chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Industrial Enterprises Act, 2020

Chapter-1
Preliminary

1. Short Title and Commencement: (1) This Act may be called the "Industrial Business Act, 2076 (2019)".

(2) This Act shall come into force immediately. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Industry" means an industry as per Section 17.

(b) "Industry Registration Body" means the Department, and the said term also denotes the department or office of the provincial government looking after industry administration.

(c) "Single Point Service Center" means the Single Point Service Center as per Section 37.

(d) "Transaction" means the act of producing and distributing goods or services by an industry according to its objectives, and the said term also denotes other transactions related to such production and distribution.

(e) "Fund" means the Fund as per Section 51.

(f) "Cottage Industry" means an industry as per clause (b) of sub-section (1) of Section 17.

(g) "Large Industry" means an industry as per clause (e) of sub-section (1) of Section 17.

(h) "Prescribed" or "as prescribed" means prescribed or as prescribed in the rules made under this Act.

(i) "Export-Oriented Industry" means an industry, except an energy-based industry, that exports more than at least forty percent of its production.

(j) "Board" means the Industrial and Investment Promotion Board constituted under Section 20.

(k) "Intellectual Property" means intellectual property including patent, design, trademark, service mark, geographical indication, trade secret, and the said term also denotes subjects defined as copyright by the prevailing law.

(l) "Medium Industry" means an industry as per clause (d) of sub-section (1) of Section 17.

(m) "Ministry" means the Ministry of the Government of Nepal looking after subjects relating to industry.

(n) "National Priority Industry" means an industry as per Section 19.

(o) "Micro Enterprise" means an industry as per clause (a) of sub-section (1) of Section 17.

(p) "Department" means the Department of Industry.

(q) "Small Industry" means an industry as per clause (c) of sub-section (1) of Section 17. Added by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024).(r1) "Startup Enterprise" means a Startup Enterprise as per Section 4a.

(s) "Fixed Capital" means property as per Section 18. Chapter-2
Provisions Relating to Industry Registration and Regulation

3. Requirement to Register an Industry: (1) No person shall establish or operate, or cause to be established or operated, an industry without registering it under this Act.
Industrial Enterprises Act, 2020

Chapter-2
Provisions Relating to Industry Registration and Regulation

3. Requirement to Register an Industry: (1) No person shall establish or operate, or cause to be established or operated, an industry without registering it under this Act. Added by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).(1a) Notwithstanding anything contained in sub-section (1), if an industry that was established and operating without registration at the time of commencement of this sub-section submits an application for industry registration within one year from the date of commencement of this sub-section, the Industry Registration Body shall, upon collecting the fine leviable pursuant to sub-section (1) of Section 43, register such industry.

(2) Notwithstanding anything contained in sub-section (1), an industry that was registered and operating under the prevailing law relating to industrial business at the time of commencement of this Act shall not be required to register the industry again under this Act.

(3) An industry established as a branch industry before the commencement of this Act shall, within one year of the commencement of this Act, complete the process under this Act and get it registered as a separate industry.

(4) If an industry intends to produce its product or any part thereof from a place different from the place where the industry originally existed, or if an industry that does not wish to register as a separate industry within the period mentioned in sub-section (3), it may establish and operate such branch industry as a unit industry.

(5) While establishing a unit pursuant to sub-section (4), the same procedure as for establishing a new industry must be completed, excluding registration under this Act.

(6) Records of production and transactions from the unit established pursuant to sub-section (4) must be prepared and maintained by the respective unit, and such records must also be sent to the main office of the industry. 4.
Industrial Enterprises Act, 2020

4. Provisions Relating to Industry Registration: (1) A person, firm, or company desiring to establish the following industries under this Act shall submit an application for registration to the Department in the prescribed format along with prescribed details and documents:-

(a) Industries listed in Schedule 1 requiring permission,
(b) Industry to be established with foreign investment,
(c) Industry relating to subjects listed in Schedule 5 of the Constitution of Nepal,
(d) Industry having jurisdiction over two or more provinces,
(e) Industry relating to educational counseling services concerning diplomatic affairs,
Added by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024).
(f) Large Industry.

(2) Registration, renewal, regulation, and other industry administration-related work of industries other than those mentioned in sub-section (1) shall be done by the respective provincial government. Provided that, in the case of industries requiring permission, permission must be obtained.

