The Government of Nepal has introduced the National Startup Policy 2080, a framework to foster entrepreneurial growth and promote investment in startups. Enacted by the Council of Ministers, the policy aims to create a supportive environment for startups through financial incentives, simplified regulations, and strategic support mechanisms.
Key Objectives
- Driving Economic Growth: Supporting startups that generate employment and contribute to the local economy.
- Promoting Investments: Encouraging both local and foreign investments for establishing and operating startups.
- Fostering Innovation: Driving entrepreneurship development through innovative partnerships.
- Facilitating Financial Access: Providing financial concessions and improved access to resources for startups.
Institutional Framework
The policy establishes the Nepal Startup Council, chaired by the Ministry of Industry, Commerce, and Supplies, and the Startup Board, led by the CEO of the Industrial Enterprise Development Institute. These bodies will oversee and drive the development of Nepal’s startup ecosystem.
Startup Qualification Criteria
To qualify as a startup under this policy, enterprises must meet the following criteria:
- Must be less than ten years old from the date of incorporation.
- Must be registered as a private firm, partnership, company, or cooperative classified as an industry.
- Have an annual turnover not exceeding NPR 15 crore.
- Not be a merger or spinoff of an existing enterprise.
- Demonstrate high potential for scaling through innovative and creative ideas.
Key Provisions and Benefits
- Tax Exemptions: Startups will receive a ten-year income tax waiver post-establishment.
- Concessional Loans: Banks and financial institutions will provide loans at reduced interest rates and allocate a percentage of their lending to startups.
- Seed Funding: A special fund will support innovative ideas and offer subsidies for loans.
- Export Incentives: Entrepreneurs will receive financial support, including cash incentives and technical assistance, to boost exports.
Conclusion
The policy aligns with the government’s periodic plans and budget programs to foster economic growth. By boosting production, creating jobs, and encouraging collaboration between government and private sectors, it aims to establish Nepal as a hub for innovation and entrepreneurship.
Hence, The National Startup Policy 2080 is a milestone for Nepal’s economic transformation. By addressing critical areas like financial access, entrepreneurial development, and sustainable growth, it lays the groundwork for a vibrant startup ecosystem that supports innovation, investment, and employment.
Disclaimer: This note is provided solely for general information and does not constitute legal opinion. For specific legal query, please seek professional counsel.
