Registration empowers women's business

 Procedural hurdles still hinder wider transformation

 

Kathmandu, July 17

Anita Basaula, a woman entrepreneur from Birgunj, has been running beauty parlour business informally. Nobody told her about the need and benefits of registering the business. Meanwhile, after attending a two-day Formalize your Business training under the 'Empowered Women and Prosperous Nepal' programme organised at the Birgunj Chamber of Commerce and Industry, she realised the avenues could be opened with the registration of her business.

"I will register my beauty parlour this month (mid-July to mid-August). Now I know that formalisation opens doors to cooperation with banks, government bodies, non-government organisations and other partners," she said.

According to Anita, training provided her with clear and practical knowledge on how, why and where to register a business. "All entrepreneurs who are yet to register their businesses should be provided such training. It will provide them legal knowledge and ensuring business sustainability."

Likewise, Sunaina Thakur, owner of Mithila art-based enterprise Sunaina Arts in Janakpur, has transformed her artistic skills and cultural identity into a business venture and created jobs for local women. While she was in this business for the last two-and-a-half decades, her business was running informally without being registered at the concerned authorities.

Registering her business was not 'all-pleasant' activity. "I encountered a few challenges in the beginning. But when my business is registered, I could participate in government projects, access loan from the banks and financial institutions and collaborate with other companies and agencies," she said  adding that it supported in expanding her network and growing business.

Sunaina shared that running a business formally, getting it registered at the local or federal agencies, allows entrepreneurs to have better and transparent engagement with local producers. According to her, renewal process is easy and it is mandatory to renew if you want to continue with your business.

Business formalization has brought multitudes of benefits to entrepreneurs and supported in their growth and networking.

"It does wonders in creating an environment of trust and can have direct positive impacts on business and related activities," said Niru Rayamajhi Khatri, Immediate Past President of the Federation of Women Entrepreneurs' Associations of Nepal (FWEAN).

 

Opening doors of opportunities

Many entrepreneurs, especially micro, cottage and small (MCSEs), faced challenges in obtaining the financing facilities from the banks and financial institutions (BFIs), government incentives and other support in the wake  of the COVID-19 because they were not registered with the concerned government agency at any level.

However, with the implementation of the federalism and local bodies beginning the business registration, the scenario has improved significantly, said Khatri. Although actual numbers are not available, the estimates from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) tell that the numbers are encouraging.

For example, about 85 per cent of the businesses in Tilottama Municipality of Rupandehi district are registered. According to the Economic Census of 2018, about half of the businesses in operation across the country were running without being registered.

"We have been calling on the entrepreneurs for the registration of their businesses and timely renewal. Agricultural businesses get 50 per cent discount in the registration fee while businesses run by women's group are  entitled to  75 per cent discount," Krishna Prasad Pandey, an officer of Tilottama Municipality Office said to The Rising Nepal.

Tilottama launched business formalisation as a campaign since 2017.

Capital city Kathmandu Metropolis and Dhangadhi Sub-Metropolitan City have also launched business registration drive in their respective areas. Krishna Kumari Bista from Dhangadhi said that following her business registration and quality products, she has been awarded as the 'best entrepreneur' for multiple times.

 

Poor policy implementation

Meanwhile, Juna Mathema, Chairperson of the FNCCI's Start-Ups and Innovation Forum, pointed to the need for further facilitation in the registration process and timely implementation of the government-announced policies.

"It's not that our policies are bad. Problem is with their implementation. Although the government announces various incentives and discounts to the entrepreneurs, their implementation is most often delayed," she said.

For example, the government announced registration fee waiver for entrepreneurs in the budget of the current Fiscal Year 2025/26, it hasn't formulated a procedure for it. As a result, concerned authorities will not be able to implement the provision.

"Entrepreneurs ask the FNCCI when will they get the announced benefits and incentives. But it takes months for their implementation," said Mathema.

Likewise, lack of procedure to recognise the startup business has deprived the entrepreneurs from the benefits. According to Mathema, most often, poor inter-agency coordination is behind these shortcomings .

 

Complexities observed

These perspectives reflect growing calls from employers to address existing bottlenecks, in particular for women entrepreneurs. They include lack of coordination between departments and agencies, reliance on intermediaries, requirement of rental document and inconsistencies in defining industries has created problems in enterprise registration process.

FNCCI is working with the ILO and local governments in awareness and facilitation support with priority in supporting women entrepreneurs. It is conducting training to women entrepreneurs to educate them in business formalisation, through Women Entrepreneurship Helpdesks in select districts.

Issues in obtaining incentives for business registration and renewal are lack of policy clarity, multiple taxation, need for physical visits, and ineffective operationalisation of incentives. FNCCI has renewed calls for single digital registration and renewal system for enterprises, building on recommendations from enterprise formalisation paper developed by ILO under the national action plan on formalisation.

Likewise, issues relating to compliance are emerging due to lack of monitoring, perceived excessive and disproportionate punitive measures for non-compliance, lack of awareness of regulation and requirements, and lack of digital data management.

 

Published in The Rising Nepal daily on 18 July 2025.