(3) Notwithstanding anything contained in sub-section (2), in relation to the industries to be registered, renewed, and regulated by the provincial government, until the respective provincial government makes arrangements by law, the Federation shall carry out functions related to industry administration, including registration, renewal, and regulation of such industries.

(4) Notwithstanding anything contained in sub-sections (1) and (2), industries producing atomic energy, radioactive materials, and industries related to nuclear energy and uranium-based energy shall be established and operated only by the Government of Nepal.

(5) While applying pursuant to sub-section (1), the details or documents to be attached with the application may also be submitted through electronic means (online), and the certification of related documents may be done by means of electronic signatures.

(6) If, upon examining the application received under sub-section (1), the required details and documents appear incomplete, the Industry Registration Body shall prescribe a period of Amended by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024).twenty-one days to submit the missing details or documents and immediately inform the applicant.

(7) If the applicant fails to submit the details or documents requested pursuant to sub-section (6), or if the process under this Act or the regulations made under this Act does not appear to be completed, the Industry Registration Body may, stating reasons, reject the application for industry registration. If a decision is made to reject it, a written notice of the same, stating reasons, shall be given to the concerned applicant within five days of the decision.

(8) A person, firm, or company desiring to establish industries other than those mentioned in sub-section (1) shall submit an application for industry registration to the Industry Registration Body of the respective province along with details and documents as provided for by the provincial law.
Industrial Enterprises Act, 2020

Added by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).(9) Notwithstanding anything contained elsewhere in this Section, if, within fifteen days from the date of filing an application under sub-section (1), no missing document or detail is requested, or, upon submission of missing documents or details, no decision regarding industry registration under this Act is made within fifteen days from the date of submission of such documents or details, then after the expiry of such period, there shall be no impediment to establishing or operating an industry other than those under sub-section (4). The Department shall issue an industry registration certificate under this Section to the industry thus established or operated. Added by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024).4a. Registration and Operation of Startup Enterprise: (1) The Industry Registration Body under this Act may register the following types of enterprises, which are commercially operated by a firm or company using innovative exploration and creative thinking in the development, production, operation, and distribution of any goods or services and processes, as a Startup Enterprise:-

(a) Registered as a new company, private firm, or partnership firm,
(b) Innovative ideas and technology are used in the production of goods or services,
(c) Has the potential for rapid scaling,
(d) Has not exceeded a period of ten years from the date of registration as per clause (a), and
(e) The annual turnover of any fiscal year after registration does not exceed fifteen crore rupees.

(2) The Government of Nepal, provincial government, or local level may operate an Entrepreneurship Promotion Center to promote a Startup Enterprise pursuant to sub-section (1).

(3) The regulation of a Startup Enterprise shall be done by the registration body of such enterprise.

(4) The body registering a Startup Enterprise pursuant to sub-section (1) must prepare and maintain a separate record of the details thereof.

(5) Other provisions relating to the registration and operation of Startup Enterprises shall be as prescribed. 5.
Industrial Enterprises Act, 2020

5. Obligation to Issue Industry Registration Certificate: (1) If, upon examining the application received pursuant to Section 4, the required details or documents appear to be complete, the Industry Registration Body shall, within five days of receiving such details or documents, register the industry as requested by the applicant and issue a certificate of industry registration in the prescribed format.

(2) While issuing the certificate of industry registration pursuant to sub-section (1), the following details, among others, must also be specified in the certificate:-

(a) Date of issuance of certificate,
(b) Period within which commercial production or transaction must commence,
(c) Conditions to be complied with by the industry,
(d) Other conditions prescribed by the Industry Registration Body by decision, according to the nature.

(3) Notwithstanding anything contained in sub-section (1), in the case of a Micro Enterprise, an application for industry registration may be submitted to the Industry Registration Body within one year from the date of operation of such industry. 6. Right to Complain: (1) If the Industry Registration Body refuses to register an industry, the dissatisfied party may file a complaint within thirty days to the Ministry in case of a decision made by the Department, and to the Ministry looking after industry of the respective province in case of a decision made by the provincial Industry Registration Body.

(2) Upon receipt of a complaint filed pursuant to sub-section (1), the complaint-hearing body shall conduct necessary inquiry and make a necessary decision in relation thereto within thirty days from the date of filing of the complaint.

