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Making things: cottage industry, manufacturing, construction and skilled trades

बनाउने काम: घरेलु उद्योग, उत्पादन, निर्माण र सीपमूलक पेशा

Making things covers handicrafts, garments, furniture, food production, small factories, construction and repair trades. Skilled workers are scarce in construction and manufacturing while many young people are jobless, so a tested skill plus a certificate is a real advantage. You can start small, often from home, but you must register the business and respect the rules on tax, environment and safety.

Research as of 2026-10. Fees, rules and loan terms change often. Items marked Check rest on secondary sources, so confirm them with the office or on its website before you pay or sign anything.

The market today

Manufacturing and industry employ about 12.7 percent of Nepal's labour force (2021 census, as cited by the Kathmandu Post), and the secondary sector (manufacturing, construction, mining, power) is about 12.4 percent of GDP in FY 2081/82 by one summary of national accounts. Handicrafts are a small but steady export: felt products lead, followed by pashmina, Allo (nettle) products, metal, wood, silk, paper and stone items. The clearest gap is in people: contractors say the construction sector needs about 1.1 million workers but only 800,000 to 900,000 are available, and skilled and semi-skilled workers are the hardest to find because many have gone abroad. At the same time many young people cannot find work, because pay for skilled work at home is low and certificates carry limited weight with employers. Official handicraft export data for FY 2081/82 and 2082/83 could not be found, so figures below are partial.

  • Manufacturing and industry employed 12.7 percent of Nepal's labour force (2021 census data cited in 2026 reporting).kathmandupost.com (opens in a new tab)Check
  • Construction needs about 1.1 million workers directly but only 800,000 to 900,000 are available, a gap of roughly 300,000 to 500,000 (estimate by the Federation of Contractors' Associations of Nepal, not official data). Contractors have hired workers from India and Bangladesh.kathmandupost.com (opens in a new tab)Check
  • Employers report the deepest shortages among skilled and semi-skilled workers in construction, hotels and manufacturing; unskilled workers are easy to find.kathmandupost.com (opens in a new tab)Check
  • Handicraft exports were over NPR 3.26 billion in the first ten and a half months of FY 2080/81 (to late May 2024), per the Federation of Handicraft Associations of Nepal. Felt handicrafts alone were over NPR 1.28 billion. This is the latest figure found; no full-year FY 2081/82 handicraft number was located.thehimalayantimes.com (opens in a new tab)Check
  • Main handicraft export categories named by FHAN: felt, Allo, bamboo, glass beads, bone and horn, ceramic, Dhaka, metal, garments, paper, silk, silver, wood, wool, stone and pashmina. Buyers include India, China, the USA, Germany, Denmark, the Netherlands, Britain, Australia and Singapore. FHAN sees rising demand for advanced designs over purely traditional ones.thehimalayantimes.com (opens in a new tab)Check
  • In the first eight months of FY 2082/83, exports of tea, woollen carpets and handicrafts fell even though total merchandise exports rose.english.ratopati.com (opens in a new tab)Check
  • Construction was estimated at about 5.24 percent of GDP in FY 2081/82 with value added growth of about 2.2 percent (preliminary estimate).sharesansar.com (opens in a new tab)Check
  • Statutory minimum wage since 17 July 2025 is NPR 19,550 a month (basic 12,170 plus dearness allowance) and NPR 754 a day. It is one floor for all trades.pradhanlaw.com (opens in a new tab)Check
  • National Skill Testing Board (under CTEVT) has standards for 237 occupations; about 108,000 people have been tested and 72,730 certified.ctevt.org.np (opens in a new tab)
  • Many returning migrant workers do not know the skill testing and Recognition of Prior Learning routes exist, and employers give certificates limited weight. Procedures for testing returnee skills were reported as not yet approved.kathmandupost.com (opens in a new tab)Check
  • Nearly 70 percent of reinforced concrete buildings in Nepal are owner-built, guided by municipal bylaws or the Mandatory Rules of Thumb, which keeps demand high for masons and carpenters who know the code.nepjol.info (opens in a new tab)Check

What drives demand

  • Continuing reconstruction and new housing, mostly owner-built, which needs masons, carpenters, electricians, plumbers and welders.
  • Skilled workers leaving for the Gulf and Malaysia, which leaves gaps at home and can push local pay up.
  • Foreign demand for felt, pashmina, Allo, metal and wood crafts, especially designs that are modern rather than purely traditional.
  • Government push for domestic production, including a stated plan to simplify and give incentives for the Nepal Standards (NS) mark.
  • Rising use of mobile phones, motorbikes and appliances, which creates steady repair work.

