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