Industrial Enterprises Act (Incl. Sec) Flashcards
(92 cards)
What are the key functions of the Industrial and Investment Promotion Board?
Recommend: Policies (industrial, foreign investment, pollution).
Evaluate: Industrialization structure.
Assess: Industrial development.
Resolve: Industrialist problems.
Coordinate: Single-point service.
Facilitate: Implementation of industry laws.
How is the Industrial and Investment Promotion Board formed?
Minister or Minister of State for Industry, Commerce and Supply (Chairperson)
Presidents of FNCCI, Confederation of Nepalese Industry, Federation of Nepal Cottage and Small Industries, and Federation of Women Entrepreneurs.
Two industry experts nominated by the Ministry (one female).
National Planning Commission member (looking after industries).
Governor of NRB.
CEO of Investment Board Nepal.
Secretaries from various Ministries (Industry, Finance, Labor, Land Provision, Cooperative & Poverty Alleviation, Forest & Environment)
Joint Secretary, Industrial and Investment Promotion Division, Ministry of Industry.
Director General, Department of Industry (Member-Secretary).
What are the rules for managing industry records?
Responsibility (Section 16): IRB maintains records.
Records Kept: Registration, renewal, transmission, name/location/capacity/capital/objective changes, cancellations.
Access: Industry/owner can request records (with fees). Documents provided to courts/government offices when needed.
Format: Physical and electronic.
Record Loss: IRB reconstructs from other government bodies and industry submissions.
What are the rules for submitting industry details and informing about closures or cancellations?
Submit prescribed details within 6 months after each fiscal year’s end (and after commercial production starts), electronically.
Zero return if closed for >1 year or no production/transaction (unless closure info submitted).
Closure: Inform the registration body within 30 days of closure/suspension.
Cancellation: Apply to the IRB. Cancellation only after settling dues/liabilities. Insolvency follows insolvency laws; liquidator informs IRB.
Can an industry or owner demand records from the IRB?
Yes, by making an application in the prescribed form and paying the prescribed fees.
What happens if IRB records are destroyed?
The IRB can reconstruct records based on documents from other government bodies and submissions from the concerned industry.
What is the purpose of the Industrial and Investment Promotion Fund
To promote and protect industrial investment in Nepal.
What are the sources of the fund?
GON funds.
Funds from national associations, entities, or individuals.
Existing funds under IEA 2073.
Foreign government/international grants/assistance (with GON approval and Ministry of Finance involvement).
What is the mandatory CSR allocation?
At least 1% of annual profit (after tax).
Who does the CSR requirement apply to?
All medium and large industries.
Small and cottage industries with an annual turnover exceeding Rs. 15 Crores
How should CSR funds be utilized?
Through annual plans and programs in prescribed areas.
What reporting is required for CSR fund utilization?
A report including:
Programs executed in the fiscal year.
Expenses incurred in those programs.
Within 6 months after the fiscal year ends, submitted to the industry registration body.
Is the CSR amount tax deductible?
Yes, it is allowed as a deduction for income tax purposes.
Q: How is the Nepal Business Forum formed?
A: By the Government of Nepal (GON) with representation from the private sector.
Q: What is the purpose of Nepal Business Forum forum?
Effective implementation of industry-related laws and policies.
Promote dialogue and cooperation between public and private sectors.
Identify operational problems and recommend solutions to the government.
Coordinate for implementation and monitor recommendations.
Create a platform for regular dialogue between public and private sectors.
How can foreign nationals be appointed in an industry?
Obtain a work permit from the Department of Labour (after recommendation from the Department of Industry).
Maximum appointment period: 5 years.
Technical experts with specialized skills can be reappointed for an additional 2 years (5+2 total) after obtaining a work permit.
Note:
Efforts to employ Nepali citizens with required skills.
Only when unavailability of such human resources in Nepal.
Q: What is the maximum ceiling for repatriation of foreign nationals’ remuneration?
A: 70% in convertible foreign currency.
Q: What preoperative expense items can be capitalized as fixed assets?
Technical consultancy and supervision expenses.
Pre-investment and pre-operation costs.
Capitalized interest during construction.
Pre-operative environmental study and research expenses.
What are the fixed capital in an industry?
Physical infrastructure (above/underground, space, water).
Land improvements (sewerage, roads, water systems).
Industry buildings (offices, factories, godowns).
Employee housing.
Electricity supply and related systems.
Machinery, equipment, tools, and accessories.
Transportation means.
Capital office materials and equipment.
Communication materials, equipment, and systems.
Q: What are the rules for informing the IRB about the start of operation?
Start operation within the date on the RC and inform IRB within 30days.
If delayed, apply for an extension with reasons.
The IRB may grant extensions (with fees) based on progress and industry type.
Extensions more than 3 times require Board approval.
Q: How can an industry increase capital/capacity or change objectives?
Apply to the IRB (approval within 90 days if reasonable).
Micro
Cottage or Small industries (with fixed capital up to Rs. 1 Crore and not requiring permission u/s 8) are exempt.
Update the registration certificate if the change affects classification.
Capacity can’t be increased without altering existing machinery.
Q: How can an industry change its location?
Apply to the industry registration body.
If moving between provinces, permission from the Department is required.
The IRB grants permission based on the local body’s recommendation.
Q: When are EIA/IEE required for industries?
Before starting production if required by law.
After registration, if increasing capital/capacity, changing objectives/location, or transferring.
Q: When is IEE or EIA required after registration?
If the industry plans to:
Increase capital or capacity
Add or change objectives
Change location
Transfer to another place
