Nepal unveils fast-track plan to ease startup regulations

Nepal's government has introduced a "Startup Fast Track Working Plan 2026" to streamline regulations and improve access to services for new businesses. The Ministry of Industry, Commerce and Supplies is leading the initiative, which aims to amend existing laws and simplify administrative processes.

A key proposal allows startups to submit tax details annually for their first three years, a shift from the current quarterly requirement for all businesses. Additionally, businesses operating for three consecutive years with no employees or outstanding liabilities could dissolve within seven days. The ministry is tasked with coordinating provincial law amendments, with a three-month deadline to initiate these changes.

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The working plan will be given priority, and implementation will proceed in line with the startup-related announcements made in the budget for the upcoming fiscal year.

This plan comes after significant delays in the government's subsidized startup loan program, where entrepreneurs have faced lengthy waits. The fast-track mechanism is intended to expedite this process, as well as improve access to business enhancement services, coaching, and consultations. Over the past three fiscal years, nearly 1,500 startup entrepreneurs have received approximately Rs1.88 billion in subsidized loans.

While the working plan has taken effect, implementing legal amendments may require time. Officials acknowledge potential overlaps with existing procedures, such as the Startup Enterprise Credit Operation Work Procedure 2024, which might need adjustments before full implementation. The initiative aims to foster entrepreneurship and self-employment, building on a subsidized loan program first introduced in 2018.

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The working plan is intended to speed up the subsidised loan process.