Foreign Direct Investment in Nepal
The Opportunity
Why Invest in Nepal?
Nepal is emerging as one of South Asia's most promising investment destinations. With a liberalized investment regime, abundant natural resources, and a government committed to attracting foreign capital, Nepal offers compelling opportunities across multiple sectors.
- Abundant natural resources including hydropower potential of 83,000 MW
- Strategic location between India and China, access to 2.7 billion consumers
- Government commitment to FDI with competitive tax incentives
- Young, growing workforce and improving infrastructure
- Ongoing regulatory reforms to simplify the investment climate
- Double Taxation Avoidance Agreements with 11 countries
0 MW
Checklist
NPR 0M+
Min. FDI Threshold
0%
Foreign Ownership Allowed
0
DTAA Countries
0–45
Days to IBN Approval
SEZ
Tax Benefits Available
Where to Invest
Key Sectors Open to FDI
Nepal has opened a wide range of sectors to foreign investment. Here are the most significant opportunities.
Hydropower & Energy
Open with conditionsManufacturing
Fully openIT & Technology
Fully openTourism & Hospitality
Fully openAgribusiness
Open with conditionsInfrastructure
Priority sectorRetail & Trade
Open with conditionsFinancial Services
Regulated, NRB approvalOur FDI Process
How We Guide Your Investment
From first inquiry to operational readiness, a structured, end-to-end FDI legal engagement.
Investment Feasibility & Sector Analysis
We assess your intended investment sector, applicable FDI limits, and ownership structures permissible under Nepal law. We identify the optimal legal vehicle for your investment.
IBN / DOI Approval
Depending on investment size and sector, we obtain approval from the Investment Board of Nepal (IBN) or the Department of Industry (DOI), preparing and filing all required documentation.
Company Registration
We register your company with the Office of the Company Registrar (OCR), private limited, branch office, liaison office, or joint venture, tailored to your structure.
Sector-Specific Licensing
Beyond OCR registration, many sectors require additional licenses from regulators (NRB, SEBON, NEA, etc.). We identify and obtain all necessary permits.
Tax Registration & PAN/VAT
We complete tax registration with the Inland Revenue Department, including PAN and VAT registration, and advise on the applicable tax treaty benefits available to your entity.
Ongoing Compliance & Repatriation
We provide continued legal support for annual filings, NRB foreign exchange compliance, profit repatriation structuring, and any regulatory changes affecting your investment.
Legal Landscape
Nepal's FDI Legal Framework
Foreign investment in Nepal is governed by a comprehensive legal framework designed to protect investors while ensuring alignment with national development goals.
Foreign Investment & Technology Transfer Act (FITTA) 2019
The primary legislation governing all forms of foreign investment, technology transfer, and repatriation of earnings in Nepal.
Industrial Enterprises Act 2020
Governs industrial licensing, investment incentives, and the establishment of manufacturing and service enterprises.
Investment Board Act 2011
Establishes the Investment Board of Nepal (IBN) and its role in facilitating and approving large-scale foreign investments.
Special Economic Zone Act 2016
Provides for the establishment of SEZs with special tax and regulatory incentives for qualifying businesses.
Urgent legal matter?
+977 9851045733Investor Questions
Frequently Asked Questions
The minimum foreign investment in Nepal is NPR 50 million (approximately USD 375,000) for most sectors requiring IBN approval. Investments below this threshold may be registered with the Department of Industry.
Yes, 100% foreign ownership is permitted in most sectors. However, certain sectors (banking, insurance, media, and a few others) require minimum local equity participation.
With complete documentation, IBN approval typically takes 30–45 working days. Our team prepares comprehensive applications to minimize back-and-forth and reduce processing time.
Yes. Foreign investors may repatriate dividends, loan repayments, royalties, and proceeds from the sale of their investment, subject to NRB's foreign exchange regulations and approval.
Nepal offers income tax holidays for certain industries (energy, tourism, exports), and reduced tax rates for businesses in Special Economic Zones (SEZs) and priority sectors.
Start Your Nepal Journey
Ready to Invest in Nepal?
Speak with our FDI specialists for a confidential assessment of your investment plans. We'll guide you through every step of the legal process.
Ready to discuss your case?