Month: October 2025

Registration and Operation of Drones in Nepal

Posted on by Rajanish Ojha

I.          Introduction

Unmanned aerial vehicles, commonly known as drones or Remotely Piloted Aircraft (RPA), are aircraft that operate without an onboard human pilot and are instead controlled remotely or programmed for autonomous flight. Drones are increasingly being used for diverse purposes ranging from research, disaster management, and service delivery to cultural documentation, entertainment, and security operations. While they offer immense opportunities, drones also pose potential risks to aviation safety, national security, and privacy, making regulatory oversight essential.

This article provides an overview of the regulatory framework, registration process, and compliance requirements for drone operations in Nepal.

 II.                Governing Laws

Drone operations in Nepal are primarily regulated by the Civil Aviation Authority of Nepal (“CAAN”). The governing laws are as follows:

  1. Remotely Piloted Aircraft (RPA) Directives, 2075 (2018) (“RPA Directives”), issued by the Ministry of Home Affairs pursuant to the Good Governance (Management and Operation) Act, 2064 (2008);
  2. Unmanned Aircraft Systems (UAS) Requirements, 2077 (2021) (“UAS Requirements”), issued by CAAN pursuant to Civil Aviation Regulations, 2058 (2002).

 III.              Classification of Drones

The RPA Directives and UAS Requirements have classified drones based on weight, purpose of use, and airspace sensitivity.

 A.              Classification by Weight (Maximum Take-Off Weight)

Drones are classified into the following categories based on their maximum take-off weight:

Category

Weight

Risk Designation

A

Up to 250 grams

Very Low Risk Operation

B

250 grams to 2 kg

Low Risk Operation

C

2 kg to 25 kg

Regulated Low Risk Operation

D

Above 25 kg

Regulated High Risk Operation

 B.              Classification by Purpose of Use

Drones are also categorized based on their intended purpose of use:

  1. Study, search and research work
  2. Work related to disaster management
  3. Work related to service delivery and development management
  4. Work related to art, literature, religion, culture, tourism and entertainment
  5. Work related to mass communication
  6. Work related to military and service purposes

 C.          Classification by Airspace Sensitivity

The airspace in which drones operate is classified as follows:

  1. General Zone: Areas such as open, uninhabited, non-sensitive areas
  2. Moderate Zone: Communities, settlements, and non-sensitive protected zones
  3. Sensitive Zone: Government/diplomatic premises, airports, military zones, national parks, etc.

 IV.          Registration and Flight Permissions

  A.           Registration with CAAN

All drones must be registered with the CAAN. The registration process involves obtaining a Unique Identification Number (UIN), which must be affixed to the drone for identification. The documents required for registration include:

S.N.

Required Documents

1.       

·       For individuals: A copy of citizenship or passport.

·       For organizations: A copy of organization registration

2.       

Purpose of operating aircraft

3.       

Specification and manual copy of the equipment.

4.       

·       For aircraft purchased in Nepal, a tax invoice;

·       For aircraft purchased and brought from abroad, a custom invoice.

 B.              Flight Permission Requirements

 Operators must obtain flight permission from the relevant authority prior to flying the drone, as listed below:

  1. Flight approval from the CAAN;
  2. Frequency approval from the Ministry of Communication and Information Technology;
  3. Flight approval from the District Administration Office (DAO), for Category A & B (under 200 ft. AGL) drones;
  4. Flight approval from the Ministry of Home Affairs (MoHA), followed by DAO approval for Category C & D drones;
  5. Flight approval from local authorities and security agencies in the area.

 V.              Prohibited and Restricted Flight Zones

Certain areas in Nepal are designated as No-Fly Zones or Restricted Zones for drone operations. These include:

S.N.

Prohibited/ Restricted Zones

Description

1.       

Airport Vicinity

Within a 5 km radius of any airport or areas where aircraft altitude is protected for aviation safety

2.       

International Borders

Within 5 km (horizontal distance) from any international border of Nepal.

3.       

Cultural and Heritage Sites in Kathmandu Valley

Within 1,000 meters ariel radius of Maiti Ghar Mandala, Swoyambhunath, Pashupatinath, Boudhnath, Budhanilkantha, and all Durbar Squares (Kathmandu, Patan, and Bhaktapur)

4.       

Government and VIP Zones

Within 1,000 meters aerial of Singha

5.       

Military and Security

Within 1,000 meters of military/security headquarters or training centres; within 500 meters of any other security installation.

6.       

Environmentally and Biologically Sensitive Areas

Protected areas, reserves, or locations of ecological, mineral, or geological significance.

