Statutory Audit Services in Nepal
What is a statutory audit?
A statutory audit is the annual independent examination of a company's financial statements required by law. Under Section 111 of the Companies Act 2063, every company registered in Nepal — private or public, large or small — must appoint an auditor and have its annual accounts audited before they are approved and filed.
The audit report accompanies your annual financial statements when they are submitted to the Office of Company Registrar (OCR) and supports your income tax return filed with the Inland Revenue Department (IRD). Without it, a company cannot complete its annual compliance and quickly accumulates fines and penalties.
What our statutory audit covers
- Independent examination of the balance sheet, profit & loss account, and cash flow statement
- Verification of books of account, vouchers, and supporting records
- Review of tax computations, VAT reconciliation, and TDS compliance during the year
- Assessment of compliance with the Companies Act 2063 and applicable accounting standards
- Audit report in the format accepted by OCR and IRD, signed by a licensed auditor
- A management letter highlighting weaknesses and practical improvements — not just a signature
Key deadlines for Nepali companies
Nepal's fiscal year ends mid-July (end of Ashadh). The compliance calendar that follows is tight, and late filing attracts penalties from both OCR and IRD.
| Obligation | Authority | Deadline |
|---|---|---|
| Appointment of auditor (AGM / board as applicable) | OCR | Annually, per the Companies Act 2063 |
| Audited financial statements & annual return | OCR | Within 6 months of fiscal year end |
| Income tax return (self-assessment) | IRD | Within 3 months of fiscal year end (end of Ashoj), extendable by 3 months on application |
| Estimated tax installments | IRD | Poush, Chaitra, and Ashadh of the running year |
Our audit process
- 01Engagement and planning — we understand your business, agree the timeline, and share a document checklist so nothing is missing at year end.
- 02Books review — ledgers, bank statements, sales and purchase records, payroll, and tax filings are examined and reconciled.
- 03Fieldwork and verification — vouching, physical verification where relevant, and testing of balances and disclosures.
- 04Draft report and discussion — findings are discussed with management before anything is finalized, so surprises are resolved, not filed.
- 05Final signed audit report — delivered with your financial statements, ready for OCR filing and your tax return.
Documents we typically need
- Company registration certificate, PAN/VAT certificate, MOA & AOA
- Books of account (or access to your accounting software) and bank statements
- Sales and purchase invoices, expense vouchers, and payroll records
- Previous year's audit report and tax filings
- Loan agreements, lease agreements, and any major contracts
An audit firm in Butwal serving all of Nepal
Rolacon is based in Tilottama, Butwal — in the middle of one of Nepal's fastest-growing commercial corridors. We audit businesses across Butwal, Bhairahawa, and Rupandehi in person, and serve clients across Nepal remotely with document exchange over email and WhatsApp.
Because we also handle bookkeeping, tax, and company compliance, our audits start from clean, well-organized records — which means fewer queries, faster completion, and a report your bank, investors, and regulators can rely on.
Frequently asked questions
Which companies need a statutory audit in Nepal?
Every company registered with the Office of Company Registrar — Private Limited, Public Limited, and profit-not-distributing companies — must have its annual accounts audited under Section 111 of the Companies Act 2063, regardless of size or turnover. Registered firms, NGOs, and cooperatives also require audits under their respective laws.
When should the audit be completed?
Audited financial statements must be filed with OCR within six months of the fiscal year end (mid-July), and your income tax return is due within three months of year end (extendable by three months on application). Starting the audit in the first quarter after year end keeps both deadlines comfortable.
What happens if my company skips the audit?
OCR levies escalating fines for late or missing annual filings, and the IRD can impose penalties and interest on the related tax return. A company that stays non-compliant for years risks being blacklisted, and its directors can face restrictions on registering other companies.
How much does a statutory audit cost in Nepal?
Audit fees depend on the size, turnover, and condition of your records, and are guided by ICAN's minimum fee directives. Contact us with a short description of your company and we will give you a clear, fixed quote before any work begins.
Can Rolacon audit a company based outside Butwal?
Yes. We audit companies across Nepal. Records can be shared digitally, and fieldwork visits are arranged where physical verification is needed. Many of our clients in Kathmandu, Pokhara, and elsewhere work with us entirely remotely.
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