Challenges

  • Low pay for skilled work at home compared with overseas, so trained people leave.
  • Certificates carry limited weight with employers, and many workers do not know the testing routes.
  • Handicraft exports have been uneven, and exporters have long complained about paperwork for certificates of origin and HS codes (older report).
  • Weak building code enforcement in many municipalities, so cheap and unsafe building competes with proper work.
  • Cheap imports from India and China compete with local garments, furniture and small manufactured goods.
  • Registration rules are split between federal, provincial and local levels, and local rules differ.

Where in Nepal

  • Kathmandu Valley (Patan, Bhaktapur, Thimi, Kirtipur): metal, wood carving, thangka, pottery, felt and pashmina workshops, plus the biggest construction market.
  • Industrial belts in Birgunj, Biratnagar, Bhairahawa, Butwal, Hetauda and Nepalgunj for factories and larger manufacturing.
  • Pokhara, Kavre and Sindhupalchok for felt, Allo and woollen products; hill districts for Allo and bamboo cottage work.
  • Every municipality for repair trades, tailoring and construction work, because demand follows population.

Business and work ideas

Electrician (house wiring and maintenance)

low risk

Wire homes, shops and small buildings and handle repairs. Get a Level 1 or 2 skill test certificate and work under an experienced contractor first. Solar and inverter installation is a natural add-on.

Skills
Wiring and safety, Reading simple drawings, Customer handling, Basic solar and inverter work
Suits
Practical learners who finish TSLC or a short course and are willing to start as a helper
Note
No sourced start-up figure; tools are the main cost. Skill testing for Building Electrician is offered at NSTB test centres. The legal licence requirement for independent electrical contracting could not be confirmed from an official page, so check it with the municipality and NEA before bidding for jobs.

Plumber and sanitary fitter

low risk

Install and repair water supply, bathrooms and drainage. Plumber Level 1 is available as a skill test, and short government courses include junior plumbing.

Skills
Pipe fitting, Water tank and pump installation, Reading plans
Suits
People who like hands-on work and can start as an assistant
Note
No sourced start-up figure. Demand tracks the housing market.

Mason, carpenter and welder (self-employed or small crew)

medium risk

Build and finish homes, doors, windows, gates and steel frames. Learn the Mandatory Rules of Thumb in the National Building Code so your work is earthquake-safe and accepted by the municipality. Grow into a small contracting crew.

Skills
Masonry and reinforcement, Carpentry, Welding, Site supervision
Suits
People who prefer outdoor work and can lead a team over time
Note
Daily rates of roughly NPR 800 to 1,200 for semi-skilled and skilled workers appear in an undated Department of Labour based listing, so treat as indicative. Work is seasonal and payment can be delayed.

Mobile phone and appliance repair shop

medium risk

Repair phones, TVs, fridges and small appliances. DCSI has offered free 3-month courses in mobile repair and motorcycle repair (check current notices).

Skills
Electronics repair, Diagnosis, Customer trust and honesty
Suits
Young people in towns who are comfortable with technology
Note
No sourced start-up figure. Spare part supply and fast model changes are the main risks.

Auto and motorcycle mechanic or workshop

medium risk

Service motorcycles, scooters and cars, and increasingly electric vehicles. Start as a mechanic, take a CTEVT course or skill test, then open a small garage.

Skills
Engine and electrical diagnosis, Tool use, Customer handling
Suits
People who enjoy machines and can work long hours
Note
Workshop fire safety and waste oil disposal fall under local rules. No sourced start-up figure.

Garment and tailoring unit

medium risk

Make school uniforms, ready-made clothes, bags or boutique pieces. Pattern cutting and sewing is a standard free DCSI short course. Selling through local shops, schools and online is the usual route.

Skills
Pattern making and stitching, Costing, Social media selling
Suits
Women and men with sewing skill and an eye for design; low capital entry
Note
A micro industry (fixed capital up to NPR 20 lakh excluding land and building) fits most start-ups. Imports of cheap clothes limit prices.