(3) Other provisions relating to complaints shall be as prescribed. 7.
Industrial Enterprises Act, 2020

7. Obligation to Mitigate Adverse Environmental Impact: (1) An industry registered under Section 5 shall, if required to conduct an environmental impact assessment or initial environmental examination under the prevailing law, establish, operate, commence commercial production, and transaction of such industry only after the report thereof is approved.

(2) Notwithstanding anything contained in sub-section (1), if an industry's Deleted by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024) , capacity expansion, addition of objectives, change of objectives, relocation or transfer of industry requires environmental impact assessment or initial environmental examination under the prevailing law, the same must also be done.

(3) The responsibility of mitigating adverse environmental impacts caused or likely to be caused to the environment during industry operations shall lie with the concerned industry.

(4) The Industry Registration Body may, as necessary, monitor, issue directives, take action, or recommend and send to the concerned body for action regarding whether the environmental impact mitigation has been done pursuant to this Section.

(5) An industry not required to conduct an environmental impact assessment or initial environmental examination while submitting an application for industry registration shall submit an Amended by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).Environmental Management Plan, stating the basis and reasons for not requiring an environmental impact assessment or initial environmental examination and the measures to be adopted to mitigate potential adverse impacts on the environment during the establishment and operation of its industry. 8. Requirement to Obtain Permission: (1) Notwithstanding anything contained elsewhere in this Chapter, prior to registering an industry listed in Schedule 1, permission must be obtained from the Board.
Industrial Enterprises Act, 2020

8. Requirement to Obtain Permission: (1) Notwithstanding anything contained elsewhere in this Chapter, prior to registering an industry listed in Schedule 1, permission must be obtained from the Board. Provided that, prior to registering industries listed in serial number 1 of the same Schedule, permission must be obtained from the Council of Ministers, Government of Nepal.

(2) A person desiring to register an industry requiring permission under sub-section (1) shall submit an application to the Board through the Industry Registration Body, in the prescribed format, along with prescribed details.

(3) If, upon examining the application under sub-section (2) and the related documents, the required details or documents appear to be attached, the Industry Registration Body shall, within seven days, forward it to the Board with its opinion for a decision.

(4) The Board must decide whether to grant or refuse permission to register an industry concerning the application received under sub-section (2) within thirty days.

(5) While deciding to grant permission from the Board under sub-section (4), the Board may also prescribe additional necessary conditions and criteria.

(6) If permission is granted by the Board under sub-section (4), the Department shall provide a permission letter in the prescribed format, along with the information of the decision, to the concerned applicant within five days of such decision.

(7) A person receiving the permission letter under sub-section (6) shall submit an application for industry registration to the Industry Registration Body within the time period mentioned in the permission letter. Deleted by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).

(8) If the Board decides not to grant permission for industry registration under sub-section (4), the Industry Registration Body shall inform the applicant of the same within five days of the decision. Added by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).(7a) If unable to register pursuant to sub-section (7), an application shall be submitted to the Board for extension of the period of the permission letter, stating the reasons thereof. Added by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).(7b) If the reasons stated in the application received under sub-section (7a) appear reasonable, the Board may extend the period of the permission letter.

(9) The applicant obtaining permission under sub-section (6) shall not, in any manner, transfer, sell, or change the ownership of such permission letter prior to operating the industry or commencing its commercial production or transaction.
Industrial Enterprises Act, 2020

Provided that, if any applicant dies prior to operating the industry or commencing commercial production or transaction, it shall not be an impediment for the successor of the deceased as per the prevailing law to carry out the remaining work in the capacity of an applicant. 9. Obligation to Provide Information on Commencement of Industry Operation, Commercial Production or Transaction: (1) An industry registered under this Act shall commence industry operation, its commercial production or transaction within the period mentioned in the industry registration certificate and shall inform the Industry Registration Body of the same within thirty days.

(2) If an industry fails to commence industry operation or its commercial production or transaction as per sub-section (1), an application may be submitted to the Industry Registration Body as prescribed for extension of the period, stating the reasons thereof. Deleted by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024).

(3) Deleted by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024)

(4) If, upon examining the application received under sub-section (2) Added by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024) , the contents appear reasonable, the Industry Registration Body may, considering the progress of works including construction work required for establishing the industry and the nature of the industry, upon collecting Added by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024).a delay fee as prescribed, extend the period for commencement of operation or commercial production or transaction of such industry as prescribed. Provided that, if the period for commencement of operation, commercial production or transaction of any industry needs to be extended more than three times, the Department shall forward it to the Board with its opinion for approval.

