Registration of Social Media Platform Operator in Nepal

This article explains detail about procedure of enlisting the social media platform operators in Nepal including the detail regarding the registration of representative office pursuant to Directive for Regulating the Use of Social Media Platform, 2080” (the "Directive").

 

The Ministry of Communication and Information Technology of Nepal Government (“Ministry”) has issued the Directive dated 27 November 2023 (2080.08.11). The objective of Directive is to regulate the use of social media platform and to promote self-regulation within social media platform operators (the "Operators") and social media users (the "Users").

 

The Operators should enlist social media platform within the three (3) months after the commencement of the Directive. The last date to get enlisted under the Ministry is by 27 February 2023.

 

The Directive have created two primary obligations to Social Media Platform Operator which as mentioned:

 

a). To Register the liaison office/contact office/ Representative office (herein after referred as “liaison office”) of the Operator in Nepal and

b). After registration of liaison office, enlist the liaison office before the Ministry.

 

Kindly note that this obligation has to be completed by 27 February 2023.

 

The Directive have defined “Social Media” as those platforms that provides the facilitation for the interaction between individuals, groups or organizations and grant the facility to share their content through application and vlogs.

 

The social media companies such as Facebook, TikTok, Twitter, Viber, Pinterest, WhatsApp, Messenger, Instagram, YouTube, LinkedIn, We-chat etc. shall have obligation to register the liaison office and enlist the company within the Ministry.

 

Pursuant to Number 5(1) of the Directive, social media platform operating within Nepal has been categorized on the basis of the numbers of users which is as mention:

 

a)  The social media platform with less than 1(one) lakh Users referred as small social media platform ("Small Social Media Platform").

b)  The social media platform with more than 1(one) lakh Users referred as large social media platform ("Large Social Media Platform").

 

Note: Number 5(2) of the Directives creates an additional obligation for Large Social Media Platform Companies to appoint a Grievance Officer and Compliance Officer in the Liaison Office registered in Nepal.

 

Pursuant to Number 6 of the Directive, the Operators should register the liaison office within Nepal for the purpose of addressing the complains of the Users.

 

5.1. Procedure for the registration of Liaison Office

The registration process of the Liaison Office is governed by the Companies Act 2006(2063). The following steps shall be followed for registration of liaison office in Nepal:

 

 

For detail regarding the liaison office registration process please visit our website link on Liaison Office Registration Process in Nepal

 

5.2. Capital Requirement for investment

There is no minimum threshold for the investment of Liaison Office. Generally, the foreign companies inject the investment amount considering the operation cost.

 

5.3. Timeline For Registration 

It usually 2 to 3 week for registration of liaison office in Nepal upon receving the documents from clients. 

 

5.4. Required documents

The following listed documents are required for the registration of Representative Office in Nepal:

S.N.	Required Documents
1.	A notarized copy of Certificate of Registration, Memorandum of Association, Article of Association of the Foreign Company and its Nepalese translation.
2.	An application for the registration of Representative Office.
3.	Board Resolution of the Foreign Company to set up a Representative Office.
4.	Signed copy of Company Profile.
5.	Notarized copies of passport of all directors of Company.
6.	A notarized copy of citizenship certificate of Nepal representative authorized to receive notices (Notarization should be done from Nepalese Notary Officer).
7.	Letter of appointment of Authorized Representative.
8.	Proposed plan of Representative Office.
9.	A notarized copy of Power of Attorney.
10.	Declaration of director or their representative of Company that the information submitted is correct and accurate.

 

As per the Number 3 of the Directive, Operators should enlist tis company before the Ministry after registration of Liaison Office.

 

6.1.Procedure of enlisting

The procedures of enlisting social media platforms are as follows:

Kindly note: “Ministry” means Ministry of Communication and Information Technology of Nepal Government.

