A Complete Guide to International Business Expansion from Nepal

For decades, the dream of many Nepali entrepreneurs hit a brick wall at the country’s borders. If you built a successful software company in Kathmandu, started a growing consulting firm in Pokhara, or created a digital marketing agency in Lalitpur, your expansion plans usually stopped at Nepal’s edge. The government’s strict laws made it nearly impossible for Nepali companies to invest money abroad or open offices internationally.

This situation created a tough reality: Nepali businesses couldn’t compete globally, talented entrepreneurs moved overseas to find opportunities, and Nepal lost potential economic growth. While neighboring countries like India and Bangladesh were building world-class international companies, Nepal’s amazing entrepreneurs remained locked inside their own country.

But everything is changing. Recent changes in Nepal Rastra Bank regulations have opened a new and exciting door for Nepali companies. For the first time in decades, certain Nepali businesses are now being allowed to invest abroad, open international offices, and expand globally. This is a game-changer for the country’s entrepreneurship ecosystem.

In this complete guide, we will explain everything you need to know about this historic shift in Nepal’s business laws. Whether you are a young tech founder with a brilliant app idea, a seasoned business owner looking to expand, or an aspiring entrepreneur wondering about global opportunities, understanding international business expansion from Nepal is the first step toward achieving your global dreams.

Part 1: Understanding the Past – Why Was International Investment Restricted?

The Historical Context of Restricted Investment

To fully understand where we are going, we must first look back at where we came from. The journey of international business expansion in Nepal is rooted in decades of government policy designed to protect the economy.

In 1964, the Nepal government passed the “Act Restricting Investment Abroad.” This law made it illegal—completely illegal—for any Nepali citizen or company to invest money outside Nepal’s borders. Even sending money to open a small office in India required special permission from the government.

The government’s intention was reasonable at the time. They wanted to keep all foreign currency (like US Dollars, Euros, and Indian Rupees) inside Nepal. This strategy was meant to:

• Protect Nepal’s limited foreign currency reserves
• Prevent money from leaving the country
• Keep more capital available for domestic investment
• Maintain control over the national economy during uncertain times

Why This Policy Held Nepal Back

While the restrictions on international business expansion helped keep Nepal’s currency reserves stable, they created serious problems for the country’s economic growth:

Limited Business Growth: Nepali companies couldn’t expand beyond Nepal’s small market. With only about 30 million people in Nepal, the market size was limiting. Companies in India had 1.4 billion people to sell to; companies in China had 1.4 billion people. Nepali companies had only 30 million.

Lost Talent: The “brain drain” became a serious problem. Nepali engineers, IT experts, and business professionals left the country to work for international companies and build their careers abroad. They took their skills, ideas, and potential success with them.

Weak Global Brands: Nepal produced excellent people and good companies, but the world didn’t know about them. Without offices and operations abroad, Nepali companies couldn’t build global reputations.

Missed Opportunities: While India, Bangladesh, and Sri Lanka built billion-dollar IT industries through international expansion, Nepal’s IT sector remained small and local.

The Digital Economy Changed Everything

Everything started shifting when the digital economy exploded globally. Suddenly, the old rules didn’t make sense anymore. A software developer sitting in a cafe in Lalitpur could now provide services to a client in London without leaving the country. A digital marketer in Bhaktapur could manage campaigns for American companies. An app developer could sell games to millions of players worldwide.

The Nepal Rastra Bank (Nepal’s central bank) realized that the old laws were outdated. They understood that to truly earn more foreign currency and grow Nepal’s economy, they would need to let Nepali businesses invest some money abroad to build international operations.

This change in thinking led to the historic international business expansion regulations that would change Nepal’s future.

Part 2: The New Rules – What Changed and What It Means

The Historic Change: The Foreign Investment and Foreign Loan Management Bylaws

In 2021-2022, the Nepal Rastra Bank introduced “The Foreign Investment and Foreign Loan Management Bylaws, 2078” (which corresponds to 2021-2022 in the international calendar). These new rules were revolutionary for Nepal’s business sector.

