New Baneshwor, Kathmandu
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FDI Service in Nepal

Expert Foreign Investment Consultant

Start Your FDI Journey in Nepal with Expert Guidance

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Foreign Direct Investment (FDI) in Nepal can be complex, but with the right partner, it becomes smooth, fast, and fully compliant. I help international investors navigate approvals, FITTA 2019 compliance, and sector-specific clearances, ensuring your business grows confidently in Nepal’s market.

  • Over 10 years of experience in FDI consultancy
  • Guidance via Department of Industry (DOI) and Nepal Rastra Bank (NRB) approvals
  • Sector-specific knowledge: industry, tourism, hydropower, and information technology
  • Assistance with post-investment management and regulatory compliance

Why Invest in Nepal?

For foreign investors, Nepal provides a developing market, a strategic location, and government-friendly legislation.

  • Strategic location between India and China.

  • Expanding prospects in information technology, hydropower, tourism, and manufacturing

  • Special Economic Zones (SEZs) offer incentives and tax breaks.

  • Growing investor confidence (FDI pledges totaled NPR 60.6 billion in FY 2024/25)

  • An opportunity to contribute to sustainable development and employment creation.

foreign-direct-investment

Be part of Nepal’s fast-growing FDI ecosystem. Talk to Milan Today

 

Opportunities and Restrictions for Foreign Investors in Nepal

Nepal welcomes international investment in most industries, however some are prohibited to safeguard national security and natural resources.

Opportunities in Nepal FDI:

  • SEZs with tax holidays, VAT exemptions & fast-track approvals
  • High-potential growth in hydropower, IT, and tourism
  • Support from Investment Board Nepal (IBN) for large projects

Restricted Sectors:

  • Weapons manufacturing
  • Logging and exploitation of natural forests
  • Certain retail trade activities

FDI Growth in Nepal (2025 Insight):

 

FY 2024/25 (first 11 months):

 

  • Total FDI committed: NPR 60.6 billion
  • Projects approved: 717
  • Jobs expected: 17,000+

Don’t miss your chance! Approvals take time, but opportunities are now.

Legal Framework & Authorities for FDI in Nepal

Nepal welcomes foreign investment through clear laws and institutions.

FITTA 2019 (Foreign Investment and Technology Transfer Act) protects investor rights and fosters technology transfer.

  • Industrial Enterprises Act 2020: Governs business operations and industrial ventures.
  • Department of Industry (DOI): Registration & approval body.
  • Nepal Rastra Bank (NRB): Manages equity, foreign loans & profit repatriation.
  • Investment Board Nepal (IBN): Handles large and strategic investments.
  • Nepal Electricity Authority (NEA): Sector approvals in hydropower.

Step-by-Step Nepal FDI Process

Meet Minimum Investment Requirement

Minimum capital: NPR 20 million (~USD 150,000)

Example: Software company → NPR 20M, Hydropower → depends on project

Choose Investment Route

Automatic Route – Fast approvals for sectors like IT, tourism, certain manufacturing (processed within 7 days)

Approval Route – For sensitive sectors such as hydropower, telecom, large-scale manufacturing, requiring DOI review

Submit Documents to DOI

Business plan, incorporation documents, equity/loan agreements, technology transfer contracts

Obtain NRB Approval

Foreign loans, equity transfers, repatriation of profits

Sector-Specific Clearances

Some sectors require additional approvals (e.g., NEA for hydropower, Nepal Telecommunications Authority for telecom)

Average approval timeline: 30–60 days with complete documents.

Filing Requirements for Foreign Investors in Nepal

Various investment types have various paperwork needs.

Foreign Equity Investment (New Industries)

Incorporation documents, board resolutions, external auditor certification, DOI + NRB approvals

Share Transfer in Existing Industries

DOI approval, share transfer documentation, compliance checks

Technology Transfer in Existing Industries

Technology transfer agreements, licensing contracts,DOI notifications .

Loan Investment in Existing Industries

NRB approval, loan agreements, repayment terms, reporting

Automatic vs. Approval Route in Nepal FDI

Investment Routes in Nepal
Feature Automatic Route Approval Route
Eligible Sectors IT, tourism, light manufacturing Hydropower, telecom, large projects
Investment Limit Up to NPR 500M (~USD 3.8M) No limit
Approval Timeline ~7 days 30–60 days
Application Online (DOI portal) Detailed filing with clearances
Best For Quick entry, startups Large strategic industries

Case Study

expert-icon1
IT Startup Success (Automatic Route)

NPR 20M investment approved online in 7 days.
Enabled foreign IT company to hire local staff swiftly.  

hydro
Hydropower Investment (Approval Route)

Upper Marsyangdi A Hydroelectric Station (50 MW)

Financing mix: 75% loan, 25% equity.
 
 

Special Economic Zone (SZE) in Nepal

A Special Economic Zone (SEZ) is a defined area where firms can receive economic and regulatory benefits to encourage investment, trade, and exports. In Nepal, SEZs simplify procedures, provide tax breaks, and support infrastructure, lowering operational costs and administrative barriers.

Benefits of Investing in SEZs in Nepal

Investing in SEZs in Nepal has several strategic benefits:

  • Tax Holidays & VAT Exemptions: Enjoy reduced or zero taxes for a specific period of time, including VAT exemptions on raw materials and imported items.

