Here’s What You must Know before Doing Business in Nepal

If you see Nepal as an excellent business opportunity, then you need to make yourself aware some of its customs and traditions. For instance, you will be greeted with their prañamasana, which has been a tradition. This is a simple gesture of pressing both palms together in front of your chest, bowing and then saying “Namaste”. It is expected that you return the introduction. Additionally, handshaking was a norm in Nepali business realm. However, avoid giving a very firm handshake. It would make you look aggressive.

As a Start…

When you are attending a business meeting, it is preferable to wear suit and tie. This makes you look more professional and a businessperson, easily gaining the respect of your potential partners. Furthermore, add it with a little bit of politeness combined with key phrases before you go to the meeting.

Remember, elders are given utmost respect in Nepal. So whenever you see one, show them the highest level of respect you can ever give.

Now into the business side of things; you do not just penetrate a market and introduce your upright vacuum reviews in front of their faces. This is a surefire recipe for failure. If there’s something that you ought to know about Nepal’s economy, it is that paying their taxes is quite cumbersome.

When Everything should be Easy yet it’s the Opposite

Basically, as per annual ranking, Nepal made paying taxes harder as a result of the implementation of 2017 labor act that had introduced:

• Medical Insurance
• Labor Gratuity and;
• Accident Insurance

All of which will be paid by the employers in which it puts significant administrative burden among companies that are facing bureaucracy. Labor gratuity is a known burden among employers for they have to manually file and pay it monthly whereas both accident and medical insurance should be paid yearly.

Think Clearly

As a matter of fact, this puts Nepal on the 158^th position for paying taxes. In addition to that, the country has a low ranking in other indicators for ease of doing business which includes enforcing contracts (154^th), dealing with construction permits (148^th) and getting electricity (137^th).

If you’re serious doing business in the country, then may as well check these points as it will later affect the entire operation of your business.