FM Encourages Venture Capital and Private Equity Investments in SMEs, Introduces Company Registration At Rs. 100 Paid-Up Capital

During a joint parliamentary session on Monday, Finance Minister Dr. Prakash Sharan Mahat unveiled the budget for the forthcoming fiscal year 2080/81. The announcement took place in the federal parliament, with the participation of both the National Assembly and House of Representatives.

In his address to the joint session, Finance Minister Mahat emphasized the encouragement of venture capital (VC) and private equity (PE) investments in Small and Medium-scale Enterprises (SMEs). The budget introduces measures to foster such investments, aiming to support the growth and development of SMEs, which play a vital role in the country's economy.

Additionally, the Finance Minister emphasized the government's commitment to creating a favorable environment for venture capital and private equity investors. The budget incorporates incentives and provisions to attract these investors, promoting economic diversification and job creation in the SME sector.

As per the budget, companies can now be registered with an initial paid-up capital of only Rs. 100, and no extra fees will be levied for increasing the paid-up capital. Furthermore, the government will facilitate online registration and suspension of companies to enhance convenience for businesses.

The budget announcement adheres to the constitutional requirement of revealing the budget on Jestha 15 each year. Earlier, on Jestha 05, President Ram Chandra Paudel, the incumbent at the time, presented the policies and programs of the ruling coalition government for the upcoming fiscal year. The government's budget aligns with these outlined policies and programs, providing a strategic roadmap for its planned actions.