Author: Rajanish Ojha

Fifth Amendment to Nepal Rastra Bank Foreign Investment and Foreign Loan Management Bylaw, 2078 (2021)

Posted on by Rajanish Ojha

The Fifth Amendment to the Nepal Rastra Bank Foreign Loan and Investment Management Bylaws, 2078 represents a structural shift in how repatriation is approved, processed, and regulated. For foreign investors, joint venture partners, banks, and compliance officers, this change directly affects transaction timelines, deal structuring, and exit planning.

This briefing explains what has changed, why it matters commercially, and how businesses should now approach repatriation under the amended regime.

A. Amendments

1. The Structural Shift: From Central Bank Control to Bank-Led Approval

Previously, repatriation required prior approval from Nepal Rastra Bank (NRB). Even where all investment approvals and tax clearances were in place, investors had to apply separately to NRB for foreign exchange approval. Although NRB was required to decide within 15 working days, in practice, documentation queries and internal review processes often extended timelines.

Under the Fifth Amendment, commercial banks are now authorized to approve repatriation directly.

Foreign investors or Nepali companies with foreign investment must submit their applications to the commercial bank where their account is maintained. The bank processes the application based on the approval or recommendation issued by the relevant investment approving authority. Once complete documentation is submitted, the bank must process the repatriation within 15 working days.

Why This Matters for Business

This is not a minor procedural change. It represents:

  • Decentralization of approval authority
  • Reduced regulatory layering
  • Greater operational predictability
  • Alignment with banking-based compliance models used in other jurisdictions

For businesses planning dividend distributions, exit transactions, or technology transfer royalty payments, this reduces regulatory uncertainty and simplifies coordination. Instead of managing two regulators (investment authority + NRB), the process now primarily runs through the concerned commercial bank.

However, simplification does not mean deregulation. Concerned banks now carry heightened compliance responsibility.

2. What Can Be Repatriated Under the Amended Framework?

The amended Bylaws confirm that commercial banks may provide foreign exchange facilities for repatriation of:

  • Share sale proceeds
  • Dividends and profit distributions
  • Liquidation proceeds
  • Royalty income under technology transfer agreements
  • Lease payments under approved structures
  • Court-awarded compensation
  • Other amounts permitted under applicable law

From a commercial perspective, this covers the full lifecycle of foreign investment: entry, operation, return on investment, and exit.

Investors should ensure that each category of repatriation clearly aligns with the original approval structure. A common operational issue arises where dividend distributions exceed accumulated profit or where share transfers occur without proper investment authority endorsement. Banks will scrutinize any mismatches.

3. The Country of Repatriation: A New Compliance Trigger

One important shift requires careful and strategic attention.

Previously, if funds were repatriated to a country other than the original investment country, separate NRB approval was not required. Under the Fifth Amendment, this position has been reversed.

Now, if the funds are repatriated to a country different from the country from which the original investment was made, Nepal Rastra Bank approval is required.

Practical Implications

This affects:

  • Investment structures involving holding companies
  • Private equity funds with global treasury centers
  • Corporate treasury reorganizations
  • Cross-border mergers and acquisitions

For example, if investment originally came from Singapore but the group later shifts treasury operations to the Netherlands, repatriating to the Netherlands may now require NRB approval.

Investors restructuring global ownership chains must factor this into repatriation and exit planning. Timing mismatches between transaction closing and foreign exchange approval can create settlement risk.

4. The 15-Day Timeline: What It Really Means

The Bylaws require commercial banks to decide within 15 working days after receipt of complete documentation.

The operative phrase is “complete documentation”

In practice, delays often arise from:

  • Incomplete tax clearance confirmation
  • Mismatch between approved investment amount and recorded capital
  • Absence of original approval or recommendation letters
  • Inconsistencies in audited financial statements
  • Gaps in shareholder records

The statutory timeline of 15 days begins only when documentation threshold is met. Businesses should not treat 15 days as automatic; it is conditional.

5. Mandatory Documentation: Fewer Formalities, Stronger Core Requirements

The Fifth Amendment removes several earlier documentation requirements, including submission of:

  • Memorandum and Articles of Association
  • Historical audited financial statements in certain circumstances
  • Prior investment agreements
  • Certain ultimate beneficial owner disclosures for listed entities

This reduction simplifies applications, particularly for listed or large corporate investors.

However, one requirement has become more explicit: submission of the original approval or recommendation letter issued by the concerned authority is mandatory for repatriation.

Commercial Takeaway

While documentation volume has decreased, the legal linkage between:

  1. Investment approval
  2. Capital recording
  3. Tax compliance
  4. Repatriation

has become tighter.

Repatriation is no longer a standalone event. It is the final step in a documented compliance chain.

6. Blacklisted Companies: Investment Allowed, Exit Restricted

Previously, companies listed under regulatory blacklists were entirely barred from receiving foreign investment.

The amendment allows foreign investment in blacklisted companies but prohibits repatriation of investment or income until the company is officially removed from the blacklist.

From a risk management standpoint, this is significant.

Investors may now inject capital into distressed or compliance-challenged entities. However, return of capital or income remains restricted until regulatory regularization is completed.

For investors considering turnaround situations, this requires careful structuring:

  1. Inject capital
  2. Resolve blacklist status
  3. Only then repatriate dividends or exit proceeds

B. Amendments and Strategic Impact for Different Stakeholders

For Foreign Investors

The reform improves operational efficiency, predictability and reduces regulatory bottlenecks. Repatriation of dividends and exit planning becomes more structured and less dependent on central-level discretionary approvals.

However, cross-border treasury shifts and holding-company restructurings must now be reviewed carefully.

For Nepali Companies with Foreign Shareholders

Companies must maintain clean capital records and ensure timely documentation updates with investment approving authorities.

Internal governance gaps can now directly affect dividend timelines.