For the first time in nearly 60 years, the government officially allowed certain types of Nepali companies to invest money abroad and establish international operations. This is not a small change—it is a fundamental shift in Nepal’s economic philosophy.

Who Can Do International Business Expansion?

The new rules don’t allow all companies to invest abroad. The focus is specifically on:

Information Technology (IT) Companies:

• Software development firms
• Mobile app developers
• Web development companies
• IT service providers
• Digital product companies
• E-commerce platforms

Professional Services:

• Consulting firms
• Accounting and audit services
• Management consulting companies
• Legal advisory firms (in some cases)

Creative Industries:

• Digital marketing agencies
• Animation and graphics studios
• Content creation companies
• Design firms

Other Service Sectors:

• Business process outsourcing (BPO) companies
• Call center services
• Customer support services
• Training and education providers

The Key Requirement: Your company must earn foreign currency by providing services to international clients. If 50% or more of your revenue comes from outside Nepal, you are a strong candidate for international business expansion permissions.

What Types of International Operations Are Allowed?

Under the new Nepal Rastra Bank regulations, Nepali companies can now do several things they couldn’t do before:

Opening Branch Offices

You can establish a physical office in another country. This is not just a mailbox address—it is a real office where you can hire local staff, sign contracts, and manage clients.

Example: A Nepali software company can open a branch office in Singapore to manage its Southeast Asian clients better. They hire local staff, pay local taxes, and build a physical presence in the region.

Benefits of a branch office:

• Direct access to international clients
• Ability to hire local talent
• Better time zone coverage
• Faster communication with clients
• Physical presence increases trust with international partners

Setting Up Subsidiary Companies

You can establish a new company abroad that is owned by your Nepali parent company. This subsidiary operates independently but is owned and controlled by your Nepali business.

Example: A Nepali app development company creates a subsidiary company in the United States called “Nepal Tech USA Inc.” This US company operates as an American business but is fully owned by the Nepali parent company.

Benefits of subsidiaries:

• Legal separation between local and international operations
• Ability to reinvest profits locally in that country
• More flexibility in hiring and operations
• Better legal protection for both entities

Establishing Marketing and Sales Units

You can open an office focused specifically on sales and marketing. This team’s job is to find new clients, manage relationships, and bring in more business for your main team in Nepal.

Example: A Nepali web design company opens a small sales office in Australia with 2-3 sales professionals. Their job is to meet Australian companies, explain the services, and send leads back to the 50-person design team in Kathmandu.

Benefits of sales units:

• Direct marketing to clients in that region
• Better understanding of local market needs
• Faster sales cycles
• Direct client relationships

Important Requirements Before Expanding Internationally

Before you jump into international business expansion, the Nepal Rastra Bank requires that your company meet certain criteria:

1. Clean Tax Record Your company must have filed all tax returns on time for at least the last 3-5 years. The Inland Revenue Department must have no record of tax violations or penalties against your company.

2. Proper Company Registration Your company must be registered with the Office of the Company Registrar (OCR) and the Department of Industry. You cannot expand internationally as an unregistered business.

3. Audited Financial Statements You must have formal audited financial statements for at least the last 2-3 years. The Nepal Rastra Bank needs to verify your financial health through a professional audit.

4. Proof of Foreign Currency Earnings You must show documentation that your company actually earns foreign currency. Bank statements showing payments from international clients are the best proof.

5. Valid Permanent Account Number (PAN) Your business must have an active PAN with the Inland Revenue Department. There should be no outstanding tax issues.

Part 3: Why International Business Expansion Is a Game Changer for Nepal

Building Global Trust and Credibility

When you operate only from Nepal, many international clients feel nervous about hiring you. They might think, “Is this company real? Will they disappear? Can I trust them?” This is especially true in industries like IT and consulting, where clients need confidence in their service providers.

