Chapter-5

Regulatory Environment

Nepal Engineering Council Act

Nepal Engineering Council is an autonomous body formed under
NEC Act 2055 BS with the mission of regulating engineering
profession effectively and scientifically and also undertaking
licensing of Engineers in accordance with their qualification.

NEC ACT 2055

7 chapters and 38 clauses
The Nepal Engineering Council Act 2055 is divided into seven
chapters that govern the establishment and regulation of the Nepal
Engineering Council.
 Preliminary This chapter includes the title, definitions,
objectives, and authority of the Nepal Engineering Council.
 Establishment, Objectives, and Functions of the Council This
chapter outlines the establishment and objectives of the
Nepal Engineering Council. It also defines the functions and
powers of the council, including its role in regulating the
engineering profession in Nepal.
 Membership and Organization of the Council This chapter
describes the composition of the Nepal Engineering Council
and the eligibility requirements for membership. It also
outlines the procedures for appointing members to the
council, as well as the duties and responsibilities of council
members.
 Powers and Duties of the Council This chapter describes the
powers and duties of the Nepal Engineering Council,
 including its ability to establish rules and regulations
governing the engineering profession in Nepal. It also
outlines the council's role in monitoring and enforcing ethical
standards among engineers.
 Engineering Education and Training This chapter outlines the
requirements for engineering education and training in Nepal.
It also describes the process for accrediting engineering
programs and the procedures for licensing engineers in the
country.
 Discipline, Grievances, and Appeals This chapter outlines the
procedures for disciplining engineers who violate the ethical
standards established by the Nepal Engineering Council. It
also provides a mechanism for filing grievances and appeals
related to the council's decisions.
 Miscellaneous This chapter contains provisions related to the
dissolution of the Nepal Engineering Council and the transfer
of its assets and liabilities. It also includes provisions related
to the interpretation and implementation of the Act.

Objectives of NEC

1. To prepare policies, plans and programs for the smooth

functioning of the engineering profession.
2. To set norms and standards for engineering education in Nepal.
3. To grant permission and approval to carry out engineering
education to those engineering colleges that meet the required
norms and standards.
4. To monitor and inspect the quality of engineering education
provided by the engineering colleges
5. To register the name of qualified engineers in the council and
provide them the license.
6. To remove the name of registered engineers from the
registration if found to violate the code of ethics.

Scope of NEC
1. Licensing of Engineers
2. Accreditation of certificates of academic qualification
3. Recognition of the academic institutions
4. Professional code of conduct

Engineer Licensing Process

Registration of engineers is done into one of the three categories:

1. General Engineers - Category A: (Requires Bachelor’s Degree

in Engineering)
2. Professional Engineers - Category B: (Requires Master Degree
in approved Engineering field)
3. Foreign Engineers - Category C: (Non-Nepali engineers willing
to work in Nepal, Bachelor’s Degree in Engineering and minimum
10 years of experience in engineering field.)
An application should be submitted to Nepal Engineering Council
with applicable fees along with the following documents:
1. Attested copies of Academic Certificates
2. SLC mark sheet
3. Character certificate of SLC
4. Intermediate level or 10+2 Transcript
5. Character certificate of Intermediate level or 10 +2
6. B.E. Provisional Certificate
7. B.E. Transcript
8. Character certificate of B.E.
9. Attested copy of Citizenship

NEA vs NEC
1. NEA is an independent non-profit organization registered under
Social service act of Government of Nepal. NEC is an autonomous
body formed under Nepal Engineering Council Act.

2. NEA focuses on safeguarding of rights and interests of the

engineers and thus promoting development of science and
technology. NEC focuses on code of ethics that must be followed
by the engineering professionals.
Labour Law (labour Act 2074):

Labour law is concerned over the rights, interests, facilities and

safety of workers and employees working in the enterprises of
various sectors.

The Labor Act 2074 of Nepal is a comprehensive law that

governs the employment relationship between employers and
workers. The Act consists of 15 chapters that regulate various
aspects of employment.

