Corporate laws in Nepal form the essential legal framework that governs the establishment, management, and regulation of businesses and industries. These laws aim to promote economic growth, protect the rights of investors and consumers, ensure fair competition, and support sustainable development. Covering various aspects such as foreign investment, industrial enterprise, consumer protection, trade regulation, and intellectual property, Nepal’s corporate legal system provides a foundation for a transparent, efficient, and business-friendly environment.
- The foreign investment and technology transfer act 2019
- Accreditation Act, 2079
- Industrial Enterprises act 2076
- Safe guards, anti-dumping and countervailing act 2019
- Public – private partnership and investment act 2075
- Consumer protection act 2018
- Direct Sale of Goods (Management and Regulation) Act, 2017
- Special Economic Zone Act, 2016
- Competition Promotion and Market Protection Act, 2006
- Bonded Warehouse (Damasahi) Act, 2006
- Company act 2063
- Multimodal Transportation of Goods Act, 2006
- Iodized Salt (Production and Sale) Act, 1998
- Industrial Enterprise Development Institute Act, 1996
- Mine and Mineral Act, 1983
- Nepal Petroleum Act, 1983
- Nepal Standard (Certification Mark) Act, 1980
- Black Market and Certain Other Social Offenses and Punishment Act, 1975
- Bonus Act, 1973
- Standard Measurement and Weight Act, 1968
- Patent, Design and Trademark Act, 1965
- Partnership Act, 1957
- Nepal Agency Act, 1957
- Private Firm Registration Act, 1957
- Export Control Act, 1956
1)The foreign investment and technology transfer act 2019
The Foreign Investment and Technology Transfer Act, 2019 (FITTA) was enacted with the aim of strengthening Nepal’s economic foundation by making the national corporate economy more competitive, resilient, and employment-oriented. Recognizing the importance of foreign investment in driving growth, the law seeks to create a conducive and investor-friendly environment that encourages the inflow of foreign capital and advanced technology.
One of the core motivations behind this Act is to maximize the use of Nepal’s internal resources and capabilities for economic prosperity. The law aligns with Nepal’s long-term development goals by promoting industrialization, enhancing productivity, and boosting sectors that support import substitution, export promotion, and infrastructure development. It also emphasizes the production of goods and services that can contribute to sustainable economic growth.
By consolidating and reforming previous legal provisions, FITTA 2019 aims to provide clarity, stability, and efficiency in the regulation of foreign investments and technology transfer, positioning Nepal as a competitive destination in the global investment landscape.
2) Accreditation Act, 2079
The Accreditation Act, 2079 was introduced to provide a legal foundation for ensuring the quality and reliability of services offered by conformity assessment bodies such as laboratories, inspection agencies, and certification organizations. The main goal of the Act is to establish the Nepal Accreditation Centre (NAC) and to create a formal process for granting accreditation to such bodies based on international standards. Through this Act, the Government of Nepal aims to ensure that testing, inspection, and certification services carried out in Nepal are credible, trustworthy, and globally recognized. This not only supports quality assurance across industries but also promotes confidence in Nepali goods and services in both domestic and international markets.
3) Industrial Enterprises Act 2076
The Industrial Enterprises Act, 2076 was introduced with the aim of strengthening Nepal’s industrial sector and boosting the overall economy. The law focuses on making the management of industrial enterprises easier, more predictable, and effective, so that businesses can operate in a more stable and supportive environment.
One of the key goals of the Act is to promote import substitution and export promotion by encouraging the use of Nepal’s local resources to their fullest potential. This is expected to lead to increased production of goods and services, more job opportunities, and a better investment climate for both domestic and foreign investors.
Overall, the Act sets the foundation for a competitive, business-friendly, and dynamic industrial environment that supports long-term economic growth and national prosperity.
4) Safe guards, anti-dumping and countervailing act 2019
The Safeguards, Anti-Dumping, and Countervailing Act, 2019 was enacted to protect Nepal’s domestic industries from unfair competition caused by foreign imports. The law introduces clear legal mechanisms, such as safeguard measures, anti-dumping duties, and countervailing duties to address specific threats to the national market.
