How legal practice in Nepal is organised: the court structure, who may appear for you, the practice areas a full service firm covers, and what engaging one involves.
Engaging a law firm in Nepal is straightforward once you understand how legal practice here is organised: who is entitled to appear for you, which forum your matter belongs in, and what a firm will and will not handle in house. This page sets that out.
It covers the structure of the courts, the categories of legal practitioner recognised in Nepal, the practice areas a full service firm offers, and what engaging one actually involves. If your question is specifically about corporate work, our corporate law firm page goes deeper on that. If you are comparing firms, see how to judge a law firm in Nepal.
A full service firm works across three broad functions. The first is advisory: telling you what the law requires before you act, whether that is a shareholders agreement, an employment policy or a tax position. The second is transactional: drafting and negotiating the documents, and obtaining the registrations, approvals and licences that make an arrangement effective. The third is contentious: representing you in court, before a tribunal, or in arbitration when a matter cannot be settled.
Most firms lean towards one of the three. A litigation practice and a corporate practice call for different habits, and a firm strong in one is not automatically strong in the other. It is a fair question to ask directly.
Under the Constitution of Nepal, 2072 (2015), the judiciary has three tiers. The Supreme Court sits at the apex in Kathmandu. Below it are seven High Courts, one for each province, with benches in several districts. At first instance there is a District Court in each of the 77 districts.
Alongside the ordinary courts sit specialised bodies with their own jurisdiction, and knowing which one applies often matters more than the substantive argument. These include the Revenue Tribunal for tax appeals, the Labour Court for employment disputes, the Administrative Court, the Debt Recovery Tribunal, the Special Court, and the Foreign Employment Tribunal.
Many commercial disputes never reach a court at all. Where a contract contains an arbitration clause, the Arbitration Act, 2055 (1999) governs, and the dispute is resolved by a tribunal the parties help constitute. For cross border contracts this is usually the preferable route.
Legal practitioners are enrolled and regulated by the Nepal Bar Council. Only an enrolled practitioner may appear for you before a court. The main categories are:
A point that often surprises foreign clients: foreign lawyers cannot appear before Nepali courts. International counsel routinely advise on the deal and instruct a Nepali firm for anything requiring local rights of audience, filings or regulator contact. Verifying that the people who will run your matter are enrolled advocates is a reasonable first question, and our team profiles list individual qualifications.
Market entry, investment approval, company registration and the choice between a subsidiary, branch or liaison office. See foreign investment services.
Sector licensing and approvals across the Company Registrar, Department of Industry, Nepal Rastra Bank, SEBON and the line ministries. See regulatory advisory.
Due diligence, share and asset transfers, reorganisation and post completion integration. See M&A and restructuring.
Contracts, workplace policy, termination and Social Security Fund obligations under the Labour Act, 2074. See HR and labour law.
Trademark searches, registration, collective marks, licensing and enforcement. See IP and trademarks.
Corporate income tax, VAT, withholding, treaty relief and assessment disputes before the Revenue Tribunal. See tax services.
Registration, Social Welfare Council agreements, project approvals and ongoing reporting. See NGO and INGO advisory.
Civil and commercial litigation, arbitration under the Arbitration Act, 2055, and negotiated settlement. See our published analysis.
Proceedings and most official filings are conducted in Nepali. Documents executed abroad will usually need certified translation, and depending on the authority, notarisation and consular legalisation. Nepal is not a party to the Apostille Convention, so an apostille alone is generally not sufficient and the full legalisation route applies. Build that time into your schedule, because it is routinely underestimated.
The second recurring issue is money movement. Capital brought into Nepal must be approved and recorded correctly if dividends, sale proceeds or royalties are to be taken out later. Investors who move funds informally usually discover the problem at exit, when it is expensive to fix.
Reliance Corporate Advisors has practised since 2013 from Milap House on Sanepa Main Road in Lalitpur, advising founders, established Nepali businesses, non-profits and foreign investors. The firm is ISO 9001:2015 certified and an ACCA Approved Employer, and is recognised in Chambers and The Legal 500.
What distinguishes the practice is that advocates and Chartered Accountants sit in the same team. A registration, its tax position and its first year of compliance are handled as one engagement rather than passed between advisers. Read more about the firm or review our full expertise.
Three things: advisory work telling you what the law requires before you act, transactional work drafting documents and obtaining registrations and approvals, and contentious work representing you before a court, tribunal or arbitral panel. Most firms are stronger in one of the three, so ask which.
No. Rights of audience belong to practitioners enrolled with the Nepal Bar Council. Foreign counsel commonly advise on the transaction and instruct a Nepali firm for filings, regulator contact and any appearance.
Three tiers under the 2015 Constitution: the Supreme Court, seven High Courts, and a District Court in each of the 77 districts. Specialised bodies sit alongside them, including the Revenue Tribunal, the Labour Court, the Administrative Court and the Debt Recovery Tribunal.
Defined work such as company registration or a trademark filing is usually a fixed fee. Advisory, transactional and litigation work is normally hourly or on a retainer. Government charges, translation and notarisation are typically billed separately, so ask for the exclusions in writing.
Generally yes. Filings and proceedings are in Nepali, so documents executed abroad usually need certified translation and, depending on the authority, notarisation and consular legalisation. Nepal is not an Apostille Convention party, so an apostille alone is usually not enough.
For cross border commercial contracts it is usually worth considering. Arbitration under the Arbitration Act, 2055 (1999) lets the parties help constitute the tribunal and is often faster than litigation. The clause needs drafting with care, because a defective one can leave you in court anyway.
Tell us the matter, the forum and the timetable, and we will set out what it involves and what it should cost. Get in touch with Reliance Corporate Advisors.
This page is general information about legal practice in Nepal, not legal advice, and should not be relied on for any specific matter without taking advice on the facts.
