MOKSHA LEGAL GROUP

Enlistment of an E-Commerce Business in Nepal: Guide 2026

MOKSHA LEGAL GROUP NEPAL — Tue, 30 Jun 2026 07:36:58 +0000

Enlistment of an E-Commerce Business in Nepal: Guide 2026

A. Introduction:

The Government of Nepal has introduced the Electronic Commerce Act, 2081, to regulate, systematize, and ensure the credibility of commercial transactions involving goods and services conducted through electronic platforms. This article explains the applicability of the E-Commerce Act, the procedures for the enlistment of an e-commerce business, the information required to be displayed on an electronic platform, and other key compliance requirements.

B. Governing law and applicability:

The primary law governing in relation to the Electronic Commerce (“E-Commerce”) is Electronic Commerce Act, 2081 (“E-Commerce Act”).

The E-Commerce Act is applicable to a firm, company or institution that prepares a list of goods or services owned by it and sells such listed goods or services directly to consumers through an electronic platform.

C. Governing Authority:

The Department of Commerce, Supplies and Consumer Protection (“Department“).

D. E-commerce:

E-Commerce means the process of buying or selling any goods or services through an electronic platform except a platform used for the purpose of providing information about or promoting goods or services.

E. Electronic platform and required information:

The Electronic Platform means a system developed for the purpose of conducting transactions of goods or services through the collection, transmission or storage of information using websites, applications, software, internet, intranet or marketplace of social media through the use of electronic devices such as computers, mobile phones or similar devices.

Businesses intending to engage in e-commerce are required to display the following information on their electronic platform:

Name of electronic platform;
Name of business, Address, registration certificate number;
Details of the registered office, head office and branches or outlets of the business entity, if any;
In the case of a license obtained for conducting any specific type of business, the details thereof;
Specification as to whether the business is of an intermediary or list-based electronic commerce;
PAN/VAT number;
Contact Details and mobile number for customer service;
Email address, telephone or mobile number and address of the person or unit responsible for handling grievances.

F. Procedures of enlistment of the E-commerce Business:

The following procedures must be followed to enlist an e-commerce business in Nepal:

Step 1: Registration of the Company at the Office of Company Registrar (“OCR”);

Step 2: Registration of tax (PAN/VAT) at the Inland Revenue Office (“IRD”);
Step 3: Business Registration at the concerned ward office;

Step 4: Establishment of Electronic Platform;

Step 5: Submission of an application for enlistment at the Department; and

Step 6: Obtain the E-Commerce Enlistment Certificate from the Department.

G. Intermediary Business Entity and Liabilities:

“Intermediary Business Entity” means a person, firm, company or institution that facilitates the sale of goods or services of a seller to a purchaser through an electronic platform.

Liabilities of the Intermediary Business Entity are as follows:

Accurately and clearly display details of goods or services offered for sale and trade only in those listed on the electronic platform;
Maintain transaction records for the period prescribed under applicable tax laws;
Ensure compliance with any warranty or guarantee provided for goods or services sold;
Refrain from unfairly discriminating among sellers or giving undue preference to any seller offering similar goods or services, unless any special treatment or promotional arrangement is clearly disclosed to buyers on the platform;
Enter into an agreement with each seller before listing their goods or services on the electronic platform; and
Facilitate the return, replacement, exchange, or refund of goods or services in accordance with applicable law.

H. Listed E-Commerce Business Entity and Liabilities:

“List-Based Electronic Commerce Business Entity” means a firm, company or institution that prepares a list of goods or services owned by it and sells such listed goods or services directly to consumers through an electronic platform.

Liabilities of the List-Based Electronic Commerce Business Entity are as follows:

Clearly display complete details of the goods or services (including price, specifications, delivery timeline, return policy, etc.);
Publish all required legal information on its website or app;
Not post fake reviews or pretend to be a customer;
Not mislead customers through false advertisements;
Keep proper records of all sales for tax purposes;
Deliver the product or service on time (unless there is an emergency or unavoidable situation) and also accepts return or cancellations if the goods are defective or damage;
If a warranty or guarantee is provided, comply with its terms throughout the promised period;
Accept return and give a refund if the product is defective, different from what was shown, or delivered late; and
Sellers are responsible if they have promised that the products are genuine/authentic but it turns out not to be authentic/original.

I. Seller and Liabilities:

“Seller” means a person, firm, company or institution that makes goods or services available for sale to the intermediary business entity in accordance with this Act and the term also includes a business entity engaged in list-based electronic commerce.

Liabilities of the Seller are as follows:

Enter into a written or electronic contract with the intermediary business entity prior to making any goods or services available for sale through the electronic platform of such intermediary;
The seller must provide documents proving their business is legally registered, full name, address, PAN/VAT, rules for exchange, return, or refund of goods or services;
To provide the intermediary business entity with the information for each goods or services to be sold through the electronic platform;
Except in cases of force majeure, to deliver the goods sold or provide the services within the predetermined time;
Not to engage in any form of unfair trade practice while making goods or services available for sale through an intermediary business entity or in any other circumstance;
If the goods or services are different from what was shown or agreed, delivered late, or found to be defective, the seller must accept return or cancellation. If the goods or services are different from what was shown or agreed, delivered late, or found to be defective, the seller must accept return or cancellation; and
Not to post or cause to be posted any review, rating or feedback regarding the quality or features of any goods or services listed for sale on the platform by impersonating oneself or any other person as a fictitious consumer.

J. Transportation of the Goods:

If there is a contract to deliver or transfer of goods or service to a designated person, place, and time as specified by the buyer, the liability to deliver or transfer such goods or services shall lie with the business entity.

For the purpose of delivery or transfer of goods or services, the business entity may enter into a separate contract with a delivery service provider.

K. Are online transactions considered legally valid contracts under this Act?

Yes. Any transaction of goods or services conducted electronically between a buyer and a business entity (or seller) is automatically deemed a valid contract under E-Commerce Act, and both parties are required to fulfill the obligations arising from it.

Foreign Investment through Automatic Route

udeep — Tue, 30 Jun 2026 06:53:28 +0000

Foreign Investment through Automatic Route

The Automatic Route is the FDI approval route through which foreign investors do not require the prior approval of the Department of Industry (DOI). Investors will automatically receive the FDI approval certificate upon submitting the application through the online operated by the DOI. For each project, investors may select a single sector and multiple sub-sectors within that sector.