These measures are designed to:
- Prevent serious harm to domestic industries caused by a sudden and unexpected surge in imports.
- Control the import of goods sold below their fair market value (dumping).
- Regulate the import of heavily subsidized foreign goods that distort fair competition.
By enabling the government to impose temporary or permanent duties on such imports, the Act aims to protect local producers, maintain market balance, and ultimately promote industrial growth and economic stability in Nepal.
5) Public-Private Partnership and Investment Act, 2019
The Public-Private Partnership and Investment Act, 2019 was enacted to support Nepal’s economic growth by encouraging investment in infrastructure and service sectors through collaboration between the government and the private sector both domestic and foreign. This law provides a structured legal framework to manage projects carried out under public-private partnerships (PPP), aiming to ensure effective implementation, transparency, and long-term sustainability. It also seeks to consolidate and update existing legal provisions related to investment, making it easier to mobilize private capital and expertise in national development efforts. Through this Act, Nepal strives to create an investment-friendly environment that fosters infrastructure development, improves public services, and contributes to the country’s overall economic prosperity.
6) Consumer protection act 2018
The Consumer Protection Act, 2018 was introduced to strengthen the rights of consumers in Nepal and ensure their access to safe, quality goods and services. According to the preamble of the Act, its primary goal is to protect and promote the constitutional rights of consumers, provide a legal remedy when those rights are violated, and ensure compensation for any harm or injury caused due to defective products or unfair practices. The Act aims to build a trustworthy marketplace by holding producers, sellers, and service providers accountable for quality and safety, while also empowering consumers to raise their voices and seek justice when needed.
7) Direct Sale of Goods (Management and Regulation) Act, 2017
The Direct Sale of Goods (Management and Regulation) Act, 2017 was enacted to ensure that the business of selling goods directly to consumers is conducted in a reliable, transparent, and competitive manner. As stated in the preamble of the Act, its main purpose is to regulate direct sales and distribution to protect the rights and interests of general consumers. By setting clear standards and oversight mechanisms, the Act aims to prevent unfair practices in direct selling and build public trust in this growing business model.
8) Bonded Warehouse (Damasahi) Act, 2006
The Bonded Warehouse (Damasahi) Act, 2006 was enacted to provide a clear legal framework for dealing with companies that are bankrupt or at risk of bankruptcy due to their inability to repay debts. As mentioned in the preamble of the Act, it aims to establish proper procedures for managing insolvency cases, including the administration, liquidation, or restructuring of financially distressed companies. By doing so, the Act seeks to protect the rights of creditors, maintain confidence in the financial and business system, and provide a fair and transparent process for businesses facing financial collapse.
9) Competition Promotion and Market Protection Act, 2006
The Competition Promotion and Market Protection Act, 2006 was introduced to promote fair competition in the production and distribution of goods and services in Nepal. As stated in the preamble of the Act, its key objectives are to make the national economy more open, liberal, and market-driven, while also preventing monopolies and restrictive trade practices. The law aims to enhance the professional capacity of businesses by encouraging clean competition, improve the quality of goods and services, and ensure that consumers receive products at reasonable and competitive prices. Additionally, the Act seeks to safeguard the market from unfair practices and interference, ultimately protecting the economic interests and rights of the general public.
10) Special Economic Zone Act, 2016
To support industrial growth and boost exports, Nepal has enacted a specific law titled “An Act Made to Provide for the Establishment, Operation and Management of Special Economic Zones.”
This Act was passed by the Legislature-Parliament under Article 296(1) of the Constitution of Nepal.
The preamble of the Act explains the main purpose of this law. It states that the law was made to help speed up economic development in Nepal by encouraging industrialization and export promotion through the proper setup and management of Special Economic Zones (SEZs).
