August 21: Delay in the services provided by the Company Registrar's Office is not a new issue. However, no one seems to be paying attention to the fact that the Company Registration Act is deteriorating business environment.

Individuals wanting to start an industry in Darchula in the far west with an investment of Rs 500,000 have to travel all the way to Kathmandu to register the company. They even need to visit Kathmandu for renewal. 

If someone has to spend Rs 100, 000 to register an industry worth Rs 500, 000, how will it help the environment for doing business? questioned Advocate Dr Rudra Sharma.

He argues that a conducive environment for doing business can be created if first and foremost the company registration process is decentralized and given to the local level.

Secondly, Sharma said that it will help a lot in creating a business environment if the laws and regulations made with the concept that lots of transactions will take place from the very first year after registration of the industry are changed.

With this kind of mentality of the government, even the industry whose annual turnover is less than Rs 50,000 has to bear the burden of expenses by appointing an auditor.

He said that due to the requirement of appointing an auditor from the beginning, a small industry cannot bear the expenses and it will be forced to shut down within 2/3 years.

He expressed his view that the government should allow the companies with investment of Rs 500, 000 to 1 million the option to self-declare the company's business for the first 5 to 10 years.