S.N.	Sector	Sub-Sectors
01	Energy Based Industries	1. Energy production from wind 2. Energy production from solar power 3. Energy production from biomass 4. Energy Production from other Resources 5. Manufacturing of machine/equipment used for wind energy plant 6. Manufacturing of machine/equipment used for solar energy plant 7. Manufacturing of machine/equipment used for biomass energy plant 8. Energy production from bio-gas 9. Energy production from cogeneration in sugar industries 10. Feasibility study of energy
02	Agriculture and Forest Products Based Industries	1. Fruits processing 2. Vegetables processing 3. Establishment and operation of green house 4. Silk processing 5. Tea processing 6. Coffee processing 7. Herbs processing 8. Rubber processing 9. Cold Store (For Storing Local Fruits and Vegetables) 10. Natural fibers products processing 11. Paper, resins and other non-timber based industries 12. Producing plants through new technology (Tissue Culture & others) 13. Cotton processing
03	Infrastructure Industries	1. Vehicles parking station/house 2. Export processing zone 3. Water purification (waste water treatment plant) 4. Film city Construction 5. Film studio Construction 6. Construction and Operation of Warehouses
04	Tourism Industries	1. Motel 2. Hotel 3. Resort 4. Bar and Restaurant 5. Fun park 6. Water park 7. Convention and Sports Tourism
05	ICT Industries	1. Technology park 2. IT park 3. Biotech park 4. Software development 5. Data processing 6. Digital mapping 7. Business process outsourcing (BPO) 8. Knowledge process outsourcing (KPO) 9. Data center 10. Data mining 11. Cloud computing 12. Web portal 13. Web designing service
06	Service Industries	1. Mechanical workshop 2. Construction business 3. Hospitals 4. Nursing homes 5. Polyclinics 6. Operation of Rehabilitation Centre 7. Physiotherapy clinics 8. Ayurveda and other alternative hospitals 9. Sports services 10. Swimming pool 11. Solid waste collection and sanitation 12. Recycling of waste 13. Veterinary services 14. Health checkup (X-Ray, CT Scan, MRI, Ultrasound, or similar services) 15. Health checkup laboratories 16. International Courier services
07	Manufacturing Industries	1. Manufacturing of Fodder For Livestock and Fish 2. Meat Processing and Packaging of Livestock and Fish 3. Manufacturing of Oil or Fat from Basic Raw Materials 4. Manufacturing of Starch or Glucose 5. Manufacturing of Bakery Products 6. Manufacturing of Confectionary and Biscuit 7. Manufacturing of Sugar 8. Manufacturing of Beverages (Non-Alcoholic) 9. Manufacturing of Textile, Garment And Apparel (Using new and Re-used materials) 10. Manufacturing of Electronic Home Appliances 11. Manufacturing of Goods Using Plastic Or Rubber 12. Manufacturing of Bag, Sack, Suitcase, Trolley Bag or Other Similar Bag for Carrying Things 13. Manufacturing of Wooden Goods Other than Traditional and Cultural Art Based 14. Manufacturing of Toiletries Products like Toothpaste, Soap or Shampoo 15. Manufacturing of Products Based on Glass 16. Manufacturing of Cycle, Scooter, Motorcycle and Four Wheeler and accessories used in such vehicle 17. Manufacturing of Electric Lamps, Switch, Meter, Fuse, Wiring Cable, Compressor, and Similar Products 18. Manufacturing of Goods used in Medical, Surgical, Orthopedic Works 19. Manufacturing of Electrical Wire

Sectors Restricted for Foreign Investment in Nepal

MOKSHA LEGAL GROUP NEPAL — Tue, 30 Jun 2026 06:46:28 +0000

Sectors Restricted for Foreign Investment in Nepal

Nepal has increasingly opened its doors to foreign direct investment (“FDI”) in recent decades, offering opportunities across a wide range of industries. However, the Foreign Investment and Technology Transfer Act, 2019 (2075) (“FITTA”) and related regulations designate specific sectors as restricted or prohibited for foreign investors.

Below is an overview of the industries and business categories in which foreign investment is either fully prohibited or significantly limited under Nepal’s current legal framework.

Industries, except the large Industries exporting at least seventy five percent of their own products, in the sectors of animal husbandry, fisheries, bee-keeping, fruits, vegetables, oilseeds, pulses, dairy business and other industries or business related to primary products of agriculture.
Cottage and micro industries,
Personal service business (hair cutting, tailoring, driving etc.),
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,
Real estate business (excluding construction industries), retail business, internal courier service, local catering service, moneychanger, remittance service,
Travel agency, guide involved in tourism, trekking and mountaineering guide, rural tourism including home stay,
Business of mass communication media (newspaper, radio, television and online news) and motion picture of national language
Management, account, engineering, legal consultancy service and language training, music training, computer training, and
Consultancy services having foreign investment of more than fifty-one percent.
Ride Sharing having foreign investment of more than Seventy percent*.

Obtaining Petrol Pump License in Nepal-2026

MOKSHA LEGAL GROUP NEPAL — Fri, 12 Jun 2026 16:26:08 +0000

Obtaining Petrol Pump License in Nepal-2026

A. Background:

To make arrangements for the sale and distribution of petroleum products, including petrol, diesel, and kerosene in an orderly and transparent manner, and to ensure an environment in which the general consumers may access and use such products in an easy, simple, and uninterrupted manner, Nepal Oil Corporation Limited (the “NOC”) provides a dealership license to the private entities all over the Nepal. The NOC has classified dealership into Model Pump Dealership, General Dealership, Petrol Dealership, Packed Dealership and Kerosine Dealership. This article outlines the governing laws, legal requirements, and procedures to obtain the Model Pump Dealership in Nepal.

B. Legal Framework and Governing law in Nepal

The Governing laws regarding the Model Pump Dealership are as follows:

The Petroleum Act, 2040
The Petroleum Rules, 2041
The Petroleum Product Dealership Bylaws, 2075
The Nepal Oil Corporation Act, 2026
The Environment Protection Act, 2076

C. Model Pump Dealership:

A Model Petrol Pump (Namuna Petrol Pump) refers to a modern, high-standard fuel station equipped with advanced infrastructure, enhanced facilities, and comprehensive customer services that exceed the standards of a conventional petrol pump. To qualify as a Model Petrol Pump, the facility must satisfy specific criteria relating to land area, accessibility, location, and infrastructure, as outlined below:

