The FDI process, step by step
- Check the sector and structure. Confirm your sector is open to foreign investment and plan the shareholding and funding structure.
- Foreign investment approval. Apply to the Department of Industry, which approves all foreign investment.
- Register the company at the Office of the Company Registrar.
- Bring in the investment through banking channels and record it with Nepal Rastra Bank.
- Post-registration. PAN and VAT registration, industry registration where needed, and ongoing compliance.
- Repatriation. Dividends and capital can be repatriated after tax, with Nepal Rastra Bank approval.
Key facts
| Item | Current position |
|---|---|
| Main law | Foreign Investment and Technology Transfer Act, 2075 (2019) |
| Minimum investment | NPR 2 crore (20 million) per investor under current government policy; no minimum for IT companies |
| Approving body | Department of Industry |
| Recording of investment | Nepal Rastra Bank |
The minimum investment and sector list are set by government policy and can change, so they're confirmed for your case before you apply.
How I help
- Investment structuring and tax planning, including share transfer tax
- Preparing and filing the foreign investment approval application
- Company registration for foreign investors
- Nepal Rastra Bank recording and repatriation applications
- Ongoing accounting, tax, payroll and compliance for the new company
Frequently asked questions
What is the minimum foreign investment in Nepal?
Under current government policy, NPR 2 crore (20 million) per investor, with no minimum for IT companies. The figure is set by government decision and can change, so it should be confirmed before you apply.
Are any sectors closed to foreign investment?
Yes. FITTA includes a list of sectors where foreign investment isn't allowed. Your sector is checked against it before anything else.
Can I take profits out of Nepal?
Yes. After paying applicable taxes, dividends and capital can be repatriated with approval from Nepal Rastra Bank, provided the investment was properly recorded.