Environmental Regulations/ Legal Environment (BBS 3rd Year )

 

Unit: 3

Environment Regulations/ Legal Environment

 

# Concept of Business Law

        The rule of conduct or procedure established by custom, agreement or authority is Business Law. A business has to follow law of country. Business manager should have the knowledge of law that have the direct bearing own the business activities . Business laws are the source of opportunities and threat.

 

# Purposes of Business Law

-        To protect the rights of the business as well as consumer.

-        To encourage the business to follow ethical practices.

-        To develop the business in a sustainable way.

-        To enhance the contribution of the business sector towards national development.

 

 

 

# Company Act, 2074

        The company act, 2074 deals with registration, operation and liquidation of company. Application to be made for incorporation of the company to the concern office. The liability of a shareholder of a company incorporated under this act in respect of its transactions is limited to the maximum value of shares which has been subscribed or undertaken to subscribe. The number of shareholders of a private company should not exceed more than 101. With public company its should be seven in minimum and maximum of any number. Every public company has a board of director consisting of a minimum of three and maximum of 11 directors. A company maybe liquidated under this Act, under different circumstances. If the shareholders decide the company can not operate than they sell the assets and pay the debts.

 

# Foreign Investment and Technology Transfer Act

        The foreign investment and technology transfer act 2019 was effective from to 27 march 2019. The main objective of (FITTA) is to attract foreign capital and technology but the development of the country. Foreign investment means the investment made by a foreign investor in any industries. Technology transfer means transfer of any technology made under an agreement between an industry and a foreign investor. Before acquiring investment and technology, permission should be obtain from the department. A foreign investor making investment in foreign currency may repatriate the some of amount received outside Nepal.

 

# Industrial Enterprise Act, 2016:

        This act deals with the registration, operation, facilities the dissolution of industries in Nepal. The main features are as follows:

-        No work, no pays

-        Strike punishable

-        Employment to Nepalese Citizen

-        Easy registration

-        Free Registration of Micro- enterprises

-        One Window Policy

-        Validation to electronic- transaction

-        Mandatory corporate social- responsibility

-        Tax Exemption

 

 

# Labor Act 2017 (1992), 2049  B.S.

        The main provisions of this act are:

-        No work, no pay

-        Allows strike

-        Payment during strike

-        Formation of tribunal

-        Categorization of employees (4 categories)

-        Performance evaluation

-        Firing

-        No discretionary termination

-        Compulsory Retirement

-        Probation Period

-        Working hours

-        Head Count threshold

 

# Patent Design and Trademark, 1965

        This act highlights the legal provisions related to patents, designs and trade-mark for the convenience and economic benefits of the general public.

 

 

 

# Foreign Employment Act, 2007

        This Act deals with various aspects of foreign employment. Its main objectives are to make the foreign employment, safe manage and decent and protect the right of the workers as well as employment entrepreneurs.

 

# Value Added Tax Act, 1996

        Tax is the main source of revenue of the state. Value Added Tax is the latest innovation in the field of taxation. It is multi staged, commodity and service based tax which is levied on the value added of business at different stages of production and distribution.