21st April 2025, Kathmandu
The Confederation of Nepalese Industries(CNI) has called for the removal of unnecessary criminal liabilities in the country’s commercial laws.
Nepal Commercial Law Decriminalization
This recommendation is part of their study report on decriminalizing provisions that create criminal liabilities in commercial laws, which was published on Sunday.
Need for Legal Reforms
The CNI emphasizes that reforming commercial laws will create a better environment for business and economic development in Nepal. The report highlights that the current commercial laws often treat actions that do not harm society, the environment, or individuals as criminal offenses. The CNI proposes clearer classifications of crimes, particularly distinguishing between fraudulent acts and regular business activities that do not cause harm.
Classifying Criminal and Non-Criminal Activities
The report suggests that actions driven by fraud or deceit should remain punishable by imprisonment. However, it argues that other regular business activities, which do not result in harm, should not be classified as crimes.
The CNI believes that the current criminal provisions create fear among businesspeople. This fear discourages innovation and stifles investment. The report also points out that such legal uncertainty has a direct negative impact on Nepal’s economic growth.
Impact on Foreign and Domestic Investment
According to the CNI, the existing criminal liabilities discourage foreign investment and hinder the expansion of domestic businesses. By removing these unnecessary criminal penalties, the CNI believes the legal environment will become more favorable for business operations. The report stresses that eliminating unnecessary criminal penalties will help make Nepal a more attractive destination for both foreign and local investors.
Proposals for Transforming Liabilities
The CNI suggests replacing criminal penalties with fines or civil liabilities for certain actions. They argue that this change would provide relief to business owners, reducing legal uncertainties and creating a more investment-friendly environment.
The report also highlights that such reforms would align Nepal’s commercial laws with current social and economic conditions. These changes are expected to contribute significantly to the country’s economic growth.
Simplifying Business Operations
One of the key proposals in the report is to simplify the legal framework for businesses. The CNI believes that removing unnecessary criminal liabilities and replacing them with more appropriate penalties would help businesses operate more smoothly.
This change is seen as essential for creating a legal environment that encourages both local and foreign businesses to invest and expand in Nepal.
Addressing Legal Redundancies
The report also references the Nepal Law Commission’s 2080 study report, which identifies contradictions and redundancies in existing laws. The CNI urges the government to address these issues and revise commercial laws to eliminate legal conflicts. By doing so, the CNI believes the legal system would be clearer, which would benefit business owners and investors alike.
Conclusion: A Call for Legal Reform
In conclusion, the CNI calls on the government to reform commercial laws by removing unnecessary criminal liabilities. They recommend replacing these liabilities with fines or civil obligations, creating a more business-friendly legal environment.
The CNI believes that these reforms are crucial for attracting investment, supporting business growth, and ultimately fostering Nepal’s economic development. By simplifying the legal framework, the country can unlock new opportunities for entrepreneurs and businesses, helping Nepal thrive economically.
For more: Nepal Commercial Law Decriminalization