The consumer goods and retail sector in Nepal is one of the most vibrant and fast-moving segments of the economy. It encompasses everything from fast-moving consumer goods (FMCG) like foods and beverages, personal care products, and household goods, to apparel, electronics, and a growing e-commerce sub-sector. While Nepal’s consumer market is relatively smaller in absolute terms, it offers significant untapped potential and is characterized by rapid changes in consumer preferences and brand presence. Businesses in this space conduct a high volume of transactions daily and often operate through extensive distribution networks reaching all corners of the country. However, along with opportunity, the sector brings its own challenges: consumer protection laws (though at times broadly framed) impose obligations regarding product safety, labeling, advertising, and fair trade practices. Moreover, regulatory oversight can come from multiple fronts – for example, food and beverage companies must heed standards set by the Department of Food Technology and Quality Control, while cosmetics and medicines have their own regulators. The market’s dynamism also means companies must be prepared for sudden changes in policies, such as import restrictions or pricing controls, which could affect supply chains and inventories. Protecting brand IP and tackling counterfeit goods are additional critical concerns in the Nepali retail landscape.

Our firm, Gandhi & Associates, delivers legal solutions that cater to the full spectrum of issues faced by consumer goods manufacturers, distributors, and retailers. We help clients navigate the regulatory requirements applicable to their products, including product registration (if needed), labeling and packaging compliance (such as bilingual labeling mandates, ingredient disclosures, and health warnings), and obtaining necessary certifications or standardization marks. We also advise on consumer protection compliance, ensuring that warranty terms, return policies, and advertisements meet the standards of Nepal’s Consumer Protection Act and related guidelines to avoid deceptive marketing claims or unfair trade practices. On the commercial side, our team structures and drafts distribution agreements, franchise contracts, and agency arrangements, enabling companies to build effective and legally sound distribution channels across Nepal. We have experience assisting foreign consumer brands entering Nepal through joint ventures or local franchises, addressing issues like FDI approvals, brand licensing, and local partner due diligence. In dispute matters, we represent companies in handling consumer complaints, product liability claims, or government enforcement actions (such as product seizures or fines), and we also tackle intellectual property enforcement to combat counterfeit or infringing goods in the market. With a diverse client base in the consumer sector, we pride ourselves on understanding the commercial realities of retail in Nepal and providing advice that is practical, prompt, and protects our clients’ market interests.

Representative Experience:

• Advised an Indian multinational herbal personal care and pharmaceutical company on structuring its trading and investment operations in Nepal, including incorporation of a local distribution entity, regulatory clearances for product imports, and compliance with health and cosmetic standards;
• Assisted a leading Nepali food products manufacturer in securing trademark protection for its spice brand portfolio, optimizing its manufacturing and distribution structure, and ensuring regulatory compliance with food safety standards issued by the Department of Food Technology and Quality Control;
• Represented a client in a cross-border arbitration involving a widely recognized Nepali instant noodle brand, successfully handling a dispute over distribution rights and trademark use with a foreign counterparty;
• Advised a prominent Nepali entrepreneur on launching a premium bottled spring water venture, including due diligence on water source licensing, securing health and bottling permits, and structuring international technology and branding partnerships;
• Advised Nepal’s largest soft drink bottling company on corporate governance and shareholder compliance, including the conduct of a board election at its Annual General Meeting in accordance with company law and stock exchange rules; and
• Represented international and domestic beverage companies in trademark enforcement and labeling compliance matters, including actions against counterfeit products and ensuring marketing and packaging met regulatory requirements such as health warnings and Nepali-language labeling.