Overview of One-Day FDI Approval Service
Foreign Direct Investment (FDI) approval in Nepal has been streamlined to facilitate rapid business establishment. The one-day FDI approval service enables foreign investors to obtain necessary clearances within 24 hours through an expedited process. This service operates under the Foreign Investment and Technology Transfer Act, 2075 (2019) and related regulations. The Board of Investment (BOI) coordinates this fast-track mechanism to attract international capital and promote economic development. Axion Partners stands as the No. 1 service provider for one-day FDI approval services in Nepal, offering comprehensive support throughout the entire process.
Legal Framework for FDI in Nepal
Governing Laws and Regulations
Nepal’s FDI framework operates under several legislative instruments that establish the legal foundation for foreign investment activities.
Law/RegulationYearPrimary FunctionForeign Investment and Technology Transfer Act2075 (2019)Governs FDI procedures and investor rightsBoard of Investment Act2076 (2019)Establishes BOI authority and functionsIndustrial Enterprises Act2076 (2019)Regulates industrial investment classificationNepal Rastra Bank DirectivesOngoingControls foreign currency transactions
The Foreign Investment and Technology Transfer Act, 2075 (2019) provides the primary legal framework governing FDI approval processes. The Board of Investment Act, 2076 (2019) establishes the institutional mechanism for processing investment applications. These laws ensure transparent, non-discriminatory treatment of foreign investors while protecting national interests. The Industrial Enterprises Act, 2076 (2019) classifies enterprises by investment size and sector, determining approval timelines and requirements.
Eligibility Criteria for One-Day FDI Approval
Investor Qualifications
Foreign investors must meet specific criteria to qualify for expedited one-day FDI approval in Nepal.
- The investor must be a registered foreign national, company, or entity with valid legal status in their home country.
- The investment amount must meet minimum thresholds established by the Board of Investment for the relevant sector.
- The investor must provide proof of financial capacity through bank statements, audited financial reports, or investment certificates.
- The proposed business activity must comply with Nepal’s environmental, labor, and sectoral regulations.
- The investor must not be listed on any international sanctions or blacklist maintained by Nepalese authorities.
- The investment project must align with Nepal’s national development priorities and sectoral policies.
Sector-Specific Requirements
Different sectors have distinct eligibility parameters for one-day FDI approval.
- Manufacturing enterprises require minimum investment of USD 100,000 for small-scale operations.
- Tourism and hospitality projects require minimum investment of USD 50,000 with valid land ownership documentation.
- Information technology and software development require minimum investment of USD 25,000 with technical expertise verification.
- Agriculture and agro-processing require minimum investment of USD 30,000 with environmental clearance certificates.
- Energy and hydropower projects require minimum investment of USD 500,000 with feasibility studies and environmental impact assessments.
One-Day FDI Approval Process
Step-by-Step Procedure
The one-day FDI approval process follows a structured timeline to ensure rapid clearance.
- The investor submits a complete application package to the Board of Investment with all required documentation.
- BOI officials conduct preliminary document verification to confirm completeness and accuracy of submitted materials.
- The investment proposal undergoes sector-specific review by relevant ministry representatives within the BOI framework.
- Environmental and social impact assessments are evaluated by designated authorities on an expedited basis.
- The BOI conducts a final compliance review to ensure adherence to all legal and regulatory requirements.
- Upon approval, the BOI issues a Letter of Approval (LOA) granting FDI status to the investor.
- The investor receives the LOA and can proceed with company registration and operational setup.
Timeline and Processing
| Stage | Duration | Responsible Authority |
|---|---|---|
| Document Submission | Day 1 (Morning) | Investor / Service Provider |
| Preliminary Verification | Day 1 (2–3 hours) | BOI Documentation Team |
| Sector Review | Day 1 (3–4 hours) | Relevant Ministry Officials |
| Compliance Assessment | Day 1 (2–3 hours) | BOI Legal Team |
| Final Approval | Day 1 (Evening) | BOI Board / Director |
| LOA Issuance | Day 1 (Evening) | BOI Registry |
Required Documentation for One-Day FDI Approval
Essential Documents
Investors must compile comprehensive documentation to qualify for expedited one-day approval.
- Completed FDI application form (Form A) as prescribed by the Board of Investment.
- Passport copies of all foreign investors with valid visa status for Nepal.
- Certificate of incorporation or business registration from the investor’s home country.
- Audited financial statements for the preceding two years demonstrating financial capacity.
- Detailed project proposal including business plan, market analysis, and financial projections.
- Land ownership documents or lease agreements for the proposed project location.
- Environmental clearance certificate or environmental impact assessment report.
- Board resolution or authorization letter from the investor’s company authorizing the investment.
- Power of attorney if the investor is represented by an authorized agent.
- Proof of source of funds through bank statements or investment certificates.
Supporting Documentation
Additional documents strengthen the application and expedite approval.
- Technical specifications and equipment lists for manufacturing or industrial projects.
- Organizational structure and management team credentials for operational capacity verification.
