Third Chapter Environment Regulations Outline Foreign Investment and

Third Chapter Environment Regulations

Outline ü ü ü ü ü Foreign Investment and Technology Transfer Act 1992 Companies Act 1999 Private Firm Registration Act 1958 Industrial Enterprise Act 1992 Income Tax Act 1974 Value Added Tax Act 1996 Labor Act 1992 Partnership Act 1964 Mines and Minerals Act 1985 Patent Design and Trade Mark Act 1965

Importance of Business Legislation ü Protect business from unfair competition ü Protect consumers from unfair trade practices ü Unethical behavior

Business Legislation ü Business Legislation is concerned with: 1. Create a business environment 2. Protect interest and rights of consumer, distributors and producers. 3. Punishment to those who violates the law 4. Regulating business environment on the basis of legal provision.

Business Legislation ü Nepal doesn't have a long history of business legislation. ü The Company Act publicized 1936 was the first law to regulate the management and other affairs of joint-stock companies in Nepal. ü The Muluki Ain, which was adopted in 1963, also has relevance for business firms. ü The laws relating to business or economic activities in Nepal can be broadly classified as follows: 1. General Business Legislation: It includes laws relating to the registration, organization, and management of the business firms.

Business Legislation 2. Mineral and Natural Resources Legislation: It includes laws relating to mines, minerals and other natural resources. 3. Labor Legislation: It includes laws relating to wages, hours of work, payment of bonus, dispute settlement, unionism and labor relations. 4. Financial and Investment Legislation: It includes laws relating to investment, taxation, foreign exchange, subsidies, stock exchange and technology transfer. 5. Social Legislation: It includes laws relating to trademark, copyright, consumer rights, consumer-interests and environment protection.

Finance and Investment Legislation 1. Foreign Investment and Technology Transfer Act, 1992 2. Income Tax Act, 2002 3. Value Added Tax Act, 1996

Foreign Investment and Technology Transfer Act 1992 ü "Foreign Investment" means following investment made by a foreign investor in any industry: ü a) Investment in share (Equity), ü b) Reinvestment of the earnings derived from the clause (a) above, ü c) Investment made in the form of loan or loan facilities.

Foreign Investment and Technology Transfer Act 1992 ü “Technology Transfer" from foreign investor to domestic industry under an agreement by following ways: ü Use of any technological right, specialization, formula, process, patent or technical know-how of foreign origin, ü Use of any trademark of foreign ownership, and ü Acquiring any foreign technical consultancy, management and marketing service,

Foreign Investment and Technology Transfer Act 1992 Industries not to be granted permission for Foreign Investment 1. Cottage Industries 2. Services (Business such as hair cutting, beauty parlour, tailoring, driving training, etc. ) 3. Arms and Ammunition Industries 4. Gunpowder and Explosives 5. Industries related to Radio-Active Materials 6. Real Estate Business (excluding construction industries) 7. Film Industries (National Languages and other recognized languages of Nation)

Foreign Investment and Technology Transfer Act 1992 Industries not to be granted permission for Foreign Investment 8. Security Printing, 9. Bank notes and Coins, 10. Retail Business 11. Travel Agency, 12. Trekking Agency, 13. Water Rafting 14. Pony Trekking, 15. Horse Riding

Foreign Investment and Technology Transfer Act 1992 16. Cigarette, Bidi, Alcohol (excluding more than 90% exportable) 17. Internal Courier Service, 18. Atomic Energy 19. Tourist Lodging, 20. Poultry 21. Fisheries, 22. Bee Keeping, 23. Consultancy Services such as Management, Accounting, Engineering, Legal Services.

Foreign Investment and Technology Transfer Act 1992 Features: Technology Transfer - Technology transfer is possible even in areas where foreign investment is not allowed. No Nationalization – IEA 1992 has guaranteed against nationalization of privately owned industries enterprises. Decontrol of Prices - The government does not interfere in the fixation or control of prices of industrial products. Simplification in import of machinery and raw materials - Industry can approach any commercial bank directly to open Letter of Credit for the import of machinery or raw materials needed for the industry. Recommendation or import license from either Department of Industries or Department of Commerce or Nepal Rastra Bank is not necessary.