For Commercial Banks

Banks now serve as frontline compliance authorities. They must verify:

  • Investment approval validity
  • Tax compliance
  • Documentary consistency
  • Country of investment and repatriation consistency

Compliance standards are likely to become more stringent internally, even if externally the process appears simplified.

Building a Repatriation-Ready Structure

Businesses should consider adopting a repatriation readiness checklist:

  • Confirm investment approval letters are securely archived
  • Ensure capital is properly recorded and reconciled
  • Maintain updated tax clearance status
  • Verify consistency between shareholder registers and approved investors
  • Assess whether the intended destination country matches the original investment source

Repatriation should be planned at the time of investment, not at the time of exit.

Conclusion: A Measured Liberalization with Guardrails

The Fifth Amendment to the Nepal Rastra Bank Foreign Investment and Foreign Loan Management Bylaw, 2078 (2021) reflects a calibrated policy shift.

By shifting routine repatriation approval to commercial banks, Nepal has reduced friction in the investment cycle. At the same time, the reintroduction of NRB oversight for cross-jurisdictional repatriation ensures that capital flow patterns remain monitored.

For investors and businesses, the message is clear: compliance architecture now determines liquidity flexibility. Those who maintain clean documentation and structured approvals will experience smoother dividend and exit processes.

Foreign investment attractiveness is not only about entry incentives; it is about reliable exit mechanisms. This amendment strengthens that credibility, provided businesses approach it strategically.

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 foreign investment approval procedure in Nepal, please contact our office to schedule a consultation with our experts.

Visa Facilities for Foreign Investors in Nepal: A Practical Guide under FITTA and Immigration Laws

Posted on by Rajanish Ojha

Foreign Direct Investment (FDI) remains a cornerstone of Nepal’s economic development strategy, contributing not only capital inflows but also advanced technology, managerial expertise, and international business practices. Recognizing the importance of creating a predictable and investor-friendly environment, Nepal has embedded specific visa facilitation mechanisms within the Foreign Investment and Technology Transfer Act, 2075 (2019) (FITTA) and its supporting regulatory framework.

These provisions are designed to ensure that foreign investors, their authorized representatives, and eligible family members can legally enter, reside, and conduct investment-related activities in Nepal under appropriate immigration status directly linked to their investment commitments.

Legal Framework Governing Investor Visa Facilities

Visa facilitation for foreign investors is primarily governed by Section 30 of FITTA, which authorizes the grant of specific visa categories namely Non-Tourist Visas, Business Visas, and Residential Visas to foreign nationals involved in approved investment activities.

The Department of Industry (DOI) functions as the principal authority for approving foreign investments and issuing recommendation letters required for visa processing. Based on DOI recommendations, the Department of Immigration issues the relevant visas in accordance with immigration laws.

In practical application, FITTA operates in coordination with the Immigration Act, 2049 (1992) and the Immigration Regulation, 2051 (1994). These instruments regulate procedural matters such as visa issuance, duration, renewal, applicable fees, and compliance obligations. Together, these laws establish a structured and transparent pathway enabling foreign investors to enter Nepal, maintain lawful residence, and conduct business activities while complying with national immigration standards.

1. Non-Tourist Visa

The Non-Tourist Visa is intended for foreign nationals visiting Nepal to conduct related to potential foreign investment. It is entry for feasibility and investment study Its purpose is limited to preliminary assessment and feasibility analysis prior to making a formal investment decision.

This visa allows prospective investors, consultants, and market analysts to examine regulatory, commercial, and sector-specific conditions within Nepal without engaging in operational business activities.

Key features include:

  • Purpose: Feasibility study, research, or market survey in connection with foreign investment planning
  • Maximum Duration: Up to six months
  • Recommendation: Issued upon recommendation from the Department of Industry, followed by application to the Department of Immigration

This visa does not permit employment or long-term business operations. Once an investment is approved, investors are expected to transition to an appropriate investor visa category.

2. Business Visa

The Business Visa is the principal visa category for foreign investors after their investment has received approval from the DOI. It is also available to one authorized representative of the investor and their immediate family members, including spouses, parents, and minor children.

This visa enables foreign investors to reside in Nepal for as long as the approved investment is maintained and remains compliant with applicable laws.

Key conditions include:

  • Eligibility:
    • Approved foreign investor
    • One authorized representative
    • Eligible dependent family members
  • Duration
    The Business Visa is issued based on the recommendation of the Department of Industry and may be granted:
  • For a minimum period of three months, and
  • For a maximum period of up to five years at a time,

subject to the continuation of the approved investment, periodic renewal, and ongoing regulatory compliance.

  • Corporate Investor Limitation: In the case of corporate foreign investors, business visa facilities may be limited to a maximum of two individuals, along with their families, depending on the investment threshold
  • DOI Assessment: The DOI may evaluate investment size, operational status, employment generation, and regulatory compliance when recommending visa validity
  • Visa Fee: For foreign investors and their dependent family members:
  • Investment equal to or less than NPR 100 million:
  • USD 35 per month
  • USD 400 per year
  • USD 1,000 for five years
  • Investment exceeding NPR 100 million:
  • USD 20 per month
  • USD 200 per year
  • USD 500 for five years
  • Investment of NPR 1 billion (NPR 1,000 million) or more:

Business Visa granted free of cost

The business visa serves as the primary mechanism for ensuring continuity of foreign-led enterprises in Nepal.

3. Residential Visa

The Residential Visa is a higher-tier visa designed for foreign investors making substantial capital commitments in Nepal. This category reflects the Government’s intent to offer enhanced stability to long-term and high-value investors.

Key features include:

  • Investment Threshold:
    • Minimum foreign investment of USD 1 million (or equivalent convertible foreign currency) made at one time
  • Eligible Persons:
    • The investor or one authorized representative
    • Eligible family members
  • Duration:
    • Granted on an annual basis and renewable as long as the qualifying investment is maintained
  • Visa Fee:
    • USD 1,200 per year

The residential visa offers greater predictability for investors planning sustained involvement in Nepal’s economy.