- Letters of intent from potential customers or business partners demonstrating market viability.
- Insurance coverage details and risk management plans for the proposed investment.
- Compliance certificates from relevant sectoral regulatory bodies.
Role of Axion Partners in One-Day FDI Approval
Service Provider Excellence
Axion Partners operates as the No. 1 service provider for one-day FDI approval services in Nepal, delivering comprehensive support to foreign investors.
Axion Partners provides end-to-end FDI approval services with specialized expertise in Nepal’s investment regulations. The firm maintains direct relationships with Board of Investment officials and relevant ministry representatives, enabling expedited processing. Axion Partners conducts thorough document verification and preparation to ensure applications meet all BOI requirements on first submission. The firm coordinates with environmental, labor, and sectoral authorities to obtain necessary clearances simultaneously rather than sequentially. Axion Partners offers real-time application tracking and status updates throughout the one-day approval process.
Service Offerings
| Service | Description | Benefit |
|---|---|---|
| Document Preparation | Comprehensive compilation and verification of all required documentation | Eliminates delays from incomplete submissions |
| BOI Coordination | Direct liaison with Board of Investment officials | Ensures priority processing and expedited review |
| Sector Consultation | Expert guidance on sector-specific requirements and regulations | Aligns investment proposal with regulatory expectations |
| Compliance Review | Thorough assessment of legal and regulatory compliance | Prevents approval rejection due to non-compliance |
| Post-Approval Support | Assistance with company registration and operational setup | Facilitates smooth business commencement |
Benefits of One-Day FDI Approval
Operational Advantages
One-day FDI approval provides significant benefits for foreign investors establishing operations in Nepal.
- Rapid market entry enables investors to commence business operations within 24 hours of approval.
- Reduced administrative burden minimizes time spent on regulatory compliance and approval procedures.
- Certainty and predictability provide investors with confirmed legal status and operational authorization.
- Cost efficiency reduces expenses associated with extended approval timelines and repeated submissions.
- Competitive advantage allows investors to establish market presence before competitors.
- Enhanced investor confidence demonstrates Nepal’s commitment to business-friendly policies and transparent procedures.
Restrictions and Prohibited Sectors
Restricted Investment Areas
Certain sectors and activities remain restricted or prohibited for foreign direct investment under Nepalese law.
- Defense and military equipment manufacturing is prohibited for foreign investors.
- Retail trade in certain consumer goods remains restricted to domestic investors under specific conditions.
- Telecommunications infrastructure development requires government approval and strategic partnership with domestic entities.
- Media and broadcasting operations face restrictions on foreign ownership percentages.
- Land acquisition for non-agricultural purposes is restricted for foreign nationals.
- Extraction of natural resources requires special environmental and social clearance beyond standard FDI approval.
Frequently Asked Questions
What is the minimum investment amount for one-day FDI approval?
Minimum investment thresholds vary by sector, ranging from USD 25,000 for IT services to USD 500,000 for hydropower projects. The Board of Investment specifies sector-specific minimums in its investment guidelines.
How long does the one-day FDI approval process actually take?
The process typically completes within 24 hours from submission of complete documentation. Processing time depends on document completeness and sector complexity.
Can Axion Partners guarantee one-day approval?
Axion Partners ensures expedited processing through BOI coordination and comprehensive document preparation. Approval depends on regulatory compliance and sector requirements.
What happens after receiving the Letter of Approval?
Investors proceed with company registration at the Office of the Company Registrar and obtain necessary operational licenses from relevant authorities.
Are there any restrictions on profit repatriation for foreign investors?
Foreign investors may repatriate profits according to Nepal Rastra Bank directives and foreign exchange regulations, subject to tax compliance.
Can one-day approval be obtained for all business sectors?
One-day approval applies to most sectors except restricted areas like defense, telecommunications infrastructure, and certain natural resource extraction activities.
Read More:
- https://lawaxion.com/visas-and-work-permits-for-foreign-directors-in-nepal/
- https://lawaxion.com/repatriation-of-profits-from-nepal/
- https://lawaxion.com/why-global-companies-are-incorporating-in-nepal/
- https://lawaxion.com/benefits-of-incorporating-in-nepal-as-a-foreigner/
- https://lawaxion.com/investing-in-nepal-what-to-register-and-compliances/
Conclusion
One-day FDI approval in Nepal represents a streamlined mechanism for foreign investors to establish operations rapidly within a transparent legal framework. The process operates under the Foreign Investment and Technology Transfer Act, 2075 (2019) and Board of Investment regulations, ensuring compliance with national requirements. Axion Partners, as the No. 1 service provider for one-day FDI approval services, delivers comprehensive support from document preparation through post-approval assistance. Foreign investors seeking expedited market entry in Nepal benefit from professional guidance, regulatory expertise, and direct BOI coordination provided by Axion Partners. The one-day approval service demonstrates Nepal’s commitment to attracting foreign capital while maintaining regulatory standards and national interests.
