Industrial Enterprises Act 2020 (2076‪)‬

Industrial Enterprises Act 2020 (2076) (“IEA 2020”) is now the preeminent legislation guiding the registration, establishment, operation and regulation of industries in Nepal. Bringing in some significant changes and repealing the Industrial Enterprises Act 2016 (2073) (“IEA 2016”) just three years after its introduction, IEA 2020 has addressed various new regulatory aspects of industries boosting decentralisation and federalism into the industrial entrepreneurship of the country.

IEA 2020 was expected to make reforms in order to establish an investment friendly environment and promote business growth and doing business in Nepal; especially as the IEA 2016 was heavily criticized for its relegating provisions that backlashed the expectations of business enthusiasts and industrialists.

Having addressed various new issues, IEA 2020 has introduced new concepts, provisions and incentives, which has been welcomed by entrepreneurs across the country albeit with some reservations.

This publication explores the major takeaways from IEA 2020 and the additions made to the previous legislation. To provide the audiences with the overview of the currently guiding industrial law, this write-up studies IEA 2020 from the business perspective.