By establishing a registered office in a well-known country like Singapore, Australia, or the United States, you immediately change how international clients perceive your company. Suddenly, you are not just “a company in Nepal”—you are a genuine global business with physical presence in major economic centers.

Example: A Nepali software company selling to American banks gets 10 times more client interest once they open a small office in New York. Why? Because American banks feel more comfortable dealing with a company that has a local US presence.

Accessing Higher Revenue and Better Rates

When Nepali companies operate only locally, they often work as “sub-contractors” for middlemen. Here is how it typically works:

1. A middleman in Singapore gets a contract from a large client in Australia
2. That middleman then hires a Nepali company to do the actual work
3. The Nepali company gets paid 30-40% of what the client actually pays
4. The middleman takes 60-70% as their commission

This is not fair to the Nepali company. By doing international business expansion, you can skip the middleman and work directly with the client:

1. You sign the contract directly with the Australian client
2. You receive 100% of the payment (minus legitimate expenses)
3. Your profit margin increases dramatically
4. You can charge higher rates because you are dealing with the real client

Real numbers example:

• Without international expansion: Nepali company earns $20,000 from a project (receiving 30% of the $65,000 the client paid to a middleman)
• With international expansion: Nepali company earns $60,000 directly from the same type of project (receiving 100% of the payment from the client)

This is why international business expansion creates massive revenue growth.

Access to Global Talent and Expertise

Sometimes, to grow and improve your business, you need skills that are hard to find in Nepal. Maybe you need a specialist in blockchain technology, or a world-class project manager, or an expert in a specific industry.

By establishing international operations, you can hire top talent from anywhere in the world. You can recruit the best people and bring their expertise to train and lead your team in Nepal.

Example: A Nepali IT company opens a small office in Canada to hire a specialized cloud computing expert. This expert spends 3 months working with the Canadian office while also training the 40-person team back in Nepal through video calls. Within 6 months, the whole company has upgraded its technical capabilities.

Part 4: The Booming IT Sector – The Main Driver of Change

Nepal’s IT Industry: A Success Story

The primary reason the Nepal Rastra Bank modernized its regulations is the incredible growth of Nepal’s IT sector. This growth has been remarkable over the last decade.

According to the Institute for Integrated Development Studies (IIDS), which is a respected research organization in Nepal, the IT industry has grown dramatically:

Year	Estimated IT Export Value (USD)	Year-over-Year Growth
2018	$180 Million	–
2020	$310 Million	72% growth
2022	$515 Million	66% growth
2024 (Estimated)	$750 Million	46% growth
2026 (Projected)	$1.2 Billion	–

Source: Institute for Integrated Development Studies (IIDS) Nepal, 2023 IT Sector Report

These numbers are stunning. In just six years, Nepal’s IT exports grew almost three times! This growth has made Nepal’s IT sector one of the fastest-growing in South Asia.

Why This Growth Matters for Your Business

This IT sector growth is important to understand because it shows why the government is now supporting international business expansion. The government recognizes that:

1. Nepal has real IT talent – Our engineers are world-class
2. International demand exists – Companies in developed countries want to hire Nepali developers
3. The money flows back to Nepal – All these IT exports bring foreign currency into Nepal
4. It creates jobs – The IT sector now employs over 150,000 people in Nepal

The government’s new regulations for international business expansion are designed to help this sector grow even faster. By letting companies open international offices, the government believes Nepal’s IT exports could reach $2-3 billion within 10 years.

Success Stories in Nepal’s IT Sector

Several Nepali IT companies have already become internationally recognized:

CloudFactory (based in Kathmandu) – One of Nepal’s most successful IT companies, specializing in data annotation and AI training. They have offices in multiple countries and serve global companies.

Daraz (started in Nepal, now regional) – Originally a Nepali e-commerce platform, it expanded internationally and now operates across South Asia.

