses down the industry
after commencing operations with or without furnishing
information to the appropriate Department.
• In case it does not submit to the appropriate
department progress reports concerning the
construction of the factory, purchases of machinery,
tools or equipment required for the establishment
and operation of the industry, or concerning
necessary actions undertaken to operate the
industry according to the conditions stipulated in
the license, even if it has renewed its license.
• In case the private firm does anything else in
contravention of any Act or Rules.
 Punishment [Section 8]

• The proprietor of any private firm established

without having been registered under this act
shall be fined from Rs. 5 to Rs. 50 at the
discretion of the appropriate department.
• In case the offense is repeated three times, a
fine of Rs. 10 shall be imposed in addition to
the initial fine, and if the offense is committed
for the fourth time, no registration shall ever
be effected in the name of such person.
• Any person who submit false particulars while submitting
applications shall be fined from Rs. 50 at the discretion of the
appropriate department.
• Any private firms which fails to submit notices within the
prescribed time – limit, or submits false notices, shall be fined
from Rs. 25 to Rs. 50 at the discretion of the appropriate
department.
• The Government may prohibit the private firm not registered
or renewed to conducting transactions on behalf of such firm,
from exporting or importing any commodity or with the Bank.
•