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FDI Advisory Nepal

Foreign Direct Investment in Nepal

Invest in Nepal with advocate-led support for FDI approval, company registration, joint venture documentation, DOI/IBN coordination, PAN/VAT guidance, industry registration, and foreign investment compliance.

FDI approval and foreign investment legal advisory
Department of Industry and Investment Board process guidance
Company registration, tax registration and industry registration support
JVA, SPA, technology transfer and shareholder documentation
Repatriation, foreign investor visa and compliance guidance

AEO/AIO Quick Answer

Quick Answer / Summary

Foreign direct investment in Nepal is the process by which a foreign individual, company, NRN, or foreign entity invests capital, technology, or another approved investment into a Nepal-based industry or company. Most FDI cases require foreign investment approval, company incorporation, tax registration, industry registration, and compliance with Nepalese foreign exchange, tax, and sector-specific laws.

In Nepal, foreign investment is mainly governed by the Foreign Investment and Technology Transfer Act, 2019 (FITTA), the Industrial Enterprises Act, 2020, and related rules, notices, and sectoral laws.

Wakil Nepal assists foreign investors and Nepali business partners with FDI structuring, approval documentation, company registration, JVA and SPA drafting, technology transfer agreements, tax and industry registration guidance, and post-investment compliance.

Key Service Highlights

FDI eligibility review

We review whether the proposed sector is open for foreign investment, restricted, capped, or subject to special approval.

Investment structure

We help structure equity investment, joint venture, share purchase, technology transfer, branch/project office, or another legally suitable model.

FDI approval documentation

We assist with project report, investor documents, financial credibility certificate, authority letters, and other approval documents.

Company and industry registration

We coordinate legal steps after approval, including company incorporation, tax registration, and industry registration.

Agreement drafting

We draft and review joint venture agreements, share purchase agreements, shareholder agreements, and technology transfer agreements.

Repatriation and compliance

We guide investors on banking channel, tax clearance, NRB/authorized bank requirements, and repatriation compliance.

Who This Service Is For

Foreign individuals planning to invest in Nepal.
Foreign companies planning to establish a subsidiary, branch, project office, or joint venture in Nepal.
Non-Resident Nepalis seeking a lawful investment structure in Nepal.
Nepali companies receiving foreign equity, loan, technology transfer, or share purchase investment.
Startups and IT companies exploring foreign shareholders or overseas investment.
Hydropower, infrastructure, tourism, manufacturing, service, and technology investors.
Foreign investors who need FDI approval, company registration, and repatriation guidance.

Types of Foreign Direct Investment in Nepal

FDI can be structured in different ways depending on the project, investor, sector, and business objective. The final structure should be selected only after reviewing sector eligibility, investment amount, shareholder plan, taxation, and regulatory approvals.

FDI TypeMeaningCommon Legal Documents
New company / greenfield investmentA foreign investor establishes a new company or industry in Nepal.FDI approval application, project report, MoA/AoA, shareholder documents.
Joint venture investmentForeign and Nepali parties invest together in a Nepal-based company or project.Joint Venture Agreement, Shareholders Agreement, MoA/AoA, board approvals.
Share purchase / acquisition FDIA foreign investor acquires shares in an existing Nepali company.Share Purchase Agreement, due diligence report, FDI approval, board/shareholder approvals.
Technology transferA foreign party provides technology, trademark, technical know-how, management service, or royalty arrangement.Technology Transfer Agreement, royalty/fee structure, tax and foreign exchange compliance.
Branch or project presenceA foreign company operates in Nepal through a permitted branch/project structure.Parent company documents, authority letter, project contract, OCR/sector approvals.
ReinvestmentA foreign-invested company reinvests profit or expands capital/project scope in Nepal.Board resolution, regulatory approval/recording, tax and banking documents.

Foreign Direct Investment Process in Nepal

  1. 1

    Initial legal consultation

    We understand the investor, sector, proposed business activity, investment amount, shareholding, technology transfer, local partner requirement, and timeline.

  2. 2

    Sector eligibility and restriction check

    We check whether the business is open for foreign investment, restricted, ownership-capped, or requires sectoral approval.

  3. 3

    Investment structure planning

    We recommend a route such as private limited company, joint venture, share acquisition, technology transfer, or branch/project structure.

