Online Registration System Introduced by NCRA: A Legal Guide to Cooperative Registration in Nepal

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Online Registration System Introduced by NCRA: A Legal Guide to Cooperative Registration in Nepal

The National Cooperatives Regulatory Authority (NCRA), established by the Government of Nepal in January 2025, has introduced a fully automated online registration platform for savings and credit cooperatives. This digital transition marks a significant advancement in Nepal’s cooperative governance framework, designed to enhance transparency, reduce procedural delays, and strengthen regulatory compliance. This article explains the legal basis, documentation requirements, and step-by-step procedure for registering a cooperative through the NCRA online system providing practical clarity for promoters, legal practitioners, and institutions.

1. Background and Recent Developments

The NCRA was formed to regulate, supervise, and monitor savings and credit cooperatives across Nepal. Since its establishment, it has implemented several reforms to improve financial discipline in the sector, including:

• Launch of a fully automated online registration portal

• Enforcement of Regulatory Standards, 2082 for savings and credit cooperatives

• Issuance of directives governing annual general meetings

• Introduction of digital recordkeeping requirements

• Initiation of intensive monitoring nationwide

• Arrangements for cooperatives to join the Credit Information Centre (CIC) and integrate with the Deposit and Credit Protection Fund

These reforms aim to minimize risks, enhance consumer protection, and improve oversight of Nepal’s rapidly expanding cooperative sector.

2. Legal Framework Governing Cooperative Registration

Cooperatives in Nepal are primarily regulated by:

• Cooperatives Act, 2074 (2017)

• Cooperatives Regulation, 2075

• NCRA Regulatory Standards and Directives

• Sector-specific approvals, when applicable

Key legal requirements for registration include:

• Submission of bylaws compliant with the Act

• Minimum number of founding members as prescribed by law

• Preliminary meeting decisions and share structure details

• Identification and verification of office-bearers

• Feasibility or operational plans where required

Since requirements differ depending on the type of cooperative, promoters must confirm category-specific obligations before applying.

3. Required Documents

While documentation may vary, the following items are generally mandatory:

• Draft Bylaws (Constitution)

• Preliminary meeting minutes

• List of founding members with identification documents

• Feasibility/operational plan

• Share structure and capital commitments

• Office address and contact details

• Additional sector-specific approvals, if applicable

• To streamline the online process, all documents should be prepared in digital format (PDF/JPEG).

4. Step-by-Step Online Registration Procedure

The NCRA online portal has replaced traditional manual processes. The registration steps include:

Step 1: Visit the NCRA Website

Access the Cooperative Registration Portal on www.ncra.gov.np.

Step 2: Email Verification

• Enter the cooperative’s official institutional email

• Receive an 8-digit OTP

• Enter the OTP to proceed

Step 3: Complete the Application Form

Fill in all required details across several sections:

• General information

• Objectives and operational area

• Founding members

• Management committee structure

• Share capital and financial details

• Uploading of required documents

Click Save & Next to move through each module.

Step 4: Review and Approval

After submission:

• NCRA reviews the documents

• Clarification or additional materials may be requested

• Upon verification, a digital registration certificate is issued

The certificate legally authorizes the cooperative to commence operations.

5. Post-Registration Compliance and Monitoring

After registration, cooperatives must comply with ongoing regulatory obligations such as:

• Conducting annual general meetings per NCRA directives

• Regularly updating member and financial information in the online system

• Maintaining digital records as required by law

• Adhering to prudential and operational standards under the Regulatory Standards, 2082

• Cooperating with NCRA’s monitoring and inspections

Integration with the Credit Information Centre and Deposit & Credit Protection Fund further enhances transparency and depositor protection.

Conclusion

The online registration system introduced by NCRA represents a major milestone in modernizing cooperative governance in Nepal. With a centralized, transparent, and fully digital process, the platform enhances administrative efficiency and strengthens regulatory oversight. For promoters and institutions seeking to establish a cooperative, understanding the updated legal requirements and following the online procedure is essential for smooth registration and compliance.

Note: Our firm provides support for cooperative registration under the new NCRA system. For legal assistance or consultation, please contact us at Email: sherpalaw.nepal@gmail.com