FDI Rules in Nepal- Executive Summary of Foreign Investment and Technology Transfer Regulation – Exclusive 7 Mins Read

FDI Rules in Nepal- Executive Summary of Foreign Investment and Technology Transfer Regulation – Exclusive 7 Mins Read

FDI Rules in Nepal – Executive Summary of Foreign Investment and Technology Transfer Regulation – Exclusive 7 Mins Read

Contact Us – Chintan Law Associates (lawchintan.com)

Foreign Investment and Technology Transfer Regulations or FDI Rules was effectively enforced in 2021 by the Government of Nepal while exercising the rights granted by Section 51 of the Foreign Investment and Technology Transfer Act, 2019 (2075). This article provides an Executive Summary of the FDI Rules by highlighting the major provisions.

  1. Who are eligible to make foreign investments (FDI) in Nepal? Any foreign individual, firm, company, Non-resident Nepali or foreign government or international agency or other corporate body of similar nature.
  2. What are the types of Foreign Investment (FDI)?
    – Share investment in foreign currency
    – Re-investment in an industry of dividends derived from foreign currency or shares
    – Lease investment
    – Investment made in venture capital fund
    – Investment made in listed securities through secondary securities market
    – Investment made by purchasing shares or assets of a company incorporated in Nepal
    – Investment received through the banking channel after issuing securities in a foreign capital market by an – Industry or company incorporated in Nepal
    – Investment made through technology transfer
    – Investment maintained by establishing and expanding an industry in Nepal.
  3. How to make Foreign Investment (FDI)in Nepal? The Foreign Investor may make foreign investments (FDI) by purchasing assets or 100 percent shares of the industry established in Nepal. However foreigners can’t make investment in the industry restricted by the Government of Nepal. The Foreign Investor may make lease investment in the aircraft, ship, machinery, appliances, construction equipment or other similar.
  1. What are the industries or businesses restricted for foreign investments (FDI)?
Industries Restricted for Foreign Investment
S.N. Types of Industry

1

Poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, milk industry and other sectors of primary agro-production

2

Cottage and small industries

3

Personal service business (hair cutting, tailoring, driving etc.)
4 Industries manufacturing arms, ammunition, bullets and shell, gunpowder or explosives, and nuclear, biological and chemical (N.B.C.) weapons; industries producing atomic energy and radio-active materials

5

Real estate business (excluding construction industries), retail business, internal courier service, local catering service, moneychanger, remittance service

6

Travel agency, guide involved in tourism, trekking and mountaineering guide, rural tourism including home stay

7

Business of mass communication media (newspaper, radio, television and online news) and motion picture of national language

8

Management, account, engineering, legal consultancy service and language training, music training, computer training

9

Consultancy services having foreign investment of more than fifty-one percent
  1. Royalty Amount: The royalty amount or other fees related to the technology transfer for the preparation of the industry’s operation shall be based upon the agreement entered in between two parties.
  2. How to establish a Branch Industry? If any industry established in a foreign country is willing to establish or expand its branch industry in Nepal, then it has to be approved as a foreign investment and it shall be registered or extended as a branch industry by incorporating an industry.
  3. How to make an application for FDI? Any foreign investor willing to invest in any industry shall submit an application before the authority approving the foreign investment. Electronic submission may be made.
  4. What are the documents required for FDI? The following details and the documents are required:
S.N. Documents Copies

1

Project Proposal including Action Plan of the investment 2 copies

2

In case of more than one investor, a joint investment agreement between them 2 copies

3

Where the foreign investor is a natural person, a copy of passport and personal details (Biodata) of that person 1 copy

4

Where the foreign investor is a company, a certificate of registration of incorporation that company in the related country, Memorandum of Association, Articles of Association, documents that reflects Director and Shareholders, company’s profile and the decision of the Board of Directors of the company regarding the investment in Nepal 1 copy

5

Where the foreign investor is a firm, then the certificate of registration of incorporation of that firm and in the case of partnership, the document reflecting partnership details and the decision of the partners regarding the investment in Nepal and profile of the firm 1 copy

6

Where the foreign investor is a foreign citizen of Nepali Origin or Nepali citizen residing in a foreign country, the document proving the same. 1 copy

7

Where the foreign investor is an international organization, a constitution of the  organization, document revealing the identity of the directors, profile of the organization and an organizational decision regarding the investment in Nepal 1 copy

