Service
FDI process in Nepal
Foreign investment in Nepal fails on sequence more often than on paperwork. Approvals must happen in a set order, and money that arrives before the right approval is difficult to regularise. This is what the route actually looks like.
Who this is for
- Foreign companies setting up a Nepali subsidiary
- Non-resident Nepalis investing into a Nepali business
- Existing Nepali companies taking on a foreign shareholder
- Investors who have been quoted a timeline that sounds too short
What it includes
Sector and eligibility check
Whether your sector is open to foreign investment, and whether it sits on the negative list, before anything is spent.
Department of Industry approval
The foreign investment application, project report and supporting documents, filed and followed up.
Company incorporation
OCR registration with the approved foreign shareholding, then PAN and VAT.
NRB approval and inward remittance
Nepal Rastra Bank recording of the investment, so the capital is documented from the day it arrives.
Visa and work permit support
Business visa and work permit for foreign directors and staff.
Repatriation planning
The documentation needed to send dividends, and the withholding that applies when you do.
How it works
- 01
Check the sector
The negative list decides whether the investment is possible at all. Check this first, not third.
- 02
Approve the investment
Department of Industry approval for the amount and the shareholding.
- 03
Register and record
Company incorporation, tax registration, then NRB recording of the inward remittance.
- 04
Operate and repatriate
Ongoing compliance, and the evidence trail that makes dividend repatriation straightforward later.
Questions people ask
- What is the minimum FDI limit in Nepal?
- A minimum foreign investment threshold applies per investor, set by government notice and revised from time to time. Because it changes, confirm the current figure before planning the structure — and note that the threshold is per foreign investor, not per company.
- How long does the FDI process take in Nepal?
- Realistically two to four months from application to being operational, depending on the sector and how complete the initial filing is. The Department of Industry approval and the NRB recording are the two steps that set the pace.
- Can I repatriate dividends from Nepal?
- Yes, where the investment was recorded with Nepal Rastra Bank at the time it came in. That recording is what makes repatriation possible, which is why the sequence matters more than the paperwork. Dividend carries withholding tax on payment.
- Can a foreigner own 100% of a Nepali company?
- In many sectors, yes. Some sectors are restricted or closed under the negative list, and a few require local participation. The sector check is the first thing to do.
- Do I need to be in Nepal for the process?
- Not for most of it. Much can be handled under a power of attorney, though banking and some registrations are simpler in person.