CONCEPT OF REGULATORY ENVIRONMENT
UNIT
REGULATORY
ENVRIONMENT
6
CHAPTER OUTLINE
 Concept of private firm
 Features of private firms
 Private firm registration act
 Partnership act
 Companies Act
 Industrial Enterprise Act
 Foreign Investment Act
 Labor Act
 Trade Union Act
 Mines and Minerals Act
 Intellectual Property Act
 Consumer Protection Act
Regulatory environment consists of laws and regulations that have been
developed by federal, state, and local governments in order to exert control
over business practices. It is a set of laws, regulations, which influence the
business organizations and their operations. These laws work together to
ensure predictability and fairness.
Business law encompasses all of the laws that dictate how to form and run a
business. This includes all of the laws that govern how to start, buy, manage
and close or sell any type of business. Business laws establish the rules that
all businesses should follow. A savvy businessperson will be generally
familiar with business laws and know when to seek the advice of a licensed
attorney. Business law includes state and federal laws, as well as
administrative regulations.
Legal environment or law can influence on business in relation to property
right, protection of intellectual right, and product safety requirement. Laws
differ from country to country. It is essential for future business leaders and
entrepreneurs to have an understanding of the role of the law and legal risk
in shaping business decisions, achieving competitive advantage, and
avoiding legal pitfalls.
The main purpose of business legislation in Nepal
 To build up the business in a sustainable way
 To protect the rights of the business as well as consumers
 To encourage the business to follow ethical practices
 To enhance the contribution of the business sector towards national
development.
Some business legislation in Nepal
The important legislations that concern the business enterprises include:
1. Private firm registration act, 1958
2. Partnership act, 1964
3. Companies Act, 2006
4. Industrial Enterprise Act, 2016
5. Foreign Investment and Technology Transfer Act, 1992
6. Labor Act, 1992
7. Trade Union Act, 1992
8. Mines and Minerals Act, 1985
9. Intellectual Property Act, 1965
10. Consumer Protection Act, 1998
PRIVATE FIRM REGISTRATION ACT, 2014 (1958)
This act deals with the provisions of registering and operation of private
firms engaged in trade and industry. The following are some of the notable
provisions of the act:
a) Application and registration: A person who intends to register a
private firm may submit an application in the format as prescribed to the
concerned Department along with the prescribed fee. Such application
shall set out the following particulars:
 The name of the private firm.
 The address of the private firm
 Objectives, functions and the particulars of goods or commodity to be
transacted by the private firm.
 The name and address of the owner, and the name of his/her father,
mother and grandfather, grandmother.
 Other particulars prescribed by the Government of Nepal by publishing
a Notification in the Nepal gazette.
b) Unregistered firms’ transactions are invalid: No transaction shall be
valid which is carried out in the name of a firm which is not registered
under this Act.
c) Cancellation of registration: The concerned Department may cancel
the registration of a private firm in the following circumstances:
 If a private firm, which is related with commercial business, fails to
effect renewal of the firm within a prescribed period.
 If the owner of a private firm submits an application to the concerned
Department for the termination of registration of his/her firm upon
setting out reasonable reason.
 If it is found that a firm has been registered by providing false
particulars.
 If a firm fails to submit the particulars sought by the concerned
Department within prescribed period.
 If an industry related private firm closes down operating industry
whether providing information thereof to the concerned Department or
not.
 If an industry related private firm fails to renew the industry within a
prescribed period from the expiry of validity period to renew the firm or
fails to submit a written progress report on action to be taken for the
construction of factory, purchase of machinery equipment or tools and
other acts as may be required in order to establish and operate the
industry as per the condition of the licenses despite the firm is renewed.
 If a private firm commits any other act in contravention of this Act or
Rules framed hereunder.
d) Penalty: The concerned Department shall have discretionary power to
impose a fine from Five Rupees to Fifty Rupees on an owner of a
private firm operated without registration and if the owner again
commits the same offence for three times he/she shall be liable to an
extra Ten Rupees fine for each time in the original fine imposed on
him/her. If such person commits the same act for fourth time, no private
firm shall be registered in his/her name in the future.
