What is Foreign Direct Investment (FDI) in Nepal?

Foreign Direct Investment (FDI) in Nepal, according to FITTA 2019, is a form of international investment where foreign individuals or companies invest capital in Nepalese businesses, gaining ownership or control of business assets. Nepal allows 100% FDI in most sectors except for a few restricted areas.

Which Sectors are open for FDI in Nepal?

Sectors open for FDI in Nepal include manufacturing, energy, tourism, agriculture, information technology, mining, construction, healthcare, education, and service industries. However, sectors like personal security services, arms manufacturing, and real estate trading remain restricted.

What is the minimum investment required to open a company in Nepal?

The minimum investment required to open a company in Nepal through FDI is NPR 20 million (approximately USD 150,000) as per FITTA 2019. However, there is no Minimum Investment Threshold for establishing IT Companies. This threshold applies to all foreign investors seeking to establish businesses in Nepal.

What is the process of Foreign Investment?

FDI Process in Nepal: 1. Obtaining DOI Approval 2. Registration of Company at OCR 3. Local Business and Tax Registration 4. Registration of Industry at DOI Step 5: Opening a Local Bank Account 6. Approval from NRB to infuse capital. Foreign investors must first obtain approval from the Investment Board Nepal or Department of Industry.

Who approves FDI in Nepal?

FDI approval in Nepal is granted by two authorities: the Investment Board Nepal (IBN) for investments exceeding NPR 6 billion, and the Department of Industry (DOI) for investments below NPR 6 billion. Both operate under the Ministry of Industry.

What is the Condition of FDI in Nepal?

The current condition of FDI in Nepal shows steady growth despite challenges. Total FDI inflow reached NPR 19.48 billion in 2022/23, with major investments from China, India, and other countries focusing on energy, manufacturing, and service sectors.

FITTA 2019 (Foreign Investment and Technology Transfer Act 2019) is Nepal's primary legislation governing foreign investment. It provides the legal framework for FDI, technology transfer, and repatriation of earnings while protecting foreign investors' rights.

What documents are required for FDI in Nepal?

Documents required for FDI in Nepal include: passport copy, company registration certificate from home country, financial credibility certificate, board resolution, project proposal, joint venture agreement (if applicable), and citizenship certificate of local partner.

How can a Foreigner Open a Company in Nepal?

A foreigner can open a company in Nepal by following these steps: obtaining DOI approval, registering the company at OCR, getting PAN/VAT registration, opening a bank account, getting industry registration, and obtaining necessary permits. The process typically takes 2-3 months.

Foreign Direct Investment in Nepal (2025)

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Foreign Direct Investment Approval Process in Nepal

Foreign Direct Investment (FDI) in Nepal refers to the investment made by foreign individuals or entities in Nepali businesses or economic activities. Foreign Direct Investment Approval Process in Nepal involves the transfer of capital, technology, and expertise from foreign sources into Nepal’s economy. The Foreign Investment and Technology Transfer Act (FITTA) 2019 governs FDI in … Continue reading Foreign Direct Investment Approval Process in Nepal

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