  • Simplified Approval Processes: SEZs provide faster and smoother approvals, helping you start your business without unnecessary delays.

  • Infrastructure Support for Export: Focused Industries: Access ready-to-use infrastructure, including roads, electricity, water, and logistics support, making operations easier for export-oriented businesses.

  • Easier Repatriation of Profits: SEZs facilitate the legal transfer of profits abroad, making it simple to manage your international investments.

Current SEZs Status in Nepal

Industrial Estates in Nepal
Location Operational Status Permitted Industries Active Industries Challenges
Bhairahawa Partially operational 49 7 Infrastructure issues, export hurdles
Simara Partially operational 25 2 Slow development

Although they are not yet at full capacity, the Bhairahawa and Simara SEZs are both partially operational. 


Explore SEZ Investment Opportunities in Nepal – Get Expert Guidance Now!

Regulatory Compliance After Approval

Labor Laws

20% employer + 11% employee contribution to social security.

Business Visas & Work Permits

Mandatory for foreign staff

Taxation

Corporate Tax 25%, VAT 13%, withholding taxes apply.

Repatriation of Profits

Permitted under NRB after annual filings.

Company Closure

Requires DOI filings, tax clearance & debt settlement.

About Milan Khatiwada – FDI Consultant in Nepal

Business Consultant in Nepal

I am a business consultant specializing in FDI Services in Nepal with:

  • 10+ years of experience
  • 100+ investors successfully advised
  • Recognized advisor in top investment forums

I personally make sure your investment path is seamless and compliant, from planning to approvals and post-investment monitoring.

Why investors trust me:

  • Faster approvals with accurate documentation
  • Reduced legal & financial risks
  • Personal involvement in every client project
  • Transparent process, no hidden fees

How do I Help Investors?

FDI Feasibility Assessment
I analyze market opportunities and investment potential so you can make informed, confident decisions.
Documentation & Approval Assistance
I handle all filings, whether equity, loans, or technology transfer FDI, ensuring timely approvals without unnecessary delays.
Liaison with Authorities
I coordinate with DOI, NRB, and IBN to streamline approvals and sector-specific clearances.
Investment Structure Planning
Whether you want a subsidiary, branch, or liaison office, I guide you on the best structure for efficiency and compliance.
Regulatory & Legal Guidance
I ensure your compliance with FITTA 2019, the Industrial Enterprises Act 2020, tax laws, and labor regulations.
Post-Investment Support
From managing foreign loans and repatriation to company closure, I ensure your operations run smoothly at every stage.

How Can I Help you with FDI Services in Nepal?

Working with me means having a partner who cares about your success.

  • Clear Regulatory Guidance: Practical advice on Nepal’s FDI laws, approvals, and NRB requirements.
  • Strategic Risk Management: Insights to protect your investment and avoid common pitfalls.
  •  Proven Track Record: Over 10 years advising investors across hydropower, tourism, IT, and manufacturing.
  • Transparent Process: No hidden fees—just clear, honest guidance.
  • Hands-On Support: I’m personally involved in your documentation, approvals, and post-investment compliance.

How I Simplify the FDI Process?

Step-by-Step Guidance: From initial consultation to approvals and ongoing compliance, I guide you through every stage. Tailored Investment Solutions: Strategies designed for your sector, investment type, and business goals. Local Expertise: My team and I provide hands-on support with approvals, documentation, and government liaison, making entry into Nepal’s market seamless.

With my support, investing in Nepal is not just secure, it’s strategic. I make sure your investment is positioned for growth, compliance, and long-term success.

FAQs

My FDI service covers feasibility studies, investment structure planning, end-to-end documentation and application filing, liaison with government authorities (DOI, NRB, IBN), regulatory compliance guidance, and ongoing post-investment support such as foreign loan approvals and repatriation.

We assist by preparing all required documents including business plans, equity or loan agreements, technology transfer agreements, and submit applications to authority bodies. We ensure timely follow-ups and compliance with FITTA 2019, Industrial Enterprises Act 2020, and sector-specific requirements.

Foreign investment is open in most sectors, including hydropower, tourism, IT, manufacturing, and services. Restricted sectors include arms manufacturing, logging, certain agricultural activities, and retail trade beyond defined thresholds. The government periodically updates this list.

The process involves meeting minimum capital requirements, submitting detailed applications to the Department of Industry, securing approval from Nepal Rastra Bank for foreign equity or loan investments, and obtaining sector-specific licenses if applicable. Approval time normally ranges from 30 to 60 days.

Usually 30–60 days. Automatic Route approvals in IT/tourism can take just 7 days.

Yes, we guide investors in fulfilling labor laws, tax compliance, social security contributions, foreign loan approvals, repatriation policies, visa and work permit processes, and company closure procedures if needed.

Key documents include a detailed project report/business plan, foreign investor’s corporate documents, board resolutions, equity share agreements, loan agreements (if applicable), technology transfer contracts, and statutory filing forms as per DOI and NRB requirements.

We facilitate loan approvals through NRB, guide transfers of investment returns abroad within legal frameworks, and ensure all remittances comply with Nepal’s foreign exchange regulations and repatriation rules.

Arms manufacturing, forest logging, certain agricultural & retail trades are restricted sectors for FDI.

The minimum investment requirement for FDI in Nepal is NPR 20 million (~USD 150,000).

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