11) Company act 2063
The Companies Act of Nepal was enacted to modernize and simplify the legal provisions related to company formation and management. According to its preamble, the law aims to support the country’s economic growth by promoting investment in industry, trade, and business sectors under the policy of economic liberalization. It also seeks to make the process of company registration, operation, and administration easier, simpler, and more transparent.
12) Multimodal Transportation of Goods Act, 2006
Nepal has taken steps to improve its trade and transportation systems by enacting a law related to multimodal transport of goods. The preamble of this law explains that its main goal is to develop and operate multimodal transport services, enhance the country’s capacity in trade, diversify international trade options, and contribute to economic growth. This legal provision is expected to support Nepal’s integration into the global trading system by simplifying the logistics of moving goods through different transport modes.
13) Iodized Salt (Production and Sale) Act, 1998
The Government of Nepal enacted a specific law titled the “Act Made to Provide for Matters Relating to Iodized Salt” to address the serious public health risks caused by iodine deficiency. The preamble of the Act explains that its purpose is to make proper arrangements for the production, import, supply, distribution, sale, and mixing of iodine in salt. The goal is to prevent and eliminate health issues caused by iodine deficiency in a simple and low-cost manner. This law plays a vital role in improving the nation’s public health.
14) Industrial Enterprise Development Institute Act, 1996
The Government of Nepal introduced a legal framework titled the “Act Made to Provide for the Establishment of the Industrial Enterprise Development Institute” to support the growth of the industrial sector. According to the preamble, the purpose of this law is to strengthen the national economy by promoting industrial development. It emphasizes the need for entrepreneurship, quality management, advanced technology, and technical manpower to foster industrial enterprises across the country.
15) Mine and Mineral Act, 1983
The Government of Nepal has enacted the “Act Made to Manage Minerals and Mineral Resources” to utilize natural resources for national development. As stated in its preamble, the Act aims to develop and manage existing mines and mineral resources for the convenience and economic benefit of the general public, and to contribute to the country’s rapid economic progress. This legal provision supports the sustainable use of minerals as a key driver of economic growth.
16) Nepal Petroleum Act, 1983
The “Petroleum Arrangements Act” was enacted by the Government of Nepal to guide the exploration and development of petroleum resources within the country. According to its preamble, the Act aims to contribute to the rapid economic development of Nepal by utilizing available petroleum resources. At the same time, it seeks to ensure the convenience and economic well-being of the general public. This legal provision plays an important role in managing Nepal’s energy resources for national growth.
17) Nepal Standard (Certification Mark) Act, 1980
To ensure that goods meet proper standards and to protect consumer interests, the Government of Nepal enacted a law concerning quality determination and certification marks. As stated in the preamble, the purpose of this law is to determine the quality of substances for the benefit of the general public and to make arrangements for using official quality certification marks on those products. This legal provision helps promote product safety, consumer confidence, and market transparency in Nepal.
18) Black Market and Certain Other Social Offenses and Punishment Act, 1975
The Government of Nepal introduced a law to fight black marketing, profiteering, hoarding, adulteration, and similar unethical practices that harm consumers. The preamble of this Act explains that the law was created to safeguard public health, convenience, and economic well-being by controlling such social crimes. This legal measure plays a crucial role in ensuring fair trade practices and consumer protection across the country.
19) Bonus Act, 1973
The Government of Nepal has enacted the “Bonus Act” to ensure fair compensation practices in the workplace. According to its preamble, the purpose of the Act is to provide legal provisions for the distribution of bonuses to workers and personnel employed in enterprises. This law helps promote employee motivation, fairness, and participation in the success of the organization.
20) Standard Measurement and Weight Act, 1968
In order to bring consistency and modern standards to measurement systems in Nepal, the government introduced a law for the establishment of measurement and weight standards based on the metric system. As stated in the preamble, the Act was enacted by His Majesty King Mahendra Bir Bikram Shah Dev, with the advice and consent of the National Panchayat, to standardize all forms of measurement throughout the country. This legal provision plays a vital role in promoting fairness, accuracy, and modernization in both commerce and everyday life.
