Lobbying & Government Relations in Nepal | Legal Registration & Compliance by Medha Law and Partners

1. Introduction

In Nepal’s evolving governance and transparency landscape, corporate entities and professional advisory firms increasingly seek to engage in policy advocacy, government relations, and regulatory liaison. These engagements—commonly referred to as “lobbying” or “public affairs”—involve communication with public officials and ministries to influence legislative, policy, or administrative outcomes.

While the term “lobbying” does not yet appear formally defined in Nepalese legislation, the activity is indirectly governed through a matrix of constitutional, statutory, and administrative rules, including the Constitution of Nepal (2015), the Right to Information Act, 2064 (2007), the Good Governance (Management and Operation) Act, 2064 (2008), and emerging frameworks such as the Draft Conflict of Interest and Integrity Bill (2025) and Directives Regulating External Contacts of Provincial and Local Government Officials (2025).

This article provides a comprehensive legal and procedural overview of how a Nepal-based entity may lawfully establish and operate a government relations or lobbying practice, what registrations or disclosures may apply, what records must be maintained for meetings with public officials, and what conflict of interest and compliance considerations should be observed.

2. Legal Context and Regulatory Landscape

2.1 Constitutional and Governance Principles

Article 27 of the Constitution of Nepal, 2015 guarantees every citizen the Right to Information (RTI) concerning matters of public importance. Article 30 enshrines the right to good governance, obligating public administration to operate transparently, accountably, and without conflict of interest.

Public officials are constitutionally bound to exercise authority as a public trust. Accordingly, any form of advocacy, policy influence, or communication with decision-makers must respect these constitutional safeguards.

2.2 Statutory Framework Relevant to Government Relations

Although Nepal lacks a dedicated “Lobbying Regulation Act,” several existing instruments have cumulative effect over lobbying and government-relations activity:

• Right to Information Act, 2064 (2007): Ensures transparency of governmental decision-making and requires disclosure of public records unless specifically exempted.

• Corruption Prevention Act, 2059 (2002): Criminalizes bribery, undue influence, and the offering of benefits to public officials.

• Good Governance (Management and Operation) Act, 2064 (2008): Mandates accountability, transparency, and ethical conduct in public administration.

• Civil Service Act, 2049 (1993) and service codes under it: Restrict public officials from engaging in activities that create conflicts of interest.

• Public Procurement Act, 2063 (2007): Restricts improper influence in procurement processes, indirectly affecting lobbying conducted for commercial advantage.

• Draft Conflict of Interest and Integrity Bill (2025): A forthcoming legal instrument that introduces mandatory disclosure of interests, prohibition of private benefit through official contact, and penalties for undisclosed conflicts.

• Directive on External Contacts of Provincial and Local Government Officials (2025): Requires prior approval from the Ministry of Foreign Affairs before officials engage in meetings with foreign entities, thereby indirectly regulating lobbying involving external actors.

Together, these instruments underscore that while lobbying is not prohibited per se, it must occur within the boundaries of transparency, integrity, and anti-corruption law.

3. Registration and Legal Status of a Government Relations Practice

3.1 Determining the Legal Form

A government relations or policy advocacy firm in Nepal may be established under one of the following legal vehicles:

1. Private Limited Company under the Companies Act, 2063 (2006);

2. Partnership Firm under the Partnership Act, 2020 (1963); or

3. Non-Governmental Organization (NGO) under the Association Registration Act, 2034 (1977) if the activities are non-profit and public policy oriented.

For corporate advocacy consultancies, registration as a private limited company is generally preferred. The Office of Company Registrar (OCR) is the competent authority for incorporation and issuance of the company registration certificate.

3.2 Business Objectives and Articles of Association

The Memorandum and Articles of Association should expressly authorize the entity to engage in:

• Public policy consulting, government relations, and regulatory advisory services;

• Preparation and submission of policy recommendations or advocacy documents to ministries, regulators, and public bodies;

• Liaison and communication with governmental and quasi-governmental institutions; and

• Corporate compliance and regulatory monitoring.

This language ensures that the firm’s objects lawfully cover “government relations” activities within the permissible scope of Nepalese corporate law.

3.3 Licensing and Approvals

As of 2025, Nepal has no specific statutory licensing requirement for lobbying practitioners. There is no lobbyist registry, nor a statutory obligation to register as a “lobbying agent.”

Nevertheless, the following regulatory intersections must be considered:

• Bar Council Registration: If the services involve legal interpretation, representation, or advice, practicing attorneys must be enrolled with the Nepal Bar Council in accordance with the Legal Practitioners Regulation 2079.

• Foreign Funding Approval: Under the Social Welfare Act, 2049 (1992), associations or firms receiving foreign funding for advocacy or policy projects must obtain prior permission from the Social Welfare Council or relevant ministry.

