Industrial Enterprises Act, 2020 (2076 BS) (the “Act“) has been introduced repealing the Industrial Enterprises Act, 2016 (2073 BS) (the “Previous Act“). The Act has been authenticated by the President on February 11, 2020 (2076/10/28). The Act is in effect since the date of authentication.
The Act is a principal legislation for registration, establishment, and pre/post operational compliances of industry. No person (either natural or legal) is permitted to operate its business without establishing industry under this Act. Company registered under the Companies Act at the Office of Company Registrar (the “OCR”) is not allowed to operate business transaction without registering its industry under the Act.
Some of the key provisions of the Act are set out below:
1. Industry Registration
2. Classification of Industry
3. Regulating Authorities /Implementing Agencies
4. Approval and Compliance Requirement
5. Environment Compliance
6. Incentives and Facilities to the Industries
7. Land Ceiling
8. Corporate Social Responsibility (CSR)
9. Contract Manufacturing
10. Offences and Sanctions