8

If the foreign investor is not able to attend, a copy of power of attorney given by them and the document revealing the identity of an Attorney 1 copy

9

Financial Creditability Certificate of a foreign investor issued by the related foreign bank. 1 copy

10

Any other details and documents requested pursuant to a decision by the authority approving the foreign investment 1 copy
  1. What is the required time-limit? Within 7 days. If rejected, rejection notice shall be given no later than 7 days after the date of decision.
  2. Time schedule for Foreign Investment: The foreign investor getting an approval for the foreign investment has to bring in the following foreign investment within one year after the date of such approval:
Category of Foreign Investor Investment Amount Percentage of Investment
Foreign investor Minimum Amount (USD) At least 25% amount
Ordinary Foreign Investor above the minimum required amount and up to 250,000,000 rupees At least 15% amount
Distinguished Foreign Investor above 250,000,000 rupees and up to 1,000,000,000 At least 10% amount
Highly Distinguished Foreign Investor above 1,000,000,000 At least 5% amount
  • The foreign investor shall bring in at least 70% of the approved investment before the commencement of an industrial production or operation of the industry or enterprise of their investment.
  • The remaining 30% shall be invested within 2 years after the commencement of an industrial production or operation of such industry or enterprise.
  • Any foreign investor making an investment by purchasing the shares of any industry in operation shall bring in such foreign investments within a year of the approval of the foreign investment.
  • The industry with an approval of a foreign investment and which is in operation during the enactment of this regulation if unable to bring in investment, shall get an approval and bring in foreign investment within six months.

What happens in case of Share Sale or Transfer of Title to Share? If the property, assets or share or any other financial equipment accumulated out of foreign investments by any company in Nepal, is for sale, transfer of title or change in the ownership or vested ownership of the structure, then in order to maintain record of the details at the authority approving the foreign investment, such company shall submit within 30 days after the date of operation an application along with the following details and documents:-

  1. A copy of an agreement relating to the company’s property or asset or Share Sale and Purchase Agreement and a certified document that reveals the transaction of the above,
  2. A document certified by an Auditor that reveals the share value of the company and a copy of Audit Report,
  3. In the case of repatriation out of Share Sale and Purchase or Transfer of title of the company, any work schedule,
  4. Any evidence showing that the company has paid-up tax and liability to the Government of Nepal as per the prevailing law of Nepal,
  5. Updated Share Log Book of such company situated in Nepal.

Repatriation: Any foreign investor has to submit an application to repatriate their foreign investment (FDI) with the following documents:-

S.N. Documents

1

The decision of the General Meeting and Board of Directors of the Company relating to the repatriation of the investment by the foreign investors or earnings out of such investments

2

Share Log Book and Directors’ Log Book verified by the Office of the Company Registrar

3

Company’s previous fiscal year Audit Report and Certificate of Tax Clearance

4

Proof showing the foreign investment by the concerned investor

5

In case of the amount received out of Share Sale of the foreign investment, a copy of the approval letter of the Share Sale and a copy of approved Share Sale and Purchase Agreement

6

Profit from the foreign investment or dividend amount,  a decision of the General Meeting of the Company regarding such distribution, a proof of distribution of bonus as per the prevailing law and the Audit Report of that fiscal year

7

In the case of payment of the Lease Investment pursuant to the Lease Agreement, the related documents

8

In the case of payment of damage or compensation amount pursuant to final decision regarding the case filed in Nepal, Arbitration or any other legal proceedings, the related documents

9

In the case of royalty amount, the related documents

10

Proof of the record of the detail of sale of earned property in Nepal or transfer of title

11

Any other essential documents required by the authority approving the foreign investment.

How can you get a Visa Facility by FDI?

Types of Visa Eligibility Documents Required
Business Visa The foreign investor or his/her authorized representative and the family members or his/her authorized representative of such investor

·            If the foreign investor having an approval up to or above 100,000,000 rupees has already brought in 25% of the approved investment

1)      A copy of foreign investment approval letter/ Industry Registration Certificate,

2)      A copy of the passport of the person requesting for visa,

3)      In case of an authorized representative, a letter authorizing representation for the foreign investor,

4)      In case of a family member of  the foreign investor,  a certificate of relationship with the dependents issued by an authorized entity of related country, the Embassy of Nepal or diplomatic mission in such country,

5)      In case of Non-tourist visa, a copy of the executive committee and Labor approval as per the prevailing law.

6)      Power of Attorney, Identity Card, Contact Number of a person with an authority or an authorized person.