(5) Deleted by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024)

(6) Deleted by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024)

(7) Deleted by the Act to Amend Some Nepal Acts Relating to Investment Facilitation, 2081 (2024)

10. Monitoring and Inspection: (1) The Ministry or the Industry Registration Body may, from time to time, monitor and inspect the industry regarding compliance or non-compliance with this Act, the regulations made under this Act, and the conditions mentioned in the industry registration certificate.

(2) An employee or official deployed for the monitoring and inspection of an industry under sub-section (1) may, in the course of monitoring and inspection, enter the premises of the concerned industry, collect audio-visual and other information and statistics as needed, examine necessary documents, and demand any other information or details.
Industrial Enterprises Act, 2020

Provided that, where a matter concerning the protection of intellectual property as per the prevailing law is involved and confidentiality must be maintained, it shall be in accordance with the prevailing Nepal law on intellectual property.

(3) Providing such demanded information or details under sub-section (2) shall be the duty of the concerned industry.

(4) If, from the information or details received under sub-section (3), it appears that the concerned industry faces any kind of problem in its operation, the Industry Registration Body may, after consulting with the concerned industry, provide necessary facilitation to such industry. 11. Requirement to Obtain Approval for Industry Relocation: (1) If an industry registered to operate in one place needs to be relocated elsewhere for any reason, an application shall be submitted to the Industry Registration Body in the prescribed format, stating the reasons thereof. Deleted by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024). Amended by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).(2) Upon receipt of an application under sub-section (1), the Industry Registration Body may, upon the recommendation of the concerned local level where the industry is to be relocated, and by conducting an environmental study if required, grant approval for the industry relocation. Information regarding the approval for industry relocation thus granted shall be provided to the Ministry looking after industry of the concerned province and the local level.

(3) Other provisions relating to industry relocation shall be as prescribed. 12. Requirement to Obtain Approval for Capital Expansion, Capacity Expansion, and Addition or Change of Objectives: (1) If an industry intends to increase its existing capital or capacity, or add, change, or modify its objectives, it shall submit an application to the Industry Registration Body in the prescribed format for approval thereof.

(2) If, upon examining the application received under sub-section (1), the contents appear reasonable, the Industry Registration Body shall, after completing the procedure as prescribed, grant approval for capital expansion, capacity expansion, addition, change, or modification of objectives of such industry within ninety days. If the classification of the industry changes due to such capital expansion, capacity expansion, addition, change, or modification of objectives, the concerned industry shall get the record updated and mentioned in the industry registration certificate.

(3) Notwithstanding anything contained in sub-sections (1) and (2), approval of the Industry Registration Body shall not be required for Micro Enterprises or cottage and small industries with a fixed capital up to one crore rupees which do not require permission, when increasing capital or capacity.
Industrial Enterprises Act, 2020

Provided that, if an environmental impact assessment or initial environmental examination becomes necessary due to such capital expansion, capacity expansion, or addition, change, or modification of objectives, the report thereof must be approved as per the prevailing law.

(4) If an industry produces more than the projected output by enhancing managerial efficiency without altering the previously installed machinery and equipment, it shall not be deemed to have made a capacity expansion. Added by the Act to Amend Some Nepal Acts Relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081 (2024).12a. Requirement to Obtain Approval for Ownership Transfer or Change: (1) If the ownership of an industry needs to be transferred or changed, an application shall be submitted to the Industry Registration Body for approval, attaching the documents as prescribed.

(2) If, upon examining the documents submitted under sub-section (1), it appears reasonable to grant approval, the Industry Registration Body shall grant approval within thirty days from the date of receipt of the application. 13. Obligation to Submit Details: (1) After commencing commercial production or transaction, every industry shall submit details as prescribed to the Industry Registration Body within six months from the end of each fiscal year.

(2) The details required to be submitted under sub-section (1) may also be submitted through electronic means as prescribed.

