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.

It is reported that Nepal lacks sufficient resources to maintain qualified patent examiners, and enforcement officials are not adequately trained. In addition, it is reported that insufficient fines do not deter patent infringement.

Nepal is not a party to the Patent Cooperation Treaty (PCT).

Nepal has a clear regime of copyright exceptions that follows the fair use model, which enables the lawful use of copyrighted work by others without obtaining permission. Art. 17 of the Copyright Act explicitly adopts the fair use model, allowing limited portions of a published work to be cited without the author's or copyright holder's authorisation, provided such use does not prejudice their economic rights. In such cases, the source and author’s name (if indicated) must be appropriately credited. Arts. 18–23 of the Copyright Act outline additional exceptions, including reproduction for personal use, educational purposes, or use by libraries and archives, as well as reproduction, broadcasting, or communication of works for public information purposes, among others.

It is reported that protecting intellectual property rights remains a significant challenge in Nepal, as existing laws and regulations are outdated and ineffective, and enforcement is inconsistent. This situation is further compounded by difficulties in preventing the sale of digital media.

Nepal has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.

Nepal has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

Nepal is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).

According to Art. 15 of the Public Procurement Act, international bidding is used for public procurement only when goods cannot be procured at competitive prices, if no bid has been submitted in the national bid for procurement of goods and services, or if it is certified by a public entity that the goods to be procured are of a complex and special nature.

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.