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

The government owns shares in some telecommunications companies. In particular, Nepal Telecom (NTC), or Nepal Doorsanchar Company Limited (NDCL), the incumbent telecommunications operator, is a state-owned company with approximately 92% state shareholding.

Nepal does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of accounting separation. According to Section 5.4 of the Guideline for tariff Approval for Telecommunications Services, all licensees are required to establish and maintain separate accounts for each service specified in the license.

Under Section 33 of Nepal’s Telecommunications Act, 2053 (1997), where telecommunications-related land, buildings, plant, equipment, or other facilities have been developed with more than 50% foreign investment, ownership of those assets transfers to the Government upon expiry of the licence period. Under Section 33(2), the former licensee may repurchase the assets at a price fixed by the Government and, upon obtaining a new licence, continue operating the telecommunications service.

Nepal has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

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.

Nepal operates a prior-approval screening regime for foreign direct investment and certain foreign acquisitions under the Foreign Investment and Technology Transfer Act, 2019 (FITTA). Under Section 15(1), a foreign investor must apply to the competent approving authority before making an investment, and, upon completion of the prescribed documentation, approval must be issued within seven days (Section 15(2)). The Act allocates approval competence by investment size, with the Department of Industry (DOI) responsible for investments up to NPR 6 billion (approx. USD 39.6 million) and the Investment Board Nepal responsible for investments above that threshold (Section 17).
Amendments adopted in March 2025 further introduced a requirement for prior approval before a foreign investor may sell or transfer, in whole or in part, its equity to domestic parties.
In addition, Section 3(3) of the FITTA also prohibits foreign investment below a minimum amount to be set by Government notice. The minimum FDI threshold is reported to have been set at NPR 20 million (approx. USD 132,000) under the FY 2079/80 (2022) budget framework, replacing the previously applied NPR 50 million threshold.
However, it is reported that, for foreign investment below NPR 500 million in designated sectors, an online “automatic route” has operated since 2019 for the submission and approval of projects, and that no minimum threshold applies to IT-sector projects processed through this automatic route.