4. Working and Expert Visas

In addition to investor-specific visas, FITTA allows foreign-invested enterprises to engage foreign specialists, technicians, and managerial personnel where local expertise is insufficient. These individuals may obtain work or employment visas following approval under the Immigration Act and applicable regulations.

Such visas play a critical role in facilitating technology transfer, operational efficiency, and capacity building within foreign-invested enterprises.

5. Step-by-Step Visa Facilitation Process

Step 1: Obtain DOI Approval

The investor submits the required application, project details, and supporting documents through the DOI’s online foreign investment portal (imis.doi.gov.np). Upon approval, the DOI issues a recommendation letter for visa processing.

Step 2: Apply to the Department of Immigration

Using the DOI recommendation, the applicant submits an online application through the Department of Immigration portal (immigration.gov.np) and also submits physical documents as required.

Step 3: Visa Issuance and Renewal

The Department of Immigration issues the relevant visa after verifying compliance and payment of prescribed fees. Visa renewals require updated DOI recommendations and confirmation of continued investment compliance.

Practical Compliance Considerations

While Nepal’s investor visa framework is facilitative in principle, practical compliance depends on accurate documentation, timely renewals, and ongoing adherence to approved investment conditions. In recent years, regulatory authorities have increased scrutiny of business visa renewals to ensure visas are linked to genuine and active investment activities rather than nominal or inactive approvals.

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.

Conclusion

For foreign investors considering Nepal, a clear understanding of visa facilitation under Foreign Investment and Technology Transfer Act and its Rules the Immigration Act and Regulations is essential for lawful entry, stable residency, and uninterrupted business operations. The integrated legal framework covering non-tourist, business, and residential visas connects immigration status directly with investment milestones and regulatory compliance. With proper planning and professional guidance, investors can use these mechanisms to establish a long-term presence and contribute meaningfully to Nepal’s economic growth.

Foreign Investment in Nepal: Negative List & Minimum Threshold

Posted on by Rajanish Ojha

Nepal welcomes foreign investment across a wide range of sectors. However, under the Foreign Investment and Technology Transfer Act, 2075 (2019) (FITTA), a minimum capital threshold applies for company incorporation, and certain industries are restricted for foreign participation. This newsletter summarizes the minimum investment requirements, including exceptions for IT industries, and the restricted sectors (negative list).

1. Minimum Foreign Investment Threshold

A minimum capital of NPR 20,000,000 (Nepalese Rupees Twenty Million) must be invested by each foreign investor to incorporate a company in Nepal.

Note: The minimum threshold for Non-Resident Nepalis (NRNs) and other foreign investors may be set differently pursuant to Section 3(3) of the Foreign Investment Act.

Exceptions: Industries with No Minimum Threshold

Certain industries under the Information Technology sector are exempt from the minimum investment requirement, as per the Ministry of Industry, Commerce and Supplies notice dated 2080/06/15 (02 October 2023).

Industries where the minimum threshold is not applicable:

S.N.Industry
aTechnology park
bIT park
cBiotech park
dSoftware development
eData processing
fDigital mapping
gBusiness process outsourcing (BPO)
hKnowledge process outsourcing (KPO)
iData center
jData mining
kCloud computing
lWeb portal
mWeb designing service
nWeb hosting
Added by Nepal Gazette Notification dated 2082/11/04 (16 February 2026)

2. Sectors Not Permitted for Foreign Investment (Negative List)

The following sectors are restricted for foreign investment under FITTA:

  1. Industries or business other than large-scale industry (Industries with fixed capital above NPR 500,000,000), agricultural technology and mechanization related to animal husbandry, fish farming, beekeeping, fruits, vegetables, oilseeds, pulses, dairy, and primary agricultural products that export at least 75% of production;
  2. Cottage and small industries;
  3. Personal service businesses (e.g., hair cutting, tailoring, driving);
  4. Industries manufacturing arms, ammunition, bullets, shell, gunpowder, explosives, nuclear, biological and chemical (NBC) weapons; industries producing atomic energy and radioactive materials;
  5. Real estate business (excluding construction industries), retail business, internal courier service, local catering service, moneychanger, remittance service;
  6. Travel agencies, guides, trekking and mountaineering guides, rural tourism including homestays;
  7. Mass communication media (newspaper, radio, television, online news) and motion picture in the national language;
  8. Management, accounting, engineering, legal consultancy, language training, music training, and computer training;
  9. Consultancy services with foreign investment over 51%;
  10. Ride-sharing businesses with foreign investment over 70%;
  11. Aircraft operations, training, repair, maintenance, and passenger service facility providers with foreign investment exceeding the following limits:
  • International airline service: 80%
  • Domestic airline service: 49%
  • Training institutions: 95%
  • Repair and maintenance: 95%

Nepal’s foreign investment regime is designed to be investment-friendly, while maintaining protections for strategic, sensitive, and small-scale sectors.

Key points for investors:

  1. Most sectors are open to foreign investment;
  2. Restricted sectors must be avoided or carefully structured;
  3. Minimum investment threshold applies, except for certain IT-related industries; and
  4. Legal and regulatory guidance is recommended to ensure compliance and smooth market entry.

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 foreign investment approval procedure in Nepal, please contact our office to schedule a consultation with our experts.

Automatic Route Facility for Foreign Direct Investment in Nepal

Posted on by Rajanish Ojha

The Automatic Route is a simplified foreign investment approval mechanism introduced by the Government of Nepal under Section 42 of the Foreign Investment and Technology Transfer Act, 2075 (2019) and Foreign Investment and Technology Transfer Regulations, 2077 (2021).

It enables eligible foreign investors to obtain foreign investment approval automatically, by submitting applications through an online system operated by the Department of Industry (DOI) (http://imis.doind.gov.np/) without undergoing the traditional approval process.

This facility is designed to expedite and simplify Nepal’s FDI approval process, reduce procedural delays, and make Nepal a more competitive destination for foreign investment.

