Unit 3

Regulatory Environment
Constitutional framework
Directive principles
Fundamental rights
Division of legislative powers
Regulations related to business firm registration, foreign
investment, finance and investment, taxation, intellectual
property rights, labor and consumer protection.
Corporate governance issues

MBSENV Thapa Makshindra

 Constitutional framework
• Nepal’s new constitution 2015 has 32 parts with preamble and 9
schedules. The general framework of this constitution are;
1. Preliminary 20. Interrelations between the federation,
2. Citizenship provinces and local levels
3. Fundamental rights and duties 21. Commission for the investigation of abuse
4. Directive principles, policies and of authority
responsibilities of the state 22. Auditor general
5. Restructuring of the state and the 23. Public service commission
distribution of state power 24. Election commission
6. President and vice president 25. National natural resources and fiscal
7. Federal executive commission
8. Federal parliament 26. National human rights commission
9. Federal legislative procedure 27. Other commissions
10. Federal financial procedure 28. Provision relating national security
11. Judiciary 29. Provision relating to political parties
12. Attorney general 30. emergency powers
13. Provincial legislature 31. Amendment of the constitution
14. Provincial legislature 32. Miscellaneous
15. Provincial legislative procedure 33. Transitional provisions
16. Financial procedure of province 34. Definitions and interpretations
17. Local executive 35. Short title, commencement and repaeal
18. Local legislature
19. Local financial procedure MBSENV Thapa Makshindra
 Directive Principles
• Political objective of the state- to strengthen a federal democratic
republic system……
• Socio-cultural objective of the state- to build a civilized and
equalitarian society by ending all forms of discrimination,
oppression and injustice…..
• Economic objective of the state-to make the national economy self
reliant, independent and developing with equitable distribution of
means and resources by ending all forms of exploitation and
inequality with participation of PPC sectors…..
• The international relations of the state shall be directed towards
maintaining IR based on sovereign equality, protecting sovereginity,
independence, territorial integrity, and national interest of the
country and promoting national prestige in international
community.

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 Fundamental Rights
Part 3 (16 to 48)
• Right to live with dignity
• Right to freedom
• Right to equality
• Right to communication
• Right to justice
• Right of victim of crime
• Right against torture
• Right against preventive detention
• Right against untouchability
• Right to property
• Right to religious freedom
• Right to information
• Right to privacy
• Right to education
MBSENV
• Right to language and culture
• Right to employment
• Right to health care
• Right regarding labor
• Right to food
• Right to housing
• Right of women
• Right of children
• Right of dalits
• Right of senior citizens
• Right to social justice
• Right to social security
• Right of consumers
• Right against exile
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 Business Legislations
• K. Sundaran: “Business law provides legitimacy, control and incentives to business
activities. It also protects rights and interests of consumers, labours, business, and
society.”
• Glos and Banker: “Business law is that portion of legal system, which guarantees
an orderly conduct of business affairs and their settlements of legitimate disputes
in just manner.”
• N. D. Kapoor: “Mercantile law is also used to denote the aggregate.”

Why Business Law?

• Business law as a special branch law comprises the following features;
• Relates and regulates industry, trade and commercial Activities
• Defines rights and responsibilities of businessman
• Regulates all the business transaction by providing recognition
• Creates conductive environment for promoting business and investment
• Regulates every business activity of business community
• Promotes rights and interest of business community
• Protection of trade and property
• Helps to protect rights of employees and other stakeholders
• Helps to strengthen economy of the nation
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 Some Major Business Legislations in
Nepal
• Four basic type of political systems are;

1. General Business Legislation

• Private firm Registration Act, 1958
This Act deals with the provisions of registering establishment and operation of private
firms and organization engaged in trade and industry. It makes business liabilities as
personal liabilities of the owner.
• Partnership Act, 1964
This Act highlights the legal provisions of registration and operation of partnership for
the interest and convenience of public.
• Company Act, 2006
It deals with registration, operation, management and liquidation of company.
Company means both private public and private. This Act limits the liabilities of
shareholders
• Industrial Enterprise Act, 1992
In Nepal the industrial enterprise Act 1992 deals with the registration, operation,
facilities and dissolution of industries. Industries can be classified as cottage, small,
medium and large. This Act provides ground for Industrial Promotion Board and
Industrial zones for the industrial promotion.