Can you acquire land above the land ceiling? Yes. The energy, manufacturing, infrastructure, and minerals based industries with a foreign investment approval can submit an application for the coordination and facilitation to purchase land or any land above the land ceiling. The following details and documents are required:-

  1. A copy of foreign investment approval letter,
  2. A copy of Industry Registration Certificate,
  3. Approved Project Proposal of the industry,
  4. Areas and Location of the land required for the industry,
  5. In case if approval is required, an approval letter from any other authority,
  6. Commitment letter endorsing all the necessary expenses for land acquisition,
  7. Reasons for the industry being unable to purchase or acquire land.

Validity Period of Foreign Investment Approval: The validity period of the foreign investment approval shall remain in effect except in situations where the foreign investment approval becomes ipso facto ineffective or the foreign investment becomes void.

Investment out of Earned Profit: The industry with the foreign investment may make re-investments in the same industry or in any other industry opened for foreign investment, out of earned profits. In the same industry, the investment shall not be less than 10% of the minimum required investment, and in the case of other industries, it shall not be less than the minimum required investment.

Limitation on Repatriation of Royalty Amount or other Fee

A. Limitation on Royalty Amount or other Fee for all kinds of technology transfer of industry.

Royalty In relation to Quantity Sold within Nepal In relation to Quantity of  Foreign Export
If Lump sum Amount or total sale amount Up to 5% of the total sale amount excluding tax Up to 10% of the total sale amount excluding tax
If Royalty out of net profit Up to  15% of net profit Up to 20% of net profit

B. Limitation on Royalty Amount or other fee for the use of trademark

In relation to Quantity Sold within Nepal In relation to Quantity of  Foreign Export
In case of industry relating to the alcohol and tobacco, up to 2% of the total sale amount excluding tax. In case of industry relating to the alcohol and tobacco, up to 5% of the total sale amount excluding tax.
In case of other industry, up to 3% of the total sale amount excluding tax. In case of other industry, up to 6% of the total sale amount excluding tax.

Read about how to register a FDI company in Nepal by clicking the link below:

Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal – Exclusive 3 Mins Read – Chintan Law Associates (lawchintan.com)

To gain more details on FDI or Foreign Investment in Nepal – Get in touch with us at info@lawchintan.com or call us at +977 9851133809.

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship.  No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this website. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

Public Company Registration in Nepal – 3 Mins Exclusive Read

Public Company Registration in Nepal – 3 Mins Exclusive Read

Public Company Registration in Nepal

Incorporation of Public Company in Nepal

Public company is that company that raises the fund from the general public. “Limited” is used after the name of the public company.

Time required for the registration of the public company:  Maximum 7 days from the date of application filed.

Number of promoters: At least 7 to unlimited. But if one public company incorporates the other public company then there is no need of seven promoters.

Number of Board of Directors: At least 3 to maximum 11, and if a woman is shareholder then at least 1 woman.

Number of shareholders: At least 7 to maximum unlimited.

Capital: Paid up capital of the public company must be at least 1 core except mentioned in Nepal Gazette or as per the Government of Nepal.

Government Revenue: The revenue is levied on the basis of the capital of the public company:

S.N. Capital Authorized in NPR Registration Fee
1. Up to 10,000,000 15,000
2. 10,000,001 to 100,000,000 40,000
3. 100,000,001 to 200,000,000 70,000
4. 200,000,001 to 300,000,000 100,000
5. 300,000,001 to 400,000,000 130,000
6. 400,000,001 to 500,000,000 160,000
7.  Above 500,000,000 160,000 + 3,000 for each 10,000,000

Required Documents:

  • Application
  • Memorandum of Association
  • Articles of Association
  • Copy of Agreement if there is an agreement between the promoters
  • Notarized copy of citizenship if promoter is a Nepali Citizen
  • Prior approval or license if required
  • Power of Attorney.

 Learn about foreign branch company registration in Nepal

https://lawchintan.com/register-branch-company-in-nepal/

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship.  No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this website. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

Registration of Company Not Distributing Profit / Non-Profit Company

Registration of Company Not Distributing Profit / Non-Profit Company

Registration of Non-Profit Company

Registration of Company Not Distributing Profit

Foundation Registration in Nepal

Company not distributing profit is a company that are not entitled to distribute or pay to its members any dividends or any other moneys out of the profits earned or savings made for the attainment of any objectives.

