Author/s: Yatindra KC
Published Date: November 2025
This working paper takes stock of Nepal’s labour regime, tax regime and business entry regulations. It argues that Nepal’s business environment is opaque and costly given increased cost of compliance because of the new labour law, the inconsistency in the interpretation of tax laws, and high entry costs as a result of preexisting operational licensing requirements. Furthermore, it provides some recommendations to improve the business environment which include but are not limited to mandatory provisions of advance rulings, amendments to the labour law and amendments to the Company directives.