National Startup Policy

Sushil Parajuli

Ministry of Industry Commerce and Supplies has released a draft document on National Policy related to Startups for discussion on 2080.04.14 (30-Jul-2023). The document has been released to the stakeholders to provide suggestions for these policies via email within 15 days at info@moics.gov.np

However this still is in the draft phase.

View my blog post on the same topic here.

Sushil Parajuli

Unicode version of the document is available here.
Courtesy of Sushil Parajuli

Sushil Parajuli

Policy 1: Enhancing Start-Up Business Relations with Industrial Enterprises
This policy focuses on fostering a supportive environment for start-ups by modifying existing industrial business laws. Key aspects include defining start-ups within the Industrial Business Act, simplifying investment through amendments to various laws, facilitating equity funds and crowdfunding, allowing start-ups to issue primary shares, enhancing intellectual property protection, and streamlining entry and exit processes.

Sushil Parajuli

Policy 2: Advancement of Start-Up Business Ventures
This policy aims to foster the growth of start-up ventures by creating organized systems and essential groundwork. It includes the establishment of a Nepal Start-Up Council, development and management of start-up ecosystems through the Industry Ministry, creation of support centers and accelerator programs at provincial levels, setting up local governance mechanisms for start-up regulation, and the development of an online portal, "Start-Up Nepal," to provide comprehensive services and information for start-up entrepreneurs.

Sushil Parajuli

Policy 3: Promoting Start-Up Business Development through Various Schemes
This policy seeks to encourage the growth of start-up businesses through diverse schemes including incentives, financial assistance, simplified fee structures, investor benefits, and development initiatives. It also aims to provide tax exemptions for profits and promote easy financial access through banking institutions, thus fostering a favorable environment for start-up development.

Sushil Parajuli

Policy 4: Establishment of Nepal Start-Up Fund for Financial Support to Entrepreneurs
This policy outlines the establishment of the 'Nepal Start-Up Fund' to financially support entrepreneurs in their start-up endeavors. It includes the collection of funds from various sources and provides accessible start-up loans. The policy also emphasizes project evaluation, allocation of development expenses, and the potential for provincial and local-level funds.

Sushil Parajuli

Policy 5: Facilitating Foreign and Non-Resident Nepali Investment in Start-Ups
This policy focuses on encouraging foreign investment and non-resident Nepali investment in start-up ventures by revising investment limits and facilitating market entry. It introduces a safe exit mechanism, simplifies private equity investment rules, and allows reinvestment from previous foreign earnings without additional foreign investment limits or approvals.

Sushil Parajuli

Policy 6: Coordination and Collaboration for Start-up Investment
This policy emphasizes collaboration and partnership between the central government, provincial governments, and local authorities to gather essential investments for start-up ventures and businesses:

Sushil Parajuli

Policy 7: Incubation Centers and Start-up Ecosystem Development
This policy focuses on establishing and managing Incubation Centers and Accelerator Programs to facilitate the development of the start-up ecosystem by ensuring the supply of resources from various sources such as mentors, trainers, and experts:

Sushil Parajuli

Policy 8: Promoting Start-up Development through Research and Knowledge Sharing
This policy emphasizes the internalization of regional and international studies, research, and best practices to advance start-up businesses:

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Policy 9: Collaborative Development among Government, Private Sector, Financial Institutions, Universities, and Research Centers
This policy underscores collaboration and partnership between all levels of government, private sector, financial institutions, universities, research centers, and concerned stakeholders to foster start-up development:

Sushil Parajuli

Policy 10: Identifying and promoting Nepali talents and entrepreneurship with innovative ideas to expand recognition abroad and attract foreign investment
This policy focuses on promoting the recognition of Nepali talents and innovative entrepreneurship globally and encouraging the expansion of startups into foreign markets. Legal provisions will be established to support Nepali startups venturing into international markets, and diplomatic missions will assist in this expansion. Additionally, simplified procedures will be implemented to ease the process of currency conversion for startups operating abroad.

Sushil Parajuli

In addition to the key strategies, the draft policy also has attempted to define the meaning of Startup and to tried to adopt major evolving new concepts in the startup ecosystem like Incubation Centers, Mentors, Accelerator Programs among others.