Objectives of the establishment of company not distributing profit:

  • To develop and promote any profession or occupation.
  • To protect the collective rights and interests of the person engaged in any specific profession or occupation.
  • To carry on any enterprise for the attainment of any scientific, academic, social benevolent or public utility or welfare objective on the condition of not distributing dividends.

Q. Where we can file the application for the registration of this type of company?

A. We can file the application in the Office of Company Registrar.

Number of promoters needed to register this type of company: At least 5 members to unlimited members.

Time required for the registration: Maximum 7 days from the date of application filed.

Q. What if we need to change the objectives of the company?

A. To change the objectives of the company, the company has to obtain prior approval from the Office of Company Registrar.

Q. Can the company not distributing profit be merged with company distributing profit?

A. No, they cannot be merged.

Government Revenue for its registration: NPR 15,000/-

Other Essential Points:

  • No need to require share capital to incorporate this type of company.
  • Members of this type of the company are not liable for debts and liabilities of the company except they accept such liability in writing.
  • The dividends, bonus or other profit of the company are not distributed among their employees but that profits are used to increase the capital of the company or for the attainment of the objectives.

Document required for registration of the company:

  • Application
  • Memorandum of Association (Prabandha Patra)
  • Articles of Association (Niyamawali)
  • Notarized copy of citizenship certificates of all Promoters
  • Power of Attorney

Resource Person: Zubin Niroula Khatri, Attorney at Law (Contact Number: +977 9851133809) 

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship. No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this site. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

Register Branch Company in Nepal Easily – 3 Exclusive Details

Register Branch Company in Nepal | Set-up Branch Company in Nepal | Register Foreign Branch Company | Easy Foreign Branch Company Registration in Nepal – 3 Major Details

As per Section 154 (1) of the Nepalese Companies Act, 2006, no any foreign company can carry out its business transaction in Nepal without registration of its branch company in Nepal. Foreign branch company can only perform activities that are allowed in Nepal, similar to the objective of the foreign company.

Documents required to register branch company in Nepal:

  1. Application in the prescribed format.
  2. Permission obtained by the foreign company from the competent Nepalese authority to carry out its business in Nepal.
  3. Notarized copy of the charter, certificate of incorporation, Memorandum and Articles of Association; including the Nepalese translation of these documents.
  4. Certified copy of the Board resolution of foreign company to establish branch in Nepal.
  5. Power of Attorney.
  6. Notarized copy of passport of the directors of foreign company.
  7. Passport or citizenship copy of local representative in Nepal.

Information required to be furnished at the time of application:

  1. Full name, address of the registered office and principal place of the business, date of incorporation, description of the paid up capital and major objectives of the foreign company.
  2. Name, address of directors, manage, company secretaries or main officers of the company and description of their citizenship.
  3. Name and address of the person residing in the Nepal, who is authorized by the foreign company to receive, on its behalf, any summons, notice, etc., issued in Nepal.
  4. Full address of the branch company in Nepal.
  5. Where the company is to carry on any transaction or business in the state of Nepal, details of the proposed investment and transaction.
  6. Commencement date of transaction by branch company in Nepal.
  7. A declaration made by a director of the company or his/her representative, on the behalf of the company, that the matters contained in the returns submitted by the foreign company are true and correct.

Process of registration:

  1. Agreement/approval to carry out business in Nepal – Foreign company willing to register a branch company in Nepal must have an agreement with a government entity or authority to get involve in certain projects. Having an agreement with the Nepal Government makes it easier for branch company to repatriate income and profits to the main company.
  2. Application to the OCR – After gathering all the documents, application is filed at the Office of the Company Registrar. Firstly, application and required documents are submitted online via OCR online portal and afterwards a physical submission of documents is required.
  3. Investigation by the OCR – OCR checks the documents, and approves the foreign company to set-up branch company in Nepal.
  4. Certificate of registration within 30 days after the evaluation of the documents – OCR issues a registration certificate if the registration is approved.
  5. If can’t be registered, then information within 30 days – If in case the branch cannot be registered, OCR must notify the applicant with the reasons within 30 days of the submission of application.

Branch company registration revenue: Government revenue depends upon the capital of the foreign company. The more the Authorized capital, the more shall be the government fees. In the table below, tentative government fee for the given capital slab is indicated.