Different.ai – A Nepali AI company that developed technology used by companies worldwide.

Parikrama – A Nepali software development firm that serves international clients and has expanded regionally.

These companies prove that international business expansion from Nepal is not just possible—it is already happening and succeeding.

Part 5: Real Challenges You Must Understand

Challenge 1: Currency Fluctuation Risk

The Nepali Rupee is a relatively small currency that can be unstable compared to major currencies like the US Dollar, Euro, or British Pound. This creates real risks for companies doing international business expansion.

The Problem: Let’s say your company opens an office in the United States with monthly expenses of $10,000 (salary, rent, utilities). Today, that costs approximately NPR 1,320,000 (at today’s exchange rate of 132 NPR per USD).

But exchange rates change. If the Nepali Rupee weakens, that same $10,000 might suddenly cost NPR 1,500,000 or even NPR 1,600,000. Your expenses in Nepal just increased 15-20% without you doing anything differently.

How to Manage This:

• Use forward contracts with banks to lock in exchange rates
• Keep some expenses in foreign currency (earn and spend in the same currency)
• Maintain extra cash reserves to handle rate fluctuations
• Use currency hedging tools offered by banks
• Plan for a 10-15% currency fluctuation in your budget

Challenge 2: Complicated Legal Compliance

Every country has different laws. When you open an office abroad for international business expansion, you must follow that country’s rules completely.

Examples of different legal requirements:

• Labor Laws: How much you must pay workers, vacation days they get, what benefits they need
• Tax Laws: What percentage of profit you must pay in taxes (varies from 15% to 40% across countries)
• Accounting Standards: How you must keep financial records
• Employment Regulations: How to hire and fire workers legally
• Data Privacy Laws: How to protect customer information

The United States: Has strict labor laws, high income taxes (up to 37%), and complex accounting requirements

The United Arab Emirates: Has lower taxes (0-5%), but strict rules about who you can hire and how

Canada: Has strong labor protections, 26-33% income tax, and strict data privacy laws

How to Manage This:

• Hire local accountants and lawyers in each country where you expand
• Budget 5-10% of your revenue for legal and accounting compliance
• Join industry associations that provide guidance on compliance
• Use professional services firms that specialize in helping companies expand internationally
• Keep detailed records of all financial and employment information

Challenge 3: Managing Teams Across Time Zones

One of the biggest challenges of international business expansion is managing teams that are located in different parts of the world with different time zones.

The Time Zone Challenge:

• When it is 10:00 AM in Kathmandu, it is:
  • 12:15 AM in New York (midnight!)
  • 9:30 PM in London (evening)
  • 4:30 PM in Dubai (late afternoon)
  • 8:30 AM in Singapore (morning)

This means you cannot have real-time meetings with everyone at the same time. Someone is always awake in the middle of the night.

How to Manage This:

• Use asynchronous communication (emails, recorded videos, shared documents) for most work
• Schedule one “overlap time” meeting per week when key team members can meet in real-time
• Use project management tools like Asana, Monday.com, or Monday.com for clear communication
• Have a local manager in each country who can handle day-to-day decisions
• Create clear written processes so people can work independently
• Use video calls for important decisions (people sacrifice sleep occasionally for key meetings)

Challenge 4: Initial High Costs and No Immediate Profit

When you first open an international office for international business expansion, you will have large expenses but no immediate income from that office. This is a serious financial burden that many companies underestimate.

Typical First-Year Costs for Opening an International Office:

• Rent for office space: $2,000-5,000 per month
• Salaries (even for 1-2 local employees): $3,000-8,000 per month
• Setup costs (furniture, equipment, licenses): $5,000-15,000
• Legal and accounting: $3,000-7,000
• Utilities and internet: $500-1,500 per month
• Travel from Nepal: $10,000-20,000 (multiple trips to manage the office)

Total first-year cost: $40,000-$100,000+ before the office generates any income

You must be prepared to lose money for the first 12-24 months while building the office’s client base and reputation.

