Legislative Facilitation

A few days ago, the government issued a number of ordinances to amend various laws. The major goals of the related laws are to improve good governance, public service delivery and social welfare, land management, and attract foreign investment, among others. In compliance with the ordinances, the government authorities are now required to conclude works for service seekers within seven days, and failing to do so might result in legal action. To streamline service delivery, digitalisation of government services will be done through the Nagarik App. 

In addition, non-resident Nepali (NRN) citizens can open a company in Nepal without having to obtain permission for foreign investment. This comes as a boon for those keen to set up business in Nepal but are deterred by labyrinthine procedures. In an effort to catalyse the business in a frictionless setting, the newly introduced ordinance enables easy registration of companies. To make matters even more positive, the hassle of closing them has been eliminated, as has been the penalty for liquidating a company that is no longer in business and wants to close. 

This major legislative move will go a long way to ease the process of doing business, for the procedure for closing a company here has also been full of hassles. For a NRN citizen, a provision has been made to offer free visas after 10 years of stay in Nepal. In order to further ameliorate things, the Special Economic Zones have been expanded, allowing both manufacturing and non-manufacturing industries to enjoy certain tax exemptions, encouraging industry relocation to these zones. 

The reforms in investment and industry seek to facilitate foreign investment by simplifying the process for non-resident Nepali citizens and Nepali IT companies to open subsidiary branches abroad. Provisions have also been made for a special investment fund, making it easier for foreign investors to foray into Nepali market. The newly tweaked legal provisions now allow Nepali IT companies to invest abroad, bring their incomes to Nepal and to open branches in a foreign country. 

Other reforms include new provisions making it easier for victims to settle criminal cases with their offenders through financial compensation, including a reduction in the amount of the fines required to avoid imprisonment. Still others include public welfare and security measures claimed to bring reforms to the justice system, especially regarding acid attacks. To improve social security, the national identity card has been made mandatory for recipients of social security allowances to keep misuse in check. Teachers, too, will benefit tremendously, since the Teachers' Provident Fund will be established to ensure retirement benefits for them.

The land and property reforms aim at resolving issues of landlessness by granting land ownership to landless squatters and irregular settlers. What's more, the real estate business law now permits the development of housing on land that was previously prohibited on condition that it is done within a specified time. The financial and budgetary reforms will now allow the Ministry of Finance to be able to allocate funds to the Federal Reserve Fund to balance budgets and ensure smooth disbursement. 

In addition, disaster management spending can now be adjusted in real time to accommodate unforeseen emergencies, ensuring a prompt government response.  In a bid to encourage innovation, provisions have been made to simplify the process of issuing shares for private companies, with fewer regulatory hurdles and penalties for non-compliance.