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Madhesh Province Unlocks Industrial Growth: Registration for Businesses Up to 250M Rupees Now Provincial

Madhesh Province in Nepal begins offering industry registration, renewal, and regulation services for domestic businesses with fixed capital up to 250 million rupees, marking a major step in federalism implementation under the Industrial Enterprise Act 2076.

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A New Era for Industrial Administration in Madhesh Province

The Madhesh Province government has officially launched registration, renewal, and regulation services for domestic industries with fixed capital up to 250 million rupees. This transformative move aligns with the federal government's decision to delegate administrative authority to the provincial level, as mandated by the Industrial Enterprise Act, 2076.

Previously, business owners faced significant administrative delays due to the centralization of these powers, despite constitutional provisions supporting federalism. The transition is expected to simplify industrial administration and strengthen provincial governance in Janakpurdham and across the entire region.

Why This Matters for Entrepreneurs

This policy shift directly addresses long-standing bottlenecks that hindered business growth. By moving registration authority to the provincial level, entrepreneurs can now access services faster, with reduced bureaucratic overhead. The 250 million rupee threshold covers small, micro, and medium-scale industries, making it a critical milestone for local economic development.

Under the Industrial Enterprise Act, industries are classified by capital: micro (up to 2 million rupees), small (up to 150 million), medium (150–500 million), and large (above 500 million). The new provincial authority now handles registration for all categories up to the medium scale.

Federalism in Action

This initiative exemplifies the practical implementation of federalism in Nepal. While the federal government retains oversight for large-scale industries, provinces like Madhesh now manage the majority of industrial registrations. This decentralization ensures that governance is more responsive to local needs and accelerates economic progress.

Janakpurdham, the administrative hub of Madhesh Province, is poised to become a more attractive location for industrial investment. With streamlined processes and enhanced provincial support, the region is setting a benchmark for other provinces to follow.