Foreign investors in Nepal deal with several authorities in a set order: investment approval, company registration, foreign exchange recording with Nepal Rastra Bank, and sector licences. A step taken out of sequence can delay the project by months or, worse, leave capital that cannot later be repatriated.
We guide investors, joint-venture partners and multinational groups through that sequence. We advise on entry structure and eligibility under the Foreign Investment and Technology Transfer Act, prepare and follow up approval applications, incorporate the local entity or register a branch, record the inflow with Nepal Rastra Bank, and draft the joint-venture and technology transfer agreements that govern the relationship. Afterwards, we keep the investment compliant so that dividends, sale proceeds and royalties can leave the country lawfully.
The statutes that govern this area, and what each one means for your matter.
The primary law on foreign direct investment and technology transfer: which sectors are open, how approval is obtained from the Department of Industry or the Investment Board Nepal, and the investor's right to repatriate returns.
Requires foreign exchange inflows and outflows to be handled through Nepal Rastra Bank's regulatory framework, which is what makes later repatriation possible.
Governs larger and strategic investments handled through the Investment Board Nepal, including public-private partnership projects.
Applies to incorporating a Nepali subsidiary or registering the branch or liaison office of a foreign company with the OCR.
Registration and incentives for the industry through which the investment will operate.
Assess eligibility
We confirm the sector is open to foreign investment, the permitted ownership and the approving authority before any money moves.
Choose the structure
Subsidiary, joint venture or branch, compared for control, tax, liability and exit.
Obtain approvals
Investment approval applications prepared, filed and followed up, then company or branch registration.
Bring in the capital
Inflows recorded with Nepal Rastra Bank in the correct form so that repatriation rights are preserved.
Stay compliant
Ongoing filings, reporting and approvals for share transfers, reinvestment, dividends and exit.
What is at stake
Investment made outside the approved channels can leave capital trapped, block dividend and exit payments, and expose the local company and its officers to regulatory and foreign exchange penalties. Getting the sequence right at the start protects the entire investment.
Which authority approves foreign investment?
Depending on the size and nature of the project, approval is given by the Department of Industry or the Investment Board Nepal under the Foreign Investment and Technology Transfer Act, 2075. Sector regulators may also need to grant licences.
Can profits and sale proceeds be taken out of Nepal?
Yes, the law gives approved foreign investors the right to repatriate returns, provided the original investment was approved and recorded correctly and taxes have been paid.
Are any sectors closed to foreign investment?
Yes. The law keeps a list of sectors where foreign investment is not permitted, and the list changes over time. We check the current position before you commit.
General legal information for public awareness, not legal advice for your specific situation. Consult an advocate →
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