Other penalty includes:
 A person who submits false particulars in the course of submitting an
application, the concerned Department shall, on its discretion, impose a
fine from Twenty Five Rupees to Fifty Rupees on him/her.
 A private firm which fails to provide information to be submitted within
the prescribed period, or provides false information shall be liable to a
fine from Twenty Five Rupees to Fifty Rupees in the discretion of the
concerned Department.
 The Government of Nepal may, by publishing a Notification, restrict a
private firm which is not registered or renewed pursuant to this Act, and
the bank which transacts with such firm to export and import any goods.
 A person who is not satisfied with a penalty imposed by the concerned
Department may file an appeal before the Court of Appeal.
PARTNERSHIP ACT, 2020 (1964)
Partnership is defined as any business registered in a record of the
Government of Nepal by the persons who have agreed to share the profit of
the business carried on by them in a single name under an agreement
(Kabuliat) made with each other which entitles all partners to take part in all
business for each partner or entitles any of them for the same on behalf of all
others. Partnership Act, 1964 highlights the legal provision on partnership.
The following are some of the notable provisions of the act:
a) Registration and issuance of certificates: A firm shall have 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 pursuant to this Act. The application for registration
contains the following 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,
 The full name, surname and permanent address of the partners,
 The matter of restriction imposed on the power of a partner, if any,
 The types of partnership and the capital subscribed by each partner,
 The name of a partner or partners, who represent the firm,
 The mode to share the profit and loss between /among partners,
 The mode to calculate the profit of a firm. (j) Any other matters
prescribed by the concerned Department stating which should be set out
in the application.
If a firm fulfils the conditions, the concerned Department registers such
firm pursuant to the Act and after completing registration, Department
issue a certificate (Nissa) of registration.
b) Renewal: An application should be submitted before the concerned
Department in the format as prescribed for the renewal of a firm
registered under this Act within a period of Thirty Five days of the
expiry of fiscal year of the firm.
c) Cancellation of registration: The concerned Department may cancel
registration of a firm which is registered under this Act in the following
conditions:
 If a firm registered for commercial business fails to cause to effect
renewal of the firm within stipulated time.
 If the partners submit an application to terminate the registration of the
firm upon setting out reasonable reasons thereof to the concerned
Department.
 If a firm fails to submit the particulars sought by the concerned
Department pursuant to Section 11a within prescribed period.
 If an industry related firm closes down the operating industry, whether
by providing notice thereof to the concerned Department or not.
 If an industry related firm fails to cause to effect the renewal of the firm
within the prescribed time from the expiry of validity period to renew
the firm; or fails to submit the written progress report on the action as
may be required to be taken for the construction of factory, purchase of
machinery or tools or equipment and operation of the industry in order
to establish and operate the industry as per the condition of the license
despite the firm has been renewed.
 If a firm commits an act in contravention of this Act or Rules framed
hereunder.
d) Mutual relation of partners: The mutual rights and duties of the
partners in partnership firm shall be determined by an agreement made
between the partners. Such agreement may be in an express form or may
be implied in the course of mutual dealing.
e) Use of property of the partnership: No Partners shall use or cause to
use the property of the partnership firm for any other purpose other than
the purpose of the partnership business.
f) No compulsion for additional capital: No partner shall be compelled
to add more capital than the amount prescribed in the agreement of
partnership deed despite the request of other partners. 16. No
substitution of partners: No partner shall, without the consent of all
other partners, make or keep to any other person as a partner in the firm
instead of him/her.
g) Share of profit and loss: In the course of sharing the profit and loss
between/among partners it shall be shared in a manner as referred to in
the agreement, if any and it shall be shared on the pro rata basis if such
provision does not exist in the agreement.
h) No entitlement to profit: If a partner fails to pay the capital to be
subscribed by him/her to the firm, he/she shall not be entitled to receive
his/her profit until he/she pays the said capital.
i) Liability of a partner: Every partner shall be liable jointly or
personally with all the other partners for all the acts of the firm done
while he/she was a partner.
j) No new partner shall be liable: A person who is newly introduced as a
partner into a firm shall not be liable for any act of the firm done before
he/she became a partner.
k) Transfer of interest: If any partner transfers his/her interest in the firm
by a sale, mortgage or by any other method to someone else such person
may be entitled to claim the profit or any other amount to be received by
the said partner from the business of partnership within that period.
l) Dissolution of firm: Notwithstanding anything contained in the
agreement between partners, any partner may cause to dissolve the firm
for specific reasons and particularly in the following circumstances:
 If a partner has become incapable of performing his/her duties of the
firm as referred to in the agreement; or
 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; or
 If the interest of any other partner is attached (Bhari Bharau) by the
court; or
 If a partner commits an act of fraud or an act of serious recklessness in
the business of the firm; or
 If a penalty of imprisonment is imposed to any other partner.