Handicrafts: felt, pashmina, Allo, metal, wood, thangka

medium risk

Produce crafts for tourists and export. Felt is the leading export item. Work with a trade group such as the Federation of Handicraft Associations of Nepal to find buyers, and design for modern taste.

Skills
Craft technique, Design, Pricing and exporting, Quality control
Suits
Artisans and creative people, including women's groups in the hills
Note
Exports fell in part of FY 2082/83 and many buyers pay late or by advance only under foreign exchange rules, so use advance payment or a letter of credit. Pashmina exports are far below the early 2000s peak.

Furniture and wood workshop

medium risk

Make doors, beds, cabinets and office furniture for local homes and offices. Custom orders and good finishing beat cheap imports. Use legally sourced timber.

Skills
Carpentry and machine use, Drawing and measuring, Costing
Suits
Trained carpenters ready to own a workshop and employ others
Note
Machinery drives the capital need; power over 20 kW leaves the micro category. Timber rules and wood dust and noise complaints are common issues. No sourced start-up figure.

Small food production (snacks, pickle, spices, bakery)

medium risk

Make packaged foods at home scale and sell to shops, schools and online. A food product also needs approval from the food authority before it is sold under a brand.

Skills
Recipes and hygiene, Packaging and labelling, Basic accounting
Suits
Home cooks and people who want low capital and quick sales
Note
Food registration is outside this sector file's main sources; confirm with the Department of Food Technology and Quality Control. Cottage-scale use of traditional skills qualifies as a cottage industry under the Act.

Step by step

  1. Learn the skill and get it certified

    Take a TSLC, short course or apprenticeship, then sit the National Skill Testing Board test for your trade. A certificate helps with customers, loans, contractor bids and jobs abroad.

    Where
    NSTB, Sanothimi, Bhaktapur, and approved test centres; website nstb.org.np
    Level
    federal
    Documents
    Citizenship card, 4 passport photos and 1 auto-size photo, Proof of training or work experience for your level
    Time
    Depends on the test schedule published by the centre

    Do it online (opens in a new tab)ctevt.org.np (opens in a new tab)

  2. Decide your business size and category

    Under the Industrial Enterprises Act, 2076 a micro industry has fixed capital up to NPR 20 lakh (excluding land and house), up to 9 workers including the owner who runs it, turnover under NPR 1 crore and up to 20 kW power. Cottage industries use traditional or local skills and up to 50 kW. Small is up to NPR 15 crore, medium above that up to NPR 50 crore. Most first businesses are micro or cottage.

    Where
    Read the Act; ask your registering office
    Level
    federal
    Time
    A day to plan

    Do it online (opens in a new tab)nepallaws.com (opens in a new tab)

  3. Register the industry

    Under the Act, the federal Department of Industry registers industries needing prior permission, foreign investment or operating across provinces; the provincial government registers the rest, and local levels are meant to regulate micro, cottage and small industries once local laws exist. In practice, start at your municipality or the provincial or district Cottage and Small Industry Office and ask which one registers you. The Act sets a 5 day registration timeline, but real time can be longer.

    Where
    Provincial or district Cottage and Small Industry Office or the municipality; Department of Industry for federal cases
    Level
    province
    Documents
    Citizenship certificate, Application form, Business plan or description, Proof of location or rental agreement, Passport photos
    Time
    5 days in the Act; often a few days to a week or more in practice

    Do it online (opens in a new tab)nepallaws.com (opens in a new tab)

  4. Register for PAN, and VAT if required

    Get a PAN at the Inland Revenue Office. Register for VAT if your turnover is above the threshold or you choose to. File returns on time. Keep simple books.

    Where
    Inland Revenue Department, local tax office
    Level
    federal
    Documents
    Industry registration certificate, Citizenship, Business address proof, Photographs
    Time
    Usually same day to a few days online

    Do it online (opens in a new tab)ird.gov.np (opens in a new tab)Check

  5. Complete the environment requirement before you start

    The Act requires an environmental study (IEE or EIA, per the Environment Protection Rules, 2077) before operation for industries that fall under those schedules, and again after major changes in capital, capacity, objective or place. Many very small workshops fall under a lighter Brief Environmental Study or are not listed; ask the provincial environment ministry or the municipality which applies. Check noise, dust, waste and wastewater.