  4. 4

    Document preparation

    We prepare and review project report, JVA/SPA/shareholder documents, investor profile, passport/company documents, financial credibility certificate, and authority letters.

  5. 5

    FDI approval application

    The application is submitted to the relevant authority, generally DOI or IBN depending on project nature, amount, and sector.

  6. 6

    Company incorporation

    After FDI approval or according to the applicable route, the Nepal company is incorporated through the Office of Company Registrar.

  7. 7

    Tax and industry registration

    The company completes PAN/VAT registration where applicable and industry registration with the relevant authority.

  8. 8

    Investment inflow and banking compliance

    Foreign investment is brought through proper banking channels in convertible foreign currency or another approved form.

  9. 9

    Post-approval compliance

    We guide reporting, tax, audit, share records, board decisions, repatriation, visa recommendation, and future amendment approvals.

Documents Required for FDI Approval in Nepal

The exact document list depends on investor type, proposed sector, investment amount, and structure. Wakil Nepal confirms the final checklist after reviewing the project and approval route.

Applicant / SituationCommon Documents
Foreign individual investorPassport copy, bio-data/profile, address/contact details, financial credibility certificate from home/domiciled country bank, and authority letter if represented.
Foreign corporate investorCertificate of incorporation, memorandum/articles or constitutional documents, company profile, board resolution/authority letter, financial credibility certificate, and authorized signatory documents.
Nepali local partnerCitizenship certificate if individual; company registration certificate, MoA/AoA, and board decision if company.
Joint venture caseJoint Venture Agreement, shareholding plan, board/shareholder approvals, and project report.
Share purchase/acquisition caseShare Purchase Agreement, due diligence documents, company records, valuation/share details, and regulatory approval documents.
Technology transfer caseTechnology Transfer Agreement, royalty/fee terms, IP/technical documents, tax and foreign exchange documentation.
Company/industry registrationMoA, AoA, company application, PAN/VAT documents, industry registration application, lease/address documents, and sectoral approvals where required.

Cost and Government Fee Explanation

The cost of FDI approval in Nepal depends on the investment structure, sector, documents required, whether the investor is an individual or company, whether JVA/SPA/technology transfer documents are needed, company registration fees, tax/industry registration, and professional legal support.

Government fees and deposits should be checked from the latest DOI/OCR/IBN notices before filing. For transparent client communication, cost should be broken into clear components rather than presented as one vague price.

Cost ComponentWhat It Covers
Legal consultation and eligibility reviewSector check, restricted list review, foreign ownership cap review, and route selection.
Document drafting feeProject report review, JVA, SPA, shareholder agreement, authority letters, MoA/AoA, and application documents.
Government filing fees/depositsFDI approval filing, company registration, industry registration, and other applicable deposits/fees. DOI currently mentions a refundable amount of Rs. 20,000 after FDI approval on its foreign investment information page.
Company/tax/industry registrationOCR incorporation, PAN/VAT registration where applicable, and industry registration.
Sectoral approvalsAdditional approvals for regulated sectors such as hydropower, aviation, telecom, banking/financial services, tourism, or large infrastructure.
Post-investment complianceShare records, board resolutions, tax compliance, audit, repatriation support, and visa recommendation guidance.

Timeline

A standard FDI advisory timeline depends heavily on sector, document readiness, and authority review. Do not rely on a fixed completion date; timelines depend on sector eligibility, authority workload, route, and investor responsiveness.

StageEstimated Timeline
Initial consultation and eligibility review1-3 working days after receiving project details.
Document collection and drafting3-10 working days depending on investor documents and agreements.
FDI approval applicationVaries by authority, sector, and automatic/regular approval route.
Company incorporation and tax registrationUsually after approval/route confirmation and complete documents.
Industry registration and post-approval stepsDepends on industry type, location, environmental requirements, and sectoral requirements.

Post-Registration Requirements

PAN registration and VAT registration where applicable.
Industry registration and local ward/municipal registration where required.
Bank account opening and foreign investment inflow through proper banking channel.
Share register, board minutes, shareholder records, and company filings.
Annual audit, tax filing, and compliance calendar.
Sectoral license and environmental compliance where applicable.
Visa recommendation and work permit/residency support for foreign investor or expatriate where applicable.
Repatriation planning for dividends, sale proceeds, royalty, or technology transfer fees.