COMPANIES ACT, 2063 (2006)
Company Act, 2063 deals with registration, operation and liquidation of
company. The following are some of the notable provisions of the act:
a) Incorporation of Company: Any person desirous of undertaking any
enterprise with profit motive may, either singly or jointly with others,
incorporate a company for the attainment of one or more objectives set
forth in the memorandum of association. There shall be a minimum of
seven promoters for the incorporation of a public company.
b) Application to be made for incorporation of company: Any person
desirous of incorporating a company pursuant to Section 3 shall make
an application to the Office, in such format and accompanied by such
fees as prescribed, and along with the following documents, as well:
 The memorandum of association of the proposed company,
 The articles of association of the proposed company,
 In the case of a public company, a copy of the agreement, if any, entered
into between the promoters prior to the incorporation of the company,
 In the case of a private company, a copy of the consensus agreement, if
any, entered into ,
 Where prior approval or license has to be obtained from anybody under
the prevailing law prior to the registration of a company carrying on any
particular type of business or transaction pursuant to the prevailing law,
such approval or license,
 Where the promoter is a Nepalese citizen, a certified copy of the
citizenship certificate and where a corporate body is a promoter, a
certificate of registration of incorporation, decision of the Board of
directors, regulating the incorporation of the company and major
documents regarding incorporation.
 Where the promoter is a foreign person or company or body, permission
obtained under the prevailing law to make investment or carry on
business or transaction in Nepal,
 Where the promoters is a foreign person, a document proving the
country of his citizenship,
 Where the promoter is a foreign company or body, a certified copy of
the incorporation of such company or body and major documents
relating to such incorporation.
c) Registration of company: Where an application is made for the
incorporation of a company pursuant to Section 4, the Office shall, after
making necessary inquiries, register such company within 15 days after
the date of making of the application and grant the company registration
certificate to the applicant.
d) Limited liability: The liability of a shareholder of a company
incorporated under this Act in respect of its transactions shall be limited
on to the maximum value of shares which he has subscribed or
undertaken to subscribe.
e) Number of shareholders: The number of shareholders of a private
company shall not exceed fifty. The number of shareholders of a public
company shall be seven in minimum and a maximum of any number.
f) Terms to be abided by company: An company incorporated under this
Act shall abide by the following terms, in addition to those set forth in
this Art, memorandum of association or articles of association:
 The company shall carry on all of its activities and transactions by its
name.
 A private company shall add the words “private limited’’ to its name as
the last words and a public company shall add the word “limited” to its
name as the last word. Provided, however, that this provision shall not
apply to a company not distributing profit.
 A private company shall not sell its shares and debentures publicly.
 A private company shall not pledge, or otherwise transfer title to, its
securities to any person other than its shareholder without fulfilling the
procedures contained in the memorandum of consensus agreement,
 A company shall not open a partnership or private firm.
 Except as otherwise provided in this Act, a company not distributing
profits shall not distribute dividends among its members or pay, directly
or indirectly, any amount to a member or his/her close relative.
g) Paid up capital of public company: The paid up capital of a public
company shall be a minimum of ten million rupees, except as otherwise
provided in the prevailing law or in a notification by the Government of
Nepal in the Nepal Gazette that the paid up capital of any particular
company shall be in excess of the said required minimum.
h) Conversion of private company into public company: In the
following circumstances, a private company shall be converted into a
public company under this section:
 If the general meeting of the private company, by adopting a special
resolution, decides to convert that company into a public company,
Provided, however, that no private company shall be capable of being
converted into a public company unless and until it fulfills the
requirements to be fulfilled under this Act for being a public company
 If twenty five percent or more of the shares of a private company are
subscribed by one or more than one public company, however, that in
computing the percentage as referred to in this Clause, the share passed
by any banking or financial company as a trustee shall not be calculated.