Foreign company having capital Fee in USD (approximately)
Up to USD 84,000.00 $125.00
Up to USD 800,000.00 $340.00
Up to USD 1.6 million $585.00
Up to USD 2.5 million $835.00
Up to USD 3.3 million $1085.00
If investment is not shown or no capital $835.00

For more information on branch company registration please contact us via email at info@lawchintan.com or by phone at +977 9851133809. Branch company is popular among the Indian citizens doing business in Nepal. Branch company is regulated by the Companies Act, 2006, therefore, it must follow statutory compliance and obligations set out by the Act.

Looking for setting up a new company in Nepal instead? Learn more about Foreign Direct Investment in Nepal.

Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal

Want to learn more about branch company? Get in touch with us, today!

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Insolvency Laws in Nepal – Exclusive 4 Mins Read

Insolvency Laws in Nepal – Exclusive 4 Mins Read

Insolvency Laws in Nepal

WHAT IS INSOLVENCY?

  • Insolvency is the state of being unable to pay the money owed to a Creditor by a person or company.
  • The person or company who are in the state of insolvency are referred as insolvent.
  • As per the Insolvency Act, 2006 ‘Being Insolvent’ is a state of being unable, or appearing to be unable, to pay any or all of the debts due and payable to or payable in the future to creditors or a situation where the amount of liabilities of a company exceeds the value of the assets.

INSOLVENCY, LIQUIDATION AND BANKRUPTCY

Insolvency

Liquidation 

Bankruptcy

It is the financial state of a person (Individual or Corporate body) in which they are unable to repay debt owed to their creditors, in time, or at all. It is the legal ending of the company. The assets are discharged and are sold to repay the creditors and the business is closed and its name is removed from the Company Registrar’s Office. It is the legal declaration and final way out in Insolvency.

It is the legal process that happens when debtor declares when they can no longer pay debts off to creditor.

WHO CAN FILE APPLICATION FOR INSOLVENCY? (Insolvency laws in Nepal)

  1. A company itself that has become insolvent.
  2. Ten percent of the total creditors who has lent money to a company.
  3. Shareholders who have subscribed at least five percent of the total shares.
  4. Debenture holder who have subscribed at least five percent of the total debentures.
  5. A liquidator who is appointed to liquidate a company.
  6. In the case of a company carrying on any specific type of business, like Bank and Financial Institution, Insurance company has to obtain prior approval of its regulatory authority.

IMPORTANCE OF INSOLVENCY LAW IN THE POST COVID-19 NEPALESE ECONOMY

  • It provides the insolvent sometime to repay the debt.
  • It also provides the creditors a way to get back their money from the insolvent debtors.
  • It also allows debtors to obtain a fresh start by relieving them from their debt [Bankruptcy]

WHEN CAN A COMPANY CLAIM TO BE INSOLVENT?

  • If the General Meeting of shareholders adopts special resolution or a meeting of the Board of Directors decides that the company has become insolvent.
  • If there is a court order to repay debt within 35 days and if the debt is not paid off within that time.
  • If a company fails to pay the debt within 35 days after receiving the notice the creditor or if the debtor does not file application to dismiss the notice in the court.
  • If it is proved that the liability of the company exceeds the value of its assets or the company itself admits that it has become insolvent.

DOCUMENTS / EVIDENCES REQUIRED TO FILE APPLICATION

  • In case company itself files for Insolvency:
  1. Document certified by the Board of Directors declaring that the company has become insolvent.
  2. A special resolution adopted by the Board of Directors of the company to initiate the insolvency proceedings.
  3. Certified copies of the Balance-sheet and Auditor’s report of the company available at the time of filing application for insolvency proceedings.
  • In case the creditor of the company files for Insolvency:
  1. A statement of the Principal and Interest of the debt, which the creditor claims to be due and payable by the company.
  2. The date on which the company borrowed the debt claimed by the creditor stating the reason to take on the debt.
  3. Detail of the due amount and stating that that amount is payable immediately.
  4. Reason or ground on which creditor believes that the company has become insolvent.
  • When the liquidator makes the application:
  1. Evidence proving that a person is appointed as the liquidator by a company for the purpose of Insolvency proceedings.
  2. Opinion of the liquidator regarding the insolvency of a company filing application.
  • In case of shareholders and debenture-holders filing Insolvency application, an approval of the court to initiate the process is required and the conditions mentioned in the court approval letter must be complied.