 

6.2. Documents required for Enlisting 

Following documents are required to enlist the social media platform:

 

A. If the head office is inside Nepal:

a). Memorandum of Association and Article of Association of the Company,

b). Certificate of the Company registration,

c). PAN certificate of Company,

d). Letter issue by OCR regarding update,

e). Latest certificate of tax clearance,

f). Decisions of Company regarding enlisting,

g). Details of Shareholder

h). Details of share (If any foreign shareholder invest)

i). Board resolutions of Company,

j). Nepalese citizenship in case of Nepali citizen and a copy of passport for foreign citizen,

k). Privacy policy of social media, Data usage policy, Information security policy,

l). Documentation related technical ability and professional competence,

m). Video KYC of authorized representative in case of online application,

g). Standards set by social media in relation to Users,

h). Complaint hearing process on social media

i). Other necessary details if required.

 

B. If the head office is outside Nepal:

a). Memorandum of Association and Article of Association of the Company,

b).  Certificate of the Company registration,

c).  PAN certificate of Company,

d). Latest tax clearance certificate,

e). Board resolutions of Company,

f). A copy of passport of an authorized representative

g). Video KYC of authorized representative in case of online application,

i). Privacy policy of social media, Data usage policy, Information security policy,

j). Documentation related technical ability and professional competence,

k). Standards set by social media in relation to Users,

l). Complaint hearing process on social media,

m). Other necessary details if required.

 

Pursuant to Number 3(7) of the Directive, the Ministry may not allow to operate social media platform within Nepal which are not enlisted as per the Directive. However, this provision will not apply to social media platforms that are operating for the purpose of civic education and social empowerment.

 

During the Liaison Office Registration a local representative is required to be appointed who shall be main responsible person for operation of Liaison Office in Nepal. Generally, Nepalese Citizen is prefarable as Directive incorporates that the Representatvie should be present most of the time inside Nepal. In case of Foreigner, liaison office are not granted business visa for its representative neither work pemit is provided as a matter of practice. 

 

Number 8 of the Directive has created certain obligation to the Operators which are as mentioned :

S.N.	Obligations For Operators
a)	Development of algorithm (calculation method) and other measures should be adopted on social media platform in order to stop the publication or transmission of information, advertisement, and content contrary to prevailing laws.
b)	If a complaint is received on any content shared by the user which is prohibited by the Directive, then such content should be identified and be removed within 24 (Twenty-four) hours.
c)	If the Users have posted or are about to post content that should not be posted on the social media, upon the instruction of the Social Media Management Unit of the Ministry, the Operator has an obligation to remove such content within 24 hours.
d)	To maintain the privacy of the personal details of Users, to adopt the necessary security standards and not to publish such personal details or use them for other purposes.
e)	To publish or broadcast awareness and educational content necessary for the security and protection of the Users.
f)	Making reasonable arrangements for addressing complaints arising during the use of social media.
g)	Prohibiting the publication or transmission of material that shall be against Nepal's sovereignty, geographical integrity, or affect social and religious harmony.
h)	To examine the facts of material published or transmitted on social media platforms.
i)	To comply with the internationally developed Santa Clara Principles for regulating the use of social media.
j)	Payment of transactions through social media platforms should be done through the banking channel.

 

Number (9) of the Directive creates certain  responsibilities to the Users of Social Media which are as mentioned:

S.N.	Obligations For Social Media Users
a)	Not to publish the content that adversely affects national sovereignty, geographical integrity, national security, national unity, independence, self-respect, national interest, or good relations between federal units, or to cause hatred based on class, ethnicity, religion, community, and so on.
b)	Not to encourage caste discrimination or untouchability, disrespecting labor, encouraging crime, promoting acts that disrupt peace and security, or broadcasting or transmitting any matter prohibited by prevailing laws or contrary to public morals and ethics.
c)	The Users shall not intentionally share, like, repost, live broadcast, tag, mention, and comment on the content produced by any other person that is prohibited by the Directive.

 

Date of Publication: 10 December 2023

 

 

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