 If a private company subscribes twenty five percent or more of the
shares of a public company.
i) Conversion of public company into a private company: In the
following circumstance, a public company shall be converted into a
private company under this Section:
 If the number of shareholders of the public company becomes less than
seven,
 If the public company fails to maintain its paid-up capital.
j) Firm shall be dissolved immediately: A firm shall be dissolved
immediately, upon the death of a partner or upon the adjudication of a
partner as an insolvent for being unable to pay back the debt of the
creditor.
INDUSTRIAL ENTERPRISE ACT, 2016
The Industrial Enterprises Act 2073 (2016) (“IEA”) has been enacted on
November 22, 2016 to replace the previous Industrial Enterprise Act 2049
(1992).It deals with the registration, operation, facilities and dissolution of
industries in Nepal. The following are some of the notable provisions of the
act:
a) Registration: All industries shall be operated only upon registration
with the Department of Industry. In case of minor or cottage industries,
the registration may be within 6 months from the commencement of
operation.
b) Environmental compliances: Pursuant to the Act, industries should
commence activity related to establishment and operation of industries
only after completion of applicable environment studies. This provision
provides for much needed clarity as there were certain practical
difficulties where environmental clearance required prior to registration
of the industry.
c) No work no pay: This act has the provision of no work no pay system
which has been a major demand of the country’s private sector. It has
provisioned non-distribution of salary during the period of no work.
d) One window policy: This Act has introduced the “One window policy”
to provide the services of Department of Industry in convenient and
easy way. The Act has also incorporated provision to register
complaints directly to the Ministry if the concerned authorities delay in
registering industries in stipulated time.
e) Tax exemption: This act has given income tax exemption for up to five
years to hotels, resorts and other businesses related to tourism
established in the places other than metropolitan and sub-metropolitan
cities.
f) Mandatory CSR: This act has made mandatory for businesses making
turnover of Rs. 150 million yearly to spend one percent of their profit on
corporate social responsibility.
FOREIGN INVESTMENT AND TECHNLOGY TRANSFER ACT,
1992
Foreign investment and technology act, 2048 (1992) deals with the
procedures of foreign investment and technology transfer. Its main purpose
is 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.
The following are some of the notable provisions of the act:
a) Permission to be obtained: A person desiring to avail the foreign
investment or technology transfer shall be required to make an
application to the Department in the prescribed form along with the
prescribed particulars for obtaining permission in that behalf.
Department shall, in the case of an industry with fixed assists up to five
hundred million rupees, itself, and in the case of an industry with fixed
assets in excess thereof, in accordance with the decision of the Board,
grant permission within thirty days from the date of application.
b) Repatriation facility: A foreign investor making investment in foreign
currency shall be entitled to repatriate 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.
c) Provisions for 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.
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.
Provided that a foreign investor who, at a time, makes investment in an
amount no less than one hundred thousand United States dollar or in
convertible foreign currency equivalent thereto, and his/her dependent
family shall be granted a residential visa until such investment is
retained.
d) Settlement of disputes: 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. If the dispute could not be settled in the
manner, it shall be settled by arbitration in accordance with the
prevailing arbitration Rules of the United Nations commission on
International Trade Law (UNCITRAL).
LABOR ACT, 1992
Labour Act, 2048 (1992) deals with appointment, remuneration working
conditions and other terms and rules regarding labour in Nepal. The
following are some of the notable provisions of the act:
a) Appointment of worker and employee: In cases where it is required to
appoint a worker or employee in any post, the Manager should advertise
in order to select such a worker or employee and the worker or
employee so selected have to be provided with appointment letter and
be engaged at work.
b) Prohibition of engaging non-Nepalese citizens at work: Non-
Nepalese citizens should not be permitted to be engaged at work in any
of the posts. If a Nepalese citizen could not be available for any skilled
technical post even after publishing an advertisement in national level
public newspapers and journals, the Manager may submit an application
to the Department of Labour along with the evidence of such fact for the
approval to appoint a non-Nepalese citizen. Department of Labour may,
on the recommendation of the Labour Office, grant approval to engage a
non-Nepalese citizen at work years for a maximum period of up to five
years not exceeding two years at a time and, in the specialized kind of
skilled technical post, for a period up to seven years.
c) Security of Service: The service of any permanent worker or employee
may not be terminated without following the procedures prescribed by
this Act or the Rules or Bylaws made under this Act.
d) Compulsory retirement: The Proprietor may compulsorily retire any
worker or employee who has crossed the age of fifty five years.
