FDI Support by BizSewa
Foreign Direct Investment, Nepal
We help you invest in Nepal, undertaking the legal and other aspects regarding FDI in Nepal. We help you with document preparation, proxy services, getting approval from the Department of Industry, comply environmental regulations, company updates, submissions, and all other services related to foreign investment in Nepal. Furthermore, we will be with you before, during, and after registering your business in Nepal.
If you are willing to invest in any allowed sectors and industries of Nepal or want to expand your business here in Nepal, our team can provide in-depth market research for your product and services.
We carry out all types of registration and affiliation for foreign companies and individuals willing to start a business in Nepal. The team of our expert professionals will craft the documents with top precision and help you apply in the related departments.
Post Registration services
We provide all services needed by businesses. You don't need to visit different agencies and service providers like HR management, IT, marketing and so one. Get the luxury of getting all business related services under one roof.
Minimum Threshold for Foreign Investment Approval: 200,000 USD (~Nrs. 2 Crore) per investor
Foreign investment scenario in Nepal
Nepal is a small landlocked country located in South Asia, between India and China. It has a population of about 29 million people and is known for its natural beauty, including the Himalayas, which contain some of the highest mountains in the world, including Mount Everest. Nepal is also rich in cultural and religious diversity.
Foreign investment in Nepal has been limited in the past, due in part to the country’s challenging political and economic environment. However, the government has taken steps in recent years to encourage foreign investment and create a more business-friendly environment. Some sectors in which foreign investment is particularly welcome include hydropower, tourism, hospitality, and manufacturing.
There are several challenges to foreign investment in Nepal, including a lack of infrastructure, a limited pool of skilled labour, and a challenging regulatory environment. Additionally, the country has a relatively small domestic market, which can make it difficult for businesses to achieve economies of scale.
Despite these challenges, Nepal offers countless advantages for foreign investors. These include a low cost of living, a relatively stable political environment, and a strong tradition of entrepreneurship. Additionally, the country’s location between India and China makes it an attractive gateway to these two large markets.
Overall, Nepal presents both opportunities and challenges for foreign investors. Those who are willing to navigate the challenges and are committed to the long-term development of the country may be able to find success in Nepal.
Forms of Foreign Investment
Foreign Equity Investment in a New Industry
(Documents required for investment in one of the allowed industry)
Foreign Investment in an Existing Industry by Share Transfer
(Documents required for transfer of share)
Industries that are largely attractive for foreign investment in Nepal
These are some of the most attractive industries for foreign investment in Nepal.
Technology transfer is possible even in areas where foreign investment is not allowed.
Forms of “Technology Transfer”
Technology Transfer Agreement (TTA)
(Documents required for transfer of Technology)
Provisions under Income Tax Act
Entity: If incorporated in Nepal the entity is Resident Entity.
Foreign Permanent Establishment: the place from where services are being performed by installing machinery, equipment or providing consultancy for more than 90 days either continuously or intermittently in Nepal. The term also includes agency business except independent agent.
Double Tax Avoidance Treaty is done with various countries which helps for avoidance of double taxation on global income.
Areas Not Allowed for Foreign Investment in Nepal
(Please check whether your core service/product falls in either of the categories or not)
Government Agencies of Nepal related to FDI process
Ministry of Industry, Commerce, and Supplies
Formulate policies and laws regarding FDI
Industry and Investment Promotion Board
Provide consent to industries that require permission
Investment Board of Nepal
Approve the foreign investment exceeding NRs. 6 billion and provide other facilitation
Department of Industry (One Stop Service Center)
Approve the foreign investment not exceeding NRs. 6 billion and provide industry administration related services
Office of Company Registrar
Register company and provide administration related services
Nepal Rastra Bank (Central Bank of Nepal
Provide approval for bringing in foreign currency against approved investment, recording, and repatriation
Business Visa after FDI in Nepal
Foreign investors or his/her authorized representative and family members shall receive business visa after they obtain approval for foreign investment as long as their investment exists. They should apply for visa extension to Department of Industry 1 month prior to expiry of their Visa. And, they have to attend in person when they apply for the first time for Visa.
Documents Required for the Business Visa processing in Nepal along with the Application
- Notarized copy of passport with the latest Visa
- Letter of Foreign Investment Approval from the Department of Industry
- Copy of Industry/Company Registration Certificate
- In case of Industry in operation, report of industry inspection
- Notarized copies of Letter of Authorization as a Representative of foreign investor and passport
- Notarized document of the relation with the dependents
- Contact address and telephone number of the investor/representative
Documents Required for the Non-Tourists Visa for Foreign Workers along with the Application
- Notarized copy of Agreement between labourer and industry
- Copy of the notice published in the national daily newspaper
- Progress Report of the industry
- Labourer’s Bio-Data (showing his/her experience in the industry) and Certificate of Academic Qualification
- Notarized copy of passport with latest Visa
- List of Nepali labourers to be trained by the foreign labourers
- Working Approval and Work Permit
- Copy of Industry Registration
- Copies of current Audit Report and Tax Clearance Certificate of the company
*Note: Incase of Non-tourist Visa, the application should be submitted sixty days ahead of Visa expiry date
In case of foreign investment equivalent or above 1 million US dollar at a time, a foreign investor or his/her representative and family members shall be recommended for the Residential Visa.
- Notarized copy of passport with the latest Visa
- Evidence of Realized Investment equivalent or above 1 million US dollar at a time
- Copy of the Industry Registration Certificate
- Physical and Financial Progress Report of the industry
- Document of the relation with the dependent
Compliance with Environmental regulations for FDI approval in Nepal
For establishing an industry, the extension and diversification of existing industry, Initial Environmental Examination (IEE) and Environmental Impact Assessment (EIA) should be approved prior to the operation of the industry as per the existing environment laws
Government Fees For FDI approval and related registrations
Approval of Foreign Investment
Free (Deposit Rs.20,000/-)
As per Company Act (Company Registration Fees)
Capital Currency against Foreign Investment
Fees as per immigration Act
General Tax Rates in Nepal