Foreign Investment and Technology Transfer Act 1992 ü Minimum approval procedures - except industries that affect security and public health, other industrial activities do not require to obtain any license or permission for establishment and operation. ü Transparency and clarity of facilities available - The facilities and incentives available to various categories of industries have been clearly spelt out in the Act itself to avoid any ambiguity. ü Repatriation of profits, dividend, technical and managerial fees, and certain portion of salaries of foreign experts have been guaranteed. ü The corporate income tax for manufacturing units is fixed at 20% and is one of the lowest in the region.

Foreign Investment and Technology Transfer Act 1992 Facilities like 1. Repatriation facilities 2. Land facilities 3. Tax incentives

Foreign Investment and Technology Transfer Act 1992 At international level, Nepal has taken numerous steps to promote foreign investment in the country. Some of the key institutional arrangements that have been achieved so far are listed as under: ü Nepal is a member of the World Intellectual Property Organization (WIPO) and the Multilateral Investment Guarantee Agency (MIGA). ü Nepal signed Bilateral Investment Treaties (BITs) with countries such as France, Germany, Mauritius and United Kingdom.

Foreign Investment and Technology Transfer Act 1992 ü Nepal has also entered into Double Taxation Treaties (DTTs) with 9 countries, namely, India, Norway, China, Pakistan, Sri Lanka, Austria, ü Thailand, Mauritius, and Republic of South Korea. ü To ensure access to the vast potential market, Nepal is the member of WTO, SAFTA, and BIMSTEC.

Foreign Investment and Technology Transfer Act 1992 Ø Nepal is also a participant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States and a member of the International Centre for the Settlement of Investment Disputes (ICSID).

Value Add Tax, 1995 (2052) Objectives: ü To increase revenue mobilization by making effective the process of collecting revenues, ü To collect value added tax (VAT) on all transactions including the sale, distribution, delivery, importation, exportation of goods or services

Value Added Tax Act ü Introduced VAT system in 1997, (2054) from November 16, 1997. ü The VAT Act replaced the existing Sales Tax, the Contract Tax, the Hotel Tax and the Entertainment Tax. ü It is indirect tax since tax payer indirectly pays tax to government.

Provision ü Compulsory to all entities having annual transaction exceeds Rs. 2 million. ü Optional for the entities having the annual transaction less than Rs. 2 million. ü Should get Registration Number before starting the business. ü Have to pay the collected tax 25 th day of the transacted month.

Value Added Tax Act Other Provisions ü The single rate system of VAT is imposed. Previously the rate was 10%, but later on it was raised to 13% ü A taxpayer has to keep an up to date account of the transactions of the tax period. ü VAT is collected by custom office. Each registered person or business firm has to collect tax on the selling price. ü VAT is not charged on goods and services of basic needs, agriculture products, social welfare service, medical services, live animal products, public travelling services and transportation, vocational and professional services, goods made for disabled persons, educational and cultural goods, financial and insurance services.

Responsibility of VAT Registered Entity ü Have to maintain Purchase Book ü Have to maintain Sales Book ü Have to submit report every month ü Have to apply for the VAT return in the stipulated time period if any ü Have to use only VAT bill

Income Tax Act, 2002 (2058) ü First Income Tax Act ( related to business, Profit and Remuneration) enacted in 1959, ü Second Income Tax Act was enacted in 1962 ü Third Income Tax Act, 1974, (amended for eight times and existed for a period of 28 years). ü Fourth and Present Income Tax Act, 2002

Income Tax Act, 2002 (2058) Features of Present Income Tax Act: ü All the income tax related provisions made under other special enactment have been repealed ( removed ) ü It is applicable to residents residing wherever outside Nepal.

Income Tax Act, 2002 (2058) (ITA) Classification of income A) Income from Employment (an individual`s remuneration income from an employment for an income year) B) Income from Investment (profits and gains of a person from conducting an investment for an income year) C) Income from Business (profits and gains of a person from conducting a business for an income year) Income and gains are ascertained only after deducting the corresponding expenses. The income from each business and investment needs to be calculated separately.