MBSENV Thapa Makshindra

 Some Major Business Legislations in
Nepal
2. Labour Related Legislation
• Bonus Act, 1974
It deals with the regulation of bonus to be distributed to the employees. According to this Act, the
amount of bonus to be distributed should not exceed 10% of the total profit. It should also not be
more than the total salary or wages of six months.
• Labour, Act 1992
The labor Act 1992 deals with different facets of labour administration as well as labour welfare. It
involves with job security, working hours, remuneration, health and safety, welfare provision, any
special provision and settlement of disputes.
• Trade Union Act, 1993
It provides legal base for organizing trade unions. A minimum of 10 employees representing at least
25% of the total employees are entitled to form trade union. This Act encourages collective
bargaining. The main objectives of the trade unions as specified by the Act are improving the
working condition of the workers, enhancement of economic condition of labour, try to maintain
good labour-management relation and improving labour productivity
• Child Labour Act, 2000
According to this Act, children below 16 years have been defined as child and similarly children
below 14 years must not be employed as labour. It prohibits children in hazardous works. If the
children are made to work for more than 6 hours a day and maximum 36 hours in a week, it is
regarded as illegal.
• Industrial training Act, 1982
It deals with the provisions regarding the training of workers for enhancement of industrial skills in
different industries. It has made the provision of Training Council.
MBSENV Thapa Makshindra
 Some Major Business Legislations in Nepal
3. Finance and Investment Legislation
• Foreign Investment and Technology Transfer Act, 1992
It deals with the procedures of foreign investment and technology transfer in
Nepal. It has the provision of permission required to foreign investment, provision
of via and repatriation facility.
• Foreign Exchange Regulation Act, 1961
This Act provides favorable environment to promotes and regulates foreign
investment and technology transfer in Nepal.It deals with the licensing provisions
related to the exchange of foreign currency. It states that the person, firm, or
institutions wishing to involve in foreign exchange transactions must get license
from Nepal Rastra Bank.
• Income Tax Act, 2002
This Act deals with the legal provisions of income tax administration , calculation,
exemptions and concessions, deductions, tax accounting, timing, collection,
penalties and offences in the country. It has broadened the tax base.
• Value Added Tax Act, 1997
Tax is the main source of revenue of the state. Value Added Tax is the latest
innovation in the field of taxation. It is multi staged, commodity and services based
tax which is levied on the value added of business at different stages of production
and distraction. It is indirect tax.

MBSENV Thapa Makshindra

 Some Major Business Legislations in Nepal
4. Consumer Protection Legislation
• Black Market and Other Social Crime Punishment Act, 1997
It aims to protect the consumer form illegal hiking of price of goods
and services, This Act has provision of regulating and monitoring
the market to ensure the reasonable price of goods and services.
• Food Act, 1966
It deals with provision of health of the general people undesirable
adulteration of foods. It has provisions of monitoring to ensure the
right quality of the food products.
• Consumer Protection Act, 1998
This Act deals with the provisions of consumer rights including
protection form malpractices, misleading propaganda and irregular
quality and quantity in Nepal. It provides the rights to the
consumers like right to be safe, right to be informed, right to get
heard and get compensation, etc.

MBSENV Thapa Makshindra

 COMPANIES ACT 2006 (2063)
General Introduction of the Act
Company Act- 2006 is concerning with legal provisions concerning establishment, operation and liquidation of
companies. This Act has been divided into 21 chapters and 188 sections. The basic provisions included are
incorporation process of a company, terms and conditions for company registration, required company
documents, company meetings, provisions for appoint of directors and auditors etc.

Legal provisions
1. Provisions for Incorporation of Company (Public and Private, documents)
2. Provision for Registration of Company
3. Provision for Liability of Shareholders
4. Provision for Company Meeting Procedure
5. Provisions Regarding Capital, Shares and Debentures
6. Provision for Number of Shareholders
7. Provision for Board of Directors (appointment and number)
8. Provision for Accounts of Company (English and Nepali)
9. Provision for Appointment of Company Auditor
10. Provision of Call for Explanation and Investigation
11. Provision for Voluntary Liquidation of Company
12. Provision Regarding Cancellation of Registration of Company
13. Provision for Protection of Shareholders Power
14. Provision for Holding and Subsidiary Company
15. Special provisions Relating to Private Company
16. Provisions Relating to Single Shareholder Company
17. Provisions Relating to Foreign Companies
18. Provisions Relating to Company not Distributing Profits, etc.