S.N.	Category	Requirement/ Standard
1.	Land Area-Terai/Inner Madhesh	Minimum 1 Bigha (13 Ropani); Road frontage at least 40 meters
2.	Land Area – Hilly & Himalayan	Minimum 5 Ropani
3.	Access Road to site	Minimum 10 meters wide from highway/road to site
4.	Distance from Highway	Site must be within approximately 500 meters of a highway or major road
5.	Approach road and pump yard surfacing	Public road boundary to pump yard must be paved with RCC, stone-set cement, or interlocking tiles
6.	Compound wall	Minimum 3 feet, maximum 5 feet high on three sides of the site
7.	Canopy (Refueling area cover)	Minimum 12 m × 12 m canopy covering the refueling area
8.	Toilets – Male	Minimum 6 urinals + 2 toilets
9.	Toilets – Female	Minimum 2 toilets + 1 disability-friendly (accessible) toilet
10.	Drinking water	Clean drinking water supply available at the station
11.	Power supply (UPS)	Uninterrupted power supply using solar energy + battery backup
12.	Electrical wiring	Concealed (conduct/kanshil) wiring throughout the station
13.	Drainage system	Proper drainage system inside the compound
14.	Fire safety	Fire retardant system installed at the station
15.	Emergency shut-off	Emergency shut off system installed for sensitive/emergency situations
16.	Dispensing pumps	New dispensing pumps with full specifications; minimum 4 petrol nozzles and 4 diesel nozzles operational simultaneously
17.	Tank interconnection Rule	Interconnection between tanks storing the same petroleum product is NOT permitted
18.	Separate tanks per product	Each petroleum product must have separate storage tanks with separate dispensing pumps
19.	Underground storage tanks	Cylindrical steel tanks; minimum 12,000 L capacity each; steel sheet minimum 5mm thick; interior: Primer + Epoxy coating; exterior: Coal Tar Epoxy or similar bituminous coating
20.	Tank manhole	Minimum 22-inch manhole cover on each underground tank
21.	Double – walled tanks	Required in areas with high groundwater table; Double walled steel, fiber glass, or jacketed steel tanks to be used
22.	Tank fittings	Each tank must have: venting, fuel inlet, Outlet, Gauging hole, and sump for water/sludge removal
23.	Suction foot valve	Suction foot valve must be installed minimum 6 inches above the tank bottom
24.	Fuel suction foot	Fuel suction pipe must be installed at least 1 m away from the fuel inlet point
25.	Tank farm area	Tank farm area must be open (no buildings, floors or roof structures over it)
26.	Automated billing system	Automated/digital billing system required
27.	Card payment (card swap)	Card swap facility for electronic/card-based payments
28.	Digital price display	Digital display board showing retail prices of all petroleum products and goods/services
29.	Vending Machine	Vending machine and convenience store facility at the station
30.	Refreshment house/ cafe	Seated refreshment area (café/house) accommodating minimum 20 persons
31.	Parking Area	Minimum 500 sq. meters parking area for at least 20 vehicles (small and large)
32.	Service center	Car wash, tire inflation (air filter service) and basic vehicle repair/maintenance services
33.	Security	24/7 security guard arrangement at the station
34.	ATM Counter	ATM counter provision at the station
35.	Static charge/earthing safety	Bonding and earthing wire with fittings during tank truck unloading to prevent static charge ignition
36.	Safety information display	Safety- related information must be prominently displayed for all to see
37.	Hoarding board	20 ft ×4 ft board, blue lettering, NOC logo in red, as per schedule-10 format
38.	Sign board	Minimum 5×3 ft sign showing: authorization date, authorized dealer name in blue lettering with NOC emblem
39.	Layout display	Underground tank layout, pipe fittings layout and current product stock details publicly displayed at the station
40.	Layout Submission	Station layout must be made available to NOC or authorized government authority upon request
41.	Operating hours	Station must be open 24 hours a day, 7 days a week

D. Process of obtaining dealership for the Model Pump Dealership:

a.Submission of an Application: Interested applicant shall submit an application along with the following document:

A certified copy of the site plan of the proposed outlet clearly showing Chhar Killa, the blueprint of the map, description of the trace map, and the boundaries of land plot of the said retail outlet site duly certified by the concerned Survey Office.
If the site covers one or multiple plot numbers (Kitta Number), a certified Survey Office document showing the combined plots, total area, and clear length and breadth measurements.
Certified verification of the actual land dimensions (length and breadth) by a qualified technical authority/person.
If there is any discrepancy between the trace map area and the actual land area, a corrected certificate from the concerned office.
A recommendation letter from the concerned local government, clearly specifying Chhar Killa, plot number (“Kitta Number“), and area of the proposed outlet site.
A recommendation for the sale and distribution of petroleum products issued by the concerned local government.
A certified copy of the land ownership certificate (Lalpurja).
Where the land of the retail outlet does not belong to the entity, a written lease agreement between the landowner and the proposed applicant for a minimum period of ten (10) years.
Certified copy of the citizenship certificate of the Landowner.
A certified copy of the citizenship certificate of the directors and shareholders.
Application fee should be deposited NPR. 50,000.

b.Initial Examination of an Application by the NOC:

c.Preliminary Site Inspection by the NOC:

d. Letter of Intent (“LOI”) regarding appointment of dealership:The Applicant should submit additional document within the 90 days period of time after the getting the notice of site inspection by NOC with the following.

A recommendation letter from the road authority whether it is a Federal, Provincial, City, Municipal, or Irrigation Road where the petroleum pump will be located.
Certified Copy of the registration certificate of the entity.
A recommendation letter from the concerned Traffic Office or Police Office.
A recommendation letter from the Electricity Authority.
Kabuliyatnama
Self-declaration letters

Within 30 days of the submission of the above documents, the applicant is required to deposit a bank guarantee of NPR 10,00,000 in favor of NOC in the designated bank account.

e. Development of Infrastructure: Upon issuance of the Letter of Intent (“LOI”), the applicant is required to commence and complete the development of the retail outlet infrastructure in accordance with the prescribed standards and within the timelines specified below:

Stage	Requirement	Timeline / Condition
1.Initial Development Period	Complete the construction and development of all required infrastructure in compliance with the standards	Within 365 days from the date of issuance of the LOI.
2.Application for Extension	If the infrastructure cannot be completed within the initial period, the applicant must submit a written request for an extension.	The request must be filed at least 15 days before the expiry of the initial 365-day period.
3.First Extension	The regulatory authority may grant an extension after assessing the progress of the development works.	Up to 180 additional days, subject to deposit of an amount equivalent to 10% of the bank guarantee.
4.Final Extension	Where completion remains impracticable despite the first extension, a further extension may be considered upon demonstration of reasonable grounds.	Up to 180 additional days, subject to deposit of an amount equivalent to 50% of the bank guarantee.
5.Non-Completion	Failure to complete the required infrastructure within the permitted extension period will result in cancellation of the approval.	The LOI shall automatically stand cancelled.

e. Final inspection of Infrastructure:

After completing infrastructure, applicant must submit application with final approval letter issued by road authority and VAT registration certificate to the NOC.
Upon application submission, NOC forms 3-member inspection committee. Such committee inspects infrastructure against standards and requirements and submit the inspection report within 15 days of site visit.

f. Informing Applicant to receive the petroleum suppliers:

g. Licensing: After the completion of all these processes the applicant will get License of Model Pump dealership.

E. Renewal of the License and Process:

The license will be valid for only 3 years. The applicant shall submit the license renewal application at least one (1) month before to the expiry date of the license.

F. For seller Minimum Distance to establish Petrol pump:

The regulations set minimum distance rules of 10km between petroleum retail outlets based on seller type, exempting government and kerosene sellers.
The proposed retail outlet shall be situated at a road distance of not less than two kilometers from the international boundary of Nepal.

The Labour Act, 2017: A Complete Guide for Employers and Employees

MOKSHA LEGAL GROUP NEPAL — Tue, 09 Jun 2026 11:18:53 +0000

The Labour Act, 2017: A Complete Guide for Employers and Employees

A. Background:

Whether you are running a business in Nepal or working for one, the Labour Act, 2017 (“Labour Act”) directly affects your rights and responsibilities. This guide breaks down everything you need to know in plain, simple language.