Provided that he/she may extend the period of service of any worker of
employee by five years, in case the worker or employee is indispensable
for the operation of the functions Enterprise.
e) Working hours: No worker or employee shall be deployed in work for
more than eight hours per day or forty eight hours per week and they
shall be provided one day as weekly holiday for every week.
f) Extra wages for overtime to be provided: Where 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 should be paid overtime wages at the rate
of one and one-half time of his/her ordinary rate of wages.
g) Minimum remuneration fixation committee: 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.
h) Period of remuneration: The Proprietor may fix the period of payment
of remuneration to the workers or employees on weekly, fortnightly or
monthly basis in way not exceeding the period of one month.
i) Welfare fund: The Enterprise shall have to establish a Welfare Fund, as
prescribed for the welfare and benefit of the workers or employees.
j) Compensation: In case any worker or employee of the Enterprise is
physically wounded or seriously hurt or dies in course of his/her work,
the compensation should be paid to him/her or to his/her family, as
prescribed.
TRADE UNION ACT, 1992
Trade Union Act, 2049 (1992) deals with the legal provision regarding
registration, operation of Trade Union and other necessary provisions
relating to it for the protection and promotion of professional and
occupational rights of the persons engaging in self-employment and the
workers working in various industry, trade, profession or service in
enterprises or outside the enterprises. The following are some of the notable
provisions of the act:
a) Registered of trade union: The act has made the provision of
registration of trade unions at different levels:
 Registration of enterprise level trade union: The workers of
concerned enterprise may constitute an Enterprise Level Trade Union to
protect and promote their occupational rights. In order to register an
Enterprise Level Trade Union constitute an application in the prescribed
form signed by at least ten members of the Trade Union as designated
by the working committee along with the Constitution of the Trade
Union, prescribed fee and other prescribed particulars should submit to
the Registrar. The Registrar should after receiving an application if finds
complied with the Act, should register the Trade Union within 15 days
from the date of receipt of application or from the date of receipt of
additional particulars as requested and provide certificate to the
applicant in the prescribed form.
 Registration of trade union association: At least fifty enterprise
Level's Trade Union or five thousand Agriculture Laborers of at least
twenty districts comprising one hundred persons from each district or
Five thousand workers of similar nature Enterprise, may constitute a
Trade Union Association by mutual agreement.
 Registration of the Trade Union Federation: At least ten Trade Union
Association may constitute a Trade Union Federation by mutual
agreement.
b) Autonomous and Corporate body: The Trade Union shall be an
autonomous and corporate body having perpetual succession.
c) Objectives: The objectives of the Trade Union are as follows:
 To engage in economic and social development of the workers by
improving their working conditions.
 To make an effort to establish good relationship between worker and
management.
 To assist in the development of Enterprise by increasing the productivity
of Enterprise.
 Try to make the workers dutiful and disciplined.
d) Recognition of the Authorized Trade Union: The Authorized Trade
Union shall be recognized for the collective bargaining with the
management on behalf of the workers of authorized enterprise level
Trade Union.
e) Fund: The Trade Union shall have its own separate fund and the fund
shall contain the following amounts:
 The amount obtained from the national fee.
 The amount obtained from the national organizations in the form of Aid
or Grant.
 The amount obtained from any other sources.
MINES AND MINERALS ACT, 1985
Mines and mineral act, 2042 (1985) deals with the identification, excavation
and other administrative procedures related to mines and minerals in Nepal.
