Soar as High As Mount Everest When You Set Up Business In Nepal
Nepal is a beautiful country, with a multicultural and adaptable society. In fact, their language of choice for business is English. It is right in the middle of India and China, two of the world’s largest and most dominant economies. What do all of these points have in common? These are just some of the many benefits of doing business in Nepal. Thanks to the efforts of a highly supportive government and a hard-working population, investors can easily set up business in Nepal.
Leveraging on the Land
Land prices in Nepal are affordable compared to a lot of other countries out there, so why not capitalize on that when thinking about setting up a business in Nepal? There’s plenty of fertile lands to go around if your business is invested in the relevant sector.
The Tourism Potential
Right smack in the middle of two of the world’s fastest-growing economies is good news for Nepal and any investors who intend to set up business in Nepal. China and India have a large middle-income class population, and investors who are running a business in Nepal can tap into this potential market, especially on the Chinese and Indian tourists who these days are now eager to travel more than ever.
A Supportive Government
The Nepali government is very supportive of all forms of investment. It is working hard at aiming to create a social and economic system in the country that can provide its people with access to good-quality, basic necessities such as education, food, health and more. The government wants to generate jobs, protect the country’s environment and eradicate poverty. One of their actions to achieve this is by boosting investment into the country.
The government has made it its focus to create an investment-friendly environment. It places a high priority on the industrial development of the country in the hopes of increasing employment, productivity, production and substituting imports and minimizing the promotion of export-oriented industries.
Lower Taxes, Higher Return on Investment (ROI)
Nepal offers one of the lowest tax burdens in the region, compared to other countries within South Asia. Here are the tax benefits you get when you set up business in Nepal:
- maximum income tax rate of 25%
- VAT rate of 13%
- income tax exemption on profits from exports and interest income on foreign loans
- a tax rate of 15% on royalties, technical and management fees, and levies on customs
- excise duties and VAT on raw materials and auxiliary raw materials of export-oriented industries subject to reimbursement
This means investors stand to gain from a comparatively high ROI rate.