I. Applicability: When Can the Automatic Route Be Used?

The foreign investment proposals of any investment amount may be processed through the automatic route mechanism, provided they fall within the prescribed eligible industry categories.

The facility applies to the following two scenarios:

a. Incorporation of a new company,  either as a 100% foreign-owned subsidiary or as a joint venture; and

b. Capital increment in an existing company that already has foreign investment.

The initial list of industries eligible for approval under the automatic route was prescribed through the Ministry of Industry, Commerce and Supplies Gazette Notification dated 2080/06/15 (02 October 2023). Subsequently, recent Gazette Notification dated 2082/11/04 (16 February 2026) have expanded the scope by adding additional industry categories to the automatic framework.

Note: Prior to the Nepal Gazette notice dated 2082/11/04 (16 February 2026), the automatic route was subject to a maximum total capital investment ceiling of NPR 500,000,000 (Nepalese Rupees Five Hundred Million). This ceiling has now been removed.

II. Industries Eligible for the Automatic Route

The Gazette Notice specifies that foreign investment can be made through the automatic route in industries across several broad sectors, subject to the total capital investment limit. Sectors include:

  1. Energy Based Industries
1. Industries producing energy from wind, solar power, biomass, or other resources, and industries manufacturing machine/equipment used for energy production
2. Biogas-based energy
3. Energy produced as a by-product of sugar industry
4. Energy feasibility study

2. Agriculture and Forest Products Based Industries

a) Fruit processing, Vegetables processing
b) Establishment and operation of green house
c) Silk processing
d) Tea processing
e) Coffee processing
f) Herbs processing
g) Rubber processing
h) Cold Store (For Storing Local Fruits and Vegetables)
i) Natural fibers products processing
j) Paper, resins and other non-timber based industries
k) Producing plants through new technology (Tissue Culture & others)
l) Cotton processing

4. Tourism Industries

a) Motel, hotel, resort, and restaurant
b) Healing center
c) Meeting conference and sports tourism
d) Fun park, water park

5. Infrastructure Industries

a) Conference centre
b) Vehicle parking garage
c) Export processing zone
d) Cargo complex
e) Polluted water treatment industry (waste water treatment plant)
f) Film city construction/Film studio construction
g) Commercial complex
h) Private warehouses

6. Information Technology, Communication Technology, and Information Dissemination Technology Industries

a) Technology park
b) IT park
c) Biotech park
d) Software development
e) Data processing
f) Digital mapping
g) Business process outsourcing (BPO)
h) Knowledge process outsourcing (KPO)
i) Data center
j) Data mining
k) Cloud computing
l) Web portal
m) Web designing service, Web hosting

7. Service Industries

a) Mechanical Workshop
b) Printing related services
c) Construction business
d) Photography
e) Hospitals
f) Nursing homes, Polyclinics, Operation of Rehabilitation Centre, Physiotherapy clinics, Ayurveda and other alternative hospitals
g) Operation of physical exercise, yoga-meditation and practice centres
h) Sports services, Swimming pool
i) Cold storage operation
j) Garbage collection and cleaning, garbage recycling
k) Construction related heavy equipment rental, maintenance and operation
l) Veterinary services
m) Health checkup (X-Ray, CT Scan, MRI, Ultrasound, and health check-up lab)
n) Operating already constructed infrastructure (such as assembly and conference buildings, fuel and fuel gas supply pipelines, warehouses and storage, airports, stadiums, sports, complexes, roads, power plant, railway services, cargo complex services) business
o) Cargo business (international cargo business)
p) Dry cleaning business
q) Advertising services
r) Advertising content preparation service
s) Soil Testing Service
t) Health club
u) Electrical survey
v) Mineral studies and research
w) Equipment repair and installation services

8. Manufacturing Industries

1. Production of of animal and fish feed
2. Meat Processing and Packaging of Livestock and Fish
3. Production of Oil , Fat etc. from Basic Raw Materials
4. Production of Starch or Glucose
5. Production of Bakery Products
6. Production of Confectionary and Biscuit
7. Production of Sugar
8. Manufacturing of Beverages (Non-Alcoholic)
9. Manufacturing of Textile, Garment And Clothes (Using new and Re-used materials)
10. Manufacturing of Electronic Home Appliances
11. Manufacturing of Goods Using Plastic Or Rubber
12. Manufacturing of Bag, Sack, Suitcase, Trolley Bag or Other Similar Bag for Carrying Things
13. Manufacturing of Wooden Goods Other than Traditional and Cultural Art Based
14. Manufacturing of Toiletries Products like Toothpaste, Soap, Shampoo, Washing Powder
15. Manufacturing of Products Based on Glass
16. Manufacturing of Cycle, Scooter, Motorcycle and Four Wheeler and accessories used in such vehicle
17. Manufacturing of Electric Lamps, Switch, Meter, Fuse, Wiring Cable, Compressor, and Similar Products
18. Manufacturing of Goods used in Medical, Surgical, Orthopedic Works
19. Manufacturing of Electrical Wire
20. Electrical wire manufacturing
21. Cement production
22. Brick tile production
23. Iron rod production
24. Factory production
25. Production of chemical fertilizers and organic fertilizers
26. Lubricant production
27. Khandsari (sugar) production
28. Industries like rice mill, oil mill, flour mill, dal mill
29. Matchstick, Candles, Incense products
30. Production of materials of fabrication
31. Manufacture of iron materials
32. Zinc leaf production
33. Other food processing products such as noodles, tea, cheese balls, etc.
34. Electronic and Electrical Materials Manufacturing
35. Electrical wire (cable) production
36. Color, pigment production
37. Paper, Pulp Paper Manufacturing
38. Production of stationery materials
39. Water treatment
40. Bitumen and bitumen emulsion production
41. Furniture, plywood production
42. Manufacture of tires and tubes

Conclusion

The Automatic Route facility represents a significant step toward strengthening Nepal’s investment facilitation framework. It streamlines foreign investment approvals by enabling online automatic foreign investment certification for eligible industries, without any maximum capital ceiling.