    Where
    Provincial ministry in charge of environment, or the municipality for small proposals
    Level
    province
    Documents
    Industry registration, Site plan, Description of process, raw material and waste

    pioneerlaw.com (opens in a new tab)Check

  6. Get local permission, fire safety and workplace safety in order

    Get the municipality's business or site permission, check that the building and electricity wiring are safe, keep fire extinguishers and exits, and make sure the workshop does not violate zoning or pollution rules. Keep first aid and protective gear for workers.

    Where
    Ward and municipality office; fire brigade where available
    Level
    local
    Documents
    Land or rent papers, Building permit or completion certificate where relevant, Industry registration
    Time
    Varies by municipality

    nepjol.info (opens in a new tab)Check

  7. Register workers and follow labour rules

    If you hire people, you must pay at least the minimum wage (NPR 19,550 a month since July 2025), give written terms, and enrol workers in the Social Security Fund (employer 20 percent and worker 11 percent of basic pay, 31 percent in total). Register the business with the Labour Office or the Social Security Fund as the rules require.

    Where
    Labour office or Social Security Fund
    Level
    federal
    Documents
    PAN, Industry registration, List of workers with citizenship
    Time
    Days

    Do it online (opens in a new tab)en.wikipedia.org (opens in a new tab)Check

  8. Open a business bank account and plan finance

    Keep business money separate. Ask banks about priority-sector loans for micro, cottage and small industry. Commercial banks have a requirement to lend a share of their loans to such sectors; a premium above the base rate is capped for some small domestic enterprise loans.

    Where
    Commercial bank, development bank or cooperative
    Level
    private
    Documents
    Registration certificate, PAN, Citizenship, Business plan, Quotations for machines
    Time
    Account in days; loan weeks to months

    Do it online (opens in a new tab)sharesansar.com (opens in a new tab)Check

  9. Get a quality mark if your product needs one

    Apply to the Nepal Bureau of Standards and Metrology for the NS mark under the Nepal Standards (Certification Mark) Act, 2037. Staff study your application and the Nepal Council for Standards endorses it. Some products must carry the mark by law; for others it is a selling point. Costs can be high for a tiny unit.

    Where
    Nepal Bureau of Standards and Metrology (NBSM), Balaju, Kathmandu
    Level
    federal
    Documents
    Industry registration and PAN, Product and process details, Laboratory test results

    Do it online (opens in a new tab)lawcommission.gov.np (opens in a new tab)Check

  10. To export: get an EXIM code, HS code and certificate of origin

    Exporters need an EXIM code from the Department of Customs (applied for online, reportedly through the National Single Window), plus PAN/VAT and a bank account. Each shipment needs a certificate of origin from TEPC, FNCCI, the Nepal Chamber of Commerce or the Confederation of Nepalese Industries, and payment only by advance or letter of credit under foreign exchange rules, with earnings returned within 6 months. Handicraft exporters have complained about HS code and origin paperwork for custom items.

    Where
    Department of Customs, Nepal National Single Window, TEPC, FNCCI
    Level
    federal
    Documents
    Company or industry registration, PAN/VAT, Bank account, Commercial invoice and packing list, Product details for origin and HS code
    Fee
    NPR FNCCI certificate: NPR 5 per form set plus 0.12 percent of FOB invoice value (older TEPC page, verify)
    Time
    EXIM code reported about 1 week after a complete application

    Do it online (opens in a new tab)tepc.gov.np (opens in a new tab)Check

  11. For construction and contracting: register a company and get a contractor licence

    Register a company with the Office of the Company Registrar, get PAN/VAT, and apply for a construction business licence class. Class D licences come from the local government; classes A, B and C come from the federal government on committee recommendation under the Construction Business Act, 2055. Class depends on capital, experience, staff and equipment. Licences must be renewed each year or they are cancelled (44 firms were cancelled in 2026 for not renewing).

    Where
    Office of the Company Registrar; local government (class D); Ministry of Physical Infrastructure and Transport (A to C)
    Level
    federal
    Documents
    Company registration, PAN/VAT, Staff and equipment list, Past work records for higher classes, Financial capacity proof
    Time
    Company registration 10 to 15 days; licence 4 to 8 weeks (law firm estimate)

    Do it online (opens in a new tab)sharesansar.com (opens in a new tab)Check

  12. Follow the building code on every job

    Build to the National Building Code. For small owner-built houses, follow the Mandatory Rules of Thumb (NBC 201 to 205) on spans, heights, steel and earthquake elements. Municipalities issue permits only for designs that meet bylaws. Learn these rules, because skill in them sets you apart.