The following are some of the notable provisions of the act:
a) Property of Government of Nepal: All minerals lying or discovered
on the surface or underground in any land belonging to an individual or
 the government within Nepal shall be the property of the Government of
Nepal.
b) Classification of minerals: For the purpose of this Act, the minerals
shall, on the basis of nature and importance of minerals, be classified as
follows:
 Classification on the basis of nature of the minerals:
 Metallic minerals, and
 Non-metallic minerals
 Classification on the basis of importance of minerals:
 Very precious minerals
 Precious or valuable minerals
 Ordinary minerals
c) Power to carry out the mining operations: Government of Nepal shall
have the exclusive power (authority) to carryout mining operations. The
Department may undertake mining operations by itself or it may cause
to undertake by any person having issued a license, subject to this Act.
Government of Nepal shall have the power (authority) to be a partner in
mining operations by investing capital there for or otherwise.
d) Environmental effect: The person undertaking mining operations shall,
in undertaking mining operations, have to undertake it without causing
significant adverse effect on environment. Likewise, a person
undertaking such operations shall have to adopt protective measures as
prescribed on environmental protection.
e) License for the mining operations: Any person desirous to undertake
mining operations, subject to this Act and the Rules framed hereunder,
shall submit an application in the prescribed format to the Department
for obtaining a license. The Department shall, after receiving an
application, make necessary inquiries and may grant a license for
mining operations in the format and charging fees as prescribed
f) Royalty: The licensee shall pay royalty and other charges as prescribed
to the Department on the basis of the category, quality, and quantity of
the minerals.
g) Inspection and investigations: The Department may authorize any
expert, authority or agency to inspect and investigate whether or not
mining operations have been undertaken in accordance with this Act and
the Rules framed hereunder.
h) Penalties: Government of Nepal may in case any person undertakes
mining operations without obtaining a license under this Act, stop such
mining operations, seize the machinery equipment, instruments and
goods used for such mining operation including the minerals explored in
an unauthorized manner, and punish such a person with a fine not
exceeding One Hundred Thousand Rupees and also cause to recover
compensation for the property lost or damage resulting from such
operations.
INTELLECTUAL PROPERTY- PATENT, DESIGN AND
TRADEMARK ACT, 1965
Patent, Design and Trademark Act, 2022 (1965) deals with legal provisions
related to the patents, designs and trademarks. Its main purpose is to update
the legal arrangements in respect to patents, designs and trade marks for the
convenience and economic benefit of the general public. The following are
some of the notable provisions of the act:
Patent Act, 2022 (1965)
 Application: A person desirous of having any patent registered in
his/her name should submit application to the Department containing
the particulars mentioned below:
 Name address and occupation of the parson inventing the patent.
 If the applicant him/herself is not the inventors, how and in what
manner he/she acquired title thereto from the inventor.
 Process of manufacturing, operating or using the patent.
 The theory or formula if any, on which the patent is based.
Along with the application, applicant should also submit map and
drawings along with particulars, of the patent, as well as the fee
specified.
b) Registration of patent: On receipt of applications filed for registration
of a patent, the Department shall, after completing necessary
investigations issue a registration certificate in a format as specified to
the applicant.
Registered patents to be published: Patents registered under this Act,
other than those which must be kept secret in the national interest, shall
be published by the Department in the Nepal Gazette for the information
of the public.
c) 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.
d) Penalty for violation: A person, who commits any of the acts, shall be
fined as per gravity of offense by the order of the Department and the
goods or commodities related to the offense shall be confiscated :
 A fine of up to Five Hundred Thousand Rupees for committing an
offense.
 A fine of up to Two Hundred and Fifty Thousand (Two lakhs fifty
thousand) Rupees for committing an attempt or abetment of an offense.
Design Act, 2022 (1965)
 Application: A person desirous to register the design of any article
manufactured or caused to be manufactured should submit application
to the Department in a formats as specified along with four copies of
such design and maps, and drawings and particulars thereof.
 Registration: On receipt of the application filed by any person, the
Department registers the design in the name of the applicant and issue a
certificate.
 Term of Design. The title of the person in whose name a design has
been registered remained valid for a period of five years from the date of
registration thereof, except when it is renewed
 Punishment: No one can copy or use the design without transferring
the ownership or written permission. If a person does so, a fine not
exceeding fifty thousand rupees may be imposed, and articles and goods
connected with such offense can be confiscated.
