The Government of Nepal has introduced the first amendment to the Industrial Enterprise Regulation, providing a clear definition and legal recognition for startups. This development aims to promote innovation and retain the nation’s youth by supporting their business ventures.
Defining a Startup in Nepal
Under the new amendment, a business qualifies as a startup if it meets the following criteria:
• Age Limit: The business must be registered for less than 10 years.
• Revenue Cap: Annual transactions should not exceed NPR 150 million.
• Innovation: The enterprise must utilize innovative ideas and technology in the production of goods or services.
These criteria aim to identify and support businesses with high growth potential that contribute to the nation’s economic development.
Registration Process for Startups
Entrepreneurs seeking startup recognition must submit the necessary documents, including:
• Audit Report: For operational businesses, the audit report from the previous fiscal year is required.
• Financial Details: Non-operational businesses must provide financial information.
• Declaration: A self-declaration of the use of innovative ideas and technology is mandatory.
Upon approval, businesses receive a Startup Business Certificate and are expected to commence operations within a year, notifying the relevant authority accordingly.
In conclusion, the government’s initiative to define and support startups is a step towards nurturing innovation and retaining talent within Nepal. By creating a conducive environment for new businesses, we pave the way for sustainable economic growth and a prosperous future. By clearly defining what constitutes a startup, we lay the groundwork for a more structured and supportive ecosystem. This move not only encourages aspiring entrepreneurs but also assures them of the government’s commitment to fostering their growth.