• Tax and Commercial Compliance: All lobbying or advisory entities must obtain a Permanent Account Number (PAN), register for Value Added Tax (VAT) if applicable, and comply with annual filing obligations under the Income Tax Act, 2058 (2002).

4. Record-Keeping and Disclosure Requirements for Meetings with Officials

4.1 Lack of Formal Lobbying Disclosure Statute

Nepal currently lacks a law equivalent to international lobbying disclosure frameworks (e.g., the U.S. Lobbying Disclosure Act or the EU Transparency Register). However, the spirit of disclosure is reflected in Nepal’s RTI and public accountability mechanisms.

Public authorities are required to disclose the nature of meetings, consultative processes, and submissions received from external stakeholders upon request. While private firms are not “public bodies” under the RTI Act, any materials they submit may become subject to disclosure once in the possession of a public office.

4.2 Best-Practice Record-Keeping

Medha Law and Partners advises that all government-relations or advocacy practitioners maintain the following internal documentation for compliance and future audit:

• Meeting Log containing:

  • Date, time, and venue of meeting;

  • Identity and designation of public officials;

  • Purpose and agenda of the discussion;

  • List of participants from the firm and the client;

  • Materials or documents presented; and

  • Decisions, follow-up actions, or outcomes.

• Gift and Hospitality Register recording any hospitality, travel, or other benefits offered or received, including estimated value and justification.

• Conflict-of-Interest Register detailing any prior relationships or potential conflicts between the firm’s representatives and government officials.

• Client Representation Register indicating which clients the firm represents in which ministries or regulatory domains.

4.3 Disclosure and Confidentiality

Given the RTI regime, firms should advise clients that policy submissions and official correspondences may enter the public record. It is prudent to mark documents as “Confidential—Commercial Information” where appropriate, while acknowledging that the ultimate decision on disclosure rests with the public authority.

Meetings with provincial or local officials involving foreign companies or NGOs must comply with the 2025 External Contact Directive, requiring advance permission for such engagements.

5. Conflict of Interest, Integrity and Ethical Standards

5.1 Public-Sector Conflicts

The forthcoming Conflict of Interest and Integrity Bill (2025) introduces stringent obligations on public officials to:

• Declare personal and financial interests that may conflict with official duties;

• Refrain from participating in decision-making where conflict exists;

• Prohibit receiving gifts or benefits related to official actions; and

• Bar unauthorised meetings or correspondence with foreign entities for private gain.

Although directed at officials, these provisions directly affect lobbying entities, as interactions with conflicted officials may render engagements void or expose parties to investigation.

5.2 Private-Sector Obligations

For firms providing government-relations services, ethical risk mitigation is essential. Medha Law and Partners recommends implementing:

• A Code of Conduct prohibiting bribery, facilitation payments, and any conduct that may be perceived as buying influence;

• A Cooling-Off Policy restricting recent former public officials from representing clients before their previous agencies for a defined period (e.g., one year);

• Due-Diligence on Clients to ensure they are not pursuing unlawful or unethical objectives; and

• Regular internal ethics audits reviewing meeting records, hospitality logs, and engagement letters.

5.3 Anti-Corruption Compliance

Under the Corruption Prevention Act, 2059 (2002), offering or providing any undue advantage to a public official constitutes an offence, regardless of intent. A lobbying practice must therefore distinguish legitimate advocacy from inducement or influence peddling.

All payments to intermediaries, consultants, or third-party facilitators must be transparent and documented. Fee arrangements contingent upon obtaining governmental approvals should be avoided, as they may imply inducement.

6. Practical Compliance Framework for Government Relations Firms

To operate ethically and lawfully, a lobbying or government-relations entity in Nepal should maintain a structured compliance system covering governance, client management, and external engagement.

6.1 Governance Instruments

• Advocacy and Lobbying Policy: Define permissible activities, prohibited conduct, disclosure obligations, and documentation procedures.

• Client Intake Protocol: Conduct due-diligence on each client’s background, funding source, and advocacy objective before engagement.

• Training Programmes: Provide periodic training on anti-corruption, RTI implications, and official interaction etiquette.

6.2 Client Agreements

Service agreements should include:

• Clear description of services (policy research, representation, liaison, etc.);

• A statement that services will comply with all applicable laws and ethical standards;

• A confidentiality clause that anticipates possible RTI disclosure;

• Prohibition of success-based or contingent fees for regulatory outcomes; and

• Client warranties confirming legality of objectives and funding sources.

6.3 Engagement Protocols

Prior to any engagement with officials:

• Obtain written confirmation of the meeting agenda and attendees;

• Clarify the client’s representation capacity and purpose;

• Record any documents provided or commitments made;

• Avoid giving gifts or hospitality beyond nominal customary standards; and

• Prepare a written post-meeting report summarizing discussions and follow-ups.