B. Applicability and Non-applicability of the Labor Act:

The Labour Act is applicable to companies, private firms, partnership firms, cooperatives organizations or associations or other organization in operations, or established, incorporated, registered or formed under prevailing laws to undertake industry or business or provide service with or without profit motive.

However, following entities and authorities are not covered by the Labour Act: They are: Civil Service, Nepal Army, Nepal Police, Armed Police Force, Entities incorporated under other prevailing laws or situated in Special Economic Zones (SEZ) to the extent separate provisions are provided, Working Journalists, unless specifically provided in the contract.

C. Types of employment:

The Labour Act has recognizes following types of employment:

Regular employment: An employee who works at the Enterprise on a regular basis is regarded as a regular employee.
Work-based employment: The employee who works at the Enterprise for a specific work is regarded as a task- based employee.
Time-based employees: The employee who works at the Enterprise for a certain period of time for the completion of the work is regarded as time-based employee.
Casual workers: The employee who works at the Enterprise for the specified time period of 7 (seven) days or less, within a period of a month regarding the completion of the assigned service or work is regarded as casual employee.
Part-time workers: The employee who works for 35 (thirty-five) hours or less in a week is regarded as a part-time employee.

D. Probation, Interns, and Trainees:

Probation period

The enterprise may place an employee on a probation period of up to six months and may terminate the employment if the employee’s performance is found to be unsatisfactory during that period.

Interns

Any person may be allowed to work as an intern pursuant to the approved syllabus of an educational institution, and after concluding an agreement with that educational institution.

Trainees

A trainee may be appointed for a period of training not exceeding 1 year, unless otherwise prescribed by law. All trainees shall be entitled to social security benefits including provident fund and gratuity.

The enterprise is not obliged to appoint the trainee as a regular employee upon the completion of training. However, if such trainee is appointed, he/ she shall not be under probation.

E. Working Hours and Overtime:

Working hours: 8 hours per day, 48 hours per week
Overtime limit: 24 hours per week
Overtime pay: 1.5 times the regular remuneration
A 30-minute break is required after every 5 hours of work
Workers who work on public holidays or weekly days off are entitled to replacement (in-lieu) leave.

F. Remuneration, Increment and Festival Expenses:

The minimum wage is set by the Government of Nepal
Remuneration Increment: Any employee who has completed one year of service period shall be entitled to an annual increment in remuneration (grade) each year in an amount equal to at least half a day remuneration based on the monthly basic remuneration to which the labour is entitled.
Festival Expenses: A festival bonus equal to one month’s salary is paid once a year

G. Payment of Remuneration:

The remuneration shall be paid as follows to the following labour:

Type of Employee	Payment Timeline
Worked less than a month	Within 3 days of finishing
Casual worker	Upon completion of work
Regular employees	Payment periods should not exceed 1 month

H. Leave and Holidays:

The Labour Act provides employees with weekly holidays, public holidays, annual leave, sick leave, maternity and paternity leave, and mourning leave as follows:

Type of Leave	Entitlement
Weekly holiday	1 day per week.
Public holidays	13 days (men), 14 days (women).
Annual leave	1 day per 20 days worked.
Sick leave	Fully paid up to 12 days, eligible on a proportional basis for those employees who has not completed1 year of service.
Maternity leave	Up to 14 weeks; 60 days fully paid. Compulsory maternity leave from 2 weeks before the delivery up to at least 6 weeks after the delivery.
Paternity leave	Up to 15 days, fully paid
Mourning leave	13 days
Accumulation	Home leave – 90 days Sick leave – 45 days Excess accumulation – encased every year

Note: Leave is a privilege, not a right. Employer can approve, deny, or cancel approved leave. Taking leave without approval can be treated as misconduct.

I. Employee Benefits:

1. Provident Fund

The enterprise contributes 10% of basic salary; the employee also contributes 10% deposit the total amount for the purpose of the provident fund. Such provident fund shall be deposited into the Social Security Fund.

2. Gratuity

The enterprise shall deduct an amount equivalent to 8.33% percent of the basic remuneration of each labour each month and deposit it for the purpose of gratuity.

3. Medical insurance

The enterprise shall procure make an annual medical insurance of at least NPR 1,00,000 per year, split 50/50 between enterprise and employee.

4. Accident insurance

The enterprise shall procure accidental insurance of at least NPR 7,00,000, fully paid by the employer.

J. Disciplinary Action for Misconduct:

Based on the nature of misconduct done by the employee, the following disciplinary action can be taken:

Type of Punishment	Misconduct under the Labour Act
Reprimand/Warning	The Enterprise shall warn the employee if s/he commits the following misconduct: a) remain absent from the work without having a leave sanctioned; b) leave the workplace without obtaining permission of the management; c) appear late in work frequently without obtaining permission; d) disobey any order given in relation to the work by the employer or any employee superior in level to him or her; and e) commit any other misconduct under the prevailing law.
Deduction of 1 day’s remuneration	The Enterprise shall deduct remuneration of one day of the employee if s/he commits the following misconduct: a) refuse to receive any letter or notice given by the employer or sentencing authority; b) take part in an illegal strike or force others to do so or make delay or slow in work collectively; c) cause loss or damage to the Enterprise by decreasing the production or service recklessly or negligently; d) make attempt to take benefits by submitting false documents; e) not use the equipment provided by the employer if s/he is a employee responsible for using such equipment; and f) commit any other misconduct of similar nature under the prevailing law.
Withholding of annual grade or promotion for a year	The Enterprise shall withhold annual grade or promotion for a year, if s/he commits the following misconduct: a) take any property outside the Enterprise without the permission of the competent person and used it or allow it to be used by any unauthorized person; b) make attempt to make embezzlement in the Enterprise’s transaction; c) damage the employer’s property recklessly or negligently; d) stop the supply of food, water, telephone, electricity service or prevent movement within the workplace; e) intentionally misuse, or cause loss or damage to any goods kept or provisions made for the benefit, safety or health of the labours; and f) commit any other misconduct of similar nature under the prevailing law.
Termination upon misconduct	The Enterprise shall be entitled to dismiss the employee from their employment if the clarification submitted by the employee during the investigation of the following misconduct is found to be unsatisfactory and based on the evidence of the misconduct: a) engage in physical assault or causing physical harm to any person related to the Enterprise; b) engage in use of any form of weapon or causing vandalism in the Enterprise’s office premises; c) engage in receiving or granting bribery; d) commit theft against any person in the Enterprise; e) remain absent in the work for the continuous period of 30 (thirty) days or more without notice or Enterprise’s approval; f) been guilty of conduct tending to bring yourself or the Enterprise into disrepute; g) damage Enterprise’s property maliciously; h) embezzle the Enterprise’s finances; i) act in collaboration with a competitive employer in the similar nature of business of the Enterprise or carry on any competitive business on his or her own or provide any secret information of the Enterprise where s/he is employed to any competitive employer; j) engage in any activity with an intention to breach the Enterprise’s confidentiality regarding its data, information including but not limited to the information about the Ambassador and employees of the Enterprise or any other information which shall be known to be confidential pursuant to the employment agreement or any other agreement that restricts disclosure of such confidentiality; k) falsify documents for the appointment; l) consume or distribute narcotics on the Enterprise’s premises; m) consume alcoholic beverages on the Enterprise’s premises without permission; n) been declared guilty of criminal offences indicating moral turpitude by the competent courts of Nepal; o) make any public disparaging or misleading comment regarding the Enterprise, including online (for example on social networking sites); p) commit any act which the Enterprise considers to be gross misconduct under the prevailing laws; q) receive the written warning for more than 2 (two) times for any misconduct or breach of the employment agreement or the Enterprise’s policies; and r) commit any other offence under the prevailing laws. s) Sexual Harassment at Workplace

