Nepal

Ease of Doing Business in

Nepal

This page summarizes Doing Business 2014 data for Nepal. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region South Asia
Income Category Low income
Population 27,474,377
GNI Per Capita (US$) 700
City covered Kathmandu
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
105 103 down -2

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Improvement in DTF** (% points)
61.14 60.73 down 0.41
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 97 DB 2013 Rank*** 103 Change in Rank up6
DB 2014 DTF** (% points) 81.52 DB 2013 DTF** (% points) 79.09 Improvement in DTF** (% points) up2.43

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Nepal South Asia OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
7 7 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
17.0 16.2 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
34.6 19.8 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in Min. Capital (% of income per capita)
0.0 15.8 10.4
No. Procedure Time to Complete Associated Costs
1 Verify the uniqueness of the proposed company name 1 day no charge
2 A professional verifies and certifies the memorandum and articles of association 5 days NPR 10,000 depending on the professional’s charges
3 Buy a stamp to be attached to registration form 1 day NPR 5
4 Register at the Office of the Company Registrar, Department of Industry 7 days NPR 9,500
5 Make a company rubber stamp 1 day NPR 275
6 Register for VAT and income Tax at the Inland Revenue Office, Ministry of Finance 1 day no charge
7 Enroll the employees in the Provident Fund 1 day no charge

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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