    Where
    Municipality building section; DUDBC publishes the code
    Level
    local
    Documents
    Land ownership proof, Drawings and design as required for the building size
    Time
    Varies by municipality

    Do it online (opens in a new tab)nepjol.info (opens in a new tab)Check

Permits, licences and registrations

Industry registration (micro, cottage, small)

Issued by
Provincial government or its Cottage and Small Industry Office; Department of Industry for permit-required, foreign-invested or multi-province industries; local level where local law gives it the power
Needed when
Before you start production or commercial sales of manufactured goods. Operating without registration brings a fine (NPR 5,000 for micro up to NPR 100,000 for large) and closure.
Valid for
Notify the registering office within 30 days of starting operation; file yearly reports (due by the end of the 6th month of each financial year)
Law
Industrial Enterprises Act, 2076
pioneerlaw.com (opens in a new tab)Check

Environmental study approval (IEE / BES / EIA)

Issued by
Ministry or office in charge of environment at the relevant level
Needed when
Before operation for industries that fall under the schedules, and after changes in capital, capacity, objective or location. Which schedule your workshop falls under depends on your process and size.
Law
Environment Protection Act and Environment Protection Rules, 2077
ecolex.org (opens in a new tab)Check

PAN and VAT registration

Issued by
Inland Revenue Department
Needed when
For any business that sells goods or services
Valid for
Ongoing; file returns on time
Law
Income Tax Act, 2058 and Value Added Tax Act, 2052
ird.gov.np (opens in a new tab)Check

EXIM code

Issued by
Department of Customs
Needed when
Before commercial export or import of goods
Fee
NPR Renewal NPR 1,000 reported; initial fee not confirmed
Valid for
Renew each year before mid-July; lapse for five years cancels it (law firm summaries)
Law
Customs Act, 2064 and Customs Regulations, 2064
thehimalayantimes.com (opens in a new tab)Check

Certificate of origin

Issued by
TEPC, FNCCI, Nepal Chamber of Commerce or Confederation of Nepalese Industries
Needed when
For each export shipment that needs proof of origin
Fee
NPR FNCCI: NPR 5 per form set plus 0.12 percent of FOB value (older page)
Valid for
Per shipment
Law
Export and import trade rules and customs practice
tepc.gov.np (opens in a new tab)Check

Nepal Standards (NS) mark

Issued by
Nepal Bureau of Standards and Metrology
Needed when
Compulsory for products the government lists; optional for others
Law
Nepal Standards (Certification Mark) Act, 2037
lawcommission.gov.np (opens in a new tab)Check

Construction business licence (Class A, B, C, D)

Issued by
Federal Ministry (A to C, on committee recommendation); local government (D)
Needed when
To run a construction contracting firm, and to bid for larger public tenders. Class bands cited by law firms are about NPR 2 crore and above for A and up to NPR 30 lakh for D, but thresholds were not confirmed from an official page.
Valid for
Renew every year or it is cancelled (end of Chaitra deadline reported)
Law
Construction Business Act, 2055 and Construction Business Regulations, 2056
sharesansar.com (opens in a new tab)Check

Electrician or electrical contractor licence

Issued by
Not confirmed. The Electricity Regulation, 2050 governs electrical work; check the Department of Electricity Development and the Nepal Electricity Authority.
Needed when
Unknown from the sources reached; NEA inspects wiring before a new connection
Law
Electricity Act, 2049 and Electricity Regulation, 2050
lawcommission.gov.np (opens in a new tab)Check

Building permit and code compliance

Issued by
Municipality or rural municipality
Needed when
Before building or changing a structure
Valid for
Per project
Law
Building Act, 2055 and National Building Code
nepjol.info (opens in a new tab)Check

Social Security Fund enrolment for employees

Issued by
Social Security Fund
Needed when
When you employ workers
Fee
NPR Employer 20 percent and employee 11 percent of basic pay
Valid for
Monthly
Law
Contribution Based Social Security Act, 2074 and Labour Act, 2074
en.wikipedia.org (opens in a new tab)Check

Offices you will deal with

Private steps

  • Open a business bank accountKeep business and personal money apart; this is needed for loans, exports and VAT refunds.
  • Write a one page costing sheetList materials, labour, power, rent and transport per item, then add a margin. Many small makers lose money by under-pricing.
  • Join a trade associationGroups such as the Federation of Handicraft Associations of Nepal and local contractor and craft associations give buyer contacts, fair access and advice.
  • Buy insurance and protective gearInsure stock and machines and protect workers; injuries in workshops and on sites are a major cost.
  • Take photos and sell onlineShow finished work on Facebook, Instagram and marketplaces; request advance payment for custom orders.