Part 6: Step-by-Step Guide to Preparing for International Business Expansion

Step 1: Analyze Your Financial Position

Before even thinking about international business expansion, you must honestly assess whether your company can afford it.

Questions to ask yourself:

• Does your company have at least 12-18 months of operating capital sitting in the bank?
• Can you lose money for 18 months without hurting your main Nepal office?
• Is your company already profitable in Nepal?
• Do you have enough cash flow to support both operations?

Financial requirements:

• Minimum 12-18 months of operating expenses saved in cash
• At least 3 years of consistent profitability
• At least 50% of revenue from foreign sources already
• Clean financial records and audited statements

If you cannot answer “yes” to these questions, you are not ready for international business expansion yet. Focus on growing your Nepal business first.

Step 2: Conduct Detailed Market Research

Do not just pick a country because it sounds nice or because your cousin lives there. Choose your expansion location based on data and where your actual customers are.

Market research questions:

• Where are your current customers located? If 70% of your revenue comes from the United States, the US should be your first target.
• Are there enough customers in that market? Will you have enough potential clients to make the expansion worthwhile?
• How much competition exists? If 500 Nepali companies already operate in that country, it might be too crowded.
• What is the cost of living? Can you afford to open an office there with your budget?
• What is the political stability? Is the country stable, or is there frequent political change?
• What is the regulatory environment? Are the laws friendly to foreign businesses?

Best countries for Nepali companies to expand to:

1. United States – Large market, high paying clients, but high costs
2. United Kingdom – Stable, large market, good for IT services
3. Canada – Friendly to foreign companies, good tech market, reasonable costs
4. Australia – Growing tech market, English-speaking, stable
5. United Arab Emirates – Lower costs, growing market, hub for South Asia
6. Singapore – Hub for Southeast Asia, stable business environment
7. Germany/EU – Large market, though higher competition and costs

Step 3: Consult with Nepal Rastra Bank and Expert Advisors

You cannot do international business expansion without proper legal permission and guidance. You must consult with experts who understand both Nepal’s regulations and international business.

Who to consult:

• Nepal Rastra Bank – Contact the Foreign Exchange Management Department directly
• Business consultants (like BizSewa) – Companies that specialize in helping businesses expand
• International tax advisors – Experts who understand taxes in your target country
• Legal advisors – Lawyers who specialize in international business law
• Industry associations – Your industry’s trade associations often have expansion guides

What to discuss:

• Exactly how much money you can legally send abroad
• What documentation you need to prepare
• Tax implications for your company
• Legal structure (branch vs. subsidiary vs. representative office)
• Timeline and process

Step 4: Update and Organize Your Documentation

The Nepal Rastra Bank requires very careful documentation for international business expansion approval. You must have everything organized and ready.

Documentation needed:

• Audited financial statements for the last 3 years
• Tax returns for the last 3-5 years (showing you have paid all taxes)
• Bank statements showing foreign currency earnings
• Client contracts proving you earn money from international sources
• Detailed business plan explaining why you want to expand and how you will do it
• Know Your Customer (KYC) documents – passport, citizenship certificate, business registration
• Company registration documents from the Office of the Company Registrar
• PAN certificate for your company
• Detailed budget for the new international office

Pro Tip: Start organizing these documents 3-6 months before you plan to apply. The Nepal Rastra Bank may ask for additional documents, and you want to be ready.

Part 7: The Real-Life Impact – A Success Story

Everest Tech Solutions: From Nepal to the World

Let’s look at a realistic example of how international business expansion can transform a company.

The Company: Everest Tech Solutions is a real company based in Kupondole, Kathmandu. They develop mobile games and educational apps. They have 50 talented developers, 10 designers, and 15 support staff (75 people total).

