Database

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NEPAL

Since July 1992, last amended in March 2025

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Foreign Investment and Technology Transfer Act, 2019 (2075) (विदेशी लगानी तथा प्रविधि हस्तान्तरण ऐन, २०७५)
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.
Coverage Consultancy services, computer training services, accounting, online news, engineering, and legal consultancy

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

NEPAL

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Participation in the Patent Cooperation Treaty (PCT)
Lack of participation in the Patent Cooperation Treaty (PCT)
Nepal is not a party to the Patent Cooperation Treaty (PCT).
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

BANGLADESH

Reported in 2022, last reported in 2026

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Complaints about payments' routing through the National Payment Switch Bangladesh (NPSB)
The National Payment Switch Bangladesh (NPSB) is an electronic platform established in December 2012 to facilitate interoperability among scheduled banks for card-based and online retail transactions. Foreign enterprises operating in the financial services and payment network sectors, such as Visa and Mastercard, have expressed concerns about their operations in the Bangladeshi market following the central bank’s implementation of a mandatory policy requiring all card transactions to be routed through the NPSB. They argue that this policy limits competition and raises security concerns, as the NPSB constitutes a single point of failure in the event of a system crash.
Coverage Financial sector

BANGLADESH

Since September 2019, as amended in May 2025

Pillar Online sales and transactions  |  Indicator Threshold for ‘De Minimis’ rule
Customs (De Minimis) Rules, 2019 (কাস্টমস (ডি মিনিমিস) বিধিমালা, ২০১৯)
The Customs (De Minimis) Rules, as amended in May 2025, permit the duty-free importation of eligible low-value consignments, including non-commercial goods, samples, and other small consignments, with a maximum value of BDT 4,000 (approx. USD 40). This de minimis threshold remains lower than the USD 200 benchmark recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal

BANGLADESH

N/A

Pillar Online sales and transactions  |  Indicator Restrictions on domain names
Commercial presence requirement for domain names registry
Access to local domain names in Bangladesh is subject to documentation and eligibility requirements. The “.bd” country-code top-level domain is managed by the Posts and Telecommunications Division, while Bangladesh Telecommunications Company Limited (BTCL) is listed as the technical contact and operates the official registration service.
BTCL requires applicants seeking to register a “.bd” or “.বাংলা” domain name to create a profile and upload the applicable supporting documents. These may include a national identity card, a trade licence, approval or forwarding letters, or a certificate from the Registrar of Joint Stock Companies and Firms. Accordingly, access to local domain names is not fully unrestricted, as registration depends on compliance with domestic documentation and eligibility requirements.
Coverage Horizontal

BANGLADESH

Since April 2009

Pillar Online sales and transactions  |  Indicator Framework for consumer protection applicable to online commerce
Consumers’ Right Protection Act, 2009 - Act No. 26 of 2009 (ভোক্তা-অধিকার সংরক্ষণ আইন, ২০০৯)
The Consumers’ Right Protection Act provides a comprehensive framework for consumer protection that also applies to online transactions.
Coverage Horizontal

BANGLADESH

N/A

Pillar Online sales and transactions  |  Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Bangladesh has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

BANGLADESH

Since 2006

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Bangladesh has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

BANGLADESH

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Bangladesh has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

BANGLADESH

Since April 2022, last amended in December 2024

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Import ban applied on ICT goods or online services
Import Policy Order, 2021-2024
According to Clause 4.d of the Import Policy Order of 2021–2024, goods originating from Israel, those manufactured within its territory, and goods transported by vessels flying the Israeli flag shall not be eligible for importation.
Coverage Goods originating from Israel

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