Financial advisory is often treated as a compliance cost: something a business buys once a year so the accounts can be signed. Used that way it returns very little. Used properly it tells you whether the business is actually profitable, where cash is leaking, what a transaction is really worth, and whether the tax position will survive scrutiny. This guide explains what financial advisory in Nepal covers, how the compliance year works, when to bring an adviser in, and what to expect it to cost.
What financial advisory covers
The term spans several distinct disciplines. Most firms will offer some combination of the following, and it is worth knowing which one your question belongs to.
Internal Audit Services
Independent examination of the books of account and internal control system.
Tax compliance and planning
Returns, withholding, VAT, assessments and appeals, plus structuring so the tax outcome is deliberate rather than accidental.
Financial planning and reporting
Budgets, forecasts, management accounts and the projections lenders and investors ask for.
Internal control
Designing the checks that prevent error and fraud, and testing whether the ones you have actually work.
Corporate and project finance
Raising debt or equity, modelling a project, and supporting the diligence a funder will run on you.
Forensic accounting
Investigating suspected fraud or misstatement, and giving expert evidence where a matter reaches a court or tribunal.
Reliance Corporate Advisors delivers these alongside legal counsel. You can read more about tax services, financial planning and reporting, internal control and management advisory, corporate and project finance and forensic accounting and expert witness services.
How the compliance year works
Nepal does not run on the calendar year, and foreign-owned businesses frequently plan around the wrong dates in their first year. The fiscal year runs from Shrawan through Ashad, roughly mid-July to mid-July.
- Keep books through the year. Records must support the return, not be reconstructed to justify it afterwards.
- Close the year at Ashad end. Stock counts, accruals, provisions and reconciliations.
- Statutory audit. An independent auditor examines the statements and issues an opinion.
- Hold the annual general meeting and adopt the accounts.
- File the income tax return with the Inland Revenue Department within the statutory deadline.
- File with the Company Registrar, including audited accounts and the annual compliance return.
Deadlines and extension rules change, and penalties for late filing accrue. Confirm the dates that apply to your fiscal year rather than relying on last year’s calendar or on general guidance, including this page.
When to bring in an adviser
- Before you raise money. Investors and lenders diligence the numbers, and weak records reduce valuation or kill the deal outright.
- Before a cross-border payment. Withholding, treaty relief and transfer pricing exposure are decided by how the arrangement is structured.
- When margins move and you cannot say why. That is usually a costing or control problem, not an accounting one.
- When you receive an assessment. The window to respond is short and the response shapes what follows.
- Before acquiring a business. Financial diligence routinely finds liabilities the seller did not mention.
- When you suspect fraud. Preserve records first and take advice before confronting anyone.
Choosing a financial adviser
- Ask about your sector. Banking, insurance, energy, hospitality and NGOs each carry different reporting expectations.
- Test the reporting. Ask to see a sample management report. If you cannot understand it, it will not help you run the business.
- Confirm who signs. The partner responsible for the opinion should be identified at the outset.
What financial advisory costs
Fees follow scope, turnover, transaction volume and the condition of the records. Four structures are common:
- Monthly retainer for bookkeeping, payroll and routine tax filings.
- Project fee for diligence, valuation, a financial model or a one-off investigation.
- Hourly for advisory questions whose scope cannot be known in advance.
Disorganised records are the single biggest driver of cost. A year of clean bookkeeping usually costs less than the audit premium charged to reconstruct it.
Why legal and financial advice belong together
Company law, tax law and foreign exchange rules interact constantly in Nepal. A holding structure that is legally sound can be tax-inefficient; a tax-efficient arrangement can breach a sector restriction; an investment approved on paper can still fail at repatriation because the banking channel was handled loosely. Where the two disciplines sit in one firm, that reconciliation happens before you are committed rather than after. Our legal and financial advisory services are built around exactly that.
Frequently asked questions
Does every company in Nepal need an audit?
Companies are generally required to have their annual accounts audited by an independent auditor holding a certificate of practice. Requirements differ by entity type and size, so confirm what applies to your structure.
Can my accountant also be my auditor?
Independence rules restrict this. The firm that prepares your books ordinarily cannot provide the independent audit opinion on them, so most businesses separate the two roles.
What happens if we file late?
Penalties and interest accrue, and persistent default can affect your standing with the Company Registrar and complicate later filings, licensing and financing.
Do foreign-owned companies report differently?
The core obligations are the same. Additional considerations arise around foreign investment records, repatriation, withholding on cross-border payments and treaty positions.
How long should we keep records?
Retain accounting records, supporting documents and filings for the statutory retention period. In practice, keep anything that supports a tax position for as long as that position can be reopened.
Can you work with our existing bookkeeper?
Yes. Advisory, audit and bookkeeping are often split across providers. What matters is that responsibilities are defined so nothing falls between them.
Speak to our team
Reliance Corporate Advisors provides financial advisory in Nepal to companies, investors and organisations, with Chartered Accountants and corporate lawyers working together from offices in Lalitpur. Whether the question is an audit, a tax assessment, a financial model or a transaction, get in touch, or read our guide to legal services in Nepal.
This guide is general information, not professional advice. Nepali tax and reporting requirements change frequently and their application depends on your circumstances, so take advice on the facts before acting.