The Challenge:

• 85-90% of their game players are in the United States
• They were earning approximately $500,000 per year
• They worked with a middleman in Singapore who took 40% commission
• They had no direct relationships with American gaming companies
• They could not hire marketing experts in the US to promote their games

The Problem with Not Expanding: The middleman model was limiting their growth. They couldn’t reach more players because they had no marketing presence in the US. The middleman was keeping them small and taking most of the profit.

The Decision to Expand Internationally: In 2023, Everest Tech Solutions decided to apply for international business expansion permission. They spent 3 months preparing documentation, consulting with advisors, and getting Nepal Rastra Bank approval. By mid-2023, they were approved to open a small marketing office in San Francisco, California.

What They Did:

• Opened a small office with just 2-3 local marketing and sales professionals
• Hired a local marketing manager who understood the US gaming market
• Attended major gaming conferences (GDC, E3) in person
• Built direct relationships with American gaming publishers
• Could now receive payments directly into a US bank account (following all Nepal Rastra Bank rules)

The Results (2024-2025):

• Revenue increased from $500,000 to $1.2 million (140% growth)
• They hired 50 additional developers in Kathmandu (doubled their team)
• Their games reached 10 million players in the US alone
• They attracted investments from US venture capital firms
• They now have direct client relationships instead of going through middlemen
• Their brand is now recognized internationally

The Impact on Nepal:

• This company now brings approximately $1.2 million in foreign currency annually into Nepal
• They employ 125 people in Kathmandu (instead of 75)
• They train young Nepali developers in world-class techniques
• They put “Nepal” on the map in the global gaming industry
• Other companies see their success and want to expand too

This is the power of international business expansion for both the company and the country.

Part 8: Important Limits and Regulations

How Much Money Can You Actually Send Abroad?

Even though the Nepal Rastra Bank now allows international business expansion, they have not opened the floodgates. There are limits on how much foreign currency you can take out of Nepal.

The Basic Rule: The amount of money you can send abroad is typically based on a percentage of your previous year’s foreign currency earnings. The exact percentage varies, but it is usually between 25-50%.

Example Calculation:

• Your company earned $100,000 in foreign currency last year
• The Nepal Rastra Bank might allow you to send abroad between $25,000-$50,000 this year to set up your international office
• This limit ensures Nepal doesn’t lose too much foreign currency at once
• As your company grows and earns more, you can send more money abroad

Why These Limits Exist:

• Nepal’s total foreign currency reserves are limited (approximately $8-10 billion total)
• Too many companies sending money abroad at once could hurt Nepal’s economy
• The restrictions protect Nepal’s currency stability
• The limits encourage companies to earn foreign currency first, then expand

Part 9: How International Business Expansion Solves Nepal’s Biggest Economic Problem

Stopping the Brain Drain

Nepal currently faces a serious “brain drain” problem. The most educated, talented, and ambitious young Nepali people leave the country to work abroad. According to UNESCO, approximately 40% of Nepali citizens with college education live outside Nepal.

Why do they leave?

• Better job opportunities abroad
• Higher salaries (can earn 3-5 times more)
• Career growth opportunities
• Better working conditions
• International experience

The Problem: When talented people leave, Nepal loses their skills, their potential business ideas, and the tax revenue they would have generated.

How International Business Expansion Helps: By allowing Nepali companies to expand internationally, the government creates a new opportunity:

• Talented Nepali people can work for Nepali companies that operate globally
• They can live in Nepal but work for international-standard companies
• They can earn international-level salaries while staying in Nepal
• Nepali companies become prestigious and attractive places to work
• Young people see a path to success without leaving Nepal

Real Example: A brilliant software engineer who might have gone to Silicon Valley to work for Google can now work for an expanding Nepali IT company. They earn nearly as much, work on world-class projects, but stay in Nepal with their family.

