Nepal has not joined any agreement with binding commitments to open transfers of data across borders.

Nepal lacks a comprehensive data protection regime. Nevertheless, the Individual Privacy Act 2075 (वैयक्तिक गोपनीयता सम्बन्धी ऐन, २०७५ ) enforces the constitutional right to privacy, incorporating provisions on the collection, storage, and disclosure of data, and mandates individual consent before the collection of personal information. Privacy in Nepal is further governed by the Individual Privacy Regulation 2077 (2020), which regulates the implementation of the Privacy Act, and the Data Act 2079 (2022), which regulates the generation, management, storage, and publication of data, delineating the responsibilities of data controllers, producers, and users.

Rule 8 of the National Broadcasting Regulation stipulates that Over-the-Top (OTT) service providers must maintain a record of the programmes they transmit for a minimum of 60 days. In addition, these records must be made accessible to the Ministry of Communications and Information Technology and other governmental authorities for investigations. The term "OTT" refers to the broadcasting of content on demand via the internet, encompassing media streaming services delivered through various platforms that utilise internet connectivity.

The Electronic Transactions Act establishes a safe harbour regime for intermediaries for copyright infringements. According to Art. 43, network service providers are not subject to criminal or civil liability arising from third-party content. The only exception is if the network service provider publishes the content, knowing it contravenes the law.

Nepal lacks a comprehensive regime for the protection of trade secrets. However, the Industrial Enterprises Act, 2076 (2020) contains general provisions that protect intellectual property, including trade secrets.

The Electronic Transactions Act establishes a safe harbour regime beyond intermediaries for copyright infringements. According to Art. 43 of the Act, network service providers are not subject to criminal or civil liability arising from third-party content. The only exception is if the network service provider publishes the content knowing it contravenes the law.

It is reported that there is no obligation for passive infrastructure sharing in Nepal to deliver telecom services to end users. However, passive infrastructure sharing is practised in both the mobile and fixed sectors based on commercial agreements.
It is further reported that the relevant legal framework is set out in the Telecommunications Infrastructure Sharing and Fee Determination Bylaw, 2078, and the Infrastructure Sharing Guideline, 2072. However, English versions of these instruments are not publicly available.

It is reported that Nepal imposes an identity requirement for SIM registration. Anyone wanting to purchase a SIM card has to provide their national ID card or a passport in case of foreigners to activate a new prepaid SIM card.

According to Section 17 of the Public Procurement Regulation, a public entity shall, in making procurement, select any method outlined in the Regulation, and provide a 15% price preference to Nepali goods.

According to Section 31(F), introduced in 2019 through an amendment of the Public Procurement Regulation, domestic bidders are given preference even when public procurement is done through international bidding. Domestic firms, organisations, or companies that participate solely or in joint ventures with domestic firms, organisations, or companies are preferred in international bidding, with a price-preference margin of up to 5%.

Section 70.2(A) of the Public Procurement Regulations stipulates that foreign participation in the procurement of consultancy services estimated to cost less than NPR 100 million (approx. USD 800,000) is not permitted. However, exceptions may apply if a foreign entity forms a joint venture with a domestic individual, firm, or consulting company. Moreover, pursuant to Art. 71(6), when assigning evaluation weightings for consultant selection, the procuring entity may allocate up to 10% of the total score to the “participation of domestic human resources.” It is also reported that international consultants seeking to provide consultancy services must appoint a local agent.

Nepal is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), nor does it have observer status.

According to Section 5.6.2 of the Telecommunication Policy Act, foreign ownership in the telecommunications sector is subject to a maximum equity limit of 80%.

Pursuant to Art. 3(2) of the Foreign Investment and Technology Transfer Act, an industry operating with foreign investment may not reinvest profits earned, or otherwise make foreign investment, in any industry listed in the Act’s Schedule. Under the Schedule relating to Art. 3(2), foreign investment in consultancy services is subject to a maximum foreign equity cap of 51%. The Schedule further provides that foreign investment is prohibited in certain service activities, including computer training services and accounting, business of mass communication media (including online news), engineering, and legal consultancy services.

Pursuant to Art. 27 of the Foreign Investment and Technology Transfer Act, 2019 (FITTA), an enterprise with foreign investment must fill expert positions in top-level management, as well as high-level technical, managerial, and technical roles, with Nepali citizens. Where the enterprise is unable to fill such expert positions domestically and it is necessary to secure the transfer of technical knowledge or skills, it may employ foreign nationals in accordance with the applicable law.