The system applies to both new company incorporations and capital increments in existing foreign-invested industries and covers a broad range of sectors such as energy, agriculture, infrastructure, and more. This modernization supports Nepal’s broader strategy to attract competitive foreign capital, and boost economic growth.

With the removal of the earlier capital ceiling, the automatic route now allows foreign investment proposals of any investment size to be processed under this simplified mechanism, subject to eligibility criteria. This reform further reinforces Nepal’s commitment to attracting competitive foreign capital, enhancing ease of doing business, and promoting sustainable economic growth.

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 foreign investment approval procedure in Nepal, please contact our office to schedule a consultation with our experts.

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.

Updating Gender Markers in Legal Documents in Nepal

Posted on by Rajanish Ojha

  I.     Introduction

The ability to update gender markers in official legal documents is a fundamental aspect of the right to self-identification and human dignity. In Nepal, this right is recognized under constitutional guarantees and supported by key judicial precedents, most notably Sunil Babu Pant V. Government of Nepal (2064) (2007). Despite this legal recognition, administrative procedures remain opaque, inconsistent, and heavily reliant on informal practices.

This briefing outlines the legal framework, document-specific procedures, and practical challenges associated with updating gender markers in Nepal.

 II.        Legal Framework

 1)        Constitutional and Judicial Basis

The right to update one’s gender marker is grounded in several legal instruments and precedents, which include:

  • Constitution of Nepal (2015):
    1. Article 12: Right to citizenship based on gender identity;
    2. Article 18: Right to equality;
    3. Article 42: Right to social justice.
  • Supporting Case Law
    1. Sunil Babu Pant V. Government of Nepal (2064) (2007): The Supreme Court of Nepal mandated recognition of non-binary identities and provision of corresponding legal documentation;
    2. Dilu Dibuja v. Ministry of Foreign Affairs (2017): Established the right to a passport reflecting one’s updated gender identity.

   III.           Legal Documents Where Gender Marker Can Be Updated

The documents where gender marker changes are permitted (in practice or law) include:

  1. Birth Certificate;
  2. Citizenship Certificate;
  3. Passport;
  4. National Identity Card (NID);
  5. Voter ID;
  6. Academic Transcripts and Certificates;
  7. Driver’s License.

 IV.          Procedure / Detailed Analysis

While the legal framework in Nepal does not provide a single uniform procedure for updating gender markers, in practice, individuals may apply for amendments across various official documents. The table below sets out the key documents where gender marker updates are permitted, the procedural steps typically required, and important notes on challenges or inconsistencies in implementation.

Document

Procedure

Notes

Birth Certificate

Apply at ward office with:
a) Application for amendment;
b) Updated legal ID;
c) Affidavit or court order (sometimes required).

 

–

Citizenship Certificate (Primary Document)

Apply at District Administration Office (DAO) with:

a)      Original citizenship certificate;

b)     Self-declaration/affidavit of gender identity;

c)      Recommendation letter from recognized LGBTQ+ organization (e.g., Blue Diamond Society);

d)     Proof of residence;

e)      Parents’ citizenship certificates (if requested).

If accepted, DAO issues a new certificate listing “O” as gender marker.

•     Most DAOs do not permit binary-to-binary changes (e.g., M→F);

•     Some DAOs may ask for medical certificates or deny applications arbitrarily;

•     Procedures vary due to lack of clear administrative code.

Passport

Apply to Department of Passport with:

a)      Updated citizenship certificate;

b)     Passport application form with “O” marked as gender;

c)      Passport photos & applicable fees.

•     Updated citizenship certificate is mandatory;

•     If denied, decision can be legally challenged.

National Identity Card (NID)

Apply through ward-level center with:

a)      Updated citizenship certificate;

b)     Completed NID form.

•     NID auto-syncs gender from citizenship;

•     Errors may occur in digital system if citizenship not updated first.

Voter ID

Apply at District Election Office with:

a)      Updated citizenship certificate;

b)     Voter ID amendment request form/application letter.

•     No clear directive; implementation inconsistent;

•     Some offices deny requests arbitrarily;

•     May require escalation to Election Commission.

Academic Transcripts & Certificates

Apply through institution registrar with:

a)      Updated citizenship or passport;

b)     Affidavit/explanatory letter;

c)      Court affidavit or notarized deed poll (in some cases).

•     Policies vary by institution;

•     Tribhuvan University often requires notarization.

Driver’s License

Apply to Department of Transport Management with:

a)      Updated citizenship certificate;

b)     Existing driving license;

c)      Correction request form.

• Some offices unlawfully ask for medical certificate or affidavit.

Note: While the following procedures list typical documentation requirements, individual offices may request additional materials or impose informal conditions. Applicants are advised to prepare for such variations and retain copies of all submissions.

V.          Recommendations for Applicants

  1. Always carry updated citizenship when applying for changes in secondary documents;
  2. Secure support letters from recognized LGBTQ+ organizations;
  3. Maintain documentation copies and receipts for all submissions.

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 and assistance regarding the process of updating gender markers in official documents in Nepal, please contact our office to schedule a consultation with our experts.

Overview of Infertility Management Service Operation Related Standard, 2082 (2025)

Posted on by Rajanish Ojha

The Ministry of Health and Population under the Government of Nepal (the “Ministry”) issued the Infertility Management Service Operation Related Standard, 2082 (2025) (the “Infertility Management Service Standard”) on 17 Bhadra 2082 (02 September 2025). The primary objective of this standard is to ensure quality infertility management services within Nepal, addressing both the identification and treatment of infertility, while also safeguarding reproductive rights guaranteed by the constitution.

This article provides a general overview of the Infertility Management Service Standard, infertility management services to be provided, operational procedures, and infrastructure requirements for governmental, non-governmental and private health institutions involved in infertility treatment.

