100% discount on income tax for startups for 3 years, the government will protect investment in case of failure
The government is going to make a law to give 100% income tax exemption to startups for 3 years. The draft of the ‘National Startup Enterprise Policy, 2079’, prepared by the Ministry of Industry, Commerce and Supply and brought to internal discussion, includes the topic of giving 100 percent income tax exemption to startups for 3 years.
It has been mentioned in the draft that the law will provide 100% discount on income tax for 3 years after operating a startup enterprise or business.
It is said that startup coaches and mentors will be provided along with the operation of Business Incubation Center, Innovation Center, Business Lab and Accelerator in all seven provinces including the Union to promote startups.
In the draft, it is said that a legal arrangement will be made to give exemption to the capital gains tax that must be paid when selling the shares in their name for a maximum of 5 years from the date of the start of investment to startup enterprise founders as well as angel investors, venture capital and equity investors.
In addition to this, a legal provision will be made to give 100% discount on fees incurred in registration and renewal of startup industries or businesses and registration of industrial property.
In the draft, it has been mentioned that the start-up enterprises will be provided with the concessions and facilities provided to other enterprises, such as business promotion schemes such as BEPU, manpower development, consultancy and technical assistance, concessional loans, cash subsidies for exports.
In order to provide financial support to startup entrepreneurs, the Nepal Startup Fund has also been envisioned in the draft, in which funds will be collected from various funds of the government, private and non-government sectors.
If the startup fails and goes into bankruptcy or collapses, the government of Nepal will provide a premium subsidy for the safe management of the investments of venture capital, private equity and investment companies.
Startups can issue primary shares (IPO) to mobilize investment from the stock market. The law will be amended for this.
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