(3) Notwithstanding anything contained in sub-section (1), if an industry is closed for more than one fiscal year, or if there is no production or transaction for any reason, a nil statement for that period must be submitted. Provided that, if such industry informs the Industry Registration Body that the industry is closed and states it in the records, it shall not be necessary to submit details for the entire closed period. 14. Obligation to Give Notice if Industry is Closed: If an industry registered under this Act is closed for any reason by the concerned industrialist, or if the commercial production or transaction of the industry is suspended, notice thereof shall be given to the Industry Registration Body as prescribed within thirty days from the date of such closure or suspension. 15. Application May be Made for Cancellation of Industry Registration: (1) If an industry cannot be operated for any reason, an application may be submitted to the Industry Registration Body in the prescribed format, along with details or documents as prescribed, for the cancellation of registration of such industry.
Industrial Enterprises Act, 2020

15. Application May be Made for Cancellation of Industry Registration: (1) If an industry cannot be operated for any reason, an application may be submitted to the Industry Registration Body in the prescribed format, along with details or documents as prescribed, for the cancellation of registration of such industry. Provided that, if the industry is in the process of liquidation under the prevailing law, it shall be governed by the same law.

(2) Upon receipt of an application under sub-section (1), if the Industry Registration Body finds that the concerned industry has settled its government liabilities including taxes and other liabilities, it shall cancel the industry registration after completing the procedure as prescribed. Information of the cancellation of registration thus made shall be given to the concerned applicant and all concerned government bodies.

(3) Notwithstanding anything contained in sub-section (1) or (2), in the case of industries under a company that has gone into liquidation proceedings under the prevailing law, it shall be governed accordingly, and if the industry is thus canceled, the liquidator shall provide the information thereof to the concerned Industry Registration Body. 16. Obligation to Maintain Records: (1) The responsibility of securely maintaining records relating to industry administration, including industry registration, renewal, name transfer, name change, relocation, capacity expansion, capital expansion, addition or change of objectives, or industry cancellation, shall lie with the Industry Registration Body.

(2) An industry or a person having ownership in such industry may, if documents or records under sub-section (1) relating to the industry are required, submit an application to the Industry Registration Body in the prescribed format.

(3) Upon receipt of an application under sub-section (2), the Industry Registration Body shall, upon collecting the prescribed fee, certify and provide the documents or records available in the Department.

(4) If, for any reason, the records held by the Industry Registration Body are destroyed or cannot be found, the Industry Registration Body may, based on documents or records available in other concerned government bodies and other documents submitted by the concerned industry, recreate the records and provide copies under sub-section (3).

(5) If, after issuing a copy under sub-section (4) by the Industry Registration Body, details relating to the records of that industry are subsequently proven otherwise, the Industry Registration Body may, by decision, cancel such copy.

(6) Documents or records relating to any industry held by the Industry Registration Body shall not be provided to anyone other than the concerned industry or the person having ownership in such industry.
Industrial Enterprises Act, 2020

18. Fixed Capital of Industry: (1) For the purpose of this Act, while assessing the fixed capital of an industry, it shall be assessed based on the following property:-

(a) Land and physical structures built or improved underground, in space, water, or underwater,
(b) Physical structures built on land (such as drainage, internal roads, drinking water structures, water supply system),
(c) Office, factory, building, or warehouse of the industry,
(d) Residential building built for employees or workers,
(e) Electricity supply and related equipment and systems,
(f) Machinery, equipment, tools, and their spare parts,
(g) Means of transport,
(h) Office supplies and equipment of a capital nature,
(i) Fixtures and furniture,
(j) Communication materials and related equipment and systems.

(2) In addition to the property mentioned in sub-section (1), the following expenses incurred before the establishment of the industry or during various stages of construction shall also be assessed as the fixed capital of the industry:-

(a) Technical and supervision expenses to be capitalized,
(b) Pre-investment and pre-operating expenses,
(c) Interest expenses to be capitalized,
(d) Environmental study and research expenses incurred before the operation of the industry. 19. National Priority Industries: Industries listed in Schedule 9 shall be deemed National Priority Industries. Chapter-4
Provisions Relating to Industrial and Investment Promotion Board

20.
Industrial Enterprises Act, 2020

19. National Priority Industries: Industries listed in Schedule 9 shall be deemed National Priority Industries. Chapter-4
Provisions Relating to Industrial and Investment Promotion Board

