Database

Browse Database

NEPAL

Since September 2018

Pillar Cross-border data policies  |  Indicator Conditional flow regime
Individual Privacy Act, 2075 (वैयक्तिक गोपनीयता सम्बन्धी ऐन, २०७५ )
Section 12.4 of the Privacy Act requires the consent of the data subject for the disclosing, making public, or transferring of the following data: details relating to a medical examination; details relating to property and income; further information relating to employment; details relating to family matters; biometric data and fingerprints; signatures or electronic signatures; further information concerning the political affiliation and voting; and further information about profession and business. The term 'transfer' may signify the transfer of personal data outside Nepal, thereby requiring specific consent from the individual. However, there is no clear evidence about the applicability of this requirement to cross-border data transfers.
Coverage Horizontal

NEPAL

Since August 2002, last amended in April 2019

Pillar Intellectual Property Rights (IPRs)  |  Indicator Copyright law with clear exceptions
Copyright Act, 2059 (2002) (प्रतिलिपि अधिकार ऐन, २०५९)
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.
Coverage Horizontal

NEPAL

Reported in 2021, last reported in 2025

Pillar Intellectual Property Rights (IPRs)  |  Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
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protecting intellectual property rights remains a significant challenge in Nepal, as existing laws and regulations are outdated and ineffective, and enforcement is inconsistent.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.
Coverage Horizontal

NEPAL

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Nepal has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

NEPAL

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Nepal has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

NEPAL

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Lack of regulatory framework covering trade secrets
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.
Coverage Horizontal

NEPAL

N/A

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Lack of obligation to share passive infrastructure
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.
Coverage Telecommunications sector

NEPAL

Since April 2004

Pillar Telecom infrastructure & competition  |  Indicator Maximum foreign equity share for investment in the telecommunication sector
Telecommunication Policy, 2060 (2004) (दूरसञ्चार नीति २०६०)
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%.
Coverage Telecommunications sector

NEPAL

Reported in 2020, last reported in 2025

Pillar Telecom infrastructure & competition  |  Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
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.
Coverage Telecommunications sector

NEPAL

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
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.
Coverage Telecommunications sector

NEPAL

Since January 1997, last amended in September 2021

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Telecommunications Act, 2053 (1997) (दूरसञ्चार ऐन, २०५३)
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.
Coverage Telecommunications sector

NEPAL

N/A

Pillar Telecom infrastructure & competition  |  Indicator Signature of the WTO Telecom Reference Paper
Lack of appendment of WTO Telecom Reference Paper to schedule of commitments
Nepal has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

NEPAL

Since July 1992, last amended in March 2025

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Foreign Investment and Technology Transfer Act, 2019 (2075) (विदेशी लगानी तथा प्रविधि हस्तान्तरण ऐन, २०७५)
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.
Coverage Horizontal

NEPAL

Since July 1992, last amended in March 2025

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Foreign Investment and Technology Transfer Act, 2019 (2075) (विदेशी लगानी तथा प्रविधि हस्तान्तरण ऐन, २०७५)
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.
Coverage Horizontal

NEPAL

Reported in 2022, last reported in 2025

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the enforcement of patents
Lack of adequate enforcement of patents
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.
Coverage Horizontal

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