7.       

Conflict or Security Operation Zones

Areas affected by unrest or active security operations.

8.       

Temporarily Restricted Zones

Any zone declared restricted by the Government of Nepal, provincial or local governments through public notification.

 VI.               Operational Conditions and Limitations

Drone operations must comply with specific environmental, meteorological, and technical conditions. The key operational requirements include:

Environmental and Weather Conditions

  1. Operating Hours: Drones can only operate from sunrise to sunset.
  2. Ground Visibility: A minimum of 5 km horizontal visibility is required.
  3. Cloud Ceiling: Cloud base must be 450 meters above ground level.
  4. Wind Speed: Maximum wind speed of 10 knots during operation.
  5. Weather: Flights are prohibited during precipitation, hail, or lightning.

In addition to the environmental and weather-related conditions outlined above, drone operations are also subject to specific technical and spatial limitations, which include:

S.N.

Additional Requirement

Limitations

1.       

Maximum altitude

Must not exceed 100 meters above ground level (AGL).

2.       

Maximum horizontal range

Must remain within 300 meters of the drone operator.

3.       

 Maximum endurance

Each flight must be limited to a maximum of 15 minutes.

 VII.            Pilot Qualifications and Training Requirements

Drone operators must meet specific qualifications to ensure safe operations. The minimum requirements for drone pilots include:

  1. Be at least 18 years of age;
  2. Possess basic training or demonstrated knowledge in the use of radio frequencies;
  3. Have technical proficiency in operating the relevant drone model;
  4. Understand fundamentals of flight control, navigation, and landing procedures;
  5. Be aware of cultural, religious, and environmentally sensitive areas that may impose additional operational limitations; and
  6. Have sufficient knowledge of restricted zones and airspace regulations, including applicable CAAN classifications and legal restrictions.

  VIII.        Insurance Obligations

Drone operators in Nepal must obtain third-party liability insurance for drones in Category C and Category D (heavier drones). The insurance must cover damages to third parties, property, or any harm caused during flight operations

 IX.          Consequence for non-compliance

The principal grounds for regulatory non-compliance and the corresponding legal consequences are provided below:

Grounds for Non-Compliance

Legal Consequence

Violation of any provision of the UAS Procedure by RPA operator

As per Clause 15 of the UAS Requirements, where any RPA operating individual or organization violates any provision of the UAS Procedure, the flight permitting authority can revoke the license.

Unauthorized operation of an RPA/Drone without a permit

If an RPA or drone is found operating without prior authorization, the relevant enforcement agency (typically the police) must immediately confiscate the drone. The seizure is documented through a police report, and the confiscated drone is forwarded to the CAAN.

Upon permanent seizure of the drone, CAAN auctions the equipment in accordance with prevailing law. Proceeds from the auction is deposited into the government’s revenue account.

Violation of privacy or personal harm caused by drone operations

If drone use results in a violation of privacy rights or causes harm to an individual, legal proceedings are initiated upon receipt of a formal complaint from the aggrieved party.

Civil or criminal liability may be triggered based on the prevailing privacy laws of Nepal.

Violation of licence conditions or negligent operation of a UA/RPA endangering life or property

The CAAN may cancel a pilot license by written notice to the holder if:

a.    the operator has flown the drone in contravention of the UAS Requirements or a condition of the license; or

b.    has operated the drone negligently or carelessly; or

c.    has recklessly endangered human life or property.

Before cancellation, CAAN generally issues a show cause notice to provide a written response. In cases involving serious risk to air navigation, immediate suspension of the license may be imposed.

 Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

 For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding the registration and operation of drones in Nepal, please contact our office to schedule a consultation with our experts.

Child Custody in Nepal: Filing, Parental Rights, and Court Considerations

Posted on by gandhi2024law

Overview of Legal Rights, Procedural Steps & Judicial Factors

Introduction

Child custody in Nepal is governed by the National Civil Code 2074 (2017) and interpreted by courts under the principle of the “best interest of the child.” While the law provides equal rights to both parents regardless of gender or marital status, in practice, custody proceedings are shaped heavily by judicial discretion, prevailing social norms, and the court’s assessment of parental capabilities. This briefing outlines the legal framework, filing procedures, document requirements, and judicial considerations that apply in child custody proceedings across Nepal.

