Despite a growing emphasis on the service sector, industrials and manufacturing remain a cornerstone of Nepal’s economy. Industries such as cement, steel, textiles, consumer packaged goods, and agribusiness provide essential products that support other sectors and contribute significantly to employment and GDP. This sector is diverse – ranging from large factories producing construction materials and chemicals to small and medium enterprises making food products, garments, or electronics assembly. The manufacturing landscape in Nepal is influenced by several factors: availability of raw materials (some imported, some locally sourced), labor cost and productivity, energy supply (reliable electricity is crucial, with many industries investing in backup or captive power), and access to markets (both domestic distribution and export opportunities under trade agreements). From a legal and regulatory perspective, manufacturers must navigate industrial licensing, compliance with standards (quality, safety, environmental emissions), taxation (excise duties, VAT), and labor laws given the typically sizeable workforce. Additionally, manufacturing often intersects with other legal issues such as land acquisition or lease for factories, import of machinery (customs duties, import licensing), and protection of proprietary processes or designs.

Gandhi & Associates provides end-to-end legal counsel to manufacturing and industrial companies, leveraging our broad expertise in corporate, commercial, regulatory, and dispute matters. We assist clients in establishing manufacturing operations – this includes entity incorporation, obtaining “industrial enterprise” status and registrations, availing any government incentives (like tax exemptions under industrial promotion policies or special economic zones), and meeting initial requirements such as environmental impact assessments and local approvals for factory construction. Our team advises on operational compliance: we ensure that clients have the necessary permits for production (e.g., excise licenses for alcoholic beverages or other excisable goods), are conforming to Nepali standards (NS marks, if applicable), and are adhering to health, safety, and environmental regulations in their plants. We also help manufacturers handle their supply chain contracts, from procurement agreements for raw materials (including cross-border import contracts) to distribution and dealership agreements for finished products across Nepal. Intellectual property is another area of focus – we help register and protect trademarks, industrial designs, and any patents or trade secrets relevant to our clients’ manufactured products or processes. In the event of disputes or operational roadblocks, Gandhi & Associates represents industrial clients in matters such as tax disputes (challenging excise or VAT assessments), labor disputes (negotiating with unions, defending against wrongful termination claims), or contractual disputes with suppliers or customers (for example, issues of product quality or delayed delivery). With our multi-industry experience, we are adept at providing practical, timely advice that helps industrial companies maintain production continuity and pursue growth opportunities while staying fully compliant with Nepal’s legal regime.

Representative Experience:

• Advised a leading Nepali industrial group with interests in construction materials and plastics on corporate restructuring, regulatory compliance, and environmental approvals for a new factory, as well as contract negotiations for raw material procurement and export operations;
• Assisted a domestic business group in establishing a diaper manufacturing enterprise in Nepal, including securing industry registrations, environmental clearances, and intellectual property protection for product designs and trademarks. We continue to advise them on ongoing compliance and planned expansion;
• Advised a major Chinese agribusiness company on establishing a livestock feed production unit in Nepal. Our services included obtaining industrial licenses, environmental approvals, and work permits for foreign technical personnel, enabling successful operational setup; and
• Advised a leading Nepal-based metal and machinery fabrication group on a corporate restructuring involving the merger of multiple affiliated entities. Our broader engagement also included conducting a legal audit covering tax, labor, and environmental compliance, as well as advising on corporate governance and project-based supply and installation contracts.