According to the DBI report, Nepal is ranked in the 105th position among the 189 global economies surveyed. Nepal ranked 108th in the DBI report of last year.
“It is much easier to start a new business in Nepal compared to previous years,” the report states.[break]
Nepal´ ranking in ´Starting a Business´ topic has also gone up to 97, compared to 103 last year.
The report said the ranking was achieved by reducing administrative processing times at the company registrar and establishing data links between agencies involved in the incorporation process.
Shankar Aryal, registrar at the Office of the Company Registrar (OCR), said Nepal has made registration process easier by introducing Internet-based registration system for companies. “We have made online registration process mandatory from October 20 this year,” said Aryal.
However, companies will have to submit hard copies of the required document unless digital signature is recognized.
The report states that Nepal has simplified pre-registration and registration formalities such as publication, notarization, inspection and other requirements and introduced online procedures. It also said investors have to spend at least 17 days, down from 29 days of last year, to complete seven procedures before starting business in Nepal.
Industry Secretary Krishna Gyawali said the government is working to replicate the online registration system to departments of the ministry. “We will start by introducing online registration system for middle, cottage and small industries within this fiscal year,” Gyawali said, adding that the pilot online registration project for small and medium industries will be launched in Kathmandu Valley very soon.
Likewise, in terms of helping create a better environment for local entrepreneurs, Nepal ranks third in the eight South Asian economies surveyed, behind only Sri Lanka and the Maldives.
According to the report, South Asia leads the world in implementing business regulatory reforms in 2012/13. Six of eight economies in the region completed 11 reforms simplifying the process of starting a business, strengthening access to credit, or easing the process for paying taxes.
“A congenial business environment is important for Nepal´s economic growth,” Val S Bagatsing, IFC resident representative in Nepal, said, adding that they were encouraged by the rapid pace of reform in Nepal. “It will help the country attract more investment and create jobs.”
Chief Secretary Leela Mani Paudyal said that there are many areas in need of improvement. “The government will prioritize the recommended reform areas in the report and set target for next year before the Constituent Assembly (CA) election so that the new government can work toward achieving the target,” he added.
Singapore topped the global ranking for the seventh consecutive year, followed by Hong Kong SAR, China, New Zealand, the United States, Denmark, Malaysia, the Republic of Korea, Georgia, Norway, and the United Kingdom.
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