Project Brief Investment Climate | World Bank Group 90707 Online Licensing Improves Business Efficiency in Nepal Project At A Glance Results and Impacts Country/Region NEPAL/SOUTH ASIA • Nepal Business Licensing e-Portal Product BUSINESS REGISTRATION expected to save at least one day of Theme Fragile and Conflicted-affected Area searching for licensing requirements for businesses. The Nepal Business License e-Portal is an initiative of the Investment Climate Program in Nepal, which seeks to reform the • Reduces need for multiple visits business environment by reducing regulatory barriers to business to regulatory agencies to obtain registration and investment. The program helped create the Nepal application forms and comply with Business Forum and Licensing Task Force. The e-portal is based on their requirements. a system piloted in Kenya. It draws on international best practice. • Enhanced data sharing between The ultimate goal is to make the portal transactional by allowing Office of the Company Registrar, online business license applications and approvals. tax authority, and government data center reduce number of steps and document requirements and should save firms considerably in compliance Context costs. In post-conflict Nepal the process of registering a business required 15 steps, several days, and multiple visits to the Office of the Company Registrar. Information on business license requirements was spread out across 60 websites, several publications, and citizen charters of multiple agencies. Licensing requirements and forms were complex and difficult to access, particularly for remote groups and small In Partnership with THE UNITED KINGDOM, NORWAY World Bank Group businesses. Investment climate impediments and a lack of requirements more practicable and accessible to transparency have been a disincentive to formalization, disadvantaged groups and small business. The e-portal, leaving many entrepreneurs without access to finance and implemented by IFC, is expected to encourage new government support services. business owners in remote areas and motivate informal businesses to formalize. Entrepreneurs will no longer have to visit the offices of multiple licensing agencies. Our Role The government of Nepal, supported by investment climate teams of the World Bank Group, launched the Nepal Business License e-Portal, a repository of 125 licenses, in May 2011. They developed this electronic portal within six months with the backing of an important champion and website host, the National IT Center. This central government information and technology body helped push the project forward despite a fragile political environment. It began with a comprehensive survey and compiled an inventory of business licenses. After this, all of the licensing information could be accessed in one place, at http://licenseportal.gov.np. The portal features: Before the introduction of the licensing e-portal. • A repository of license requirements across all sectors. • Mobile and online access. The e-portal builds on the Bank Group’s efforts to • A search function allows users to identify licenses improve the business environment in Nepal. These efforts required for specific business activities. include the setup of a multi-stakeholder body, the Nepal Business Forum. This forum originated in 2008 and was A range of stakeholders attended the launch, including approved by Nepal’s cabinet in 2010. The Bank Group also government officials, civil society representatives, members supported the creation of a License Reform Task Force. The of the private sector and the media. Chhaya Sharma, process of modernizing the business registration system President of the Federation of Women Entrepreneurs’ was a priority addressed by members of the Nepal Business Association of Nepal, officially introduced the portal. She Forum and the Task Force. said that it would foster inclusion and make licensing In addition to launching an online registrar of licensing requirements, the Bank Group also supported modernization of the Office of the Company Registrar. “The portal is expected to make the licensing Technology upgrades helped streamline regulatory system more efficient, and licensing requirements requirements for businesses. Paper-based files were at risk will be more predictable, particularly for small of being lost, and the computer system lacked adequate storage capacity. With the support of investment climate businesses and disadvantaged groups.” teams, the Office of the Company Registrar upgraded its Chhaya Sharma systems and made available several activities on-line. They President also increased data sharing with the tax authority and Federation of Women Entrepreneurs’ Association of Nepal government data center. In tandem with the e-Portal, these reforms help encourage registration and formalization. Contact Fred Zake | Senior Operations Officer | Investment Climate Email: FZake@ifc.org | TEL: 977-985-114-2409 | www.wbginvestmentclimate.org