1.    Definition

The key definitions under the Infertility Management Service Standard are as follows:

  1. Health Institution: A government health institution providing services such as screening, diagnosis, prevention and consultation and referral, medicinal and hormonal treatment, surgical services, I.U.I. service, I.V.F. service, and the term also includes non-governmental or private or non-profit community health institutions established in accordance with the prevailing law.
  2. U.I. (Intra-Uterine Insemination) Service: A technique in which human semen is cleaned, selected and placed in the human uterus in a specific manner.
  3. V.F. (In-Vitro Fertilization) Service: A technology in which an embryo is prepared outside the human body and implanted into the human uterus.
  4. Infertility: The state in which a woman and a man do not conceive even after a year of regular sexual intercourse without using any contraceptive method.

 2.       General Procedure and Standard for Infertility Management Services

As per the Infertility Management Services Standard, the following services will be provided based on the health institution’s standard, physical infrastructure, and available human resources, details of which are as follows:

  1. Screening, diagnosis, prevention and consultation and referral: These services will be provided in governmental, non-governmental, or private health institutions.
  2. Medicinal and hormonal treatment: These services will be provided by governmental, non-governmental, or community health institutions that have been trained on infertility management.
  3. Surgical services: These services will be provided by governmental, non-governmental, or community health institutions with qualified maternity and gynaecology specialists trained in infertility management.
  4. U.I. service
  5. V.F. service

 3.      Specific Standard for I.U.I. and I.V.F. Services

To operate an I.U.I. and I.V.F. service, health institutions must comply with certain standards, which include:

S.N.

Standards for I.U.I. Service

Standards for I.V.F. Service

1.       

The health institutions operating I.U.I. services must have a separate department with obstetrics and gynecology services, andrology laboratory, cold chain system, pharmacy, a minimum C-class laboratory and treatment services as classified by the Public Health Service Regulation, 2077 (2020).

The health institutions operating I.V.F. services must have a separate department with obstetrics and gynecology services, andrology laboratory, cold chain system, pharmacy, a minimum C-class laboratory and treatment services as classified by the Public Health Service Regulation, 2077 (2020).

2.       

The health institution must have minimum human resource, physical infrastructure, tools, equipment and consumables required as provided under the Infertility Management Service Standard.

The health institution must have minimum human resource, physical infrastructure, tools, equipment and consumables required as provided under the Infertility Management Service Standard.

 

3.       

The health institution must be an agreement with health institutions capable of providing intensive care.

If emergency services and intensive care units are not available, the health institutions must have agreement with at least one specialist hospital to provide such services, when required.

Note: The distance between health institution (providing I.V.F. service) and hospital (with which the agreement is made) should not be more than 2 km in case of Kathmandu Valley, and within a distance of half an hour by ambulance or other means of transportation in the case of outside of Kathmandu Valley.

 

 4.         Other Standards Related to the Operation of I.U.I. and I.V.F. Services

The Infertility Management Service Standard provides for the required standards, including but not limited to the following:

  1. The semen collection room, andrology laboratory, and I.U.I. rooms are located together;
  2. The operating room and embryology laboratory should be connected with a door and a pass box between them, while strict access controls must be maintained. Both rooms, along with the andrology laboratory, must be air-conditioned and equipped with an HVAC or Coda tower system;
  3. There must be a designated space for cleaning instruments, comfortable and well-equipped semen collection rooms, and environmental controls to maintain temperature, humidity, and air quality as per specified standards;
  4. Governmental or non-governmental, or private I.V.F./I.U.I. service provider institutions should have their own pharmacy service unit, and that pharmacy should be registered in the Department of Drug Administration; and
  5. Furthermore, a registered pharmacy unit, proper waste management, and educational materials on infertility management must be available to ensure comprehensive care.

 5.         Standards Related to Building

The Infertility Management Service Standard provides for the required building-related standards, including but not limited to the following:

  1. Availability of well-equipped semen collection room, andrology laboratory, and IUI room in close proximity to each other, with adequate environmental controls like air conditioning and light prevention, to ensure a sterile and comfortable setting for infertility treatments should be present;
  2. The building must be differently-abled friendly; and
  3. If the institution does not own the building, a rental agreement of at least 5 years must be made.

6.         Standard Related to Donor

The Infertility Management Service Standard provides the standards for semen and oocyte donors, including but not limited to the following:

S.N.

Semen Donor

Oocyte Donor

1.       

A donor cannot donate more than ten times at intervals of less than 15 days;

A donor can donate a maximum of six times, with at least a three-month interval between donations;

2.      

The donor identity must not be revealed to the recipient;

Identity of the donor must be kept secret from the recipient;

3.      

The age of donor should be between 20 and 35 years;

Donor must be between 20 and 35 years of age;

4.      

In the case of married couples, both husband and wife must provide informed consent;

The donor must be clearly informed in an understandable language about the potential immediate and future complication before donation;

5.      

No individual should be compelled or enticed through inducement to donate.

In the case of married couples, both husband and wife must provide informed consent.

 

 7.        Approval/License for operation of I.V.F. and I.U.I. services

  • Approval/License:

A health institution willing to provide I.U.I. and I.V.F. services must obtain prior approval from the Ministry. Health institutions must be properly registered and adhere to the prescribed standards to qualify for approval. Applications for approval must be submitted with the required documentation, and the institution will be subject to on-site inspection by a designated monitoring committee.

  • Renewal of approval/license:

The application for renewal must be submitted at least three months before the approval/license’s expiry date. Institutions already providing infertility services must apply for permission within 90 days of the implementation of this Infertility Management Service, which is 27 Bhadra, 2082 (December 1, 2025).

 

 8.       Services may be closed

The Ministry may immediately close the infertility management services of non-governmental or private health institutions that fail to apply for renewal, do not meet the criteria within the prescribed period, do not report regularly, or fail to follow the instructions given during monitoring.