 Preliminary This chapter outlines the title, objectives, and

definitions of the Labor Act 2074.
 Fundamental Rights and Duties of Workers and Employers
This chapter describes the fundamental rights and duties of
workers and employers in Nepal. It outlines the
responsibilities of employers to provide a safe working
environment, and the rights of workers to fair treatment and
compensation.
 Employment Relations This chapter regulates the
employment relationship between workers and employers,
including the terms and conditions of employment, the types
of employment contracts, and the procedures for recruitment
and termination.
 Labor Contract and Conditions of Service This chapter
outlines the requirements for labor contracts and conditions
of service, including minimum wages, working hours, leave
entitlements, and social security benefits.
 Health, Safety and Welfare of Workers This chapter regulates
the health, safety, and welfare of workers in the workplace,
including measures to prevent accidents and illnesses, as well
as provisions for compensation in case of injury or disability.
 Employment of Foreign Workers This chapter outlines the
procedures and requirements for employing foreign workers
in Nepal, including obtaining work permits and complying
with immigration laws.
 Employment of Women and Children This chapter regulates
the employment of women and children in Nepal, including
the types of work they can perform and the conditions of
their employment.
 Employment of Disabled Workers This chapter outlines the
measures to promote the employment of disabled workers in
Nepal, including training, job placement, and
accommodations in the workplace.
 Employment of Contract Workers This chapter regulates the
employment of contract workers, including their rights and
benefits under the law.
 Labor Relations Council This chapter establishes the Labor
Relations Council, which is responsible for resolving labor
disputes and promoting harmonious industrial relations.
 Settlement of Disputes This chapter outlines the procedures
for settling labor disputes, including through negotiation,
mediation, arbitration, or litigation.
 Labor Administration This chapter establishes the Labor
Administration, which is responsible for enforcing the Labor
Act 2074 and promoting compliance with its provisions.
 Offenses and Penalties This chapter outlines the offenses and
penalties for violating the provisions of the Labor Act 2074,
including fines and imprisonment.
 Special Provisions This chapter contains special provisions
related to employment in specific industries, such as
construction, mining, and transport.
  Miscellaneous Provisions This chapter contains
miscellaneous provisions related to the interpretation and
implementation of the Labor Act 2074.

Intellectual Property Right

- Intellectual property right is the rights related to patents, design,
trademarks and copyright.
- Intellectual property refers to a number of distinct types of
creations of the mind for which property rights are recognized.
- The owners of the intellectual property are granted certain
exclusive rights.

Trademark
- Trademark is defined as a mark that is used by a person for the
purpose of distinguishing goods or services manufactured
produced by any firm or individuals.
- Nobody shall use or copy any trademark in a way if manipulating
the people in general without a written consent of person in whose
name the trademark is registered.
- The ownership of a trademark can be transferred to other with a
permission of the department.

Design Right
- Anybody may have a right on design of any goods under the act,
which is made by him and has been registered in the department.
- Ownership of the design can be transferred.
- Nobody shall make any goods by using other's design without
written consent of the person in whose name the design is
registered.
Patent
- Patent is defined as any useful invention invented through a new
method.
- Patent right refers to the rights granted to anyone who invents or
discovers any new and useful invention.
- A patent application must include one or more claims defining
the invention that is new, non-obvious and useful.
- It prevents others from making, using, selling or distributing the
patented invention without permission.

Copyright
- Copyright is defined as the sole right to produce or reproduce the
work or any substantial part in any material form whatever. - Any
person registering any of his work shall have the copyright in
accordance with the provisions of the act. - The copyright
ownership can be transferred.

COPYRIHGT ACT 2059

The Copyright Act 2059 is a comprehensive law that regulates the

rights of creators and owners of intellectual property in Nepal. The
Act is divided into eight chapters that regulate various aspects of
copyright protection.

 Preliminary This chapter outlines the title, objectives, and

definitions of the Copyright Act 2059. It defines key terms
related to copyright protection, such as "work," "author," and
"owner."
 Works Protected This chapter describes the types of works
that are protected under the Copyright Act 2059, including
literary, artistic, musical, and dramatic works. It also outlines
the criteria for determining whether a work is original and
eligible for copyright protection.
 Ownership and Term of Copyright This chapter outlines the
ownership and duration of copyright protection for various
types of works. It also describes the procedures for
registering copyright and transferring ownership of
copyright.
 Rights of the Owner of Copyright This chapter describes the
exclusive rights of copyright owners, including the right to
reproduce, distribute, and perform their works. It also
outlines the limitations on these rights, such as fair use and
the right to quote from a work.
 Infringement of Copyright This chapter outlines the actions
that constitute infringement of copyright, such as
reproducing, distributing, or performing a copyrighted work
without permission. It also describes the remedies available
to copyright owners, such as injunctions, damages, and
account of profits.
 Copyright Board This chapter establishes the Copyright
Board, which is responsible for adjudicating disputes related
to copyright infringement and licensing. It also outlines the
procedures for filing complaints with the board.
 Offenses and Penalties This chapter outlines the offenses and
penalties for violating the provisions of the Copyright Act
2059, including fines and imprisonment. It also describes the
procedures for conducting investigations and prosecuting
offenders.
 Miscellaneous Provisions This chapter contains
miscellaneous provisions related to the interpretation and
implementation of the Copyright Act 2059. It includes
provisions related to international copyright treaties, the
protection of moral rights, and the use of orphan works
Comparison Chart between copyright, patent, design and
trademark
S
. Particul Trade
Copyright Patent Design
N ars mark
.
Rights
related
to
word,
symbol
,
Rights relate to Rights
Rights relate picture,
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to new figure
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inventions/the or
matter/c y work pattern ,
1 ory/pri combin
overa /artistic work- color of
nciples/proces ation of
ge music, commo
s/formu all
book,movie/paint dities,
la these
ing/photos product
to
recogni
ze
goods
.produc
ts
a) lifetime+50 7 years
years and
b)50 years from 5 years indefini
death of last 7 years and and two te
surviving author two time time period
2 Terms
c) for anonymous renewable (21 renewab as long
or years) le (15 as
pseudonym work years) timely
– 50 yrs renewe
form first date of d
 publication
d)for applied art
&
photograph- 25
yrs from
years form
preparation of
such work
e) 50 yrs for
work published
after death of
author
Confers
Confers statutor
statutor y
Confers y monop
statutory monopo oly that
monopoly ly that prevent
Person other than
that prevents s
owner
prevents anyone anyone
Infringe comes up with
3 anyone other other other
ment same work
than patent than than
there is no
holder patent patent
infringement
from making, holder holder
using or from from
selling making, making
using or , using
selling or
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a) 10,000 to
Not
Punish 100,000 or 6 Not
more
ment on months 250,000 to more
4 than
infringe imprisonment or 500,000 than
100,00
ment both 50,000
0
b) 20,000 to
 200,000 or one
year
imprisonment or
both
As soon As
a soon as
created tradem
Start of Until the
As soon as work and ark was
5 protecti patent is
created register created
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ed s and
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Require
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ment Novel/non
and and
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00, 1000,5
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renew
Patent, Patent,
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Governi Copyright act and and and
8
ng act 2059 trademark act tradema tradem
2022 rk act ark act
2022 2022

