Gandaki Province Private Firm Registration Act, 2021 aims to cultivate a thriving economy
within the province by promoting economic interests and facilitating citizen initiatives in
establishing and managing private firms engaged in industry, trade, or business. The Act’s major
goal is to ensure that private enterprises function within a regulated framework, promoting
economic growth.


Under this Act, private firms are required to register and provide specific information such as
their name, address, objectives, functions, and details of goods or commodities to be transacted.
The Act also specifies the duration of the registration validity and outlines the renewal process. It
emphasizes the importance of promptly updating the registration authority regarding any changes
in the provided information. Furthermore, the Act specifies the circumstances under which a
firm’s registration may be revoked and gives the registration office the authority to levy fines for
non-compliance with the Act’s provisions.

The provincial government has been empowered to establish regulations, directives, and guidelines under the same Act of Private Firm Registration for effective implementation, leading to the introduction of the Private Firm Registration Regulations 2022 in Gandaki Province. These regulations provide a comprehensive procedure and fee structure for registration and renewal, waiving 50% of the registration fee for women, disabled persons, Dalits, individuals from backward regions, and those from poor backgrounds.


Despite the positive provisions of the Gandaki Private Firm Registration Act 2021, the
registration process for private firms presents significant challenges that deter entrepreneurs from
formalizing their businesses. One of the key challenges is the lack of a simplified online
registration system, which results in a time-consuming, inconvenient, and cumbersome process.
While the Act acknowledges the possibility of conducting registration processes online, it lacks a
clear commitment to leveraging this medium effectively.

The absence of time limitations for processing applications contributes to delays and backlogs, making it challenging for applicants to plan their activities, secure funding, hire employees, or schedule launch events. Furthermore, the Act also empowers the head of the registration office to levy fines on unregistered businesses or people who provide incorrect information during the registration procedure. However, the provision for appealing such penalties to the Secretary of the Ministry restricts the right to a fair and impartial appeal, contradicting principles of justice.


Additionally, the Act mandates the inclusion of a physical address in the registration application,
which can pose challenges for firms operating from shared workspaces, home offices, or those
engaged in constant movement. This requirement hampers their operational flexibility and might
not be necessary for administrative or legal purposes.


Moreover, the classification of private firms based solely on their capital for registration and
renewal fees, as outlined in the regulations, may not account for other relevant factors. While the
Act and regulations allow for the submission of additional requested documents, they do not
provide specific guidance on the likely documents required.


The Private Firm Registration Act and its accompanying regulations in Gandaki Province strive
to create a conducive environment for private firms. However, certain shortcomings in the
registration process and associated requirements present challenges that discourage entrepreneurs
from formalizing their businesses. Addressing these issues, such as implementing a streamlined
online registration system, providing clearer guidelines, and considering alternative criteria for
classification and fees, can foster a more supportive ecosystem for private firms within the
province.