20. Formation of Board: (1) An Industrial and Investment Promotion Board is constituted as follows:-

(a) Minister or Minister of State for Industry, Commerce and Supplies - Chairperson
(b) Member, National Planning Commission (looking after the industry sector) - Member
(c) Governor, Nepal Rastra Bank - Member
(d) Secretary, Ministry (looking after subjects relating to industry) - Member
(e) Secretary, Ministry of Finance - Member
(f) Secretary, Ministry of Labour, Employment and Social Security - Member
(g) Secretary, Ministry of Land Management, Cooperatives and Poverty Alleviation - Member
(h) Secretary, Ministry of Forests and Environment - Member
(i) Chief Executive Officer, Investment Board Nepal - Member
(j) Joint Secretary, Industrial and Investment Promotion Division, Ministry - Member
(k) President, Federation of Nepalese Chambers of Commerce and Industry - Member
(l) President, Confederation of Nepalese Industries - Member
(m) President, Federation of Nepalese Cottage and Small Industries - Member
(n) President, Women Entrepreneurs' Federation - Member
(o) Two persons nominated by the Ministry including at least one woman entrepreneur from among experts in the industry sector - Member
(p) Director General, Department of Industry - Member-Secretary.

(2) Notwithstanding anything contained in clause (a) of sub-section (1), where both a Minister and a Minister of State are appointed in the Ministry, the Minister of State shall be a member of the Board.

(3) The Board may, if deemed necessary, invite an expert on the relevant subject, any official or officer-level employee of the Government of Nepal or provincial government, to the meeting of the Board.

(4) A meeting of the Board may be held at least once every two months and at any time as necessary.

(5) The Member-Secretary of the Board shall, in consultation with the Chairperson of the Board, determine the agenda to be presented in the Board meeting and provide information thereof to all members at least twenty-four hours prior to the Board meeting.

(6) If any member of the Board has a personal concern or interest in relation to any agenda to be presented for decision in the Board meeting, he/she shall not participate in the decision-making process concerning such agenda.

(7) If a decision appears to be made contrary to sub-section (6), such decision shall be void ab initio.

(8) The decisions made by the Board shall be certified and maintained by the Member-Secretary.

(9) The Secretariat of the Board shall be located in the Department.

(10) Other procedures relating to the Board meeting shall be as determined by the Board itself. 21.
Industrial Enterprises Act, 2020

21. Functions, Duties, and Powers of the Board: (1) In addition to the functions, duties, and powers specified elsewhere in this Act, the functions, duties, and powers of the Board shall be as follows:-

(a) To recommend to the Government of Nepal for policy formulation and policy decisions relating to industrial promotion, investment protection, enhancement, and industrialization,
(b) To regularly review the policy, legal, institutional, and procedural structures and working systems relating to the overall industrialization of the country and recommend to the Government of Nepal for necessary improvements therein,
(c) Subject to the prevailing law, to recommend to the Government of Nepal for making necessary policy decisions relating to foreign investment and technology transfer,
(d) To recommend to the Government of Nepal for policy formulation and policy decisions relating to industrial pollution control,
(e) To evaluate and review the overall status of industrial development of the country and provide suggestions and recommendations to the Government of Nepal to take necessary steps,
(f) To hear grievances of industrialists and resolve or cause to resolve problems and provide guidance to concerned bodies,
(g) To recommend to the Government of Nepal if additions, deletions, or changes need to be made in the level, classification, and nature of industries,
(h) To conduct or cause to conduct studies, research, and surveys as necessary in the context of enhancing domestic and foreign investment in the industrial sector,
(i) To carry out or cause to carry out necessary works for creating a competitive industrial environment through effective, coordinated, and harmonious cooperation among the public, private, and cooperative sectors,
(j) To provide policy guidance and make necessary arrangements for coordination on matters requiring coordination among provincial and local levels for industrial business development and expansion,
(k) To facilitate the resolution of any obstruction, hindrance, or ambiguity arising in the implementation of any law relating to industries,
(l) To coordinate or facilitate the operation of the Single Point Service Center,
(m) To perform or cause to perform other functions as prescribed.

(2) The Board may delegate some of its functions, duties, and powers to any body or official of the Government of Nepal.

(3) The Board shall submit an annual report of its own work to the Ministry within thirty days from the end of the fiscal year. The Ministry shall publish such report on its website. 22.
Industrial Enterprises Act, 2020

The Ministry shall publish such report on its website. 22. Obligation to Maintain Confidentiality: (1) Any information coming to one's knowledge in the course of the Board's work shall not be unauthorizedly provided to any other person or used or caused to be used for the benefit, interest, or advantage of anyone.

(2) If the Chairperson, member, Member-Secretary, invited person, or employee of the Board does any act contrary to sub-section (1), he/she shall be deemed to have not followed official conduct, and a record of such member who breaches confidentiality shall be maintained. 23. Provisions Relating to Provincial Industrial and Investment Promotion Board: (1) For promoting investment in industries registered and operating in a province, a Provincial Industrial and Investment Promotion Board may be constituted under the provincial law.

