Frequently Asked Questions

Foreign Direct Investment refers to an investment made by an individual or entity from one country into business interests located in another country. This typically involves establishing business operations or acquiring business assets in the foreign country, such as ownership or controlling interest in a foreign company.

To invest in Nepal, foreign investors must comply with several key requirements: Obtain approval from the Department of Industry or the Investment Board of Nepal, depending on the investment size Register the company with the Office of the Company Registrar Obtain necessary licenses and permits specific to the sector of investment Meet minimum capital requirements as stipulated by Nepalese law Comply with foreign exchange regulations set by the Nepal Rastra Bank

Primary agro-production: Poultry farming Fisheries Bee-keeping Fruit and vegetable cultivation Oil seed and pulse seed production Milk industry Other related sectors
Small-scale enterprises: Cottage industries Small industries Personal service businesses: Hair cutting Tailoring Driving services Restricted industries: Manufacturing of arms, ammunition, bullets, shells, gunpowder, and explosives Production of nuclear, biological, and chemical (NBC) weapons Atomic energy and radioactive materials industries Regulated business sectors: Real estate (excluding construction industries) Retail business Internal courier services Local catering services Money changing services Remittance services Tourism-related services: Travel agencies Tourism guides Trekking and mountaineering guides Rural tourism, including homestays Media and entertainment: Mass communication media (newspapers, radio, television, and online news) Motion picture production in national languages Professional and educational services: Management consultancy Accounting services Engineering consultancy Legal consultancy Language training Music training Computer training Consultancy services with foreign investment exceeding 51%

Investing in Nepal offers several potential benefits: Strategic geographic location between India and China Relatively low labor costs Rich natural resources, particularly in hydropower and tourism sectors Various tax incentives and exemptions for foreign investors Improving infrastructure and business environment Access to preferential trade agreements with neighboring countries

The time required to inject Foreign Direct Investment (FDI) into Nepal can vary depending on several factors. Factors that can influence the timeline include: The size and nature of the investment The sector of investment Completeness and accuracy of submitted documents Current workload of relevant government agencies Any unforeseen regulatory or administrative challenges