Foreign Direct Investment in Nepal

Nepal has been opening its doors to foreign investors to boost economic growth. The Foreign Investment and Technology Transfer Act (FITTA), 2019 regulates FDI in Nepal.

Key Highlights for Investors

1. Negative List: FDI is permitted in almost all sectors except those listed in the negative list (e.g., traditional cottage industries, primary agriculture).
2. Minimum Investment Threshold: The government recently reduced the minimum FDI threshold to attract smaller investors. It currently stands at NPR 20 million.
3. Repatriation of Profits: Investors are allowed to repatriate the profits earned from their investment in foreign currency, subject to approval from the Nepal Rastra Bank.

The Registration Process

The standard procedure involves:

• Approval from the Department of Industry (DOI) or the Investment Board Nepal (IBN) depending on the project size.
• Company registration at the Office of the Company Registrar (OCR).
• Registration with the Inland Revenue Department (IRD) for PAN/VAT.
• Foreign currency entry approval from Nepal Rastra Bank.

Need Assistance?

Navigating the regulatory landscape can be complex. LawyerInNepal offers comprehensive support for FDI structuring and compliance.