INFORMATION REQUIRED TO FILE APPLICATION (Insolvency Laws in Nepal)

  • Name and address of the company
  • Reason to file
  • Financial standing
  • Document evidencing the company being insolvent
  • Other supporting documents
  • Name of the Applicants
  • Signature & Date

OUTCOME OF INSOLVENCY PROCEEDING

Depending upon the report submitted by the Liquidator, resolution adopted by the Creditor’s Assembly and the restructuring plan submitted by the company, the court gives following order within 7 days of the adopted resolution:

  • To immediately liquidate the company.
  • To implement the restructuring the program of the company.
  • To wait for some time & see if there’s probability for the progress of the company.
  • To extend the period of insolvency proceedings to get further report.
  • To dismiss the Insolvency proceeding.

For more information on Insolvency laws in Nepal and Bankruptcy law, please email us at info@lawchintan.com.

Or simply fill out the contact us form by clicking the link below and we will contact you.

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Patent Filing in Nepal – Exclusive 3 Mins Read

Patent Filing in Nepal – Exclusive 3 Mins Read

Patent Filing in Nepal | Filing a Patent application in Nepal

Patents are registered and regulated under the Patent, Design and Trademark Act, 2022 (1965) (“the Act”) in Nepal. The Act came in effect since 1965 and has seen very few updates and/or amendments ever since. Nepal also became one of the parties to the ‘Paris Convention for the Protection of Industrial Property, 1883 (“the Convention”) on June 22, 2001 and since then it is a member of the International Union for the Protection of Industrial Property, which is founded under the Convention.

As per Section 9 of the Nepal Treaty Act, 2047 (1990), any treaty ratified by Nepal Government upon its accession shall be applicable as good as law and has further provided that the Articles of the Treaty or Convention to which Nepal is a party and has ratified shall prevail even if such Articles are inconsistent with the laws of Nepal. It is also important to note that Nepal is not a member of Patent Cooperation Treaty, 1970.

The Act defines Patent as ‘any new idea or method relating to the design, operation or transmission any substance or group of substance, or any useful invention developed by some new principle or formula.

In Nepal, Patent Filing in Nepal can be done as either ‘Ordinary Application’ or ‘Conventional Application’. The former is considered as an unique Patent application being filed for the first time in Nepal, whereas the later is an application usually filed elsewhere (usually the member states of the Convention) and filed within 12 months from the date of initial application with an intent to create a “priority claim” in Nepal for the purposes of examining Novelty.

As per Section 3 of the Act, any person desirous to acquire right over any Patent has to register such Patent in their name. Procedures regarding filing of the Patent application is mentioned in Section 4 of the Act. The applicant has to submit the Application Form as prescribed under Annex 1 (A) along with the following documents at the IP Section of the Department of Industry (“DOI”).

  • Full name, address and profession of the inventor
  • Details of invention, operation & usage of Patent
  • Technical specifications, formulas or principles 
  • Designs, drawings of the invention along with details
  • Power of Attorney is application is being made by an intermediary on the behalf of inventor
  • Copy of the receipt of Patent registration in home country (for conventional applications)
  • Application fee of NPR 2,000 (approx. USD 18) for each Patent

After the application is duly registered, the DOI then inspects the Patent, tests for novelty and usage for the general public. If approved, the applicant receives a registration certificate.

Conditions in which Patent Filing in Nepal can’t be done:

  • If such Patent is already registered in a different person’s name
  • If the applicant is not the real inventor of Patent nor has acquired rights over such Patent
  • If the Patent is likely to adversely affect public health, conduct, morality or the national interest
  • If the Patent is against the prevailing laws 

Once registered, the DOI publishes such Patents in Nepal Gazette for the knowledge of general public (except for the Patents required to be kept secret for national interest). A registered Patent remains valid for 7 years. Patent owner can file for renewal within 35 days from the date of expiry of registration. An owner can renew Patent application for two tenures –  7 years duration for each tenure.  The renewal fee, for the first tenure is NPR 5,000 (approx. USD 44) per year (NPR 35,000 in total for the renewal of first 7 years).

Likewise, the  renewal fee for the second tenure is NPR 52,500 at the rate of NPR 7,500 per year. If in case the application for Patent renewal is not filed within 35 days after the expiry of registration date, an owner can still file for renewal within 6 months after the expiry of 35 days period by paying a fine of NPR 1,000. Failure to renew by 6 months time by paying fine shall ipso facto result in the cancellation of Patent registration.

If you want to learn more about Patent Filing in Nepal, feel free to contact us at info@lawchintan.com or call us at +977 9866556697.

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