 9.       Revocation of License / Approval

If non-governmental or private health institutions in operation before the commencement of this standard applied for revocation of license stating that it is unable to operate services related to infertility management, the operating license of such non-governmental or private health institution will be revoked.

10.         Other standards include

  1. Health institutions must charge fees as per the Health Institution Operation Fee Schedule 2077; charging above the prescribed fees may result in legal action, including registration and renewal cancellation;
  2. A monitoring committee will oversee the quality of infertility management services, tools, equipment, and human resource management. Health institutions providing I.U.I. and I.V.F. services will be monitored twice a year or as needed;
  3. Information about health conditions, diagnosis, or treatment received by the service recipient of infertility services from governmental, non-governmental or private health institutions must be kept confidential;
  4. The Ministry, in accordance with various bodies, will make arrangements to conduct educational and fellowship programs for the production of human resources, including I.V.F specialist doctors and embryologists;
  5. A record form will be prepared to document infertility-related services. Health institutions must maintain records of infertility management services as per the prescribed format. If institutions spread fake news on social media, legal action will be taken. Free medical services for poor and needy citizens, constituting 10% of services, must be reported to the Ministry; and
  6. If any ambiguities arise regarding the application of these standards and require interpretation, the Ministry’s interpretation will be final.

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 I.U.I. and I.V.F. service operation approval/licensing for health institutions, and related standards in Nepal, please contact our office to schedule a consultation with our experts.

 

 

 

Adopting a Child in Nepal: Legal Requirements for Domestic Adoption

Posted on by Rajanish Ojha
      I.          Introduction

Adoption in Nepal is governed by a detailed legal framework aimed at ensuring the best interests of the child. The relevant laws provide for both domestic and intercountry adoption, with specific eligibility criteria, documentation, and procedural steps.

This briefing outlines the key legal provisions, procedural steps, and practical implications for prospective Nepali (domestic) adoptive parents.

      II.              Legal Framework

The domestic adoption in Nepal is primarily governed by the following laws:

  • National Civil Code, 2074 (2017), Chapter on Adoption;
  • National Civil (Procedure) Code, 2074 (2017);
  • Children’s Act, 2075 (2018).

    III.          Definition of Adoption under Nepali Law

Adoption is the legal process whereby an individual or a couple assumes the parenting of a child from that child’s biological or legal parents, transferring all rights and responsibilities. Nepali law recognizes two types:

  • Domestic Adoption: By Nepali citizens residing in Nepal
  • Intercountry Adoption: By foreign nationals or Nepali citizens living abroad.

     IV.          Eligibility for Adoption

  1. Adoptive Parents
    • Eligibility Criteria

 As per National Civil Code, 2074 (2017), only the following individual/couple are permitted for adopting child, as listed below:

  • A married couple whose child has not been born even up to ten years of marriage,
  • An unmarried woman who is above forty-five years of age, a widow, a divorced woman, or a judicially separated woman, having no son or daughter;
  • An unmarried man having completed forty-five years of age, a widower, divorced or judicially separated man, having no son or daughter.

 In general, a person who already has a biological son cannot adopt another son, and a person who already has a biological daughter cannot   adopt another daughter. However, the National Civil Code, 2074 (2017) provides for few exceptions as listed below:

  1. If the biological son or daughter does not live with the parent due to judicial separation (i.e., court-ordered partition of property, lawful separation, or separation of bread and board from other coparceners), the parent may adopt a son or daughter.
  2. Further Exception: Even where a person has a biological son or daughter, the concerned court may permit adoption of another child if the person petitions the court, demonstrates sufficient financial capacity, and the court is satisfied that the petitioner can provide proper maintenance, health care, education, and care for the adopted child.
    1. Disqualification Conditions

 As per National Civil Code, 2074 (2017), the following individual/couple are disqualified from adopting child, as listed below:

  1. One who is of unsound mind;
  2. One who has been convicted of a criminal offense involving moral turpitude;
  3. One who lacks the financial capacity to afford the maintenance, health care, education, sports, entertainment, and care of a minor.
  • Adopted Child

 As per National Civil Code, 2074 (2017), only the following child is eligible for adoption, as listed below:

  1. One who has completed fourteen years of age;

  Exception: A child within the relation of three generations, or a son/daughter born to the wife’s ex-husband, may be adopted even if over fourteen years of age.

  1. One who is the only son or daughter;

 Exception: This restriction shall not apply if the adopting parent already has another biological son or daughter but is permitted by the court to adopt on the basis of demonstrated financial capacity and ability to provide proper maintenance, health care, education, and care for the adopted child.

  1. One who has already been adopted as a son or daughter;

Exception: This restriction shall not apply where the adoption has been annulled according to law.

  1. One who is in a higher degree of relationship than the person adopting;
  2. One who is not a citizen of Nepal;

Exception: This restriction shall not apply to a non-resident Nepali citizen who has obtained foreign citizenship.

  1. Where the difference of age between the adopter and the adoptee is less than twenty-five years;

Exception: This age-difference requirement does not apply if the adoptee is within the relation of three generations of the adopter.

 

    V.          Procedure for Adoption

The applicable procedure for domestic adoption of child are provided in the table below:

Steps

Action

Step 1

The individual/couple must prepare a duly executed deed of adoption;

Step 2

Submit a petition for adoption along with the adoption deed at the concerned District Court;

Step 3

Court conducts inquiry into the petition and verifies compliance with legal requirements (eligibility, consent, etc.);

Step 4

If satisfied, court issues an order granting permission and authenticates the adoption deed;

Step 5

If not satisfied, court issues an order refusing permission and informs the petitioner with reasons.

      VI.          Consent Requirements in Specific Circumstances

  1. General Rule: Written consent of both parents is required; if only one parent survives, consent of the surviving parent is sufficient.
  2. Divorce or Judicial Separation: If the parents are separated, consent must be obtained from the parent with whom the child is living under the separation arrangement.
  3. Where Parents Are Not Traced/Deceased/Remarried: Consent may be obtained from the guardian, person, or organization maintaining the child.
  4. Child above 10 Years: Written consent of the child is mandatory, given in the presence of the parent or guardian.
  5. Voluntariness: Consent must be free, informed, and voluntary, with no financial inducement, and the person giving consent must be informed of the meaning, legal status, and consequences of adoption.