K. Procedure for Disciplinary Action:

Procedure of disciplinary action shall be taken as follows:

The employer must provide the employee with a written notice of the alleged misconduct and proposed punishment, allowing 7 days to submit a clarification.
Disciplinary action must be initiated within 2 months from the date the misconduct becomes known.
A decision must be made within 3 months from the commencement of the disciplinary proceedings.
Punishment may be imposed by the Chief Executive Officer or an authorized managerial-level employee as prescribed in the Employee Bylaws.

L. Termination of the Service

Generally, the service of the employee can be terminated on the following circumstances:

Termination	Grounds of Termination
Retirement	An employee may voluntarily retire on attaining the age of 58 (fifty eight) years.
Voluntary resignation	The employee may voluntarily resign from services by submitting a letter of resignation to the Enterprise.
Time bound employee	The employment is terminated upon expiry of the time period prescribed in the employment agreement.
Work based employee	The employment terminates upon completion of the work specified in the employment agreement.
Termination due to poor performance	Enterprise may terminate the employment of an employee if s/he is found underperforming in three consecutive performance evaluations.
Termination due to bad health	The Enterprise may terminate the employment of an employee upon the recommendation of a medical practitioner if any employee is physically or mentally disabled or injured and rendering him/her unable to work or requiring a long period for medical treatment effecting in the work of the Enterprise.
Sexual Harassment at workplace	The Enterprise may terminate the employment of an employee if the activity of the employee is found sexually abusive in accordance with law, which is inappropriate in the workplace or on work related to work.
Misconduct	The employment shall be terminated on the ground of misconduct as provided in above.

M. Notification requirements for the Termination:

The employer or the employee shall give notice in advance as follows or salary in lieu of notice prior to the termination of service except termination of service of an employee by Enterprise on the ground of misconducts.

Period of Employment	Notice Period
For up to 4 weeks	1 day
4 weeks to one year	7 days
Exceeding 1 year	30 days

N. Retrenchment:

As per the Labour Act, the employees can be retrenched by providing information to the Labour Office on the following ground:

Poor economic conditions of en Employers;
Increase in number of employees as a result of merger, causing some employees to be redundant;
Employers needs to be closed down partially or completely because of any other reason.

O. Procedure for retrenchment:

The procedure for retrenchment are as follows:

The employer must provide a 30 days’ prior notice specifying the reasons for retrenchment, possible date of retrenchment and the number of employees to be retrenched, to the authorized trade Union or Labour Relation Committee.
Employees can be retrenched after reaching a consensus with the Trade Union or Labour Relation Committee.
Where such trade union or Labour Relation Committee does not exist or where the consensus cannot be reached, the employees can be retrenched by providing information to the Labour Office.

Note: The provisions of the Act on retrenchment are not applicable to entities in SEZs or to entities partially or fully closed by the order of the Labour Court or the Government of Nepal. Also, the provisions on retrenchment are not applicable to entities with less than ten employees.

Labour Audit in Nepal (2026): Compliance Guide

MOKSHA LEGAL GROUP NEPAL — Tue, 12 May 2026 12:06:22 +0000

Labour Audit in Nepal (2026): Compliance Guide

1. Background

The Department of Labour and Occupational Safety (“Department”) published a notice on 18 July 2025 making the submission of the Labour Audit (“Labour Audit”) mandatory for all eligible enterprises in Nepal. This article outlines the key matters relating to its preparation and submission of the Labour Audit.

2. Purpose of the Labour Audit

The Labour Audit is prepared to ensure effective implementation of existing labour laws and to maintain healthy industrial relations across enterprises. It safeguards the rights and interests of workers while contributing to overall production and productivity growth. Additionally, it aims to increase compliance with labour-related policies, reduce worker complaints, build employee loyalty, and lessen the burden of government monitoring and inspection. Ultimately, the audit holds enterprises accountable for implementing labour policies and legal provisions.

3. Governing Laws

The Labour Audit in Nepal is governed by following instruments:

a) Labor Act, 2017 (2074) (“Labor Act”)

b) Labor Rules, 2018 (2075) (“Labor Rules”)

c) Labor Audit Standard, 2018 (2075) (“Labor Audit Standard”)

4. Concerned Authority

The Department of Labour and Occupational Safety is the regulatory body responsible for overseeing the Labour Audit process in Nepal.

5. Enterprises Required to Submit the Labour Audit

All companies, private firms, partnership firms, cooperative organizations, and associations registered under prevailing laws for the purpose of carrying out business activities, whether profit-oriented or not.

However, the Audit is not required to be submitted by the Nepal Army, Nepal Police, Armed Police Force Nepal, National Investigation Department, and civil service.

6. Labour Auditor

An enterprise may conduct its Labour Audit through either an internal or external auditor.

a. Internal Auditor:

An internal auditor is a managerial level employee already working within the enterprise.

b. External Auditor:

Any person or organization outside the enterprises must be conducted by a person or organization with the following qualifications.

Labour Auditor: Individual

i.Must be a Nepalese citizen

ii. Must have completed at least a Bachelor’s degree.

iii. Must have a minimum of two years of managerial experience in any industrial or organizational establishment.

Labour Auditor: Entity

i. Registered pursuant to the existing laws;

ii. Entity whose objectives and Working Area includes the matters relating to Labor;

ii. The individual deployed by the Entity to conduct Labor Audit must meet the qualification and eligibility of Individual Labor Auditor (as mentioned above).

7. Responsibilities of the Labour Auditor

The Labor Audit Standard has set out the responsibilities of Labor Auditor. The Labor Auditor is responsible towards the followings:

a. Preparing the Labour Audit Report based on true and accurate facts of the enterprise and submitting it to the enterprise;

b. Completing the audit within the stipulated time without being influenced by any external factors or undue pressure; and

c. Maintaining confidentiality and not disclosing any information obtained during the audit to any third party.