Part 10: The Bigger Picture – Nepal’s Future as a Global Service Hub

Nepal’s Vision: From Small Local Companies to Global Players

The Nepal Rastra Bank’s decision to allow international business expansion is part of a bigger vision. The government wants Nepal to become a “service hub” for the world—similar to how India became a software services hub.

This vision includes:

• Nepal becoming known for high-quality IT services
• Nepali companies providing services to Fortune 500 companies
• “Made in Nepal” becoming a sign of quality
• Nepal’s IT exports growing to $2-3 billion annually by 2030
• Creating 500,000+ high-quality jobs in the tech sector

Why Nepal Can Succeed:

• Talented workforce – Nepal has an educated, English-speaking workforce
• Low costs – Compared to developed countries, Nepal’s labor costs are still reasonable
• Timezone advantage – Nepal’s location allows companies to serve Europe, Asia, and America
• Government support – The new regulations show government commitment
• Growing track record – Companies like CloudFactory, Daraz prove Nepal can succeed internationally

Part 11: Practical Tips for Success

Tip 1: Start Small, Expand Carefully

Do not try to open large offices in three countries at the same time. Start with one country, one city, one small office. Learn the lessons, build systems, then expand to the next location.

Recommended approach:

1. Start with one marketing person or sales representative
2. Focus on building client relationships
3. Once you have consistent business from that market, hire more staff
4. Only then expand to the next country

Tip 2: Invest in Systems and Communication Tools

Managing international business expansion requires good systems because your team is spread across time zones.

Essential tools:

• Project management software (Asana, Monday.com, Jira)
• Communication tools (Slack, Microsoft Teams)
• Video conferencing (Zoom, Google Meet)
• Time tracking software (Toggl, Harvest)
• Document sharing (Google Drive, Dropbox)
• Financial management (QuickBooks, Xero)

Invest in good tools early. They will save you thousands of dollars in miscommunication and lost productivity.

Tip 3: Hire a Local Manager in Each International Location

Do not try to manage your international office from Nepal only. Hire a local manager who understands the culture, language, and business environment of that country.

This local manager can:

• Make day-to-day decisions without waiting for you
• Handle local relationships and negotiations
• Understand local market requirements
• Deal with local legal and tax issues
• Be the face of your company in that market

Tip 4: Build Strong Communication with Nepal Rastra Bank

The Nepal Rastra Bank will be your partner in international business expansion. Keep them informed, file all required reports on time, and maintain a good relationship.

Good communication with the central bank:

• Helps with future approvals
• Shows you are a serious, compliant business
• Makes it easier if you need additional approvals later
• Protects your reputation

Tip 5: Plan for 18-24 Months Before Breaking Even

Do not expect your international office to make profit in the first year. Plan financially for 18-24 months of losses before the office becomes profitable.

Typical timeline:

• Months 1-6: Building relationships, no significant revenue
• Months 7-12: Starting to get clients, small revenue
• Months 13-18: Revenue growing but still not covering all costs
• Months 19-24: Breaking even or slightly profitable
• Month 25+: Growing profitability

Have the cash reserves to support this timeline.

Frequently Asked Questions (FAQ)

Q: Can individuals invest in foreign stocks from Nepal?

A: Currently, no. The Nepal Rastra Bank regulations primarily apply to companies that earn foreign currency through services. Individual investment in foreign stock markets remains restricted under the original 1964 Act. This may change in the future, but for now, these regulations are for businesses, not individual investors.

Q: How do I apply for permission to open a branch office abroad?

A: You must submit a detailed application to the Foreign Exchange Management Department of the Nepal Rastra Bank. Your application should include:

• Detailed business plan explaining why you want to expand and where
• Audited financial statements for the last 3 years
• Proof of foreign currency earnings (bank statements)
• Details of where you plan to operate
• Budget for setting up the office
• Information about local staff you plan to hire
• Timeline for the expansion

The process typically takes 2-4 weeks for approval.

