In a bid to foster innovation and entrepreneurship, the Nepali government has announced the ‘National Startups Policy, 2080’, which outlines a range of incentives and facilitation measures for startup enterprises in the country. The policy, adopted and enforced by the Council of Ministers, aims to promote and facilitate investment in startups by providing waivers, easing legal provisions, and ensuring commercial safety.
One of the key features of the policy is the exemption from costs involved in the registration of enterprises, renewal, and registration of industrial properties. “Exemption has been made on the costs involved in the registration of enterprises, renewal and registration of industrial properties,” the policy stated.
Additionally, the policy offers facilities and concessions to entrepreneurs on seed money, human resource development, consultancy and technical assistance, concessional loans, and cash incentives on exports.
Notably, the policy promises an attractive tax incentive for startups, with an arrangement to waive income tax for up to 10 years after the establishment of the enterprise.
To facilitate financing for startups, the policy mandates banks and financial institutions to invest a certain percentage of their loan portfolio in startup enterprises. Furthermore, a separate fund will be established to promote new ideas and innovative enterprises, and subsidies will be provided on loans offered by banks and financial institutions for startups and innovations.
“Necessary arrangement will be made to provide loans on concessional interest rates from banks and financial institutions,” the policy stated, highlighting the government’s commitment to ensuring access to affordable financing for startups.
The ‘National Startups Policy, 2080’ underscores the Nepali government’s recognition of the importance of fostering a vibrant startup ecosystem. By offering tax breaks, incentives, and financing support, the policy aims to encourage entrepreneurship, innovation, and job creation, thereby contributing to the country’s economic development.
As Nepal’s startup landscape continues to evolve, this policy is expected to provide a much-needed boost, attracting potential investors and entrepreneurs to explore opportunities in the Nepali market.