Building Codes and Bylaws

- Building bylaws are the set of guidelines regarding the design of
buildings, orderly and systematic planning of the area and ensure
safety standards.
- It is the crucial tool used by the engineer to control improper
growth and development of the cities.
- Building codes and bylaws provides the regulations and
standards to be met while designing, constructing or remodeling
the buildings. - Building codes are the set of rules specifying the
minimum acceptable level of safety for constructed objects.

Objectives of Building bylaws

1. To design and construct the buildings as per the environmental
aspects and standards.
2. To develop necessary physical infrastructure in efficient manner.
3. To ensure safety of the public on building construction.
4. To create comfortable living standard.
5. To conserve cultural and historical values.

Company Registration
Company
- A company is an association where the members share a common
purpose and are united to use their skills to achieve specific goals.
Characteristics of a company
1. Legal entity
2. Perpetual existence
3. Limited liability
4. Common seal
5. Capital collected by distributing shares
6. Transferability of shares
7. Transparency

Types of Business Enterprise

1. Sole business:
- A sole business is the business organization which has a single
individual as a proprietary.
- A single person is responsible to establish, manage, organize and
control the whole business.
- A single person is liable to both profit and loss.
- It is easy to form and dissolve.
2. Partnership business:
- A partnership business is the business organization
which involves more than one people collectively make effort
to establish, manage, organize and control the business
processes.
- It involves joint ownership of two or more people. - All
the partners share profit and loss.

3. Company business:
- A company is established under the act of the country and has
limited liability.
- Finance is collected through issuance of share.
- It is divided into: private limited company and public limited
company.
- A limited company is a company in which the liability of
members of the company are limited to what they have invested or
guaranteed to the company.

Company Registration Process

- An application in the specified format for registering a company
should be provided to the Registrar of Company, including all of
the following documents and applicable registration fee: 1.
Memorandum of association of proposed company
2. Articles of association of proposed company
3. Copy of the agreement such as joint venture agreement if any
4. Copies of citizenship

Comparison between Private company & Public company

Private Public
S.N. Subject matters
company company
 Minimum 7
No. of Minimum 1
1 Maximum no
Shareholders Maximum 50
limit

Company
2 Pvt. Ltd. Limited
naming pattern

Minimum 3 &
3 No. of directors 1 maximum 11
directors

Article of can use schedule

4 Must have own
association I of company act

Offer of Offer shares &

subscription of Do not offer to debentures
5
share / subscribe subscription to
debenture public to sell its

Transfer of
6 Cannot transfer Transfer easily
share

Legal
7 Less More
formalities
 Publication of
financial
8 statement of Not required Must publish
trimester of each
fiscal year
After getting the
After getting
Commencement certificate of
9 certificate of
of business commencement
incorporation
of business

Financial Financially less Financially

10
strength strong strong

After getting the

After getting
Commencement certificate of
9 certificate of
of business commencement
incorporation
of business

Financial Financially less Financially

10
strength strong strong

Cyber Law:
Cyber law provides the legal framework related to the use of
computer, information and communication and the governing
technology. Therefore, it regulates the computer based activities
including business (ecommerce) and the government (e-
government). Nepal has enacted the electronic transactions act
2063 (ETA 2063), which comes into effective from December 8,
2006 and electronic transactions rules 2064(ETR
2064) also came into force in 2007.