MBSENV Thapa Makshindra

 Foreign Investment and Technology Transfer Act
(FITTA) 1992
General Introduction of the Act
This Act is concerned with regulation of foreign investments in various business activities in Nepal. In the
process of industrialization of the country, this Act aims to promote foreign investment and technology transfer
for making the economy viable, dynamic and competitive through the maximum mobilization of the limited
capital, human and the other natural resources.

Legal provisions
Provision for permission for foreign investment and technology transfer (Permission, Application, and Getting Permission)(
Provisions of Facilities and Concessions
According to this Act, a foreign investor making investment in foreign currency shall be send back the following amount outside
Nepal:-
The amount received by the sale of the share of foreign investment as a whole or any part thereof.
The amount received as profit or divided in lieu of the foreign investment.
The amount received as the payment of the principal of and interest on any foreign loan.
A foreign investor shall be entitled to repatriate outside Nepal the amount received under an agreement for the transfer of
technology in such currency as set forth in the concerned agreement.
Provisions Relating to Visa:
Non-tourist visa: A foreign national visiting Nepal in connection with undertaking any study or carrying out any research with the
objective of making investment in Nepal shall be provided a non tourist visa for up to six months.
Business visa: A foreign investor or dependent family or authorized representative of such a foreign investor and department
family of such authorized representative shall for the purpose of stay in Nepal be provided a business visa until the foreign
investment is retained.
Provisions Settlement of Disputes:
Consultations: If any dispute arises between a foreign investor, national investor or the concerned industry, the concerned parties
shall be required to settle the dispute by mutual consultations in the presence of the Department.
Arbitrations: If the dispute could not be settled in the manner as referred by this act and it shall be settled by arbitration in
accordance with the prevailing arbitration Rules of the United Nations commission on International Trade Law (UNCITRAL).
MBSENV Thapa Makshindra
 INDUSTRIAL ENTERPRISE ACT, 1992
General Introduction of the Act
Industrial enterprise Act 1992(2049 B.S.) is related to managing industrial affairs in Nepal. The basic aim of this
Act is to support for the overall economic development of the country. In this regards it is means to make
arrangements for fostering industrial enterprises in a competitive manner through the increment in the
productivity by making the environment of industrial investment more congenial, straightforward and
encouraging.
Legal provisions
1. Classification of Industries
Classification based on Nature: Manufacturing Industries, Agro and forest-Based Industries,
Mineral Industries, Tourism Industries, Service, and Construction Industries.
Classification based on Fixed Assets: Cottage Industries, Small Industries, Medium Industries,
and Large Industries.
2. Provision for registration
3. Matters to be contained in a License or Registration Certificate
6. Provisions regarding Industrial Promotion Board
7. Provisions related to Facilities and Concessions to be Accorded to Industries: as per
8. Other facilities and concessions
Forest-based industry, electricity, Export Promotion Industry, National Priority Industry
9. Constitution of the One-Window committee
10. Provision for industries not to be nationalized
11. Industrial human Resource
12. Provisions relating to Sick Industries
MBSENV Thapa Makshindra
 VALUE ADDED TAX ACT, 1996
General Introduction of the Act
Value Added Tax is the multistage, commodity and services based tax, which is levied on the value added of business at different
stages of production and distribution. In Nepal, Value Added Tax (VAT) was introduced on 16 Nov. 1997. However, it was
implemented fully from the FY 1998/99. VAT replaces the old Sales Tax, Contract Tax, Hotel Tax and Entertainment Tax. This Act
may be called the “Financial Act, 2068 (2010)." This Act comprises 41 sections and three annexes.

Legal provisions
Provision for registrant for VAT 5 million rupee
Provision for Obligation of VAT registrant: Some of the notable obligations of the VAT registrant are as follows;
Submit VAT return and pay the collected VAT amount within the 25th day of the following month.
Provide tax invoice to their customers.
Maintain purchase and sales book separately for the VAT purpose.
Keep their VAT record for a period of 6 years.
Inform the Inland Revenue Office of changes to the business including new address, telephone number or a re-organization of a
partnership within 15 days.
Put their Certificate of Registration in the premises where customers may easily see and read it.
Allow tax officers to enter the business to examine the business records and the stock on hand.
Provision for administrative review: (Inland Revenue Department)
Provision of penalty
Provision for VAT Exemption: The following goods and services are VAT exempted;
Basic agriculture products, Basic necessity, Livestock and their products, Agriculture related products and equipment, Medicines,
medical treatment and other health services, Education, Books, newspaper, printed material, and printing and publishing
Culture, arts and craftsmanship related services, Passenger transport and goods transport services, Miscellaneous goods and
services, Building and land, Betting, casinos and lotteries.
Provision for Goods and services subject to zero rate
Goods exported from Nepal, Services to be supplied to persons outside Nepal, Diplomatic goods, Treaties, Special economic
zone, Cottage industries, Scooters to disables, Indigenous hydropower project, Alternative energy