Trade Mark Act, 2022 (1965)
 Application: A person desirous to register the trademark of his business
should submit application to the Department in a prescribed format
along with four specimens of such trade-marks.
 Registration of trademark: The department registers the trademark in
the name of the applicant after necessary investigation.
 Time Limit for Use of Trade-marks: In case a trade-mark registered at
the Department is not brought into use 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 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: May be punished with a
fine not exceeding is One Hundred Thousand Rupees and articles and
goods connected with such offense confiscated on the orders of the
Department as per the gravity of offense.
CONSUMER PROTECTION ACT, 1998
Provisions of the Consumer Protection Act, 2054 (1998) protect
consumers from irregularities such as the quality, quantity and prices of
consumer goods or services; ensuring that no one lowers or removes the
attributes or usefulness of consumer goods or services; preventing
circumstances in which monopolies and unfair trading practices may
lead to an increase in prices, as well as false and misleading propaganda
about the use and usefulness of consumer goods or services.
The following are some of the notable provisions of the act:
a) Formation of Consumer Protection Council: Consumer Protection
Council is formed in order to formulate policies relating to the
protection of the rights and interests of consumers, and offer suggestions
to Government of Nepal on matters concerning the rights and interests
of consumers.
The functions, duties and powers of the Council shall be as follows:
 To offer suggestions to Government of Nepal on matters relating to the
protection of the rights and interests of consumers, the supply system
and prices, quality and purity of consumer goods and services.
 To disseminate or cause to disseminate information relating to the rights
and interests of consumers in order to inform them about the standard of
goods and services so as to protect them in matters concerning
consumer goods and services.
 To inform or cause to inform consumers about the prices, quality,
quantity and purity of consumer goods and services, as well as about
unfair trade.
 To conduct or cause to conduct studies in connection with the protection
of the rights and interests of consumers.
 To offer suggestions to Government of Nepal on changing the existing
policies or framing new policies relating to the protection of the rights
and interests of consumers.
 To maintain or cause to maintain updated national and international  In the case of consumer goods such as electronic goods, hardware and
information relating to the protection of the rights and interests of machinery, guarantee thereof, date of guarantee, and other necessary
consumers. matters.
 To monitor or cause to monitor the rights of consumers and offer  In the case of consumer goods which are inflammable, dangerous or
suggestions to Government of Nepal to rectify the shortcomings noticed fragile, precautions for their safety.
in the course of such monitoring.  Other particulars as prescribed.
 To discharge or cause to discharge the functions prescribed by
Government of Nepal. d) Standard of Consumer Goods or Services: In case the limits of the
 To discharge or cause to discharge such other functions as are deemed quality or quantity of any ingredient to be used in any of the consumer
appropriate for the protection of the rights and interests of consumers. goods or services, Government of Nepal shall determine the standard of
such good or service according to the prescribed procedures.
b) Protection and Promotion of Consumer Rights: For the purpose of
protecting the rights and interests of consumers, every consumer shall e) Price Lists to be Kept: Every vendor shall keep at a conspicuous place
have the following rights: of shop a price-list of all consumer goods sold and supplied by him/her,
 Right to be protected from the sale and supply of consumer goods and explicitly mentioning its wholesale and retail prices.
services which may harm life, body, health and property.
 Right to be informed about the prices, attributes, quantity, purity,
quality, etc. of consumer goods and services so as to be safe from unfair
trade practices.
 Right to be assured of an opportunity to choose consumer goods and
services at competitive prices as far as possible.
 Right to be assured that an appropriate agency will hear matters
concerning the protection of the rights and interests of consumers.
 Right to be heard and compensated against exploitation and
grievances....... hardships resulting from unfair trade practices.
 Right to consumer education.

c) Particulars to be Mentioned in Consumer Goods: A producer shall

compulsorily mention the following particulars on the labels of
consumer goods:
 Name and address of the producer, and registration number of the
industry.
 In the case of consumer goods such as food and medicines, their
ingredients as well as their quantity and weight.
 Quality of consumer goods whose quality has been determined, if any.
 Method of consuming consumer goods and possible impact of such
consumption.
 Price, batch number, production date and expiry date of the consumer
goods.