There are two types of business (industries):

1. Big business (industries)

2. Small business (industries): Small business also categories in three parts. They are:

i. Cottage industries: Traditional cottage industries are the back bone to the country's tradition, art and culture contributing to national economy. These industries are labor intensive and utilize indigenous technology and raw materials.

ii. Small industries: Small scales industries donate exceed the fixed assets amounting to NRs. 30 million and are net traditional cottage industries.

iii. Micro industries: As micro industries are not defined by any law. The definition of FNCSI "An enterprise with fixed capital not exceeding NRs 200,000 and mainly working at local slave based on local raw materials and skills. Further their electric power consumption is less than 1 H.P. (Horse Power)"