6.4 Internal Monitoring and Audit

Implement periodic compliance audits reviewing:

• Meeting logs and registers;

• Gift and hospitality entries;

• Client files and engagement letters;

• Training attendance; and

• Corrective actions for any non-compliance.

7. Reporting, Transparency, and Interaction with Regulators

7.1 Transparency Under the RTI Act

Public bodies may disclose records of interactions with external stakeholders. Firms should therefore maintain identical copies of any materials submitted, enabling accurate reference in case of disclosure requests.

7.2 Voluntary Transparency Measures

To enhance credibility, firms may consider voluntarily publishing:

• Lists of government institutions engaged within a reporting period;

• Broad thematic areas of advocacy (e.g., infrastructure policy, energy regulation); and

• Ethical commitments and compliance policies.

This voluntary disclosure, while not mandated, demonstrates integrity and builds trust with both government and private clients.

7.3 Coordination with Regulators

When advocating before sector-specific regulators (such as the Department of Industry, the Insurance Board, or the Telecommunications Authority), firms must observe each regulator’s procedural rules for consultation, hearings, or submission of representations.

Failure to follow prescribed consultation processes may render advocacy submissions procedurally invalid.

8. Risk Management and Sanctions

8.1 Legal Exposure

Non-compliance with the ethical and anti-corruption obligations may attract:

• Criminal liability under the Corruption Prevention Act, 2002;

• Civil liability under the Contract Act, 2056 (2000) for misrepresentation or breach of fiduciary duty; and

• Administrative sanctions such as blacklisting from public contracts.

8.2 Reputational Risk

In an environment where transparency is increasingly valued, unrecorded or undisclosed lobbying activities may severely damage both client and firm reputation. Adherence to transparent procedures protects against allegations of undue influence.

8.3 Compliance Assurance

Firms should maintain a Compliance Manual referencing all applicable laws, including:

• Constitution of Nepal, 2015

• Right to Information Act, 2064 (2007)

• Good Governance (Management and Operation) Act, 2064 (2008)

• Corruption Prevention Act, 2059 (2002)

• Companies Act, 2063 (2006)

• Proposed Conflict of Interest and Integrity Bill (2025)

Regular review of these instruments ensures continued compliance as legislative reforms evolve.

9. Implementation Roadmap for Corporate Clients

Medha Law and Partners typically advises the following phased approach for clients seeking to initiate lawful advocacy or government-relations operations in Nepal:

Phase I – Legal Assessment and Strategy

• Identify the client’s advocacy objectives and relevant government institutions.

• Review the applicable sectoral laws and potential conflict-of-interest implications.

• Evaluate whether any foreign funding approvals or disclosures are required.

Phase II – Incorporation and Compliance Setup

• Register the entity under the Companies Act.

• Obtain tax registration and ensure financial transparency.

• Draft internal compliance policies and staff declarations.

Phase III – Engagement Framework

• Develop stakeholder maps identifying key ministries and regulators.

• Prepare briefing documents, position papers, and consultation submissions.

• Conduct pre-meeting due-diligence and ensure agendas are documented.

Phase IV – Execution and Documentation

• Maintain detailed records of meetings and communications.

• File internal compliance summaries after each engagement.

• Periodically audit adherence to anti-corruption and ethical rules.

Phase V – Reporting and Review

• Issue annual internal or client-facing compliance reports summarizing advocacy activities.

• Review any new legislation (e.g., Conflict of Interest Act) and update internal policies accordingly.

10. Future Developments and Anticipated Reforms

Given Nepal’s move toward greater governmental transparency and integrity, it is expected that formal lobbying regulation may emerge in the coming years. Such a framework could introduce:

• Mandatory registration of lobbying entities;

• Periodic disclosure of clients and government contacts;

• Restrictions on post-employment lobbying by former officials; and

• Gift and hospitality thresholds.

Early compliance alignment with these international standards will give Nepalese firms a competitive advantage and shield them from reputational or legal exposure when reforms materialize.

11. Conclusion

Although Nepal presently lacks a codified Lobbying Regulation Act, the cumulative effect of the constitutional right to information, statutory anti-corruption laws, and the emerging conflict-of-interest framework creates a clear expectation of transparency and ethical engagement.

A government-relations or lobbying practice may therefore be lawfully established through ordinary corporate registration, provided that it operates under a robust internal compliance regime that ensures:

• Accurate record-keeping of all official meetings;

• Adherence to anti-bribery and anti-corruption standards;

• Observance of transparency and confidentiality obligations;

• Management of conflicts of interest; and

• Full cooperation with any public disclosure requirements.

For corporate entities or foreign investors seeking to advocate policy reforms, Medha Law and Partners offers comprehensive assistance in:

• Incorporating and licensing advocacy or consulting entities;

• Drafting internal compliance manuals, engagement protocols, and meeting registers;

• Advising on legal and reputational risk management; and

• Representing clients before ministries and regulatory authorities in full conformity with Nepalese law.