It is reported that the protection of intellectual property rights remains a significant challenge in Nepal, as the existing laws and regulations are outdated and not very effective, and their enforcement is inconsistent. This situation is further compounded by difficulties in preventing the sale of digital media.

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 goods to be procured is of complex and special nature.

According to Section 17 of the Public Procurement Regulation, a public entity shall, in making procurement by selecting any method set forth in the Regulation, provide a 15% price preference to the 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.

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%.

According to Art. 3 of the Foreign Investment and Technology Transfer Act, no industry operated with foreign investment may make foreign investment of profits earned or in any other manner in any sector referred to in the Schedule of the Act. Pursuant to the Schedule Relating to Sub-section (2) of Section 3, foreign investment in consultancy services is subject to a maximum foreign equity limit of 51%. In addition, according to the Schedule, foreign investment in both computer training services and accounting, engineering, and legal consultancy is prohibited.

According to Art. 185 of the Companies Act, it is mandatory for companies with paid-up capital of more than 10 million rupees (approx. 75,200 USD) to employ a company secretary with Nepali nationality. The company secretary is responsible for keeping and updating company records, calling general meetings, maintaining records of these meetings' decisions, and receiving shareholder grievances, among other things.

According to Section 22 of the Labour Act 2017, employers are prohibited from hiring foreign nationals as labourers without obtaining a work permit from the Department. However, if the required skilled labour is unavailable among Nepali nationals, employers are allowed to hire a foreign worker. This restriction has been in place since the amendment of the Labour Act 1992, introduced by Section 4(A) in 1998. Additionally, the Labour Rules, effective since 2018, provide a slight relaxation of this provision under Section 3.1, allowing foreign-invested enterprises to employ up to three foreign workers without undergoing the labour market test. The labour market test, as specified in Section 22.3 of the 2017 Labour Act, requires publishing the job offer in a daily newspaper.

Foreign investment in all sectors is subject to approval. According to Section 15 of the Foreign Investment and Technology Transfer Act of 2019, foreign investors wishing to invest must submit an application to the foreign investment approval body. This application should include details of the investment, a schedule for bringing the investment into Nepal, and an action plan. Additionally, it is reported that other procedures, such as registration with various government agencies, can only be carried out after receiving approval from the foreign investment approval body. The screening requirement has been in place since the Foreign Investment and Technology Transfer Act of 1992 (Section 3).

According to Art. 26 of the Financial Institutions Law, only local banks are allowed to take part in banking and financial services, including online banking and financial services.