MBSENV Thapa Makshindra

 TRADE UNION ACT, 1992
General Introduction of the Act
Trade Union Act, 1992 is concerned with regulation of different trade unions established for preserving and
protecting rights of workers. It deals with various rules related to the establishment and operation of trade
unions within Nepal.
Key Features
1. Compulsion in registration: This act mandates for formal registration of all types of trade unions. The
procedure for registration of enterprise and association level are;
Enterprise level: At least ten members is required to form an enterprise level trade union.
Trade Union Association: to form a trade union association, at least fifty enterprise level trade unions of five
thousands agriculture labors of at least twenty districts comprising one hundred persons from each districts or
five thousand workers of similar nature enterprise can form a trade union association with mutual agreement.
Trade Union Federation: A trade union federation could be formed by constituting at least ten trade union
associations.
2. Autonomous and corporate body: As like a company a trade union can act like an artificial person having
perpetual succession.
3. Objectives of trade unions: trade unions shall carry any of the following objectives;
To improve working conditions of the workers
To act for economic and social development of the workers
To establish and maintain good relationship between management and worker
To help in productivity enhancement and development of the firm
To work in making workers skillful, responsible and disciplined
4. Recognition of trade union: As a separate autonomous worker’s association, a trade union can work for the
betterment of workers as collective bargaining and negotiation as representative of the workers.
5. Use of fund: a trade union can have owns fund. Fund raising and application should be legal and auditing of
fund related activities is must.
MBSENV Thapa Makshindra
 INCOME TAX ACT, 2002
General introduction of the Act
Income Tax Act, 2002 is related to regulate income taxes from various sources. This Act deals with the legal provisions of income
tax administration in the country. It aimed in enhancing revenue mobilization of the country by making process of collecting
revenue effective for the economic development of the county. There are 66 sections in this Act.
Main provisions
Provision for Broadened tax base: This Act has broadened the tax base and tax rates are spelled out in the Act. The tax rates and
concessions are harmonized on equity grounds.
Provision for Deduction of related expenses: All real expenses incurred in generating incomes form business or investments are
allowed for deductions.
Provision for PCC and R and D: Special provisions are made for some specific expenses (PCC-pollution control cost and R&D-
research and development cost, interest paid to the controlling entity) incurred by the taxpayer.
Provision for Set-off and carry forward of loses: A liberal loss set-off provision has been developed where, carry forward and
backward of losses are allowed under given circumstances.
Provision for Method of tax accounting: Tax accounting methods have been clearly specified for different persons (Taxpayers)
under different income heads. This Act has followed the both cash and accrual basis of accounting.
Provision for Residential status: The Act has distinguished the resident and non-resident.
Provision for Minimize tax evasion: There are provision for General Anti-Avoidance Rule (GAAR), control mechanisms of transfer
pricing, control of income splitting and control of thin capitalization and control of dividend stripping.
Provision for Medical tax credit: For a resident natural person, medical tax credit as well as other specified deductions facilities
has been provided by the Act.
Provision for Self tax assessment
Provision for Administrative and judicial responsibilities
Provision for Capital gain tax
Provision for International taxation: The foreign source income of a resident person has been brought into the tax net.
Provision for Fine and penalties: Stringent fine and penalty provision has been developed to take Action against the tax
defaulters.
Provision for Appeal
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 LABOUR ACT, 1992
Introduction: Labour Act 1992 is a special regulation concerning maintaining labour relations through proper employment
practices. This Act aims to make timely provisions relating to labour by making provisions for the rights, interests, facilities and
safety of workers and employees working in enterprises of various sectors. This Act has been divided into 11 chapters with 92
sections.
Features
Provision of advertisement and appointment letter for appointment of Worker and Employee
Prohibition of Engaging Non-Nepalese Citizens at Work
Provision for engagement in Work: Minors and females may be engaged in the works normally from six o'clock in the morning till
six o’clock in the evening, except in the prescribed conditions.
Provision for working hours: Working Hours prescribed by the act is eight hours per day or forty eight hours per week. No worker or
employee is deployed in work for more than five hours continuously without providing an interval. Any worker or employee is engaged to
work for more than eight hours in a day or forty eight hours in a week, he/she shall be paid overtime wages at the rate of one and one-half
time of his/her ordinary rate of wages.
Provision regarding Remuneration: Government of Nepal may fix the minimum remuneration, dearness allowances and facilities of workers
or employees or Enterprises on the recommendation of the Minimum Remuneration Fixation Committee and the notification on rates so
fixed shall be published in the Nepal Gazette. The worker and employee appointed permanently shall receive an increment in remuneration
each year. Prohibition on Deduction of Remuneration
Provisions Relating to Health and Safety includes: To Keep each Enterprise clean and tidy by cleaning daily including with germicidal
medicines, necessary arrangements of proper drainage and coloring from time to time and preventing from odor; To make arrangements for
adequate supply of fresh air and light as well as proper temperature in the working rooms; To make arrangements of removal and disposal of
solid waste during production process, etc.
Welfare provisions include: Welfare Fund, Compensation, Gratuity, Provident Fund and Medical Expenses, Leave, and Provisions Relating to
Children.
Conduct and Punishments: The Proprietor may punish any worker or employee performing misconduct with any of the following
punishments; To reprimand, To withheld annual grade increments, To suspend, or To dismiss from service.
Committee, Officers and Other Provisions: Central Labour Advisory Board, Labour Relation Committee, and Welfare Officer.
Settlement of Labour Dispute: Establishment of Labour Court and Procedures Relating to Personal Claims or Complaints.
Miscellaneous: Special Powers of Government of Nepal are; Powers to Remove Obstacles, Powers to Frame Rules, Power to Issue Directives,
Power to Charge Fine, and Delegation of Authority.