(2) The functions, duties, and powers of the Provincial Industrial and Investment Promotion Board established under sub-section (1)

(ta) Expenditure incurred on methods and equipment for preventing and controlling pollution, or for recycling or reusing waste materials to minimize environmental impact, may be deducted up to fifty percent of the adjusted taxable income of the industry or business in the same year. Expenditure exceeding the limit of the adjusted taxable income of such industry or business may be capitalized at the beginning of the following income year and depreciated.

(tha) The entire expenditure invested in machinery or equipment that contributes to reducing energy consumption by enhancing energy efficiency shall be deductible for income tax purposes.

(da) Of the expenditure incurred for entrepreneurship enhancement, research and development, and creation of new technology to increase the productivity of the industry, up to fifty percent of the adjusted taxable income of all industries and businesses operated by that person may be deducted.
Industrial Enterprises Act, 2020

Expenditure exceeding the limit of the adjusted taxable income may be capitalized at the beginning of the following income year and depreciated.

(dha) Expenditure incurred by the industry for business-related market promotion, surveys, and advertising, up to the prescribed limit, shall be deductible for income tax purposes.

(na) Expenditure incurred as prescribed for the security of the physical assets of the industry, and the expenditure on premiums actually paid for the insurance thereof, shall be deductible for income tax purposes.

(pa) Expenditure incurred by the industry for the domestic protection of industrial property under intellectual property registered in Nepal shall be deductible for income tax purposes.

(pha) Fees incurred by the industry for registering abroad for the protection of intellectual property obtained by it shall be deductible for income tax purposes.

(ba) Of the amount given as donation or gift by the industry to an institution entitled to tax exemption, an amount equal to one hundred thousand rupees or five percent of the adjusted taxable income of that industry for that income year, whichever is lower, may be deducted for income tax purposes.

(bha) In a particular situation, the Government of Nepal may, by publishing a notification in the Nepal Gazette, prescribe that the amount spent or donated by any industry for any specified work may be deducted, wholly or partially, for the purpose of income assessment.

(3) Notwithstanding anything written in sub-section (2), industries related to tobacco products and alcoholic beverages, other than the industry mentioned in clause (gha) of that sub-section, shall not be entitled to any of the concessions and facilities mentioned therein.
Industrial Enterprises Act, 2020

Provided that such industries shall be entitled to deduct expenditure incurred under the prevailing law for the long-term interest or welfare of their workers and employees, expenditure invested in methods and equipment for preventing and controlling pollution, recycling waste materials, or minimizing environmental impact, expenditure invested in mechanical equipment that contributes to reducing energy consumption by enhancing energy efficiency, and actual expenses for business promotion including expenditure on research and development.

(4) An industry that may be eligible for more than one concession under this section in respect of the same income shall be entitled to only one concession of its choice.

(5) If an industry, other than those related to tobacco products, alcoholic beverages, and casinos, capitalizes its retained profits into shares for the capacity expansion of the same industry or for another productive, energy-related, or agriculture and forest produce-based industry, there shall be a one hundred percent exemption on the dividend tax leviable on such capitalization in the form of dividend distribution.

(6) Cottage industries and small industries having a fixed capital of up to one crore, which were registered and in operation at the time of commencement of this Act, and which are registered and commence operation under this Act, shall be entitled to a fifty percent exemption on the income tax leviable on them. 25. Exemption, Facility or Concession relating to Customs Duty: An industry registered under this Act shall be granted exemption from customs duty as follows:-

(ka) In the case of industries that have exported without availing the facility of bonded warehouse or cash deposit (passbook), the Ministry of Finance shall determine the Duty Drawback rate and publish a notice in the Nepal Gazette.
Industrial Enterprises Act, 2020

The Duty Drawback amount according to the rate so determined shall be refunded by the Ministry through the Single Point Service Center.

(kha) If an industry that has not obtained a bonded warehouse license exports its products through a letter of credit or through the prevailing banking system, or sells them domestically in convertible foreign currency, it may import the raw materials or auxiliary raw materials and packaging materials not produced in Nepal required for producing such goods by depositing a security for the customs duty leviable on such imports, subject to the prescribed conditions and procedures.

