Article 76 of the Constitution of Nepal outlines the process for the appointment of the Prime Minister and the formation of the Council of Ministers.

• Article 76(2): This clause states that the President of Nepal may designate as Prime Minister a member of the House who can obtain a majority with the backing of two or more parties represented in the House, provided that no single party in the House of Representatives (Parliament) commands a definite majority.

• Article 76(3): This clause states that the President shall designate as Prime Minister the leader of the parliamentary party with the most members in the House if the requirements outlined in Article 76 (2) cannot be met within thirty days of the date on which the final results of the election are announced to the House of Representatives, or if the Prime Minister nominated under Article 76 (2) is unable to obtain a vote of confidence.

Article 76 (2) does permit the formation of a coalition government where a party does not have a clear majority in the Parliament but the parties coming together can have a majority in the Parliament. Article 76(3) states the case that no such coalition can be established within the time stipulated, or the appointed Prime Minister cannot command confidence in the parliament.