Income Tax Act, 2002 (2058) (ITA) ü The Act distinguishes between resident and non-resident persons. ü A resident person is an individual whose normal place of residence is in Nepal and who is present at any time of the year, or who is present in Nepal for 183 days or more, or who is an employee of Government of Nepal posted abroad at any time during the year.

Income Tax Act, 2002 (2058) (ITA) ü For every person the tax is imposed and calculated for an income year. ü The income year corresponds with Governments Fiscal Year, i. e. the period start from Shrawan to Ashad of the following year (mid-July to mid-July).

Income Tax Act, 2002 (2058) (ITA) Tax Rates The taxable income of a resident individual for an income-year 2067/68 : Up to Rs. 160, 000 - 1% From Rs. 160, 000 - upto Rs. 260, 000 - @ 15 % plus Rs. 1600 Above Rs. 260, 000 - @ 25% plus Rs. 16600.

Income Tax Act, 2002 (2058) (ITA) Tax Rates The taxable income of a resident individual for an incomeyear 2067/68 : The taxable income of a couple, if they chose to be treated as a couple will be taxed at the following rates; Up to Rs. 200, 000 - 1% From Rs. 200, 000 - upto Rs. 300, 000 - @ 15 % plus Rs. 2000 Above Rs. 300, 000 - @ 25% plus Rs. 17000. Women : 10% tax excused

Income Tax Act, 2002 (2058) (ITA) ü Any individual is entitled to deduct the following amount from taxable amount, if he is having investment insurance policy : ü Rs. 20, 000 amount or the actual premium paid, which ever is less. ü For the purposes of the Act, net gains from the disposal of non-business chargeable assets will be taxed at the rate of 10 percent.

Income Tax Act, 2002 (2058) (ITA) ü The probable tax for individuals conducting small businesses (who have a turnover of Rs. 2 million or an income of Rs. 200, 000) in the ü Metropolitan or Sub-Metropolitans- Rs. 5000, ü Municipalities – 2500 ü Anywhere else in Nepal Rs. 1, 500 respectively. ü The taxable income of a non-resident individual is taxed at the rate of 25 percent. ü The taxable income of an entity will be taxed at the rate of 25 percent unless prescribed otherwise.

Income Tax Act, 2002 (2058) (ITA) Tax Accounting ü For tax purposes, an individual is required to maintain his accounts on a cash basis in calculating the individual's income from an employment or investment ü A company is required to maintain its accounts on an accrual basis within the basic framework of generally accepted accounting principle.

Income Tax Act, 2002 (2058) (ITA) Implementing Agency ü ü District Level : Inland Revenue Office (IRO) Department Level : Inland Revenue Department (IRD) Ministry Level : Ministry of Finance Dispute Settlement by IRD, Revenue Tribunal and court

General Business legislation 1. 2. 3. 4. Private Firms Registration Act, 1958 Partnership Act, 1964 Company Act, 2006 Industrial Enterprise Act, 1992

Private Firm Registration Act, 1958 (2014)

Features: ü Firm to be registered under Department of Commerce private firm or under Office of Cottage and Small Industries. ü The license is issued for five years and should be renewed after that period. ü Recommendation letter is required from the Chambers of Commerce or District branch of FNCCI to register the Private Firm. ü Trading business are registered under this act. ü It is easy to register Private Firm in DOC since there is no need of AOA or MOA as compare to single promoter private company to be register in CRO.

Partnership Act, 1964 (2021)

Feature ü If two or more person want to initiate business, partnership firm can be registered. ü Partnership Deed ( an agreement among the Partners mentioning the each and every things is required to registered the firm. ü The partnership deed has mentioned following things: Equity ratio, profit sharing ratio, entrants of new partner and exit of the existing partner, settlement the disputes, dissolution of firm, etc.

Feature ü Firm can be registered under Department of Commerce (in Kathmandu valley) and Office of the Cottage and Small Industries ( in outside the valley ) with the recommendation letter of Chambers of Commerce. ü Any time the firm can be dissolve as per the partners’ agreement. ü Tax law is applicable and the firm should be renewed each five years where the firm has been registered.