MBSENV Thapa Makshindra

 PARTNERSHIP ACT, 1964
General Introduction of the Act: Partnership Act 1964 provides legal provisions on partnership for the interest and
convenience of general public. Partnership Act has 6 chapters and 44 sections.
Provision for registration: Firm to be registered in the record of the concerned Department within a period of Six
months from the date when the partners enter in to the agreement of partnership. The application for registration
contains the details: Full Name of the firm, the Principal place of business of the firm, the objectives of the firm
including the short description of the nature of the goods or services, as the case may be, which the firm intends to run
the business etc.
Issuance of a Certificate after registration of a firm: If a firm fulfils the conditions, the concerned Department shall
register such firm pursuant to this Act and after completing registration, the said Department shall issue a certificate
(Nissa) of registration in the name of partners.
Approval required changing the particulars
Renewal: within a period of Thirty-Five days of the expiry of fiscal year of the firm.
Provision for cancelling registration in the following conditions; non renewal within time, if the partners submit an
application to terminate the registration, if a firm fails to submit the particulars sought by the concerned Department,
etc.
Provisions for rights and duties of partners are; Mutual relation of partners, Use of property of the partnership, No
compulsion for additional capital, No substitution of partners, Entitlement to have access to and to copy of the account
and books of the firm and Partner may transfer his/her interest:
Provisions regarding relations between firm and third party (Unau byakti) include; Partners are entitled to represent
the firm, an act done by the partner binds the firm, liability of a partner and no new partner and a retired partner shall
be liable.
Provisions for dissolution of the firm (Partnership) when; A partner has become incapable of performing his/her
duties of the firm as referred to in the agreement, if any other partner fails to pay the amount to be paid to the firm, or
if he/she transfers his/her/ interest in the firm to a third party without the consent of all the other partners, if a penalty
of imprisonment is imposed to any other partner and so on.
Provision of penalty: The concerned department may impose following penalty in the following matters; If a firm
carries on any business without registration, If it appears that false particulars has been provided in the application
pursuant, A firm which fails to provide the notice
MBSENV . Thapa Makshindra
 PATENT DESIGN AND TRADE MARK ACT 1965
General Introduction of the act: Patent design and trademark act is the legal device to make timely legal provisions in
relation to patents, designs and trademarks for the convenience and economic interest of the public in general. This act has 5
chapters and 28 sections.

