A Technology Transfer Agreement in Nepal allows a foreign party to transfer technology, technical know-how, or intellectual property rights to a Nepalese enterprise. This may include patents, trademarks, proprietary formulas, specialized processes, or management expertise. Approval is mandatory before implementation. Technology transfer acts as a form of foreign investment, promoting innovation, advanced technology adoption, and economic growth in Nepal.
The approval of technology transfer agreements is governed by:
Foreign Investment and Technology Transfer Act, 2019 – defines the approval framework and compliance requirements.
Foreign Investment and Technology Transfer Regulations, 2021 – details procedural requirements, royalty rules, and documentation.
Government-issued notifications outline forms, fees, and submission guidelines.
| Authority | Role |
|---|---|
| Department of Industry (DOI) | Primary approval authority for technology transfer agreements. |
| Investment Board Nepal (IBN) | Approves large-scale or high-value technology transfer linked to foreign investment. |
| Nepal Rastra Bank (NRB) | Oversees royalty payments and foreign currency repatriation. |
| Ministry of Industry, Commerce and Supplies | Provides policy guidance and official notifications. |
Technology transfer can include:
Patents, designs, trademarks, formulas, and proprietary processes.
Licensing and know-how sharing agreements.
Technical advisory, management, and marketing services.
Note: Transfers are permitted in most sectors, including some with restricted foreign investment, subject to prior approval.
Applicants must meet the following:
Nepalese Enterprise: Must be legally registered.
Foreign Party: Must have ownership or legal rights to the technology.
Technology Details: Clearly describe the technical content, application, and operational use.
Agreement Terms: Define royalties, duration, reporting obligations, and compliance measures.
Essential documents include:
Completed DOI application form.
Signed draft Technology Transfer Agreement.
Nepalese and foreign company incorporation documents.
Technical description/specifications of the technology.
Proof of ownership or legal right to transfer technology.
Board resolutions authorizing the agreement.
Financial credibility documents of the foreign party.
Passport or identification proof of foreign representatives.
Preparation: Compile documents, finalize agreement terms including royalty and duration.
Submission: File application with DOI along with all supporting documents.
Initial Screening: DOI verifies completeness and eligibility.
Evaluation: Technical, financial, and legal assessment of the technology and agreement terms.
Clarification Stage: Respond to queries from DOI if required.
Final Decision: DOI issues approval, conditional approval, or rejection.
Registration: Approved agreements are officially recorded with DOI.
Post-Approval Compliance: Adhere to royalty, reporting, and operational obligations.
No specific minimum capital required solely for approval.
Applicant must be a registered and operational enterprise.
Office and operational capacity to use the technology is expected.
| Fee Type | Approximate Range |
|---|---|
| DOI Application Fee | Variable as per DOI schedule |
| Registration/Record Fee | As per DOI notification |
| Professional/Legal Fees | Based on advisory engagement |
| Royalty Repatriation Processing | NRB service charges if applicable |
Fees may change; applicants should confirm at the time of submission.
| Stage | Duration |
|---|---|
| Document Preparation | 1–3 weeks |
| DOI Submission & Initial Screening | 1–2 weeks |
| Detailed Evaluation | 4–8 weeks |
| Response to Queries | 1–3 weeks |
| Final Approval | 8–12 weeks (total) |
Complex or high-value foreign investment cases may take longer.
Enterprises must:
Use technology according to the approved agreement.
Submit periodic royalty and progress reports to DOI.
Maintain records for inspection or audit.
Apply for renewal if technology use continues beyond the approved term.
Minimum investment thresholds may apply for associated foreign investment.
NRB approval is required for repatriation of royalties.
Foreign experts involved must comply with visa and immigration rules.
Applicants can track status via DOI’s online portal using the submission reference number. Notifications are also sent via email regarding clarifications or final approval.
Evaluate eligibility and regulatory compliance strategy.
Draft and review agreements to meet approval standards.
Prepare and submit complete application packages.
Liaise with DOI and NRB for smooth processing.
Advise on royalty payments, repatriation, and ongoing compliance.
What is a Technology Transfer Agreement?
A legal contract transferring technology rights or know-how to a Nepalese enterprise.
Is DOI approval mandatory?
Yes, prior approval is required.
Which sectors allow technology transfer?
Most sectors, including those with restricted foreign investment, subject to DOI approval.
Who grants approval?
Department of Industry (DOI).
How long does approval take?
Typically 8–12 weeks.
Are there royalty limits?
Yes, regulated ceilings exist.
Can royalties be repatriated?
Yes, following DOI and NRB compliance.
Is technology transfer considered foreign investment?
Yes, it is treated as a foreign investment method.
What if the application is rejected?
The agreement can be revised and resubmitted.
Is renewal required?
Yes, for continuous use beyond the approved period.
This article is for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change. Consult a qualified legal professional for guidance tailored to your specific situation.
February 02, 2026 - BY Admin