ü It is easy to establish and dissolve comparing to the establishing of the company under Company Act. ü Every partner liable jointly personally with all the other partners for all the acts of the firm done while he/she was a partner. ü If a firm carries on any business without registration in contravention of Section 5, every partner shall be liable to a fine not exceeding Fifty rupees;

Company Act, 2063 (2006) ü It contains 21 chapters and 188 Sections ü Promulgated on Kartik 24, 2063 ü Objective of the Act: ü To make the companies in order to bring about dynamism in the economic development of the country by promoting investment in the industry, trade and business sectors through economic liberalization and make the incorporation, operation and administration of companies much easier, simpler and more transparent;

Incorporation of Company 1. Private Ltd. Company. : No. of shareholders minimum 1 to maximum 50. 2. Public Ltd. Company : No. of shareholders minimum 7 and no limit to maximum no. 3. Memorandum of Association (MOA) and Articles of Association (AOA) is required to register the co. 4. Registration of Co. – In the Office of the Company Register, Department of Commerce.

ü Office of Company Registrar (CRO) has sole authority of registration, administration, supervision, recording and regulating the companies. ü Pvt. Company can be converted into Ltd. Co. and vice versa. ü Company Secretary is compulsory for Public Ltd. Company, with the paid –up capital of ten million rupees or more. ü Financial Statements and other decision made of General Assembly should be submit to the CRO by the company each year. ü Liabilities is Limited to the shareholders up to their amount of shares.

Documents Required to establish Co. a) The memorandum of association of the proposed company, (b) The articles of association of the proposed company, (c) In the case of a public company, a copy of the agreement, if any, entered into between the promoters prior to the incorporation of the company, (d) In the case of a private company, a copy of the consensus agreement, if any, entered into , (e) Where prior approval or license has to be obtained

(e) Where prior approval or license has to be obtained from anybody under the prevailing law prior to the registration of a company carrying on any particular type of business or transaction pursuant to the prevailing law, such approval or license, (f) Where the promoter is a Nepalese citizen, a certified copy of the citizenship certificate and where a corporate body is a promoter, a certificate of registration of incorporation, decision of the Board of directors, regulating The incorporation of the company and major documents regarding Incorporation.

Where the promoter is a foreign person or company or body, permission obtained under the prevailing law to make investment or carry on business or transaction in Nepal, (h) Where the promoters is a foreign person, a document proving the country of his citizenship, (i) Where the promoter is a foreign company or body, a certified copy of the incorporation of such company or body and major documents relating to such incorporation. (g)

The Memorandum of Association of a company shall state the following matters: (a) The name of company, (b) The address of the registered office of the company, (c) The objectives of the company, (d) The acts to be carried out to accomplish the objectives of the company,

(e) The figure of the authorized capital of the company and the figure of the share capital to be issued by the company for time being and the figure of undertaken to be paid by the promoter of the company, (f) Types of shares of the company, the rights and powers inherent in such shares, value of each share and number of shares of different types,

(g) Restrictions, if any, in the purchase or transfer of shares, (h) Number of shares which the promoters have undertaken to subscribe for the time being, (i) Terms of payments of share amounts, (j) Statements that the liability of shareholders shall be limited, (k) The maximum number of shareholders in case of a private company, (l) Other necessary matters.

(c) Number of directors, provision of alternate director, if any, and tenure of directors, (d) Provisions relating to the minutes of decisions of the general meeting and the board of directors, and duplicate copies and inspection thereof, (e) If a person has to subscribe shares to become a director of a company, minimum number of shares, (f) In the case of a public company, qualifications and number of independent director,

(g) Where any professional persons, other than shareholders, are to be appointed as directors, provisions relating to the number, tenure, qualifications and procedures of appointment of such persons, (h) Powers and duties of the board of directors and the managing director, (i) Authority of directors and delegation of authority, (j) Quorum for a meeting of the board of directors, notice of meeting and proceedings of meeting, (k) Lien on shares, (l) Different classes of shares and the rights, powers and restrictions attached to such shares, (m) Provisions relating to calls on shares and forfeiture of shares,