21) Patent, Design and Trademark Act, 1965
The Government of Nepal has introduced legal provisions for the protection of patents, designs, and trademarks to support innovation and secure the rights of inventors, designers, and brand owners. As stated in the preamble, the law was enacted by His Majesty King Mahendra Bir Bikram Shah Dev with the aid and advice of the National Panchayat, recognizing the need to update legal arrangements for the convenience and economic benefit of the public. This law ensures that intellectual property is safeguarded, which is essential for encouraging creativity and business growth in Nepal.
22) Partnership Act, 1957
The Preamble of the Partnership Act highlights the intent behind its formulation. It states:
“Whereas it is expedient to provide for legal provisions on partnership for the interest and convenience of general public;”
This means that the law was introduced to make partnership-related legal matters easier, more transparent, and beneficial for the general public.The Act was enacted by His Majesty King Mahendra Bir Bikram Shah Dev on the advice and with the consent of the Rastriya Panchayat, reflecting the legislative process of that time under the Panchayat system.
23) Nepal Agency Act, 1957
This Act has been issued by His Majesty King Mahendra Bir Bikram Shah Dev, considering it necessary to make legal provisions regarding partnership for the interest and convenience of the general public. Acknowledging the need to regulate the formation, operation, and responsibilities of partnerships, this law aims to ensure clarity, fairness, and transparency in partnership businesses. It has been enacted on the advice and with the consent of the Rastriya Panchayat to safeguard the economic interest of the people and to provide a structured legal framework for those engaged in partnership enterprises.
24) Private Firm Registration Act, 1957
This Act has been issued by His Majesty the King, considering it necessary to establish provisions for the registration of private firms engaged in trade and industry, along with related matters. Recognizing the importance of regulating such firms, the law aims to ensure transparency, accountability, and proper management in their operations. By doing so, it seeks to protect the convenience and economic interests of the general public. The Act has been enacted with the advice and consent of the Rastriya Panchayat to provide a clear legal framework that supports the orderly functioning of private business enterprises in the country.
25) Export Control Act, 1956
This Act has been enacted and issued by His Majesty the King, considering it necessary to make provisions for the right to prohibit or control import and export activities. Recognizing the importance of regulating trade to maintain peace and order within the country, the law provides clear guidelines and authority to manage these activities effectively. Enacted in accordance with the advice of the Council of Ministers, this Act aims to safeguard national interests while ensuring smooth and lawful trade practices.
Corporate Law Firm in Nepal
In Nepal’s rapidly evolving economic landscape, the role of corporate law firm has become increasingly significant. These firms not only facilitate business operations but also ensure that the legal foundation for commerce, foreign investment and industrial development is strong and reliable. As Nepal embraces modernization and globalization, the expertise of corporate lawyers has proven indispensable in guiding businesses through complex regulatory frameworks and ensuring legal compliance across various sectors.
Corporate law firm in Nepal provide a wide range of legal services, including assistance with mergers and acquisitions, intellectual property protection, company formation, due diligence, contract management, taxation, and dispute resolution. Their work supports both domestic enterprises and foreign investors by creating a legally secure environment that encourages sustainable growth.
Among the distinguished names in this sector, Prime Law Associates, located in Anamnagar, Kathmandu, stands out as a premier corporate law firm in Nepal. Known for its client-focused philosophy and strategic legal solutions, Prime Law Associates has carved a niche for itself by consistently delivering high-quality legal services tailored to the needs of modern businesses.
Corporate Lawyer in Nepal
The firm’s strength lies in its dynamic and dedicated team of legal professionals. With lawyer like Mr. Pradeep Thapa has deep legal knowledge with practical business insight. His expertise plays a crucial role in advancing corporate legal practice in Nepal and in building investor confidence, thereby fostering economic development.
As Nepal continues to attract more global interest, the contribution of corporate law firms and lawyers will remain vital. Their role in shaping a transparent and efficient legal system is key to building a robust and investment-friendly business climate in the country.