Section 158 : Cancellation of registration and liquidation of a foreign company

1) Where a foreign company registered pursuant to Section 54 wishes to close down the transaction which it is carrying on in Nepal and get its registration cancelled or where the competent authority, acting in accordance with the prevailing law, prohibits such company from carrying on the transaction or business within Nepal, such company shall make an application, accompanied by the prescribed fees, o the Office for the cancellation of its registration.

2) A foreign company which makes an application pursuant to Sub-section (1) shall also submit, along with the application, an evidence and proof confirming that there is no liability due and payable by such company too any person, organisation or governmental or non-governmental body in Nepal.

3) In order to inquire whether the evidence and proof as referred to in Sub-section (2) are true or not, the Office shall publish at least twice in a national daily newspaper a notice inviting a claim, accompanied by evidence, on any liability, if any due and payable by the company to any one, within a period of twenty one days.

4) Where any person makes a claim in pursuance of the notice published pursuant to Sub-section (3), the concerned company shall submit to the Office evidence or proof showing the settlement of such claim. Where the claim made against such company pursuant to Subsection (1) cannot be settled from the assets of such company situated in Nepal , such company shall settle the same from its assets situated outside Nepal.

5) Where no claim is made by any one within the time limit as referred to in Sub-section (3) or a proof is submitted showing than the claim made has been settled pursuant to Sub-section (4), the Office shall strike the name of such company off the foreign company register and give information thereof to the concerned company.

6) Where an insolvency process is initiated in respect of a foreign company, which has been registered in Nepal pursuant to this Chapter, in accordance with the law of any country out of the countries where such company has been carrying on its transaction, the representative authorised by such foreign company pursuant to Section 157 shall promptly give a notice in writing thereof to the Office, and he/she shall also publish such notice in a national daily newspaper to be published from Nepal for the information of the general public.

Provided, however, that where an order for the cancellation of registration of such company has already been issued, such foreign company shall close its transaction or business in Nepal.

7) Where any foreign company closes its transaction or business pursuant to the proviso to Sub-section (6) , the prevailing law on insolvency shall govern the transaction or business carried on by such company in the State of Nepal.