8. Responsibilities of the Enterprise

Pursuant to the Labour Audit Standard, it is the primary responsibility of the enterprise to conduct the Labour Audit and submit the Audit Report to the concerned authority. Furthermore, the enterprise is required to fulfil the following responsibilities:

a. Provide true and accurate information and details relating to the activities of the enterprise to the Labour Auditor;

b. Provide remuneration and other benefits to the Labour Auditor,

c. Provide any other assistance as required while conducting Labor Audit; and

d. Provide one copy each of Labor Audit Report at concerned Department, Labor Relations Committee, Labor Inspector and the concerned regulating authority as mentioned below:

i. Banks and Financial Institutions-Nepal Rastra Bank (“NRB”)

ii. Insurance Companies-Nepal Insurance Authority

iii.Non-Government Organizations-Concerned District Administration Office

iv. Other Enterprises- Concerned approving or regulating authority

9. Submission Deadline

Every enterprise must complete and submit its Labour Audit annually by the end of Poush, which falls around mid-January each year.

10. Penalty for Non-Compliance

Under Rule 56 of the Labour Rules and Section 163(2)(b) of the Labour Act, the Department has the authority to impose a fine of up to NPR 20,000 on the individual who provided the false information, as well as on the management of the enterprise responsible for conducting the audit.

Ministry of Foreign Affairs (“MOFA”) Verification in Nepal

MOKSHA LEGAL GROUP NEPAL — Wed, 01 Apr 2026 17:02:01 +0000

Ministry of Foreign Affairs (“MOFA”) Verification in Nepal

Ministry of Foreign Affairs (“MOFA”) attestation is government authentication of the documents issued by other government bodies, confirming that a document is genuine and recognized internationally.

In Nepal, personal, academic and commercial documents intended for international use are officially authenticated through MOFA attestation. This process is administered by the Department of Consular Services under the MOFA. In matters like foreign employment, applying for student visa, getting permanent residency, registering marriages abroad, or doing international business, getting document attested by MOFA is necessary.

List of the documents that is verified from the Department of Consular Services

Educational Documents

SEE / +2 Certificates
Bachelor’s / Master’s Degree
Academic Certificate
Academic Transcripts
Migration Certificates
Provisional Certificate
Professional Certificates
Diploma’s Certificate
Equivalency Certificate

Personal Documents

Birth Certificate
Marriage Certificate
Divorce Certificate
Death Certificate
Police Clearance Report
Medical Certificate

Legal Documents

Court Judgments
Legal Declarations
Affidavits
Power of Attorney

Commercial Documents

Company Registration Certificate
Tax Clearance Certificates
Export/Import Documents
PAN/ VAT Certificate
Trade Licenses
Commercial Invoices and MOUs

Is prior verification required before MOFA attestation?

Yes, any document that needs to be attested by the Department of Consular Services must first be certified by the concerned higher or issuing authority.

For example:

Birth, marriage, divorce, or death certificates must be certified by the respective Municipality or Rural Municipality.
+2 level transcripts and certificates must be verified by the National Examination Board (NEB).
University degrees and transcripts must be authenticated by the concerned University or authorized body.

Only after the above-mentioned verification, the documents can be applied to the MOFA for final attestation.

Step-by-step process of MOFA attestation in Nepal

Step 1: Fill the form

The applicant must first fill out the prescribed application form.

Step 2: Submit the documents

The government officer collects your application and documents, examines them, and forwards them to another officer for fee collection.

Step 3: Pay fees

Pay the prescribed government fee.

Step 4: Receive attested document

Get your verified document back, usually within 1–5 hour.

Is there online MOFA services available in Nepal?

Yes, the Government of Nepal has launched an online system for document attestation services. The process for online MOFA attestation services is as mentioned below: –

Visit the official online portal of the Department of Consular Services.
Create an account or log in to the system.
Submit application details online.
Upload required information.
Receive confirmation.
Visit the office with original documents for final verification (If required).
Collect the attested document after processing is completed.

What are the common grounds for the rejection of MOFA attestation?

The documents may be rejected on the following grounds:

If the document is fake, altered, or tampered with.
If the document format does not meet the official standards or requirements.
If the certificate has been expired.
If the information is mismatched.

Role of a Lawyer in MOFA document rejection cases

Document review
Verification guidance
Correction assistance
Preparation of supporting papers
Legal representation
Assistance with resubmission

How much is the fee for getting MOFA attestation?

The government fee for MOFA attestation is Rs. 500 per document /per page.

Where is MOFA attestation conducted in Nepal?

In Nepal, MOFA attestation is conducted at the Department of Consular Services, which operates under the MOFA. It is located in Tripureshwor, Kathmandu, Nepal.

In conclusion.

MOFA attestation is an essential legal process for individuals and businesses intending to use Nepali documents abroad. Proper verification ensures authenticity, international recognition, and compliance with foreign legal requirements. Applicants must carefully follow the prescribed procedures, submit accurate documents, and pay the applicable fees to avoid rejection or delay. In cases of complications, seeking professional legal guidance can help ensure a smooth and lawful attestation process through the MOFA Nepal.

How To File a Divorce in Nepal From Abroad

MOKSHA LEGAL GROUP NEPAL — Fri, 20 Mar 2026 12:55:04 +0000

How to File a Divorce in Nepal from Abroad

Filing a divorce in Nepal from abroad means that a Nepali citizen (or a spouse married under Nepali law) who is living outside Nepal initiates and completes the legal divorce process in Nepal without being physically present in the country. This is generally done through executing Power of Attorney (Adhikrit Waresnama) before the Nepali embassy to relevant country.

Divorce is a legal process which is performed by the married couple to end their marital relationship.

Legal Grounds for Divorce in Nepal

Under the Muluki Civil Code 2074, a divorce case may be filed on the following grounds.

By the Wife

A wife can file for divorce on the following grounds: –

(a) Except where the husband and wife are living separately after obtaining their partition share or separating bread and board in accordance with law, if the husband has been living separately for three years or more consecutively, without consent of the wife;

(b) If the husband deprives the wife for the maintenance costs or expels her from home;

(c) If the husband commits an act or conspiracy likely to cause grievous hurt or other severe physical or mental pain to the wife;

(d) If the husband concludes another marriage;

(e) If the husband is proved to have made sexual intercourse with another woman; or

(f) If the husband is with evidence to have raped the wife or conspiracy likely to have raped the Wife.

By the Husband

A husband can file for divorce on the following grounds: –

(a) Except where the husband and wife are living separately after obtaining their partition share or separating bread and board in accordance with law, if the wife has been living separately for three or more consecutive years, without consent of the husband;

(b) If the wife deprives the husband for the maintenance costs or expels him from the house;

(c) If the wife commits an act or conspiracy likely to cause the grievous hurt or other severe physical or mental pain to the husband; or

(d) If the wife is proved to have made sexual relation with another person.

Mutual Consent

Both spouses may jointly file for divorce by mutual consent without proving fault, subject to court mediation procedures.

How to execute Power of Attorney (“POA”)?

A Power of Attorney is a legal document by which one person (Client) authorizes another person (Representative) to act on their behalf.

The process of executing POA are as: –

a. Draft the POA

Full details of both parties, the person granting the Power of Attorney and the person receiving it must be clearly mentioned in the POA.
The specific Power granted to the Representative must be clear and be stated in POA.

b. Where to execute the POA?