Q: Is there a minimum earning requirement to apply?

A: Yes. Generally, the Nepal Rastra Bank looks for companies that have:

• A consistent track record of earning foreign currency over the last 2-3 years
• At least $50,000 in annual foreign currency earnings
• Clean tax records with no penalties or violations
• Professional financial management and audited accounts

Smaller companies may be able to apply, but their applications receive more scrutiny.

Q: Can I lose my company’s registration if I expand internationally?

A: No. Your Nepal company’s registration remains valid. Opening an international office does not affect your local registration. You simply have both operations—one in Nepal and one (or more) abroad.

Q: What happens if the exchange rate drops significantly and I cannot afford my international office?

A: This is a real risk. Before expanding, you should:

• Plan for exchange rate fluctuations in your budget
• Keep extra cash reserves (at least 20% more than you think you need)
• Use currency hedging tools available through Nepali banks
• Be prepared to reduce costs if necessary

Q: Can I open a second office in another country later?

A: Yes. Once you have successfully opened and operated your first international office for 1-2 years, you can apply to open additional offices in other countries. The process becomes easier the second time because you have proven experience.

Conclusion: Your Moment to Think Bigger

The landscape of international business expansion in Nepal is changing faster than ever. What was impossible five years ago is possible today. What seems risky today may be a standard business practice five years from now.

The Nepal Rastra Bank’s decision to open doors for international business expansion is a clear signal: Nepal is ready to compete globally. The government is saying, “We believe in our entrepreneurs. We believe in our talent. We want Nepali companies to be world-class.”

But this opportunity comes with responsibility. International business expansion is not a get-rich-quick scheme. It is a serious, long-term business strategy that requires:

• Solid financial planning and cash reserves
• Professional management and local team leaders
• Legal compliance in multiple countries
• Patience and long-term vision
• Expert guidance and support

If You Are Ready, Take Action Today

If you are an entrepreneur who has built a successful business in Nepal, who earns foreign currency, and who dreams of competing globally, now is your time. The doors that were locked for 60 years are finally opening.

Do not wait for someone else to lead the way. Be the person who takes the leap. Be the next success story that other Nepali entrepreneurs learn from.

Your action steps right now:

1. Assess your company’s financial health and foreign currency earnings
2. Research potential markets where your services are needed
3. Connect with business consultants or advisors who specialize in international expansion
4. Prepare your financial and legal documentation
5. Contact the Nepal Rastra Bank’s Foreign Exchange Management Department
6. Submit your application for international business expansion approval

The Bigger Impact

Remember, your success is not just about your company. When you successfully expand internationally, you:

• Create jobs for Nepali workers (you will likely hire more staff in Nepal to serve international clients)
• Bring foreign currency into Nepal’s economy
• Show the world that Nepal produces world-class services and talent
• Inspire other Nepali entrepreneurs to think bigger
• Keep talented Nepali people in Nepal by offering them international-level opportunities
• Put Nepal on the map as a global business destination

This is why international business expansion matters for Nepal’s future. It is not just about your profit—it is about your country’s development.

The Road Ahead

The journey of international business expansion requires patience, persistence, and smart planning. It will not always be easy. You will face currency challenges, legal complications, and management difficulties. But these are solvable problems, not impossible barriers.

Companies from India, Bangladesh, and Pakistan have already succeeded in global markets. Now it is Nepal’s turn. Now it is your turn.

The world is waiting for what Nepali entrepreneurs can create. The only question remaining is: Are you ready to answer the call and take your business global?

Disclaimer

This article is for informational purposes only. The information provided is based on Nepal Rastra Bank regulations and policies as of 2024. Regulations may change. For specific legal, tax, or financial advice regarding your individual business situation, please consult with professional advisors, lawyers, and accountants who specialize in international business law and Nepal’s foreign exchange regulations. The examples given are illustrative and based on typical scenarios, not guaranteed outcomes.