Forms of Foreign Investment
Investment in share (Equity) (a)
Reinvestment of the earnings derived from the clause (a) above
FDI Support by BizSewa
We help you run your company smoothly by undertaking the legal and other aspects. We help you in document preparation, proxy services, company updates, submissions and all other services.
Market Research
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.
Registration
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: 500,000 USD (~Nrs. 5 Crore) per investor
Foreign Equity Investment in a New Industry
(Documents required for investment in one of the allowed industry)
- Project Report 3 copies
- Joint Venture Agreement (IVA), in case of more than one investor 3 copies
- Citizenship certificate of local party or Certificate of Incorporation including Memorandum of Association and Articles of Association, if the local party is a company 1 copy
- Copy of passport of foreign party or Certificate of incorporation, including Memorandum of Association and Articles of Association, if the party is a company 1 copy
- Bio-data / Company profile of the foreign party 1 copy
- Financial Credibility Certificate (FCC) of the Foreign Investor provided by a home country bank or domiciled country bank 1 Copy
- Authority letter from concerned departments
Foreign Investment in an Existing Industry by Share Transfer
(Documents required for transfer of share)
- Request from the share transferor Request from the share transferee
- Share Transfer Agreement 3 copies
- Copy of minute of the Board meeting of Nepalese company regarding inclusion of foreign investor into the company 1 copy
- Copy of minute of Board meeting, Certificate of incorporation and company profile of the foreign party if the party is a company 1 copy
- Copy of passport and Bio-data of foreign party, if party is an individual 1 copy
- Financial Credibility Certificate of the Foreign Investor provided by a bank 1 copy Current Share Holders’ List as certified by the Company Registrar’s Office 1 copy Auditor’s Report 1 copy
- Tax clearance certificate 1 copy
- Authority letter(s) from the companies concerned to sign on behalf of the companies. 1 copy
- Industry Registration Certificate
Technology Transfer
Technology transfer is possible even in areas where foreign investment is not allowed.
Forms of “Technology Transfer”
Use of any technological right, specialization, formula, process, patent or technical know-how of foreign origin
Use of any trademark of foreign ownership
Acquiring any foreign technical consultancy, management and marketing service
Technology Transfer Agreement (TTA)
(Documents required for transfer of Technology)
- Technology Transfer Agreement (TTA) 3 copies
- Citizenship certificate of local party or Certificate of Incorporation including Memorandum of Association and Articles of Association, if local party is a company
- Copy of passport of foreign party/or Certificate of Incorporation, including Memorandum of Association and Articles of Association, if the party is a company
- Bio-data / Company profile of the foreign party
- Industry Registration Certificate
- Copy of the minute of the Board of the recipient company
- Authority letter from the concerned companies or individuals to carry out any necessary work on their behalf, if applicable
- Audit Report and tax clearance certificate
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
(Please check whether your core service/product falls in either of the categories or not)
- Cottage Industries
- Personal Service businesses
- Arms and Ammunition Industries
- Gunpowder and Explosives
- Industries related to Radio-Active Materials
- Real Estate Business (excluding construction industries)
- Film Industries (National Languages and other recognized languages of Nation)
- Security Printing
- Bank notes and Coins
- Retail Business (excluding international chain retail business with its business in more than two countries)
- Bidi (excluding more than 90% exportable)
- Internal Courier Service
- Atomic Energy
- Poultry
- Fisheries
- Bee Keeping
- Consultancy Services such as Management, Accounting, Engineering, Legal Services (Maximum 51% foreign investment is allowed)
- Processing of Food Grains on Rent
- Local Catering Services
- Rural Tourism
General Tax Rates
1
%
Corporate Income TAX
1
%
Manufacturing Industries
1
%
Payment of Interest (TDS)
1
%
Payment of Dividend (TDS)