Loans, grants and support

Free DCSI skill courses

Free 3-month courses in pattern cutting and stitching, hand embroidery, mobile repair and motorcycle repair, plus short courses in rubber moulding and resin products (undated listing, check notices)

Provider
Department of Cottage and Small Industries and district offices
Who can apply
Nepali citizen, usually age 16 or above, apply during notice period
Check

MCSIPC 390-hour trade courses

Junior plumbing, barber, basic beautician and Montessori courses in all seven provinces, online application

Provider
Micro, Cottage and Small Industries Promotion Centre
Who can apply
Apply online when a notice opens
Check

CTEVT scholarships for 78 local levels

Full scholarships for students from local levels without technical education; 120 seats in 2082/83 (14 pre-diploma and 106 diploma or certificate)

Provider
CTEVT with government budget for FY 2082/83
Who can apply
Students from the listed local levels; entrance test
Check

Priority sector lending

Banks must direct a share of loans to agriculture, energy and micro, cottage and small industries, and in 2026 the sectoral credit scope widened to include export industries using domestic raw materials. A cap on the interest premium above base rate applies to some small domestic enterprise loans.

Provider
Nepal Rastra Bank, commercial banks
Who can apply
Registered business with a plan and collateral; terms vary by bank
Check

NSTB Recognition of Prior Learning

Experienced workers can get certified by test at a concessional fee, with extra subsidy for women, Dalits, indigenous groups and persons with disabilities

Provider
National Skill Testing Board
Who can apply
Experience as per level rules
Check

Support for the NS mark

In August 2026 the minister said the government would give incentives and simplify the NS mark process; no details published yet

Provider
Ministry of Industry, Commerce and Supplies
Who can apply
Not yet announced
Check

Education and training

TSLC

TSLC (about 18 months) in trades such as Electrical, Plumbing, Welding, Automobile and others

Providers
CTEVT technical schools and affiliated institutes; government-run schools often have scholarships
Duration
18 months for Electrical (confirmed); other trades vary
Entry
Usually SEE pass, with an entrance test at many schools
seecs.ctevt.org.np (opens in a new tab)
Diploma

CTEVT 3-year diploma in Civil, Electrical, Mechanical, Automobile and related engineering

Providers
CTEVT polytechnics and affiliated private colleges
Duration
3 years
Entry
SEE pass with required marks; entrance test
ctevt.org.np (opens in a new tab)
Short course

Free DCSI short skill courses: pattern cutting and stitching, hand embroidery, mobile repair, motorcycle repair (3 months) and shorter courses such as rubber moulding and resin products (15 days)

Providers
Department of Cottage and Small Industries and its district offices; local governments
Duration
15 days to 3 months
Cost
NPR Free (as listed in the notice)
Entry
Nepali citizen, usually age 16 or above; apply when a notice is published
collegenp.com (opens in a new tab)
Short course

390-hour courses such as junior plumbing, barber and basic beautician under MCSIPC, with an online application portal

Providers
Micro, Cottage and Small Industries Promotion Centre (under the Ministry of Industry, Commerce and Supplies)
Duration
390 hours
Entry
Apply online when the notice opens (last known window closed in 2082/10)
apply.mcsipc.gov.np (opens in a new tab)
Certification

National Skill Testing Board skill test: Elementary, Level 1, Level 2, Level 3 (Level 4 only for Ophthalmic Assistant)

Providers
NSTB under CTEVT through approved test centres; Recognition of Prior Learning for experienced workers at concessional fee
Duration
Test only. Level 1 needs 1 year of experience or a 160-hour course; Level 2 needs 3 years of experience, or 1 year after Level 1; Level 3 needs 5 years of experience or 1 year after Level 2
Entry
Citizen, age 16 or above, literate; citizenship card and photos
ctevt.org.np (opens in a new tab)
Short course

