Foreign Investment Approval in Nepal
Foreign nationals and foreign companies investing in Nepal must obtain approval from the Department of Industry (DOI) or the Investment Board of Nepal (IBN), depending on the investment size. Nepal's Foreign Investment and Technology Transfer Act 2019 governs this process.
Who Can Invest in Nepal?
Under FITTA 2019, foreign individuals, companies, and governments can invest in Nepal in the following ways:
- Equity investment: Owning shares in a Nepali company (Joint Venture or 100% foreign-owned where permitted)
- Technology transfer: Licensing technology, patents, or know-how to a Nepali company
- Reinvestment: Reinvesting profits earned in Nepal
Certain sectors are restricted or require additional approvals: defense, arms, atomic energy, real estate, and some service sectors.
Step-by-Step Process
- 1
Sector eligibility check
Verify that your proposed business sector is open to foreign investment. Some sectors require 100% Nepali ownership; others allow Joint Venture only.
- 2
Company name reservation at OCR
Reserve the proposed company name at OCR CAMIS. This can be done before DOI approval.
- 3
DOI / IBN application
Submit a foreign investment application to DOI (projects under NPR 50 crore) or IBN (larger projects). Include business plan, financial projections, technology details, and identity documents.
- 4
Approval letter issuance
DOI/IBN reviews the application and issues an approval letter specifying the investment amount, sector, and conditions.
- 5
Company incorporation at OCR
Register the company at OCR using the DOI/IBN approval letter. Foreign shareholders' documents must be notarized and apostilled from their home country.
- 6
PAN, VAT, and bank account
Register for PAN and VAT at IRD, and open a company bank account. Foreign capital must be remitted through proper banking channels and reported to Nepal Rastra Bank (NRB).
Required Documents (Foreign Investor)
- Passport of foreign investor / director
- Company registration certificate of the foreign parent company (notarized and apostilled)
- Board resolution of the foreign company authorizing investment in Nepal
- Business plan with financial projections
- Technology transfer agreement (if applicable)
- Bank statement of the foreign investor
- Proposed investment amount and shareholding structure
- Proposed company name and business objectives
Repatriation of Profits
Under FITTA 2019, foreign investors are guaranteed the right to repatriate profits, dividends, and capital in convertible foreign currency through approved banking channels, after payment of applicable taxes. Nepal Rastra Bank must be notified of all foreign currency transactions.Need help with this process? Chartered Corporate Business Consulting handles it all for you — from start to finish.