(ga) Notwithstanding anything written in clause (kha), in the case of packaging materials not produced in Nepal, such industry shall only be entitled to the facility under clause (kha) if the Department certifies that such materials are not produced in Nepal and recommends granting the facility.

(gha) The customs duty leviable on raw materials, auxiliary raw materials, and packaging materials required by an industry for its production shall generally be at a rate one level lower than the customs duty rate leviable on the import of finished goods produced from such raw materials.

(nga) Machinery or generators of ten kilowatts or more capacity, or industrial equipment imported by an industry for its business purposes, shall be subject to customs duty at a minimum rate.

(cha) Machinery and scientific equipment imported by a quality testing laboratory for the purpose of quality testing, and machinery and equipment imported by an industry for research and development, shall be subject to customs duty at a minimum rate.

(cha) The customs duty paid by an industry producing intermediate goods on production materials used in industrial goods to be exported shall be refunded to the industry producing such intermediate goods based on the quantity exported. Provided that a refund shall not be given if an application is not submitted within one year of the export. 26. Other Facilities and Concessions for Micro Enterprises: (1) Notwithstanding anything written in the prevailing law, no fee or charge shall be leviable for registering a micro enterprise under this Act.

(2) Micro enterprises that were registered and in operation at the time of commencement of this Act, and which are registered and commence operation under this Act, shall be entitled to a one hundred percent income tax exemption. 27.
Industrial Enterprises Act, 2020

27. Additional Facilities for Women Entrepreneurs: (1) Notwithstanding anything written in the prevailing law, if an industry or firm is registered with sole ownership of a woman entrepreneur, a thirty-five percent exemption shall be given on the fees or charges leviable under the law for registering such industry or firm.

(2) Notwithstanding anything written in the prevailing law, a twenty percent exemption shall be given on the fees leviable under the prevailing law for registering industrial property used in an industry registered with sole ownership of a woman entrepreneur.

(3) If a woman entrepreneur wishes to establish a new industry within any industrial zone or industrial village, the body operating such zone shall give priority in providing space.

(4) If an industry with sole ownership of a woman entrepreneur requests a loan for the purpose of exporting its industrial products, export credit may be provided through the banking system from the fund for providing credit to women entrepreneurs, as prescribed, based on the financial status of the woman entrepreneur's business. 28. Special Provisions relating to Industries Operating in Industrial Zones: The Government of Nepal may make special arrangements regarding incentives, exemptions, facilities, or concessions for industries operating within industrial zones, industrial clusters, industrial corridors, and industrial villages. 29.
Industrial Enterprises Act, 2020

Added by the Act to Amend Some Nepal Acts relating to Investment Facilitation, 2024.(da) The body registering the industry may prescribe the standard for waste (wastage) of raw materials when an industry established under the prevailing law uses raw materials according to its approved raw material consumption capacity. Added by the Act to Amend Some Nepal Acts relating to Investment Facilitation, 2024.(dha) For industries related to the information technology sector established with an investment of more than one billion, the Government of Nepal may provide incentives and facilities as prescribed. Added by the Act to Amend Some Nepal Acts relating to Investment Facilitation, 2024.(na) The Government of Nepal, Provincial Government, or Local Level may provide incentives, exemptions, concessions, or financial and non-financial facilities to startup enterprises. Added by the Act to Amend Some Nepal Acts relating to Improving Economic and Business Environment and Enhancing Investment, 2024.(ta) Any industry may, with the approval of Nepal Rastra Bank under the prevailing law, obtain a loan by entering into a project loan or project financing agreement with a foreign financial institution. Added by the Act to Amend Some Nepal Acts relating to Improving Economic and Business Environment and Enhancing Investment, 2024.(tha) For information technology-based industries engaged in software development, data processing, business process outsourcing, or knowledge process outsourcing with an annual turnover exceeding five crore rupees, the Government of Nepal may provide facilities or concessions by publishing a notification in the Nepal Gazette. 30. Provision relating to Land: (1) The concerned entrepreneur shall purchase the land required for industries registered under this Act or the prevailing law by themselves, according to the prevailing law. Provided that if an entrepreneur operating an industry as prescribed is unable to purchase the land required for the industry, and makes a request stating the same for purchasing land or getting land provided, the body registering the industry shall make necessary coordination and facilitation for purchasing land or providing land.

(2) The process for coordination and facilitation for providing land and other arrangements shall be as prescribed. 31.