      VII.          Rights and Obligations in Adoption

The rights, entitlements, obligations in relation to adoption pursuant to National Civil Code, 2074 (2017) are provided below:

Subject

Key Points

Entitlements and rights of adopted son/daughter

a)      Adopted child enjoys the same entitlements, obligations, and responsibilities as a biological child.

b)     Birth of a biological child after adoption does not affect equality of adopted child.

Use of Surname

a)      Adopted child may use surname of either/both adoptive parents.

b)     Child may also use surname of biological parents if desired.

c)      If adoption is annulled, surname reverts to biological parents.

Partition share of biological parents

a)      If adoption annulled, child regains right to partition share.

b)     If partition share already taken before adoption, child can retain such property.

Obligations of adoptive person

a)      Ensure maintenance, healthcare, education, sports, and entertainment.

b)     Protect rights and interests of the adopted child.

c)      Exercise parental authority under law.

d)     If obligations not met, child may live separately and claim partition share.

Obligations of adopted son/daughter

a)      Maintain and care for adoptive parents.

b)     Protect and manage property of adoptive parents.

c)      Protect rights and interests of adoptive parents.

Facility of visit and correspondence

Adoptive parents must allow child to visit or correspond with biological parents from time to time.

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 on adopting a child in Nepal, please contact our office to schedule a consultation with our experts.

Department of Industry’s Notice of Resumption of Services & Adjournment of Cases

Posted on by Rajanish Ojha

On 11 September 2025 (2082/05/26), the Department of Industry (DOI) under the Ministry of Industry, Commerce and Supplies issued a press release following the damage it sustained during the recent unrest on 8-9 September 2025 (2082/05/23-24).

Key Updates

  1. Resumption of Essential Services from 14 September 2025 (2082/05/29)

Despite disruptions, the DOI has confirmed that essential services will resume from 14 September 2025 (2082/05/29). This ensures that businesses and individuals with urgent requirements will be able to access necessary industrial registration and related services.

  1. Adjournment of All Pending Hearings

The DOI has announced that all hearings of cases and matters pending before it have been adjourned until further notice. Parties should note that no hearings will proceed as scheduled, and new dates will only be communicated once the DOI issues another notice.

Practical Implications

  1. For businesses awaiting service delivery: Expect delays in processing applications or requests until operations normalize.
  2. For parties with cases before the DOI: Treat all scheduled hearings as postponed indefinitely. Prepare to monitor future DOI communications for rescheduled dates.
  3. For compliance planning: Adjust timelines for filings, registrations, or disputes that depend on DOI’s administrative processes.

G&A’s Commentary

The DOI’s notice reflects the practical difficulties caused by recent events, but also provides clarity on continuity of essential services. Businesses should prepare for partial service resumption but anticipate delays in case hearings. We advise close monitoring of DOI updates and timely coordination with counsel to mitigate disruption to industrial and regulatory processes.

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 industrial registrations, hearings, or compliance matters before the DOI, please contact our office to schedule a consultation with our experts.

 

Enlistment of Social Media Platforms in Nepal: A Mandatory Requirement

Posted on by Rajanish Ojha

Introduction

The Government of Nepal has taken decisive enforcement action against social media platforms operating in the country without registration. Following the expiry of the deadline under the Directives for Managing the Use of Social Media, 2080 (2023), the Ministry of Communication and Information Technology (MoCIT) has directed the Nepal Telecommunications Authority (NTA) to block unregistered platforms.

Key Highlights

  • Deadline expired: The 7-day registration deadline, issued on 12 Bhadra 2082 (28 August 2025), ended on 3 September 2025.
  • Immediate enforcement: From 4 September 2025, NTA began deactivating access to non-compliant platforms.
  • Major platforms affected: Global platforms including Facebook, Instagram, WhatsApp, YouTube, X (Twitter), LinkedIn, and Reddit face restrictions in Nepal.
  • Registered platforms: TikTok, Viber, Nimbuzz, Witk, and Poppo Live have completed registration, while Telegram and GlobalLink/Global Diary are in process.
  • Regulatory rationale: The move follows a Supreme Court directive requiring the government to regulate online platforms to curb harmful content, cybercrime, and misinformation.

Detailed Explanation

The Directives for Managing the Use of Social Media, 2080 mandate that both domestic and foreign social media operators must:

  • Register with MoCIT
  • Appoint a local contact person
  • Designate a grievance officer
  • Implement self-regulation mechanisms

Despite repeated government notices, major international platforms did not submit applications by the deadline. The authorities have now initiated deactivation, with the Ministry confirming that any platform completing registration will be reinstated immediately.

Action Points / Practical Implications

  • For Businesses: Companies relying on Facebook, Instagram, YouTube, or LinkedIn for marketing, communication, and recruitment may face immediate disruption. Alternative registered platforms should be explored.
  • For Platforms: Registration with MoCIT is now a legal pre-condition for operation in Nepal. Platforms should initiate compliance urgently to avoid commercial, reputational, and operational risks.
  • For Users: Individuals and businesses should prepare for temporary unavailability of unregistered platforms and consider diversifying digital communication channels.

Firm Commentary

This enforcement marks a turning point in Nepal’s regulatory approach towards digital platforms. While the government aims to ensure accountability and control harmful content, the sudden enforcement highlights gaps in preparedness for businesses and users who depend heavily on these platforms.
Gandhi & Associates is currently advising clients, including social media operators, on urgent compliance measures and the legal process for registration under MoCIT.

Disclaimer: This G&A Update is for general informational purposes only and does not constitute legal advice. For specific legal advice regarding social media enlistment requirements in Nepal, please contact Gandhi & Associates.