If executing inside Nepal

The POA must be signed and executed before the judge in the relevant District Court of Nepal.

If executing outside the Nepal

The POA must be signed and executed before the Consular of Nepali Embassy or Consulate in the country of residence.

c. What are the documents required for executing POA outside Nepal?

Citizenship of both parties;
Recent passport size photographs of both parties;
Copy of citizenship of the witnesses; and
Land ownership document (if property related).

What are the required documents for filling a divorce in Nepal from abroad?

Documents required for filing a divorce in Nepal from abroad: –

a.Power of Attorney (POA)

Executed before the Nepali Embassy or Consulate in the country of residence.
Authorizing a lawyer or representative in Nepal to act on your behalf.

b.Citizenship Certificate

Copy of the Nepali citizenship certificate of the petitioner.

c.Marriage Registration Certificate

Official certificate evidencing registration of the marriage in Nepal.

d.Passport Copy

Copy of the petitioner’s valid passport (including visa/residence permit page, if applicable).

e.Photographs

Recent passport-sized photographs of the petitioner.

f.Divorce Petition

Prepared and signed by the authorized representative.

g.Evidence Supporting Grounds (for contested divorce)

Any relevant documents or proof supporting the legal grounds for divorce (if not filing by mutual consent).

h.Mutual Consent Application (if applicable)

A joint application signed by both spouses (in case of mutual divorce), which may be submitted through an authorized representative appointed via a Power of Attorney if either spouse is residing outside Nepal, or, if both are residing outside Nepal, through their respective authorized representatives.

Note: Additional documents may be required depending on the specific circumstances, such as documents relating to property, child custody, or maintenance claims.

What are the required documents for filling a divorce in Nepal from abroad?

Documents required for filing a divorce in Nepal from abroad: –

a.Power of Attorney (POA)

Executed before the Nepali Embassy or Consulate in the country of residence.
Authorizing a lawyer or representative in Nepal to act on your behalf.

b.Citizenship Certificate

Copy of the Nepali citizenship certificate of the petitioner.

c.Marriage Registration Certificate

Official certificate evidencing registration of the marriage in Nepal.

d.Passport Copy

Copy of the petitioner’s valid passport (including visa/residence permit page, if applicable).

e.Photographs

Recent passport-sized photographs of the petitioner.

f.Divorce Petition

Prepared and signed by the authorized representative.

g.Evidence Supporting Grounds (for contested divorce)

Any relevant documents or proof supporting the legal grounds for divorce (if not filing by mutual consent).

h.Mutual Consent Application (if applicable)

A joint application signed by both spouses (in case of mutual divorce), which may be submitted through an authorized representative appointed via a Power of Attorney if either spouse is residing outside Nepal, or, if both are residing outside Nepal, through their respective authorized representatives.

Note: Additional documents may be required depending on the specific circumstances, such as documents relating to property, child custody, or maintenance claims.

FAQs

What is the timeline to complete filling a divorce in Nepal from abroad?

Generally, it is based on the two category which are as: -

a. On Mutual consent

It takes to around 1 to 1.5 months.

b. Disputed Divorce

It may take approximately 1.5 to 2 years or longer depending on the complexity of the case, availability of evidence, Property or custody disputes and Court schedule and procedural delays.

Can we file divorce in Nepal living in abroad?

Yes, we can file a divorce in Nepal living in abroad by executing the POA.

Enlistment of Data Centers and Cloud Services in Nepal

MOKSHA LEGAL GROUP NEPAL — Mon, 16 Mar 2026 08:24:14 +0000

Enlistment of Data Centers and Cloud Service in Nepal (2026)

Background:
To encourage the secure and confidential storage of data through the use of information technology, and to make the information technology system reliable, secure, and effective through the listed Data Centers and Cloud Services and their management, the Government of Nepal has formulated the Data Center and Cloud Service (Operation and Management) Directives, 2081 (2024) (“Directives“) under Section 79 of the Electronic Transactions Act, 2063 (2008) (“Act“). This Article outlines the definitions, enlistment procedures, document requirements, and the renewal process for enlisted entities.

Governing Authority:
The following authority governs the enlistment of the Data Centers and Cloud Services:
a. Department of Information Technology. (“Department” or “DoIT“)

Terminology:
As per the Directives, the following terms have been defined as:
a.Cloud service
The Cloud Service means hardware and software-integrated infrastructure prepared by a data center service provider or other entity to operate (host) information technology systems developed by the government, public, and private sectors.

b.Data Center
The Data Center means a center with the necessary infrastructure for the storage of data and the operation of information technology systems by the government, public, and private sectors.

c.Data
The Data means a formal representation of information, knowledge, or instructions in the form of letters, numbers, images, sounds, or audio-visuals that are being formally prepared or have been prepared for its use in a computer, computer system, or computer network, or produced by a computer, computer system, or computer network.

Procedures for an enlistment of Cloud Service and Data Center:
To enlist the Cloud Service and Data Center following procedures are required to be followed:

Step 1: Registration of the Company with an objective of Cloud Service and Data Center at the Office of Company Register (“OCR“) or Registration of the firm at the Office of Industry and Commerce.
Step 2: Tax registration at the Inland Revenue Office (“IRO”).
Step 3: Enlistment of Cloud Services and Data Centers at the Department.

Required documents for the enlistment Cloud Services and Data Centers:

B. Required documents for the enlistment of the Data Center in Nepal are as follows:

Application;
Company or firm registration certificate;
Assurance of fire safety;
Building completion certificate;
Security and Privacy Policy;
Documents related to the Business Continuity Plan;
Map of the location where the data center shall be located;
Details regarding the Tier of the data center;
Details of the technical personnel involved in the operation of the data center;
Details of the methods and procedures adopted for the physical security of the data center;
Details of the IP Pool available in its name;
High-level electrical design;
Lease agreement (if the premises are rented): and
Information Security Related Standard for both DC and DR within six months of being listed.

6. Renewal of the Cloud Service and Data Center
Cloud Service Provider and Data Center Operators shall renew their enlistment details at the Department by the end of Poush (Dec/Jan) every year.