A. Provisions regarding patent

Application to be filed for obtaining right to patent along with required documents and Examination by Department.
Provisions under which patents cannot be registered are; In case the patent is already registered in the name of any other
person, or In case the applicant him/herself is not the inventor of the patent sought to be so registered nor has acquired rights
over it from the original inventor, or In case the patent sought to be registered is likely to adversely affect the public health,
conduct or morality or the national interest.
Term of patent: The title of the patentee to the patent shall be valid only for a period of seven years from the date of registration.
Transmission of name of patent registration holder: Where any patent holder transfer the title to any patent registered in his or
her name to another person, the transferee of that patent has to make an application to the department.
B. Provisions regarding Design
To obtain right to design: An application in a formals together with four copies of such design and maps, and drawings and
particulars thereof with required registration fee.
Registration of design: On receipt of the application filed by any person, the department shall register the design in the name of
the applicant and issue a certificate.
Non-registration of design: Provided that where such design undermines the prestige of any person or organization or prejudices
the decency or morality of the general public or is contrary to national interest or such design has already been registered in the
name of any other person, such design shall not be registered pursuant to this sub-section.
Term of Design. The title of the person in whose name a design has been registered shall remain valid for a period of five years
from the date of registration.
Provision of Punishment : In case a person, contravenes the provisions or operates a design invalidated the department, may be
punished with a fine not exceeding Fifty thousand Rupees, and articles and goods connected with such offense shall be
confiscated on the order of the Department.

MBSENV Thapa Makshindra

PATENT DESIGN AND TRADE MARK ACT 1965.....

C. Provisions regarding Trade mark

• Application for registration of trademark
• Registration of trademark:
• Prohibition to Use Trade-marks: No trade-mark may be used as a
registered trade-mark without registering it at the department.
• Time Limit for Use of Trade-marks: within one year from the date
of registration thereof, the department shall conduct necessary
inquiries and cancel such registration.
• Term of Trade-Marks : The title of the person in whose name a
trade-mark has been registered under shall remain valid for a
period of seven years from the date of registration thereof, except
when it is renewed.
• Punishment for illegal use of trade-marks

MBSENV Thapa Makshindra

 Foreign Employment Act, 2007
General Introduction of the Act: Foreign employment Act is an Act made to amend and
consolidate laws relating to foreign employment. This Act regulates the laws relating to foreign
employment in order to make foreign employment business safe, managed and decent and
protect the rights and interests of the workers. This act has 12 chapters and includes 87 sections.
Specification of countries for carrying on foreign employment business: The Government of
Nepal specifies countries for carrying on the foreign employment business.
Power to make bilateral agreement: The Government of Nepal may make a bilateral labor
agreement with a foreign country where the citizens of Nepal have gone or may go for foreign
employment.
Government of Nepal to select and send workers, the Government of Nepal may select any
licensee institution through open competition and send workers through such institution.
Provision of Steering Committee for formulating policies and making other arrangements
required to make systematic, competitive and transparent the procedures to be followed while
sending workers by the Government of Nepal
Prohibition on sending a minor for employment: Any minor who has not completed eighteen
years of age shall not be sent for foreign employment.
Prohibition on gender discrimination: No gender discrimination shall be made while sending
workers for foreign employment.
Provisions Relating to License

MBSENV Thapa Makshindra

 Foreign Employment Act, 2007
• Prohibition on carrying on foreign employment business without license
• Provisions relating to license: An institution intending to carry on the foreign employment business shall make an
application to the Department for the license and the Department shall grant the license.
• Period and renewal of license : Except where the license is canceled, the license shall remain valid for up to one
financial year
• Revocation of license: If a licensee fails to get renewed within the period, such license shall be revoked.
• Provisions Relating to Prior Approval and Selection of Workers: Prior approval to be obtained, publication of
advertisement, list to be prepared after selecting workers etc.
• Provisions Relating to Training and Workers
• Provisions Relating to Foreign Employment Welfare Fund
• Provisions Relating to Monitoring and Inquiry: The Department shall monitor and inspect, from time to time, and
in cases where a complaint is made by a worker the Department may make, or cause to be made, necessary
inquiry there into.
• Provisions for Offense and Punishment: The following offences are punishable under the Act; Carrying on foreign
employment business without license, sending workers by licensee without obtaining permission, sending any
minor for foreign employment, sending workers to countries not opened by Government, opening branch office
without permission, failure to publish advertisement and collecting visa fees, service charges and promotional
costs in excess: a fine of one hundred thousand rupees.
• Foreign Employment Department: There shall be a Foreign Employment Department under the Ministry of Labor
and Transport Management to carry out functions relating to foreign employment.
• Appointment of Labor Attaché: The Government of Nepal shall appoint at least gazetted officer as the Labor
Attaché for a country where five thousand or more workers have been sent for foreign employment.

MBSENV Thapa Makshindra