Foreign Investor Note

Foreign investors should not transfer funds, sign final share purchase terms, lease premises, start operations, or promise local partners before confirming sector eligibility, minimum investment requirement, ownership cap, tax impact, repatriation route, and whether additional approvals are required.

Nepal allows many sectors to receive foreign investment, but some sectors are restricted or capped. Always verify the latest official negative list, ownership caps, and approval requirements before filing.

Book an FDI consultation

Common Mistakes to Avoid

Assuming all sectors allow 100% foreign ownership without checking the negative list or ownership caps.
Confusing company registration with FDI approval. These are related but not the same step.
Using copied JVA or shareholder agreements without Nepal law compliance.
Sending investment money before approval, banking route confirmation, or proper documentation.
Ignoring tax, VAT, industry registration, and local ward registration after incorporation.
Not checking whether a sectoral license is needed before operation.
Choosing a vague company objective that later causes licensing or tax issues.
Failing to plan profit repatriation, dividend distribution, share transfer, and exit rights at the beginning.
Not documenting technology transfer, royalty, or management service arrangements properly.
Relying on outdated FDI thresholds, fees, or restricted-sector lists.

Why Choose Wakil Nepal

Advocate-led FDI legal advisory in Nepal.
Support from investment structure planning to post-registration compliance.
JVA, SPA, shareholder agreement, and technology transfer agreement drafting.
Coordination guidance for DOI, IBN, OCR, NRB, Inland Revenue, and related authorities.
Practical explanation of restricted sectors, ownership caps, documents, timelines, and compliance risks.
Service support for foreign individuals, foreign companies, NRNs, and Nepali partner companies.

Related Services

Company Registration

Incorporate a private limited, public limited, or branch company in Nepal. Our advocates manage name reservation, MoA/AoA drafting, OCR filing, and PAN registration end to end.

Contract Drafting & Review

Protect your business interests with clearly drafted, legally enforceable contracts under Nepali law. We draft, review, and negotiate all commercial agreements from incorporation documents to complex joint venture agreements.

Tax Advisory

Clear, practical tax advice for businesses and individuals in Nepal. We advise on income tax, VAT, TDS, tax incentives, and compliance with the Inland Revenue Department — reducing your tax burden within the law.

Trademark Registration

Protect your brand in Nepal with a registered trademark. We conduct clearance searches, prepare and file applications with the Department of Industry, and manage your mark through examination, publication, and registration.

Labour & Employment Law

Resolve workplace disputes, termination claims, and labour compliance issues under Nepal's Labour Act 2017. We represent employers and employees before the Labour Office, Labour Court, and appellate bodies.

Visa & Immigration

Navigate Nepal's visa and immigration system with expert guidance. We advise on business visas, residential permits, non-tourist visa extensions, and immigration compliance for foreign nationals living and working in Nepal.

Property Registration & Transfer

Secure your property ownership in Nepal with professionally managed title verification and registration. We handle title searches, sale deed drafting, Land Revenue Office registration, and encumbrance clearance for all property transactions.

FAQs

FDI in Nepal means foreign direct investment made by a foreign individual, company, NRN, or entity into an approved Nepal-based industry or company through equity, share purchase, technology transfer, or another legally permitted investment structure.

Author / Reviewed By

Author

Wakil Nepal Legal Content Team

Reviewed by

Advocate / Corporate Law Advisor, Genuine Law Associate and Research Center Pvt. Ltd.

Final publishing should be reviewed by a licensed advocate because foreign investment rules, thresholds, approvals, and sectoral restrictions may change.

Last Updated Date

Last updated: July 2026

Review every 3 months or immediately after any notice from DOI, MoICS, IBN, NRB, OCR, or Inland Revenue Department affecting foreign investment, automatic route, minimum threshold, negative list, repatriation, or tax requirements.

Final CTA

Planning foreign direct investment in Nepal?

Wakil Nepal can help you check sector eligibility, prepare FDI approval documents, draft JVA/SPA/shareholder agreements, register your company, complete tax/industry registration, and plan repatriation compliance.

Need help with FDI approval in Nepal?

Speak with Wakil Nepal before filing so your approval route, ownership structure, and documents are aligned from the beginning.