Nepal Government Plans to Simplify Industry Registration, Abolish Fees for Small Businesses

Kathmandu. Through the recently unveiled 'One Hundred Agenda for Governance Reform,' the government has mentioned simplifying the industry registration process and creating a favorable environment by abolishing fees.

The government plans to end the double hassle of industry registration. Point number 66 of the agenda states that the double hassle of registering small industries will be ended, industries up to NPR 250 million will be registered integrally through the Cottage and Small Industries Office, and the registration fee will be abolished within 45 days.

Kamlesh Kumar Agrawal, President of the Nepal Chamber of Commerce, interpreted the government's announcement as a historic and positive step. He expressed confidence that this program would play a significant role in improving the investment climate and boosting the morale of the private sector in the country.

'The provision to register industries up to NPR 250 million within 45 days and abolish registration fees will provide great relief to youth, women, and new entrepreneurs,' said President Agrawal. 'This government plan will prove to be a milestone in job creation and innovation.'

He claimed that the hassle-free registration process would further encourage small investors to join the formal economy.

Former Industry Secretary and expert Bharat Thapa also welcomed the government's move. Thapa stated that the cumbersome procedures involved not only in industry registration but also in operation and closure should be removed.

He pointed out that the registration process alone is not sufficient for the overall development of industries. Speaking to Ratopati, Thapa clarified that among the three main stages of an industry—entry, operation, and exit/closure—the government has only prioritized the entry aspect.

'If the state wishes, abolishing registration fees and simplifying the process is not impossible,' Thapa said. 'But the bigger problem than registration is industry operation. Entrepreneurs are harassed by ten different agencies causing trouble while running the industry.'

Thapa emphasized the need for serious review of the operation and exit processes, stating that industries collapse due to insecurity, strikes, looting, and commission-based practices faced during operation.

Under the government's 100-point agenda for governance reform, point number 66 states: 'To make the operation of industries and businesses in Nepal simple, transparent, and free from middlemen, the dual practice in the small industry registration process will be ended, and a system will be established where industries up to NPR 250 million will be registered only through the Cottage and Small Industries Office, and the provision for abolishing registration fees will be implemented within 45 days.'

Former Secretary Thapa stated that the investment climate will not fully improve until the implementation aspect and the end of policy corruption faced by industrialists during the operation period are addressed. He argued that industrialists should also have the provision to exit easily when the industry is on the verge of collapse, not just when registering.