Apprenticeship on the job with a contractor, workshop or craft master

Providers
Private workshops and contractors; ask local trade associations
Duration
6 months to several years
Entry
None formal; a Level 1 skill test later turns experience into a certificate
ctevt.org.np (opens in a new tab)

Careers

Mason, carpenter or welder (daily wage)

How to get in
Apprentice on a site or workshop, then skill test, then lead a crew
Pay per month
NPR About NPR 800 to 1,200 per day for semi-skilled and skilled work (indicative, undated; the legal minimum is NPR 754 a day)
dlca.logcluster.org (opens in a new tab)Check

Overseas skilled worker (construction, hotels, manufacturing)

How to get in
Skill test certificate plus a licensed manpower agency approved by the Department of Foreign Employment
Pay per month
NPR A returnee in the Kathmandu Post report expected to save around NPR 100,000 a month on a new contract (one person's case, not typical)
kathmandupost.com (opens in a new tab)Check

Craft entrepreneur or workshop owner

How to get in
Learn a craft, register as micro or cottage industry, build buyers through trade groups
pioneerlaw.com (opens in a new tab)Check

Pitfalls to avoid

  • Starting without registration: the Act fines unregistered industries and can close them.
  • Assuming the old rules: the Act changed in 2076, thresholds moved (micro up to NPR 20 lakh) and the federal, provincial and local split is still being settled, so ask the office before paying anyone.
  • Paying agents or brokers to 'speed up' registration or contractor licences; use official offices and online portals.
  • Overseas job agents who charge large up-front fees for trade jobs; check that the agency is licensed and never pay beyond the legal fee (one example in 2026 reporting quoted NPR 250,000 for a hotel job).
  • Taking export orders without advance payment or a letter of credit; foreign exchange rules allow exports only on those terms, and unpaid shipments cannot easily be recovered.
  • Skipping the skill test: certified workers get better pay and access to jobs abroad, but only a small share of workers know the route.
  • Cutting corners on the National Building Code; weak enforcement does not remove your responsibility if a building fails.
  • Letting a contractor licence or EXIM code lapse; both need yearly renewal and lapses lead to cancellation.
  • Copying a design that is already popular without improving it; felt and pashmina buyers are moving toward advanced designs.
  • Taking a loan without a costing sheet; many small units fail because prices do not cover real costs.

Sources

  1. National Skill Testing Board, CTEVT, read 2026-10-15
  2. Industrial Enterprises Act, 2076: classification of industries (section 17), Nepal Laws (nepallaws.com), read 2026-10-15
  3. Industrial Enterprises Act, 2076: registration of industries (section 4), Nepal Laws (nepallaws.com), read 2026-10-15
  4. Highlights on Industrial Enterprises Act, 2020 (2076), Pioneer Law Associates, read 2026-10-15
  5. Nepal's labour market caught between jobless workers and worker shortages, The Kathmandu Post, read 2026-10-15
  6. Handicraft supplies exceed Rs 3.26 billion in past ten and a half months, The Himalayan Times, read 2026-10-15
  7. Trade deficit up 11 percent in first eight months of FY 2082/83, Ratopati, read 2026-10-15
  8. Nepal's economy shows notable growth in FY 2081/82, Sharesansar, read 2026-10-15
  9. Minimum Remuneration Notice 2082 (2025 A.D.), Pradhan and Associates, read 2026-10-15
  10. Exports and transit procedure, Trade and Export Promotion Centre, read 2026-10-15
  11. Department of Customs introduces ExIm code for traders, The Himalayan Times, read 2026-10-15
  12. Nepal Standards (Certification Mark) Regulations, 2040, Nepal Law Commission, read 2026-10-15
  13. Electricity Regulation, 2050, Nepal Law Commission, read 2026-10-15
  14. Environmental Protection Regulations, 2077, ECOLEX (UNEP, FAO, IUCN), read 2026-10-15
  15. Ministry revokes licences of 44 construction firms, Sharesansar, read 2026-10-15
  16. Strengthening building code implementation (Nepal), NepJOL, read 2026-10-15
  17. TSLC in Electrical Engineering curriculum, CTEVT, read 2026-10-15
  18. Free training programs at the Department of Cottage and Small Industries, CollegeNP, read 2026-10-15
  19. NRB maintains key policy rates, widens production sector credit, Sharesansar, read 2026-10-15
  20. Social Security Fund (Nepal), Wikipedia, read 2026-10-15