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Intellectual Property Assignment in Nepal Introduction Intellectual property (IP) assignment is a legal mechanism through which ownership of created work—such as software code, applications, designs, and inventions—is transferred from the creator (usually an employee or contractor) to the company. In Nepal’s growing startup and IT ecosystem, IP assignment has...

Non-Compete Clause Legal Framework in Nepal IntroductionA non-compete clause is a contractual restriction that prevents an employee from joining a competitor, starting a competing business, or engaging in similar professional activities after leaving a company. In Nepal, this clause is frequently used in employment contracts, especially in startups, IT...

Employment Contract Legal Framework in Nepal IntroductionAn employment contract in Nepal is a legally enforceable agreement between an employer and an employee that defines working terms such as salary, duties, working hours, benefits, and termination conditions. The primary governing law is the Labor Act, 2017 (2074) along with the Labor Rules, 2018, and...

SAFE Termination in Nepal Startup Failure Context Introduction A SAFE (Simple Agreement for Future Equity) does not function as debt and therefore does not require repayment upon startup failure. In Nepal, SAFE agreements are treated as contractual instruments under the Contract Act, 2000, and equity conversion rules under the Company Act, 2006 apply only when...

SAFE Discount Rates in Nepal Startup Framework IntroductionSAFE discount rate refers to the percentage reduction applied to the share price during conversion of SAFE investment into equity in a future priced round. In Nepal, SAFE agreements are not separately regulated under statute but are enforceable under the Contract Act, 2000 and governed by share issuance...

Bridge Round Financing in Nepal Startup Ecosystem IntroductionA bridge round is a short-term funding round used by startups to extend financial runway before a major funding round such as Series A. In Nepal, bridge financing is commonly structured using SAFE agreements due to their simplicity and flexibility.Legal governance is based on the Contract Act, 2000...

Equity Crowdfunding Legal Status in Nepal IntroductionEquity crowdfunding refers to raising capital from a large number of investors through online platforms in exchange for company shares. In Nepal, this model is not legally recognized under current securities laws.The primary legal framework includes the Securities Act, 2063 (2007), Company Act, 2006, and...

 SAFE Investment Taxation in Nepal IntroductionSAFE (Simple Agreement for Future Equity) investments are not directly defined under Nepal’s tax laws, but taxation applies at the point of conversion into equity or realization of gains. In Nepal, taxation is governed primarily by the Income Tax Act, 2002 and related rules issued by the Inland Revenue...

Pro-Rata Rights in Nepal Startup Investment IntroductionPro-rata rights refer to the contractual right of an investor to maintain their ownership percentage in future funding rounds by participating in additional investments. In Nepal, pro-rata rights are not specifically defined under statute but are enforceable under the Contract Act, 2000 and supported by...

 Seed Round Financing in Nepal Startup Ecosystem IntroductionSeed round financing is the first formal stage of raising capital for startups in Nepal. It typically involves angel investors, early-stage venture capital, and institutional investors. In Nepal, seed funding operates under the Contract Act, 2000 and Company Act, 2006, with foreign investment governed...