(n) Provisions relating to the transfer of shares, (o) Matters on alteration in share capital, (p) Matters on buying back of shares by the company, if the company is to buy back its shares, (q) Appointment of a company secretary, (r) Provisions relating to remuneration, allowances and facilities of directors, (s) Use of the company’s seal in its transactions, if it is to be so used,

(t) Accounts, books of accounts and audit of the company, (u) Provisions on powers to raise loans or debentures, (v) merger of the company, (w) Such matters, if any, as required by the prevailing law to be mentioned in the articles of association of a company carrying on any specific business, (x) Such other necessary matters as required to be mentioned in the articles of association.

Industrial Enterprises Act, 1992 (2049) Promulgated on 12 Nov. 1992 (049/07/27) First Amendment on 22 Aug. 1997 (2054/05/06)

Industrial Enterprises Act, 1992 (2049) Objectives ü To make arrangements for fostering industrial enterprises in a competitive manner through the increment in the productivity, ü To make the environment of industrial investment more congenial, straightforward and encouraging.

Industrial Enterprises Act, 1992 (2049) Types of Industries: Manufacturing produce a) Industries: which Industries goods by utilizing or processing raw materials, semiprocessed materials, by-products or waste products or any other goods. b) Energy-Based Industries: Industries generating energy from water resources, wind, solar, coal, natural oil, gas, bio -gas or any other sources. c) Agro and Forest – Based Industries: silk production, horticulture and fruit processing, animal husbandry, dairy industry, etc.

Industrial Enterprises Act, 1992 (2049) d) Mineral Industries: Mineral excavation or processing thereof. e) Tourism Industries: Tourist lodging, motel, hotel, restaurant, resort, travel agency, skiing, gliding, water rafting, cable car complex, pony-trekking, hot air ballooning, parasailing, golf-course, polo, horse-riding, etc. f) Service Industries: Workshop, printing press, consultancy service, public transportation etc. g) Construction Industries: Road, bridge, ropeway, railway, trolley bus, tunnel, flying bridge and industrial, commercial and residential complex construction and operation.

Industrial Enterprise Act, 1992 (2049) ü This act classifies industries into the following four types according to investment and the scale of their operations. 1. A cottage industry is an enterprise which utilizes specific skills or local raw materials and resources, and which is labor-intensive and is related with national tradition, art and culture. 2. A small industry is as an enterprise in which fixed assets do not exceed Rs. 30 million. 3. A medium industry is an enterprise in which fixed assets investment exceeds Rs. 30 million but does not exceed Rs. 100 million. 4. A large industry is an enterprise in which investment in fixed assets exceeds Rs. 100 million.

Cottage Industries: Ø The traditional industries utilizing specific skill or local raw materials and resources, and labor intensive and related with national tradition, art and culture (mentioned in Annex 1) Provisions of Act Ø Industrial Promotion Board – Policy level Ø One Window Committee – Implementation level

Constitution of Industrial Promotion Board ( as per clause 12) a) The Minister or State Minister for Industries - Chairman b) The Assistant Minister for Industries - Member c) Member (looking after industries), National Planning Commission - Member d) The Governor, Nepal Rastra Bank - Member e) The Secretary, Ministry of Industry - Member f) The Secretary, Ministry of Finance - Member g) The Secretary, Ministry of Commerce - Member h) The Secretary, Ministry of Tourism - Member i) The Director General, Department of Cottage and Small Industries - Member j) Representative, Federation of Nepalese Chambers of Commerce and Industry - Member k) Two persons, nominated by Nepal Government, either from among the industry, commerce and tourism sector organizations or from among the persons of high distinction in the same field. - Member l) The Director General, Department of Industries - Member Secretary

Functions, Duties and Powers of the Board: a)To render necessary cooperation in formulating and implementing policies, laws and regulations b) To give guidelines in attaining the objectives of liberal, open and competitive economic policies c) To maintain coordination between the policy level and the implementation level of the industrial policy. g) To give directives to the concerned body

