The government has unveiled a Startup Fast Track Working Plan 2026 aimed at easing regulatory hurdles, simplifying compliance requirements and improving access to services and subsidised loans for startup enterprises.

The working plan, introduced recently by the Ministry of Industry, Commerce and Supplies, seeks to facilitate startup businesses by amending existing laws and streamlining administrative procedures.

Among the key proposals is a provision allowing startups to submit tax details annually instead of quarterly for the first three years of operation. At present, all businesses in Nepal are required to file tax details every quarter.

The government also plans to introduce a legal provision enabling startup-based businesses that have remained operational for three consecutive years, have no employees and no outstanding liabilities to dissolve their companies within seven days.

The industry ministry has been assigned the responsibility for coordinating amendments to provincial laws related to the registration and regulation of startup enterprises. The working plan sets a three-month deadline for initiating the required legal changes.

The plan has already come into effect, with responsibilities divided among relevant government agencies.

Netra Prasad Subedi, joint secretary at the ministry, said relevant government bodies have been directed to implement the working plan.

"The working plan will be given priority, and implementation will proceed in line with the startup-related announcements made in the budget for the upcoming fiscal year," Subedi said.

He acknowledged, however, that amendments to existing laws could take time.

Maniram Gautam, information officer at the Industrial Enterprise Development Institute (IEDI), said several provisions in the working plan overlap with the Startup Enterprise Credit Operation Work Procedure 2024, which may need amendment before full implementation.

According to Gautam, the fast-track mechanism was introduced after repeated delays in the government's subsidised startup loan programme, where entrepreneurs often had to wait months—and sometimes more than a year—to receive approved loans.

"The working plan is intended to speed up the subsidised loan process," he said.

Over the past three fiscal years, including the current one, nearly 1,500 startup entrepreneurs have received around Rs1.88 billion in subsidised loans from the government.

The subsidised loan programme was first introduced by the KP Sharma Oli administration in 2018 to promote entrepreneurship and self-employment. However, procedural delays meant the scheme became operational only five years later.

This year as well, political changes and administrative delays have pushed loan disbursements close to the end of the fiscal year.

The industry ministry said the fast-track mechanism will make it easier for startups to access business enhancement services, coaching, monitoring, subsidised loans, business development consultations, business clinics and boot camps through the IEDI.

The working plan aims to promote startup enterprises by simplifying registration and reducing administrative and regulatory burdens across federal, provincial and local governments.

To make registration and post-registration procedures faster and more efficient, the government plans to add a "One Door Business Registry Platform" to the existing Electronic Information Management System. Provincial governments responsible for business registration will also be required to provide services through the integrated system.

The government had already introduced the National Startup Enterprise Policy 2024 to promote entrepreneurship, innovation, production and employment generation.

As part of the fast-track mechanism, provincial laws governing industry registration, company registration and regulation will be aligned with federal startup-related provisions.

The government also plans to establish an integrated coordination mechanism among relevant agencies to ensure timely service delivery and simplify procedures for startup enterprises.

Businesses registered and certified as startup enterprises through the One Door Business Registry Platform will be eligible for business enhancement services, coaching, monitoring, subsidised loans, business development consultations and business clinic services.

Once a startup is registered, entrepreneurs will no longer be required to submit the same documents repeatedly to multiple government agencies.

A dedicated help desk, specialised staff and an artificial intelligence-supported frequently asked questions (FAQ) system will also be established at the Office of the Company Registrar and the IEDI.

The government further plans to appoint enterprise development facilitators as startup focal persons at the local level to support entrepreneurship development and business expansion.

The proposed legal reforms will also allow startup enterprises to remain dormant if they cease active operations for up to three years.

The Department of Industry, the Department of Commerce, Supplies and Consumer Protection, the Office of the Company Registrar, provincial industry and commerce agencies, local governments, the IEDI, and provincial business incubation centres will be responsible for implementing the mechanism.

Despite the government's latest initiative, many startup entrepreneurs remain cautious, citing past experiences in which support programmes failed to deliver meaningful results.

"It is encouraging that the government is trying to facilitate and promote startup businesses. But because successive governments have failed to provide effective support, many entrepreneurs have lost hope," said Saroj Kaji Shrestha, president of the Kavre Yuva Udhyami Forum.

According to Shrestha, access to finance remains the biggest obstacle for entrepreneurs in Nepal.

"Unless the government makes financing easier, most of these plans will remain on paper and amount to little more than promises," said Shrestha, who is also associated with the Startup and Innovation Forum under the Federation of Nepalese Chambers of Commerce and Industry.