Legal Framework

Constitutional and Statutory Basis

  • National Civil Code 2074 (2017):
    • Sections 93–109: Custody and maintenance during/after divorceSections 115–120: Parental responsibility and guardianship
    • Section 210: Duty to register child’s birth; obligation of both parents
  • National Civil Procedure Code 2074 (2017): Governs court procedure, mediation, and interim orders
  • Constitution of Nepal (2015):
    • Article 18: Right to equality
    • Article 39: Rights of the child to care, upbringing, protection, and identity

Custody Classifications

Classification Description
Sole custody One parent receives full physical and legal custody of the child
Joint Custody Both parents share decision-making and/or care
Third-Party Custody Custody is awarded to someone other than the biological parents

Procedure and Detailed Analysis

Filing Procedure

  • Jurisdiction: District Court where the child resides or where the parents last cohabited.
  • Who Can File: Either parent, a guardian, or a relative in cases of incapacity, abandonment, or death.
  • Steps:
    • File a petition for custody (independently or as part of a divorce case)
    • Submit a request for interim custody, visitation, or support (if applicable)
    • Mediation may be ordered
    • Court may issue interim custody during proceedings
    • Final judgment delivered based on merits

Required Documents

Document Purpose
Citizenship certificate of applicant Proof of identity and nationality
Marriage/divorce certificate Establish legal relationship or context
Child’s birth certificate Proof of parentage
Financial and housing documentation Evidence of capacity to support the child
Medical or abuse records (if any) Supports claims for sole custody or visitation limits

Issues & Practical Considerations

Judicial Considerations

Nepali courts apply the “best interest of the child” standard, considering:

  • Age and emotional needs of the child
  • Parental fitness and conduct
  • Stability of each parent’s home environment
  • Existing bond between child and parent
  • Child’s opinion
  • History of abuse, neglect, or violence

Presumption: Mothers are generally favored for children under 5 unless proven unfit.

Child Support and Maintenance

  • Noncustodial parent is legally obligated to contribute:
    • Court determines the amount based on financial capacity and child’s needs
    • Payment may be in the form of monthly allowance or in-kind support
    • Noncompliance is enforceable through execution or contempt action

Visitation and Parental Access

  • Visitation rights are typically granted to the noncustodial parent
  • Courts may impose supervision or location conditions if required
  • Visitation can be restricted in abuse or neglect cases

Modification and Enforcement

  • Orders may be modified due to changed circumstances:
    • Common triggers: relocation, remarriage, income change, or child’s welfare
  • Violations are enforceable under civil procedure laws

Practical Advice

Special Scenarios

Scenario Court Approach
Unmarried Parents Either may file; proof of paternity may be required
Parental death/incapacity Surviving or capable guardian typically receives custody
Abuse or neglect Court may deny custody and appoint a third-party guardian or institution

Key Barriers and Gaps

  1. No standard method for evaluating psychological fitness
  2. Lack of uniformity across district courts
  3. Weak enforcement mechanisms for support and visitation
  4. Cultural biases may influence outcomes despite gender-neutral laws

Recommendations for Applicants

  • Prepare a comprehensive file: identity, residence, income, and school records
  • Seek interim custody if there is risk of harm or interference
  • Cooperate fully with court-ordered mediation
  • Maintain a record of all proceedings
  • Consult legal counsel in contested or complex matters

Conclusion

Navigating child custody cases in Nepal requires not only understanding the legal provisions but also careful attention to judicial discretion and social context. Applicants should prepare thoroughly and seek professional legal guidance to protect both the child’s welfare and parental rights.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding child custody in Nepal, please contact our office to schedule a consultation with our experts.

Digital Service Tax (DST) Registration in Nepal

Posted on by gandhi2024law

Nepal has progressively developed its tax framework to address the challenges posed by the digital economy. The Digital Service Tax (“DST”) was initially introduced through the Procedure Relating to Digital Service Tax in the fiscal year 2022 (2079), and has since undergone several revisions to accommodate evolving needs. The most recent version of the DST framework was promulgated in 2025 A.D. (2082), pursuant to the prevailing Finance Act.

The DST is specifically designed to regulate and tax digital services supplied by non-resident entities to consumers in Nepal. Its primary objective is to ensure equitable taxation of the digital economy and to align Nepal’s fiscal regime with global developments in cross-border taxation of digital services.

This article provides an overview of Nepal’s DST regime, focusing on its legal framework, scope of application, compliance obligations, and procedural requirements for non-resident digital service providers.

Legal Framework

The legal framework governing the imposition and administration of the Digital Service Tax in Nepal is set out in the following instruments:

  1. Finance Act, 2082 (2025);
  2. Procedure Relating to Digital Service Tax, 2082 (2025); and
  3. Procedure Relating to Value Added Tax on Digital Services Provided by Non-Resident Persons, 2079 (2022) (as amended by the Third Amendment, 2082 (2025)).