Constitution of the One-Window Committee: 1) Government shall, for the purpose of making available the facilities and concessions to be enjoyed by any industry under this Act in time from a single place, constitute a One-Window Committee consisting of the following: a) The Director-General, Department of Industries-Coordinator b)The Director-General, Department of Customs-Members c) The Director-General, Department of Excise Duty- Member d) The Director-General, Tax Department-Member e) The Director-General, Sales Tax Department Member f) The Director-General, Department of Commerce -Member g) The Chief Controller, Nepal Rastra Bank - Member h) Representative, Federation of Nepalese Chambers of Commerce and Industry – Member i) one expert in the field of industry and commerce as designated by Government of Nepal or one representative from the Federation Member

One-Window Committee: The functions, duties and powers : a) To make necessary decisions for making available the facilities and concessions to be enjoyed by any industry under this Act. b) To perform such functions as may be delegated by the Board under its functions, duties and powers. c) To make recommendations to make available infrastructural services such as electricity, water, means of telecommunications, land, road, and so on required for the industries.

Mines and Natural Resources Legislation ü Mines and Minerals Act 1985 (2042) ü Nepal Petroleum Act, 1983

Mines and Minerals Act 1985 (2042)

Mines and Minerals Act 1985 (2042) ü Objective of the act is to promote the existing mine and minerals ü Mineral products means an inorganic product excluding gas and petroleum exist Mineral products over or under the earth and made of physical or chemicals combination. ü All mineral products found inside the Nepal are the property of Government of Nepal. ü These are classified in two category – Metal and Non Metal ü Three Categories : Most Valuable, Valuable and not valuable

ü Right to extraction of mineral product is with government. Permission can be given to the private company as per their qualification and previous experience. ü License shall be issued for a year and can be renewed. Government cancel the license if found the licensee doesn't work as per the law.

Responsibility and Rights of License holder: ü To provide report to the concern authority regularly ü To be aware on protection of environment ü To keep communication set and weapons as per requirements ü To enjoy the government facilities as per the laws ü To pay the local taxes and other taxes ü To influence the private land for time being ü To bring and use of explosive

Nepal Petroleum Act, 1983 ü This governs the searching and development of petroleum in Nepal. ü The Government, under this Act owns all petroleum resources existing in the country. ü It has an exclusive right to carry out petroleum exploration, development and production either by itself or through contractors. ü Searching and exploitation of gas deposits also fall under the fold of this act. ü As this sector is still under-developed and requires huge investment, foreign investment is encouraged by the Act. ü This Act is also administered through the Department of Mines and Geology.

Labor Act, 1992 (2049)

Objective üTo make provision of the rights, interests, facilities and safety of workers and employees working in establishments belonging to different fields.

Labor Act, 1992 (2049) ü Labor Act 1992 (2049) replaced the Nepal Factory and Factory workers Act, 1959. ü The Act emphasizes on job security, rights of remuneration after work, prohibition of child labor, freedom to be a member of trade union, minimum wages, health, safety and welfares, code of conduct, workers' participation in management and dispute settlement. ü Ministry of Labor and Transportation is responsible to implement and monitor the act.

Labor Act, 1992 (2049) Provisions: ü No worker or employee shall be deployed in work for more than eight hours per day or 48 hours per week with one day weekly holiday for every week. ü No agreement may be entered into between the manager and workers or employees in a way to make the minimum remuneration, dearness allowances and facilities lesser than those fixed by GON. ü Change in the ownership of the Enterprise shall not be affected on the terms and conditions of service of the workers and employees.

Labor Act, 1992 (2049) Provisions: ü One welfare Officer shall have to be appointed in Enterprise where 250 or more workers of employees are engaged and one additional Assistant Welfare Officer shall have to be appointed where there are more than 1000 workers or employee ü The service of any permanent worker or employee may not be terminated without following the procedures prescribed by this Labor Act or the Regulations or Bylaws made under this Act.

