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Foreign Direct Investment in Nepal

Navigate Nepal’s FDI landscape with expert guidance. We handle all legal requirements, documentation, government approvals, and compliance procedures to make your foreign investment successful.

💰 Minimum Investment Threshold: $200,000 USD (~NPR 2 Crore) per investor

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FDI Support by BizSewa

Comprehensive foreign investment services to establish and manage your business in Nepal

Market Research

In-depth market analysis of allowed sectors and industries in Nepal. We provide comprehensive insights to help you understand market opportunities, competition, and growth potential for your business expansion.

Registration & Documentation

Complete registration services for foreign companies and individuals. Our expert team handles document preparation, government approvals, and all regulatory requirements with precision and expertise.

Post-Registration Support

All-in-one business support including HR management, IT services, marketing, compliance, and administrative services. Get comprehensive support under one roof with dedicated professionals.

Attractive Industries for FDI in Nepal

These sectors offer significant opportunities for foreign investors with strong growth potential

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Hydropower

Nepal has significant hydropower generation potential with an estimated capacity exceeding 83,000 MW. The government has made hydropower development a priority and actively encourages foreign investment in this high-potential sector.

Estimated capacity: 83,000+ MW

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Manufacturing

Growing manufacturing sector with opportunities in textiles, leather goods, and food processing. Government initiatives aim to increase foreign investment to boost economic growth and industrial capacity.

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Tourism & Hospitality

Nepal’s natural beauty, including the Himalayas and Mount Everest, combined with rich cultural heritage, makes it a premier tourist destination. Government actively promotes tourism sector for foreign investment opportunities.

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Renewable Energy

Growing opportunities in solar and wind power generation. Government is working to increase energy generation capacity to meet rising electricity demand across the country.

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Agriculture

Nepal produces diverse crops including rice, wheat, maize, and pulses. Foreign investment in agriculture can increase productivity and improve livelihoods of small farmers.

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Technology & Services

Emerging opportunities in technology transfer and technology-enabled services. Nepal’s strategic location between India and China provides access to large markets.

Government Agencies Overseeing FDI in Nepal

Key regulatory bodies and their functions in the FDI approval process

Agency	Major Functions
Ministry of Industry, Commerce & Supplies	Formulate policies and laws regarding foreign direct investment
Industry and Investment Promotion Board	Provide consent to industries that require permission
Investment Board of Nepal	Approve foreign investment exceeding NPR 6 billion and provide facilitation
Department of Industry (One Stop Service Center)	Approve foreign investment not exceeding NPR 6 billion and industry administration services
Office of Company Registrar	Register company and provide administration related services
Nepal Rastra Bank (Central Bank)	Approve foreign currency inflow, recording, and repatriation of investments

FDI in Nepal: Key Information

                Foreign Investment Scenario: Nepal is a landlocked country in South Asia between India and China with 29 million people. While foreign investment was historically limited due to political and economic challenges, the government has significantly improved the business environment. Strategic location between major markets, low cost of living, stable political environment, and strong entrepreneurial tradition create significant opportunities for foreign investors willing to commit to long-term development.
            

                Forms of Foreign Investment: Investment in equity shares, reinvestment of earnings, loans/loan facilities, and foreign equity investment in new industries are permitted under Nepal’s FDI regulations.
            

                Technology Transfer: Technology transfer is possible even in areas where direct foreign investment is not allowed, including use of technological rights, patents, trademarks, and technical consultancy services.
            

                Business Visa After FDI: Foreign investors, representatives, and family members receive business visa upon FDI approval. Visa extension requires application 1 month prior to expiry. Residential visa is available for investments of $1 million or more.
            

                Environmental Compliance: For industry establishment or expansion, Initial Environmental Examination (IEE) and Environmental Impact Assessment (EIA) approval is required prior to operation as per existing environment laws.
            

                Tax Structure: Corporate income tax varies by sector. Manufacturing industries benefit from preferential tax rates. Double Tax Avoidance Treaties with various countries prevent double taxation on global income.
            

Start Your Foreign Investment Journey in Nepal

Let BizSewa be your trusted partner in navigating Nepal’s FDI process. From market research to post-registration support, we provide comprehensive services before, during, and after your investment. Our experts ensure compliance with all regulatory requirements and help you maximize your investment’s potential.

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