Scope of Digital Services

As per the Procedure Relating to Digital Service Tax, 2082 (2025), digital service includes the following services whose delivery essentially requires information technology and is provided automatically through the internet with minimal human intervention:

  1. Paid personal advertisement services;
  2. Targeted online advertisement services;
  3. Movies, television, music, over the top (O.T.T.) and other similar subscription based services;
  4. Data collection services;
  5. Cloud services;
  6. Gaming services;
  7. Mobile application related services;
  8. Online marketplace services, and services and goods provided through it;
  9. Supply and update of software;
  10. Download of data, images and similar services;
  11. Education, consultancy, skill development and training services;
  12. E-book, e-library and e-newspaper; and
  13. Other similar services.

Applicability and Basis of Taxation

The DST is applicable to digital services supplied by non-resident entities to consumers in Nepal. For the purposes of the DST framework, consumers are defined as individuals residing in Nepal who utilize such digital services for personal consumption, rather than for commercial or business purposes (i.e., Business-to-Consumer (B2C) transactions).

Conversely, Business-to-Business (B2B) transactions fall outside the ambit of the DST Procedure. Such transactions are instead subject to taxation under the Income Tax Act and are not governed by the DST framework.

DST liability arises where non-resident entities provide digital services to Nepali consumers and the aggregate value of transactions exceeds NPR 3 million within a single fiscal year.

Rate of Taxation

The DST is levied at the rate of 2% on the transaction value, calculated exclusive of any indirect taxes such as Value Added Tax (VAT). The DST is characterized as a direct tax, and by express statutory provision, the liability may not be contractually shifted to, or recovered from, the consumer.

In parallel, a 13% VAT is applicable under the reverse charge mechanism on digital services provided by non-resident suppliers. However, the VAT liability does not extend to certain exempt categories of digital services, namely:

  1. Educational services;
  2. E-books and related digital publications;
  3. E-libraries; and
  4. E-newspapers.

Registration Procedures

            I.     Administrative Authority

The administration and enforcement of the DST is entrusted to the Large Taxpayer, which is designated as the competent authority for registration, compliance monitoring, and collection of DST.

          II.     Registration Requirement

All taxable persons under the DST framework are required to register in Nepal and obtain a Permanent Account Number (PAN) prior to engaging in taxable transactions. Failure to register does not exempt a person from their tax obligations; liability to DST arises by operation of law once the statutory conditions are met. The other requirements include:

  1. Taxable persons must apply for a PAN within 30 days of exceeding the prescribed transaction threshold (NPR 3 million in a fiscal year).
  2. Voluntary registration is permitted at any time, even prior to reaching the threshold.
  3. Non-resident persons who are already registered for Value Added Tax (VAT) in Nepal are not required to obtain a separate PAN for DST purposes.

       III.     Registration Procedure for Non-Resident Entities

Non-resident digital service providers are required to submit an application for PAN registration via Inland Revenue Department’s online portal. The application must be accompanied by the following supporting documents:

  1. Notarized copies in English of the applicant’s company registration certificate issued in the country of residence;
  2. Tax registration identification number or equivalent issued in the country of residence;
  3. An authorization letter designating a person for tax purposes, along with a notarized copy of the authorized person’s passport (in English);
  4. A photograph and specimen signature of the designated authorized person; and
  5. Where a Nepali citizen is designated as the authorized person, a notarized copy of their citizenship certificate or passport, together with the authorization letter.

Recording of Transactions

Non-resident digital service providers are required to maintain accounts on an accrual basis and must disclose the value of their transactions in Nepalese Rupees.

Filing of Returns

The filing of returns for DST and VAT differs in terms of frequency and deadline, and is outlined as follows:

ParticularsFor DSTFor VAT
Filing requirementNon-resident digital service providers must file returns and pay the applicable DST at the Large Taxpayer Office through the online system.Non-resident digital service providers must file VAT returns with the Large Taxpayer Office through the online system.
DeadlineWithin three months following the end of the income year.Within twenty-five days after the expiry of each tax period.

De-Registration

Non-resident persons wishing to de-register must apply to the Large Taxpayer Office. The Office either confirms de-registration or provide reasons for refusal within three months of receiving the application. De-registration is not granted unless all outstanding DST and VAT liabilities are cleared.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding DST and VAT registration for non-resident service provider in Nepal, please contact our office to schedule a consultation with our experts.