7. Infrastructures and arrangements required to be managed by the Cloud Service and Data Center
The basic infrastructures and arrangements required to be managed by the Cloud Service Provider and Data Center Operators are as follows:

a. If Hard Disks need to be destroyed, arrangements are made so that data cannot be recovered.
b. Appropriate server racks for housing servers;
c. Availability of network equipment such as Firewalls, Routers, and Switches;
d. Availability of Server and Storage Devices for data storage;
e. Proper arrangement of HVAC (Heat, Ventilation, and Air Conditioning);
f. Proper arrangement for fire safety, including Fire Extinguishers;
g. Arrangements for sufficient and regular availability of internet and electricity;
h. Availability of an IP Pool in the name of the data center operator;
i.Arrangement of an Access Control System at the server location of the data center;
j. Arrangement of personnel related to the physical security of the data center;
k.Proper arrangement of Closed-Circuit Television (CCTV) in the data center, and arrangement for Data Center Infrastructure Monitoring;
l. Arrangement of a Network Operation Center (NOC) for regular monitoring of Network Equipment such as Firewalls, Routers, and Switches;
m.Proper arrangement of Security Devices as needed for the security of data stored in the data center;
n. Arrangement for Colocation of customers’ servers for data storage;
o. Arrangement for regular backup of stored data;
p. Technical personnel who have gained certification or are experienced in relevant fields;
q. Arrangement for authorized personnel only to enter the server location;
r. Arrangement for keeping records of visitors to the data center;
s. Arrangement for Closed Circuit Television (CCTV) data storage for at least three months prior;

8. Tier rating of the Data Center in Nepal.

Data Center shall be classified as a tier rating based on the physical infrastructure and services as
follows:

Tier	Tier 1	Tier 2	Tier 3	Tier 4
Features to be included
Distribution path Power and Cooling	1	1	1 active/ 1 alternative	2 active
Redundant Active Component	N	N	N+1	2 (N+1)
Redundancy Backbone	No	No	Yes	Yes
Redundancy Horizontal Cabling	No	No	No	Optional
UPS/Generator	Optional	Yes	Yes	Dual
Concurrently Maintainable	No	No	Yes	Yes
Fault Tolerant	No	No	No	Yes
Availability (uptime within year)	99.67%	99.749%	99.982%	99.999%
Downtime (a year)	Less than 28.8 hrs	Less than 22 hrs	Less than 1.6 hrs	Less than 26.3 min
Power backup (in case of electricity breakage)	12 hours	12 to 24 hours	24 to 48 hrs	48 hrs

9. Are the foreign investor allowed to establish a Cloud Service and Data Center in Nepal?
Yes, both Cloud Service and Data Center in Nepal can be established by the Foreign Investor through the approval of Foreign Direct Investment (“FDI”) from the Automatic Route.

Provision on Retrenchment of the Employee under Nepal’s Labor Act, 2017

MOKSHA LEGAL GROUP NEPAL — Tue, 12 Aug 2025 12:46:30 +0000

Provision on Retrenchment of the Employee under Nepal’s Labor Act, 2017

Where an enterprise faces financial problems or the employee becomes redundant because of the merger of more than one enterprise or the enterprise needs to be closed down partially or completely, the employer may retrench the number of employees.

Procedure for retrenchment:

The employer shall give prior notice of at least thirty days before the date for retrenchment, stating the reason, possible date for retrenchment and probable number of employees to be retrenched to the Labor Office and the authorized trade union (if any) of the enterprise, or the employee relation committee;
Upon this, the employer shall conduct discussion with the concerned trade union (if any) or the employee relation committee in relation to the alternatives to the retrenchment of employees and the grounds and conditions of the selection of the employees for retrenchment, and the employees may be retrenched as per the agreement reached; and
If the trade union (if any) or the employee relation committee does not want to discuss or no agreement is reached, the employer may retrench the employee by giving information of that matter to the Labor Office.

Kindly note, the above procedure on retrenchment is not applicable to entities in Special Economic Zones or to entities partially or fully closed by the order of the Government of Nepal or the Labor Court.

Retrenchment order:

Retrenchment shall be made generally in the following order:

foreign employees,
employees who have been awarded more punishments comparatively for misconduct,
employees whose standard of work performance is rather weak,
Employees who were appointed last among those performing the same type of work should be retrenched first. However, if it becomes necessary to retrench workers appointed earlier instead, this may be done by clearly stating the reasons.

Payment while retrenching the employee:

The employer shall pay a lump sum amount to be set by calculating at the rate of one month’s basic remuneration for each year of his or her service as compensation to employee who has completed the service period of at least one year.

If the service period is less than one year, employee shall be entitled to compensation. However, the law is not clear about the ways to calculate the compensation amount.

Note:

The provision of retrenchment is not applicable to entities with less than ten employees.

MOKSHA LEGAL GROUP

Enlistment of an E-Commerce Business in Nepal: Guide 2026

Enlistment of an E-Commerce Business in Nepal: Guide 2026

A. Introduction:

B. Governing law and applicability:

C. Governing Authority:

D. E-commerce:

E. Electronic platform and required information:

F. Procedures of enlistment of the E-commerce Business:

G. Intermediary Business Entity and Liabilities:

H. Listed E-Commerce Business Entity and Liabilities:

I. Seller and Liabilities:

J. Transportation of the Goods:

K. Are online transactions considered legally valid contracts under this Act?

Foreign Investment through Automatic Route

Foreign Investment through Automatic Route

Sectors Restricted for Foreign Investment in Nepal

Sectors Restricted for Foreign Investment in Nepal

Obtaining Petrol Pump License in Nepal-2026

Obtaining Petrol Pump License in Nepal-2026

A. Background:

B. Legal Framework and Governing law in Nepal

C. Model Pump Dealership:

D. Process of obtaining dealership for the Model Pump Dealership:

E. Renewal of the License and Process:

F. For seller Minimum Distance to establish Petrol pump:

The Labour Act, 2017: A Complete Guide for Employers and Employees

The Labour Act, 2017: A Complete Guide for Employers and Employees

A. Background:

B. Applicability and Non-applicability of the Labor Act:

C. Types of employment:

D. Probation, Interns, and Trainees:

E. Working Hours and Overtime:

F. Remuneration, Increment and Festival Expenses:

G. Payment of Remuneration:

H. Leave and Holidays:

I. Employee Benefits:

J. Disciplinary Action for Misconduct:

K. Procedure for Disciplinary Action:

L. Termination of the Service

M. Notification requirements for the Termination:

N. Retrenchment:

O. Procedure for retrenchment:

Labour Audit in Nepal (2026): Compliance Guide

Labour Audit in Nepal (2026): Compliance Guide

1. Background

2. Purpose of the Labour Audit

3. Governing Laws

4. Concerned Authority

5. Enterprises Required to Submit the Labour Audit

6. Labour Auditor

7. Responsibilities of the Labour Auditor

8. Responsibilities of the Enterprise

9. Submission Deadline

10. Penalty for Non-Compliance

Ministry of Foreign Affairs (“MOFA”) Verification in Nepal

Ministry of Foreign Affairs (“MOFA”) Verification in Nepal

How To File a Divorce in Nepal From Abroad

How to File a Divorce in Nepal from Abroad

Legal Grounds for Divorce in Nepal

By the Wife

By the Husband

Mutual Consent

How to execute Power of Attorney (“POA”)?

a. Draft the POA

b. Where to execute the POA?

c. What are the documents required for executing POA outside Nepal?

What are the required documents for filling a divorce in Nepal from abroad?

a.Power of Attorney (POA)

b.Citizenship Certificate

c.Marriage Registration Certificate

d.Passport Copy

e.Photographs

f.Divorce Petition

g.Evidence Supporting Grounds (for contested divorce)

h.Mutual Consent Application (if applicable)

What are the required documents for filling a divorce in Nepal from abroad?

a.Power of Attorney (POA)

b.Citizenship Certificate

c.Marriage Registration Certificate