Labor Act, 1992 (2049) Provisions ü The permanent worker of employee shall have to be paid with at least twenty five percent of his remuneration as retaining allowance for the period of closure of a seasonal Enterprise during off-season. ü Proper safety provision should be made in working place to prevent from the probable accidents, harm and injury to the employees. ü Where fifty or more female workers and employees are engaged in the work, the Proprietor of the Enterprise shall have to make provisions of a healthy room for the use of children of such female workers and employees.

Labor Act, 1992 (2049) Provisions ü The Enterprise shall have to establish a Welfare Fund, as prescribed for the welfare and benefit of the workers or employees. ü In case any worker or employee of the Enterprise is physically wounded or seriously hurt or dies in course of his work, the compensation shall be paid to him or to his family, as prescribed.

Labor Act, 1992 (2049) ü The Proprietor shall have to constitute a Labor Relation Committee in each Enterprise in order to create amicable atmosphere between the workers or employees and the management and to develop healthy labor or industrial relation on the basis of mutual participation and coordination.

Labor Act, 1992 (2049) ü The act shall not be applicable if there are less than 10 employees, ü Regulate by Labour office, Ministry of Labour and Transportation ü Provision of Labour Court ü ILO protocols are applicable

The Patent, Design and Trade Mark Act, 2022 (1965)

Patent ü It is new invention of product or service or formula or structure, method or theory that is useful for human life. ü It should be registered by a person or entity in Department of Industry with details of all documents to be prove that the patent is belongs to him. ü It can be registered after due investigation and prove that it is new one and not registered yet by another person or entity. ü It is registered for 7 years and can be renewed.

Patent ü ü Can be transfer with permission of patentee. Content of Application: Name, address and occupation of inventor Manner and nature of right acquired, if applicant is not the inventor. ü Manner of producing, using or conducting the patent, ü Principle or formula on which patent is based.

Non registration of Patent ü Already registered in another person’s name. ü Not invented by the applicant or the right to patent not received. ü Causes adverse effects on health, good conduct or morality or is harmful to national interest. ü Disobey existing laws of Nepal.

Design ü Design means any feature, pattern or shape of a matter prepared and produced in any manner. ü One can register his unique design for five years and can be renewed for the same time again. ü No one can use the Foreign patent, design and trademark without register in Nepal ü It can be used by jointly if owner of the TM, P and D is agreed.

Design ü No allow to register TM, P and D of Nepalese product or services in foreign countries without registering in Nepal. Non Registration: ü Already registered in another person’s name ü Likely to cause damage to the reputation of an individual or an institution. Breaching of law is not excused.

Trade mark ü Trade mark is a any symbol, sign, picture, word or the combination of all of that which makes differ and significant from others product, services and goods. ü A registered brand is trade mark. ü If not use until a year after registration by the organization, it may be cancelled.

Schedule-3 Application Registration and Renewal Fees In Respect to patents, Designs and Trade- marks S. no 1 Details of fees Patent Application of Registration Rs 2000/fees Design Rs 1000/- for the patents, Designs and Trade-marks 2 Application Amendment fee Rs 500/- 3 Registration fee Rs 10000. – Rs 7000/- 4 Transfer fee Rs 5000/- Rs 3000/-

Consumerism ü Action or practice of consuming. Economic policies placing emphasis on consumption. ü Organized movement of consumer. ü It focuses on protect consumers from unfair practice of producer and marketers and enhance right of consumers in relation to producer and marketers. ü In Nepal, some of the law regarding consumer protection are: 1. 2. 3. 4. Food Act 1966, Consumer Protection Act 1998 Nepal Standardization Act 1980 Black Marketing and other Social crime Punishment Act 1979

Questions 1. How FITTA, 1992 provides best opportunity to the foreign investors in Nepal? Do you think that the act is enough to create conducive environment for the foreign investor. Why? Why not? 2. Highlight the major influences of the Labour Act and Income Tax Act in the business? In which business it is regarded as a least influential factor? Most influential factor? 3. " There is always debate on VAT Acts among the both consumers and traders. " Suggest to the IRD for the effective implementation of VAT Act.

Questions 1. "Knowledge of legal environment is essential for businessman even though they can hire legal experts. " Comment. 2. Critically examine the role of regulatory authorities of Nepal.